Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
Document Entity Information | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
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 | ' | 850,512,610 |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Assets | ' | ' | ||
Cash and due from banks | $3,153 | [1] | $3,178 | [1] |
Available-for-sale and other securities | 20,749 | [2] | 18,597 | [2] |
Held-to-maturity securities | 195 | [3] | 208 | [3] |
Trading securities | 347 | 343 | ||
Other short-term investments | 2,202 | [1] | 5,116 | [1] |
Loans held for sale | 780 | [4] | 944 | [4] |
Portfolio loans and leases: | ' | ' | ||
Commercial and industrial loans | 40,591 | 39,316 | ||
Commercial mortgage loans | 7,958 | [1] | 8,066 | [1] |
Commercial construction loans | 1,218 | 1,039 | ||
Commercial leases | 3,577 | 3,625 | ||
Residential mortgage loans | 12,626 | [5] | 12,680 | [5] |
Home equity | 9,125 | 9,246 | ||
Automobile loans | 12,088 | [1] | 11,984 | [1] |
Credit card | 2,177 | 2,294 | ||
Other consumer loans and leases | 345 | 364 | ||
Portfolio loans and leases | 89,705 | 88,614 | ||
Allowance for loan and lease losses | -1,483 | [1] | -1,582 | [1] |
Portfolio loans and leases, net | 88,222 | 87,032 | ||
Bank premises and equipment | 2,528 | 2,531 | ||
Operating lease equipment | 714 | 730 | ||
Goodwill | 2,416 | 2,416 | ||
Intangible assets | 18 | 19 | ||
Servicing rights | 975 | 971 | ||
Other assets | 7,355 | [1] | 8,358 | [1] |
Total Assets | 129,654 | 130,443 | ||
Liabilities | ' | ' | ||
Demand | 31,234 | 32,634 | ||
Interest checking | 25,472 | 25,875 | ||
Savings | 16,867 | 17,045 | ||
Money market | 13,208 | 11,644 | ||
Other time | 3,660 | 3,530 | ||
Certificates - $100,000 and over | 4,511 | 6,571 | ||
Foreign office and other | 1,922 | 1,976 | ||
Total deposits | 96,874 | 99,275 | ||
Federal funds purchased | 268 | 284 | ||
Other short-term borrowings | 2,717 | 1,380 | ||
Accrued taxes, interest and expenses | 1,669 | 1,758 | ||
Other liabilities | 2,029 | [1] | 3,487 | [1] |
Long-term debt | 11,233 | [1] | 9,633 | [1] |
Total liabilities | 114,790 | 115,817 | ||
Equity | ' | ' | ||
Common stock | 2,051 | [6] | 2,051 | [6] |
Preferred stock | 1,034 | [7] | 1,034 | [7] |
Capital surplus | 2,674 | 2,561 | ||
Retained earnings | 10,363 | 10,156 | ||
Accumulated other comprehensive income | 196 | 82 | ||
Treasury stock | -1,492 | [6] | -1,295 | [6] |
Bancorp Shareholders' Equity | 14,826 | 14,589 | ||
Noncontrolling interests | 38 | 37 | ||
Total Equity | 14,864 | 14,626 | ||
Total Liabilities and Equity | $129,654 | $130,443 | ||
[1] | Includes $102 and $49 of cash and due from banks, $7 and $0 of other short-term investments, $48 and $48 of commercial mortgage loans, $2,031 and $1,010 of automobile loans, $(18) and $(15) of ALLL, $23 and $13 of other assets, $3 and $1 of other liabilities, and $2,119 and $1,048 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2014 and December 31, 2013, respectively. See Note 8. | |||
[2] | Amortized cost of $20,393 and $18,409 at March 31, 2014 and December 31, 2013, respectively. | |||
[3] | Fair value of $195 and $208 at March 31, 2014 and December 31, 2013, respectively. | |||
[4] | Includes $649 and $890 of residential mortgage loans held for sale measured at fair value at March 31, 2014 and December 31, 2013, respectively. | |||
[5] | Includes $103 and $92 of residential mortgage loans measured at fair value at March 31, 2014 and December 31, 2013, respectively. | |||
[6] | Common shares: Stated value $2.22 per share; authorized 2,000,000,000; outstanding at March 31, 2014 – 847,568,728 (excludes 76,323,853 treasury shares), December 31, 2013 – 855,305,745 (excludes 68,586,836 treasury shares). | |||
[7] | 458,000 shares of undesignated no par value preferred stock are authorized and unissued at March 31, 2014 and December 31, 2013; fixed-to-floating rate non-cumulative Series H perpetual preferred stock with a $25,000 liquidation preference: 24,000 authorized shares, issued and outstanding at March 31, 2014 and December 31, 2013 and fixed-to-floating rate non-cumulative Series I perpetual preferred stock with a $25,000 liquidation preference; 18,000 authorized shares, issued and outstanding at March 31, 2014 and December 31, 2013. |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, except Share data, unless otherwise specified | ||||
Cash and due from banks | $3,153 | [1] | $3,178 | [1] |
Other Short-term Investments | 2,202 | [1] | 5,116 | [1] |
Commercial mortgage loans | 7,958 | [1] | 8,066 | [1] |
Automobile loans | 12,088 | [1] | 11,984 | [1] |
Allowance for loan and lease losses | -1,483 | [1] | -1,582 | [1] |
Other assets | 7,355 | [1] | 8,358 | [1] |
Other liabilities | 2,029 | [1] | 3,487 | [1] |
Long-term debt | 11,233 | [1] | 9,633 | [1] |
Available-for-sale and other securities, amortized cost | 20,393 | 18,409 | ||
Held-to-maturity securities, fair value | 195 | 208 | ||
Residential mortgage loans held for sale | 649 | 890 | ||
Residential mortgage loans measured at fair value | 103 | 92 | ||
Common stock, stated value | $2.22 | $2.22 | ||
Common stock, authorized | 2,000,000,000 | 2,000,000,000 | ||
Common stock, outstanding | 847,568,728 | 855,305,745 | ||
Common stock, treasury shares | 76,323,853 | 68,586,836 | ||
Variable Interest Entities | ' | ' | ||
Cash and due from banks | 102 | 49 | ||
Other Short-term Investments | 7 | ' | ||
Commercial mortgage loans | 48 | 48 | ||
Automobile loans | 2,031 | 1,010 | ||
Allowance for loan and lease losses | -18 | -15 | ||
Other assets | 23 | 13 | ||
Other liabilities | 3 | 1 | ||
Long-term debt | $2,119 | $1,048 | ||
Preferred Stock | ' | ' | ||
Preferred stock, authorized | 458,000 | 458,000 | ||
Preferred stock Series H | ' | ' | ||
Preferred stock, authorized | 24,000 | 24,000 | ||
Preferred stock, liquidation preference | $25,000 | $25,000 | ||
Preferred stock, issued | 24,000 | 24,000 | ||
Preferred stock, outstanding | 24,000 | 24,000 | ||
Preferred stock Series I | ' | ' | ||
Preferred stock, authorized | 18,000 | 18,000 | ||
Preferred stock, liquidation preference | $25,000 | $25,000 | ||
Preferred stock, issued | 18,000 | 18,000 | ||
Preferred stock, outstanding | 18,000 | 18,000 | ||
[1] | Includes $102 and $49 of cash and due from banks, $7 and $0 of other short-term investments, $48 and $48 of commercial mortgage loans, $2,031 and $1,010 of automobile loans, $(18) and $(15) of ALLL, $23 and $13 of other assets, $3 and $1 of other liabilities, and $2,119 and $1,048 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2014 and December 31, 2013, respectively. See Note 8. |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME Unaudited (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest Income | ' | ' |
Interest and fees on loans and leases | $823 | $882 |
Interest on securities | 168 | 112 |
Interest on other short-term investments | 2 | 1 |
Total interest income | 993 | 995 |
Interest Expense | ' | ' |
Interest on deposits | 48 | 50 |
Interest on other short-term borrowings | 1 | 3 |
Interest on long-term debt | 51 | 54 |
Total interest expense | 100 | 107 |
Net Interest Income | 893 | 888 |
Provision for loan and lease losses | 69 | 62 |
Net Interest Income After Provision for Loan and Lease Losses | 824 | 826 |
Noninterest Income | ' | ' |
Mortgage banking net revenue | 109 | 220 |
Service charges on deposits | 133 | 131 |
Investment advisory revenue | 102 | 100 |
Corporate banking revenue | 104 | 99 |
Card and processing revenue | 68 | 65 |
Other noninterest income | 41 | 109 |
Securities gains, net | 7 | 17 |
Securities gains, net - non-qualifying hedges on mortgage servicing rights | ' | 2 |
Total noninterest income | 564 | 743 |
Noninterest Expense | ' | ' |
Salaries, wages and incentives | 359 | 399 |
Employee benefits | 101 | 114 |
Net occupancy expense | 80 | 79 |
Technology and communications | 53 | 49 |
Card and processing expense | 31 | 31 |
Equipment expense | 30 | 28 |
Other noninterest expense | 296 | 278 |
Total noninterest expense | 950 | 978 |
Income (Loss) Before Income Taxes | 438 | 591 |
Applicable income tax expense | 119 | 179 |
Net Income (Loss) | 319 | 412 |
Less: Net income attributable to noncontrolling interests | 1 | -10 |
Net income attributable to Bancorp | 318 | 422 |
Dividends on preferred stock | 9 | 9 |
Net income (loss) available to common shareholders | $309 | $413 |
Earnings Per Share | $0.36 | $0.47 |
Earnings Per Diluted Share | $0.36 | $0.46 |
Average common shares - basic | 845,860,065 | 870,923,074 |
Average common shares - diluted | 857,923,596 | 913,163,262 |
Cash dividends declared per share | $0.12 | $0.11 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Unaudited (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Other Comprehensive Income | ' | ' |
Net income (loss) | $319 | $412 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ' | ' |
Unrealized holding gains (losses) on available-for-sale securities arising during period | 113 | -36 |
Reclassification adjustment for net gains included in net income | -3 | 5 |
Unrealized holding gains on cash flow hedge derivatives arising during period | 10 | 1 |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | -7 | -14 |
Reclassification of amounts to net periodic benefit costs | 1 | 2 |
Other comprehensive income (loss), Net of Tax | 114 | -42 |
Comprehensive income | 433 | 370 |
Comprehensive income attributable to noncontrolling interests | 1 | -10 |
Comprehensive income attributable to Bancorp | $432 | $380 |
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, 2012 | $13,764 | $2,051 | $398 | $2,758 | $8,768 | $375 | ($634) | $13,716 | $48 |
Net income (loss) | 412 | ' | ' | ' | 422 | ' | ' | 422 | -10 |
Other comprehensive income (loss), Net of Tax | -42 | ' | ' | ' | ' | -42 | ' | -42 | ' |
Cash dividends declared: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock at $0.12 in 2014 and $0.11 in 2013 per share | -96 | ' | ' | ' | -96 | ' | ' | -96 | ' |
Preferred stock | -9 | ' | ' | ' | -9 | ' | ' | -9 | ' |
Shares acquired for treasury | 125 | ' | ' | -10 | ' | ' | 135 | 125 | ' |
Impact of stock transactions under stock compensation plans, net | 17 | ' | ' | 14 | ' | ' | 3 | 17 | ' |
Other | -1 | ' | ' | ' | -1 | ' | ' | -1 | ' |
Ending Balance at Mar. 31, 2013 | 13,920 | 2,051 | 398 | 2,782 | 9,084 | 333 | -766 | 13,882 | 38 |
Beginning Balance at Dec. 31, 2013 | 14,626 | 2,051 | 1,034 | 2,561 | 10,156 | 82 | -1,295 | 14,589 | 37 |
Net income (loss) | 319 | ' | ' | ' | 318 | ' | ' | 318 | 1 |
Other comprehensive income (loss), Net of Tax | 114 | ' | ' | ' | ' | 114 | ' | 114 | ' |
Cash dividends declared: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock at $0.12 in 2014 and $0.11 in 2013 per share | -102 | ' | ' | ' | -102 | ' | ' | -102 | ' |
Preferred stock | -9 | ' | ' | ' | -9 | ' | ' | -9 | ' |
Shares acquired for treasury | 99 | ' | ' | -100 | ' | ' | 199 | 99 | ' |
Impact of stock transactions under stock compensation plans, net | 15 | ' | ' | 13 | ' | ' | 2 | 15 | ' |
Ending Balance at Mar. 31, 2014 | $14,864 | $2,051 | $1,034 | $2,674 | $10,363 | $196 | ($1,492) | $14,826 | $38 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Unaudited (Parenthetical) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Statement of Stockholders' Equity | ' | ' |
Common stock, per share | $0.12 | $0.11 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Operating Activities | ' | ' | |
Net income | $319 | $412 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | |
Provision for loan and lease losses | 69 | 62 | |
Depreciation, amortization and accretion | 98 | 137 | |
Stock-based compensation expense | 17 | 17 | |
Provision for deferred income taxes | 37 | 37 | |
Securities gains, net | -7 | -17 | |
Securities gains - non-qualifying hedges on mortgage servicing rights | ' | -2 | |
(Recovery of) provision for MSR impairment (Mortgage banking net revenue) | -4 | -49 | |
Net gains on sales of loans and fair value adjustments on loans held for sale | -3 | -141 | |
Capitalized servicing rights | -23 | -79 | |
Proceeds from sales of loans held for sale | 1,674 | 7,097 | |
Loans originated for sale, net of repayments | -1,419 | -6,078 | |
Dividends representing return on equity method investments | 1 | 4 | |
Net change in: | ' | ' | |
Trading securities | -4 | -9 | |
Other assets | 432 | -533 | |
Accrued taxes, interest and expenses | -185 | -120 | |
Other liabilities | -662 | 487 | |
Net Cash Provided by (Used in) Operating Activities | 340 | 1,225 | |
Sales: | ' | ' | |
Available-for-sale securities | 2,069 | 2,215 | |
Loans | 36 | 552 | |
Disposal of bank premises and equipment | 2 | 3 | |
Repayments / maturities: | ' | ' | |
Available-for-sale securities | 561 | 910 | |
Held-to-maturity securities | 13 | ' | |
Purchases: | ' | ' | |
Available-for-sale securities | -4,806 | -2,906 | |
Bank premises and equipment | -61 | -61 | |
Proceeds from sale and dividends representing return of equity method investments | 29 | 74 | |
Net change in: | ' | ' | |
Other short-term investments | 2,914 | 135 | |
Loans and leases | -1,388 | -1,208 | |
Operating lease equipment | -1 | -30 | |
Net Cash (Used in) Provided by Investing Activities | -632 | -316 | |
Net change in: | ' | ' | |
Core deposits | -340 | -2 | |
Certificates - $100,000 and over, including foreign office and other | -2,061 | 2,109 | |
Federal funds purchased | -15 | -515 | |
Other short-term borrowings | 1,337 | -3,841 | |
Dividends paid on common shares | -103 | -88 | |
Dividends paid on preferred shares | -9 | ' | |
Proceeds from issuance of long-term debt | 1,745 | 1,300 | |
Repayment of long-term debt | -186 | -2 | |
Shares acquired for treasury | 99 | 125 | |
Other | -2 | ' | |
Net Cash Provided by (Used in) Financing Activities | 267 | -1,164 | |
Increase (Decrease) in Cash and Due from Banks | -25 | -255 | |
Cash and Due from Banks at Beginning of Period | 3,178 | [1] | 2,441 |
Cash and Due from Banks at End of Period | $3,153 | [1] | $2,186 |
[1] | Includes $102 and $49 of cash and due from banks, $7 and $0 of other short-term investments, $48 and $48 of commercial mortgage loans, $2,031 and $1,010 of automobile loans, $(18) and $(15) of ALLL, $23 and $13 of other assets, $3 and $1 of other liabilities, and $2,119 and $1,048 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2014 and December 31, 2013, respectively. See Note 8. |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
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. 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 months ended March 31, 2014 and 2013 and the cash flows and changes in equity for the three months ended March 31, 2014 and 2013 are not necessarily indicative of the results to be expected for the full year. Financial information as of December 31, 2013 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 | 3 Months Ended | |||
Mar. 31, 2014 | ||||
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 three months ended March 31: | ||||
($ in millions) | 2014 | 2013 | ||
Cash payments: | ||||
Interest | $ | 133 | 122 | |
Income taxes | 21 | 34 | ||
Transfers: | ||||
Portfolio loans to loans held for sale | 73 | 590 | ||
Loans held for sale to portfolio loans | 12 | 12 | ||
Portfolio loans to OREO | 37 | 64 | ||
Loans held for sale to OREO | 2 | 3 | ||
Accounting_and_Reporting_Devel
Accounting and Reporting Developments | 3 Months Ended |
Mar. 31, 2014 | |
Accounting and Reporting Developments | ' |
Accounting and Reporting Developments | ' |
3. Accounting and Reporting Developments | |
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 is 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 requires 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 was effective for reporting periods beginning after December 15, 2013 and is 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 adopted the amended guidance on January 1, 2014 and the adoption 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 was effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, with early adoption permitted. The Bancorp adopted the amended guidance on January 1, 2014 and the adoption of the amended guidance did not have a material impact on the Bancorp's Condensed Consolidated Financial Statements. | |
Accounting for Investments in Qualified Affordable Housing Projects | |
In January 2014, the FASB issued amended guidance that permits the Bancorp to make an accounting policy election to account for its investments in qualified affordable housing projects using a proportional amortization method if certain conditions are met. Under the proportional amortization method, the Bancorp would amortize the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognize the net investment performance in the income statement as a component of income tax expense (benefit). The amended guidance requires disclosure of the nature of the Bancorp's investments in qualified affordable housing projects, and the effect of the measurement of the investments in qualified affordable housing projects and the related tax credits on the Bancorp's financial position and results of operation. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014, with early adoption permitted. The Bancorp is currently in the process of evaluating whether it will make a policy election to account for its investments in qualified affordable housing projects using the proportional amortization method if applicable, and if this policy election is made, whether to early adopt the amended guidance. | |
Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure | |
In January 2014, the FASB issued amended guidance that clarifies when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The amended guidance clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. In addition, the amended guidance requires interim and annual disclosures of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amended guidance may be applied prospectively or through a modified retrospective approach and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014, with early adoption permitted. The adoption of the amended guidance is not expected to have a material impact on the Bancorp's Condensed Consolidated Financial Statements. | |
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | |
In April 2014, the FASB issued amended guidance that changes the criteria for reporting discontinued operations. The amended guidance requires a disposal of a component of an entity or a group of components of an entity to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when any of the following occurs: 1) the component of an entity or group of components of an entity meets the criteria to be classified as held for sale; 2) The component of an entity or group of components of an entity is disposed of by sale; or 3) The component of an entity or group of components of an entity is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). The amended guidance requires an entity to present, for each comparative period, the assets and liabilities of a disposal group that includes a discontinued operation separately in the asset and liability sections, respectively, of the statement of financial position, as well as additional disclosures about discontinued operations. The amended guidance is to be applied prospectively for 1) all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years; and 2) all businesses or nonprofit activities that, on acquisition, are classified as held for sale that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued. The adoption of the amended guidance is not expected to have a material impact on the Bancorp's Condensed Consolidated Financial Statements. |
Securities
Securities | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
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 | |||||||||||
March 31, 2014 ($ in millions) | Cost | Gains | Losses | Value | ||||||||||
Available-for-sale and other: | ||||||||||||||
U.S. Treasury and government agencies | $ | 26 | - | - | 26 | |||||||||
U.S. Government sponsored agencies | 1,522 | 113 | - | 1,635 | ||||||||||
Obligations of states and political subdivisions | 186 | 8 | - | 194 | ||||||||||
Agency mortgage-backed securities(a) | 14,029 | 220 | -64 | 14,185 | ||||||||||
Other bonds, notes and debentures | 3,917 | 81 | -7 | 3,991 | ||||||||||
Other securities(b) | 713 | 6 | -1 | 718 | ||||||||||
Total | $ | 20,393 | 428 | -72 | 20,749 | |||||||||
Held-to-maturity: | ||||||||||||||
Obligations of states and political subdivisions | $ | 194 | - | - | 194 | |||||||||
Other debt securities | 1 | - | - | 1 | ||||||||||
Total | $ | 195 | - | - | 195 | |||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||
December 31, 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 | 1,523 | 121 | - | 1,644 | ||||||||||
Obligations of states and political subdivisions | 187 | 5 | - | 192 | ||||||||||
Agency mortgage-backed securities(a) | 12,294 | 140 | -150 | 12,284 | ||||||||||
Other bonds, notes and debentures | 3,514 | 76 | -8 | 3,582 | ||||||||||
Other securities(b) | 865 | 5 | -1 | 869 | ||||||||||
Total | $ | 18,409 | 347 | -159 | 18,597 | |||||||||
Held-to-maturity: | ||||||||||||||
Obligations of states and political subdivisions | $ | 207 | - | - | 207 | |||||||||
Other debt securities | 1 | - | - | 1 | ||||||||||
Total | $ | 208 | - | - | 208 | |||||||||
Includes interest-only mortgage backed securities of $217 and $262 as of March 31, 2014 and December 31, 2013, 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 $249 and $350, respectively, at March 31, 2014 and $402 and $349, respectively, at December 31, 2013, that are carried at cost, and certain mutual fund and equity security holdings. | ||||||||||||||
The following table presents realized gains and losses that were recognized in income from available-for-sale securities: | ||||||||||||||
For the three months | ||||||||||||||
ended March 31, | ||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||
Realized gains | $ | 27 | 18 | |||||||||||
Realized losses | -5 | -25 | ||||||||||||
OTTI | -17 | - | ||||||||||||
Net realized gains (losses)(a) | $ | 5 | -7 | |||||||||||
Excludes net gains on interest-only mortgage-backed securities of $1 and $24 for the three months ended March 31, 2014 and 2013, respectively. | ||||||||||||||
Trading securities totaled $347 million as of March 31, 2014, compared to $343 million at December 31, 2013. Gross realized gains and gross realized losses on trading securities were immaterial to the Bancorp for the three months ended March 31, 2014 and 2013. Net unrealized gains on trading securities were $1 million and $2 million at March 31, 2014 and 2013, respectively. | ||||||||||||||
At March 31, 2014 and December 31, 2013, securities with a fair value of $10.6 billion and $11.6 billion, respectively, were pledged to secure borrowings, public deposits, trust funds, derivative contracts and for other purposes as required or permitted by law. | ||||||||||||||
The expected maturity distribution of the Bancorp’s agency mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale and other and held-to-maturity securities as of March 31, 2014 are shown in the following table: | ||||||||||||||
Available-for-Sale & Other | Held-to-Maturity | |||||||||||||
($ in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||
Debt securities:(a) | ||||||||||||||
Under 1 year | $ | 92 | 95 | 16 | 16 | |||||||||
1-5 years | 3,626 | 3,814 | 160 | 160 | ||||||||||
5-10 years | 12,430 | 12,507 | 17 | 17 | ||||||||||
Over 10 years | 3,532 | 3,615 | 2 | 2 | ||||||||||
Other securities | 713 | 718 | - | - | ||||||||||
Total | $ | 20,393 | 20,749 | 195 | 195 | |||||||||
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 | ||||||||
31-Mar-14 | ||||||||||||||
Agency mortgage-backed securities | 5,323 | -64 | - | - | 5,323 | -64 | ||||||||
Other bonds, notes and debentures | 942 | -5 | 156 | -2 | 1,098 | -7 | ||||||||
Other securities | 33 | -1 | 4 | - | 37 | -1 | ||||||||
Total | $ | 6,298 | -70 | 160 | -2 | 6,458 | -72 | |||||||
31-Dec-13 | ||||||||||||||
Agency mortgage-backed securities | $ | 7,221 | -150 | 1 | - | 7,222 | -150 | |||||||
Other bonds, notes and debentures | 595 | -5 | 132 | -3 | 727 | -8 | ||||||||
Other securities | 33 | -1 | 4 | - | 37 | -1 | ||||||||
Total | $ | 7,849 | -156 | 137 | -3 | 7,986 | -159 | |||||||
Other-Than-Temporary Impairments | ||||||||||||||
The Bancorp recognized $17 million of OTTI, included in securities gains, net, in the Bancorp's Condensed Consolidated Statements of Income, on its available-for sale and other debt securities during the three months ended March 31, 2014 and did not recognize any OTTI on its available-for sale and other debt securities during the three months ended March 31, 2013. The Bancorp did not recognize OTTI on any of its available-for-sale equity securities or its held-to-maturity debt securities during the three months ended March 31, 2014 and 2013. Less than one percent of unrealized losses in the available-for-sale securities portfolio were represented by non-rated securities at March 31, 2014 and December 31, 2013. |
Loans_and_Leases
Loans and Leases | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Loans And Leases | ' | |||||||||||
Loans and Leases | ' | |||||||||||
5. Loans and Leases | ||||||||||||
The Bancorp diversifies its loan and lease portfolio by offering a variety of loan and lease products with various payment terms and rate structures. Lending activities are concentrated within those states in which the Bancorp has banking centers and are primarily located in the Midwestern and Southeastern regions of the United States. The Bancorp's commercial loan portfolio consists of lending to various industry types. Management periodically reviews the performance of its loan and lease products to evaluate whether they are performing within acceptable interest rate and credit risk levels and changes are made to underwriting policies and procedures as needed. The Bancorp maintains an allowance to absorb loan and lease losses inherent in the portfolio. For further information on credit quality and the ALLL, see Note 6. | ||||||||||||
The following table provides a summary of the total loans and leases classified by primary purpose as of: | ||||||||||||
March 31, | December 31, | |||||||||||
($ in millions) | 2014 | 2013 | ||||||||||
Loans and leases held for sale: | ||||||||||||
Commercial and industrial loans | $ | 101 | 31 | |||||||||
Commercial mortgage loans | 1 | 3 | ||||||||||
Commercial construction loans | 2 | 2 | ||||||||||
Commercial leases | - | 1 | ||||||||||
Residential mortgage loans | 649 | 890 | ||||||||||
Other consumer loans and leases | 27 | 17 | ||||||||||
Total loans and leases held for sale | $ | 780 | 944 | |||||||||
Portfolio loans and leases: | ||||||||||||
Commercial and industrial loans | $ | 40,591 | 39,316 | |||||||||
Commercial mortgage loans | 7,958 | 8,066 | ||||||||||
Commercial construction loans | 1,218 | 1,039 | ||||||||||
Commercial leases | 3,577 | 3,625 | ||||||||||
Total commercial loans and leases | 53,344 | 52,046 | ||||||||||
Residential mortgage loans | 12,626 | 12,680 | ||||||||||
Home equity | 9,125 | 9,246 | ||||||||||
Automobile loans | 12,088 | 11,984 | ||||||||||
Credit card | 2,177 | 2,294 | ||||||||||
Other consumer loans and leases | 345 | 364 | ||||||||||
Total consumer loans and leases | 36,361 | 36,568 | ||||||||||
Total portfolio loans and leases | $ | 89,705 | 88,614 | |||||||||
Total portfolio loans and leases are recorded net of unearned income, which totaled $680 million as of March 31, 2014 and $700 million as of December 31, 2013. 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 $125 million and $111 million as of March 31, 2014 and December 31, 2013, respectively. | ||||||||||||
The Bancorp's FHLB and FRB advances are generally secured by loans. The Bancorp had loans of $10.6 billion and $10.9 billion at March 31, 2014 and December 31, 2013, respectively, pledged at the FHLB, and loans of $34.1 billion and $33.5 billion at March 31, 2014 and December 31, 2013, respectively, pledged at the FRB. | ||||||||||||
The following table presents a summary of the total loans and leases owned by the Bancorp as of: | ||||||||||||
90 Days Past Due | ||||||||||||
Balance | and Still Accruing | |||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||
($ in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||
Commercial and industrial loans | $ | 40,692 | 39,347 | $ | 1 | - | ||||||
Commercial mortgage loans | 7,959 | 8,069 | - | - | ||||||||
Commercial construction loans | 1,220 | 1,041 | - | - | ||||||||
Commercial leases | 3,577 | 3,626 | - | - | ||||||||
Residential mortgage loans | 13,275 | 13,570 | 56 | 66 | ||||||||
Home equity | 9,125 | 9,246 | - | - | ||||||||
Automobile loans | 12,088 | 11,984 | 7 | 8 | ||||||||
Credit card | 2,177 | 2,294 | 30 | 29 | ||||||||
Other consumer loans and leases | 372 | 381 | - | - | ||||||||
Total loans and leases | $ | 90,485 | 89,558 | $ | 94 | 103 | ||||||
Less: Loans held for sale | $ | 780 | 944 | |||||||||
Total portfolio loans and leases | $ | 89,705 | 88,614 | |||||||||
The following table presents a summary of net charge-offs: | ||||||||||||
For the three months | ||||||||||||
ended March 31, | ||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||
Commercial and industrial loans | $ | 97 | 25 | |||||||||
Commercial mortgage loans | 3 | 26 | ||||||||||
Commercial construction loans | 5 | 3 | ||||||||||
Residential mortgage loans | 15 | 20 | ||||||||||
Home equity | 16 | 30 | ||||||||||
Automobile loans | 8 | 4 | ||||||||||
Credit card | 19 | 20 | ||||||||||
Other consumer loans and leases | 5 | 5 | ||||||||||
Total | $ | 168 | 133 |
Credit_Quality_and_the_Allowan
Credit Quality and the Allowance for Loan and Lease Losses | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
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 March 31, 2014 | Residential | ||||||||||||||
($ in millions) | Commercial | Mortgage | Consumer | Unallocated | Total | ||||||||||
Transactions in the ALLL: | |||||||||||||||
Balance, beginning of period | $ | 1,058 | 189 | 225 | 110 | 1,582 | |||||||||
Losses charged off | -110 | -19 | -61 | - | -190 | ||||||||||
Recoveries of losses previously charged off | 5 | 4 | 13 | - | 22 | ||||||||||
Provision for loan and lease losses | 28 | 6 | 40 | -5 | 69 | ||||||||||
Balance, end of period | $ | 981 | 180 | 217 | 105 | 1,483 | |||||||||
For the three months ended March 31, 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 | -68 | -22 | -78 | - | -168 | ||||||||||
Recoveries of losses previously charged off | 14 | 2 | 19 | - | 35 | ||||||||||
Provision for loan and lease losses | 9 | 3 | 53 | -3 | 62 | ||||||||||
Balance, end of period | $ | 1,191 | 212 | 272 | 108 | 1,783 | |||||||||
The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: | |||||||||||||||
Residential | |||||||||||||||
As of March 31, 2014 ($ in millions) | Commercial | Mortgage | Consumer | Unallocated | Total | ||||||||||
ALLL:(a) | |||||||||||||||
Individually evaluated for impairment | $ | 182 | (c) | 140 | 51 | - | 373 | ||||||||
Collectively evaluated for impairment | 799 | 40 | 166 | - | 1,005 | ||||||||||
Unallocated | - | - | - | 105 | 105 | ||||||||||
Total ALLL | $ | 981 | 180 | 217 | 105 | 1,483 | |||||||||
Loans and leases:(b) | |||||||||||||||
Individually evaluated for impairment | $ | 1,306 | (c) | 1,310 | 483 | - | 3,099 | ||||||||
Collectively evaluated for impairment | 52,038 | 11,209 | 23,252 | - | 86,499 | ||||||||||
Loans acquired with deteriorated credit quality | - | 4 | - | - | 4 | ||||||||||
Total portfolio loans and leases | $ | 53,344 | 12,523 | 23,735 | - | 89,602 | |||||||||
Includes $8 related to leveraged leases. | |||||||||||||||
Excludes $103 of residential mortgage loans measured at fair value, and includes $878 of leveraged leases, net of unearned income. | |||||||||||||||
Includes five restructured loans at March 31, 2014 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $28 and an allowance of $11. | |||||||||||||||
Residential | |||||||||||||||
As of December 31, 2013 ($ in millions) | Commercial | Mortgage | Consumer | Unallocated | Total | ||||||||||
ALLL:(a) | |||||||||||||||
Individually evaluated for impairment | $ | 186 | (c) | 139 | 53 | - | 378 | ||||||||
Collectively evaluated for impairment | 872 | 50 | 172 | - | 1,094 | ||||||||||
Unallocated | - | - | - | 110 | 110 | ||||||||||
Total ALLL | $ | 1,058 | 189 | 225 | 110 | 1,582 | |||||||||
Loans and leases:(b) | |||||||||||||||
Individually evaluated for impairment | $ | 1,560 | (c) | 1,325 | 496 | - | 3,381 | ||||||||
Collectively evaluated for impairment | 50,486 | 11,259 | 23,392 | - | 85,137 | ||||||||||
Loans acquired with deteriorated credit quality | - | 4 | - | - | 4 | ||||||||||
Total portfolio loans and leases | $ | 52,046 | 12,588 | 23,888 | - | 88,522 | |||||||||
Includes $9 related to leveraged leases. | |||||||||||||||
Excludes $92 of residential mortgage loans measured at fair value, and includes $881 of leveraged leases, net of unearned income. | |||||||||||||||
Includes five restructured loans at December 31, 2013 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $28 and an allowance of $11. | |||||||||||||||
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 March 31, 2014 ($ in millions) | Pass | Mention | Substandard | Doubtful | Total | ||||||||||
Commercial and industrial loans | $ | 38,061 | 1,175 | 1,313 | 42 | 40,591 | |||||||||
Commercial mortgage owner occupied loans | 3,825 | 196 | 375 | 2 | 4,398 | ||||||||||
Commercial mortgage non-owner occupied loans | 2,913 | 242 | 405 | - | 3,560 | ||||||||||
Commercial construction loans | 1,078 | 37 | 103 | - | 1,218 | ||||||||||
Commercial leases | 3,500 | 47 | 30 | - | 3,577 | ||||||||||
Total | $ | 49,377 | 1,697 | 2,226 | 44 | 53,344 | |||||||||
Special | |||||||||||||||
As of December 31, 2013 ($ in millions) | Pass | Mention | Substandard | Doubtful | Total | ||||||||||
Commercial and industrial loans | $ | 36,776 | 1,118 | 1,419 | 3 | 39,316 | |||||||||
Commercial mortgage owner occupied loans | 3,866 | 209 | 415 | 17 | 4,507 | ||||||||||
Commercial mortgage non-owner occupied loans | 2,879 | 248 | 431 | 1 | 3,559 | ||||||||||
Commercial construction loans | 855 | 32 | 152 | - | 1,039 | ||||||||||
Commercial leases | 3,546 | 56 | 23 | - | 3,625 | ||||||||||
Total | $ | 47,922 | 1,663 | 2,440 | 21 | 52,046 | |||||||||
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. Refer to the nonaccrual section of Note 1 in the Bancorp's Form 10-K for the year ended December 31, 2013 for additional delinquency and nonperforming information. | |||||||||||||||
The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments disaggregated into performing versus nonperforming status as of: | |||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||
($ in millions) | Performing | Nonperforming | Performing | Nonperforming | |||||||||||
Residential mortgage loans(a) | $ | 12,382 | 141 | 12,423 | 165 | ||||||||||
Home equity | 9,031 | 94 | 9,153 | 93 | |||||||||||
Automobile loans | 12,087 | 1 | 11,982 | 2 | |||||||||||
Credit card | 2,144 | 33 | 2,261 | 33 | |||||||||||
Other consumer loans and leases | 345 | - | 364 | - | |||||||||||
Total | $ | 35,989 | 269 | 36,183 | 293 | ||||||||||
Excludes $103 and $92 of loans measured at fair value at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||
Age Analysis of Past Due Loans and Leases | |||||||||||||||
The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases by age and class: | |||||||||||||||
Past Due | |||||||||||||||
Current | 90 Days | 90 Days Past | |||||||||||||
As of March 31, 2014 | Loans and | 30-89 | and | Total | Total Loans | Due and Still | |||||||||
($ in millions) | Leases(c) | Days(c) | Greater(c) | Past Due | and Leases | Accruing | |||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 40,402 | 35 | 154 | 189 | 40,591 | 1 | ||||||||
Commercial mortgage owner occupied loans | 4,321 | 10 | 67 | 77 | 4,398 | - | |||||||||
Commercial mortgage non-owner occupied loans | 3,524 | 4 | 32 | 36 | 3,560 | - | |||||||||
Commercial construction loans | 1,199 | 15 | 4 | 19 | 1,218 | - | |||||||||
Commercial leases | 3,573 | 2 | 2 | 4 | 3,577 | - | |||||||||
Residential mortgage loans(a) (b) | 12,255 | 71 | 197 | 268 | 12,523 | 56 | |||||||||
Consumer: | |||||||||||||||
Home equity | 8,947 | 99 | 79 | 178 | 9,125 | - | |||||||||
Automobile loans | 12,037 | 42 | 9 | 51 | 12,088 | 7 | |||||||||
Credit card | 2,111 | 31 | 35 | 66 | 2,177 | 30 | |||||||||
Other consumer loans and leases | 344 | 1 | - | 1 | 345 | - | |||||||||
Total portfolio loans and leases(a) | $ | 88,713 | 310 | 579 | 889 | 89,602 | 94 | ||||||||
Excludes $103 of loans measured at fair value. | |||||||||||||||
Information for current residential mortgage loans includes loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of March 31, 2014, $75 of these loans were 30-89 days past due and $347 were 90 days or more past due. The Bancorp recognized $5 of losses during the three months ended March 31, 2014 due to claim denials and curtailments associated with these loans. | |||||||||||||||
Includes accrual and nonaccrual loans and leases. | |||||||||||||||
Past Due | |||||||||||||||
Current | 90 Days | 90 Days Past | |||||||||||||
As of December 31, 2013 | Loans and | 30-89 | and | Total | Total Loans | Due and Still | |||||||||
($ in millions) | Leases(c) | Days(c) | Greater(c) | Past Due | and Leases | Accruing | |||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 39,118 | 53 | 145 | 198 | 39,316 | - | ||||||||
Commercial mortgage owner occupied loans | 4,423 | 15 | 69 | 84 | 4,507 | - | |||||||||
Commercial mortgage non-owner occupied loans | 3,515 | 9 | 35 | 44 | 3,559 | - | |||||||||
Commercial construction loans | 1,010 | - | 29 | 29 | 1,039 | - | |||||||||
Commercial leases | 3,620 | - | 5 | 5 | 3,625 | - | |||||||||
Residential mortgage loans(a) (b) | 12,284 | 73 | 231 | 304 | 12,588 | 66 | |||||||||
Consumer: | |||||||||||||||
Home equity | 9,058 | 102 | 86 | 188 | 9,246 | - | |||||||||
Automobile loans | 11,919 | 55 | 10 | 65 | 11,984 | 8 | |||||||||
Credit card | 2,225 | 36 | 33 | 69 | 2,294 | 29 | |||||||||
Other consumer loans and leases | 362 | 2 | - | 2 | 364 | - | |||||||||
Total portfolio loans and leases(a) | $ | 87,534 | 345 | 643 | 988 | 88,522 | 103 | ||||||||
Excludes $92 of loans measured at fair value. | |||||||||||||||
Information for current residential mortgage loans includes loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of December 31, 2013, $81 of these loans were 30-89 days past due and $378 were 90 days or more past due. The Bancorp recognized $5 of losses for the year ended December 31, 2013 due to claim denials and curtailments associated with these loans. | |||||||||||||||
Includes accrual and nonaccrual loans and leases. | |||||||||||||||
Impaired Loans and Leases | |||||||||||||||
Larger commercial loans and leases included within aggregate borrower relationship balances exceeding $1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment. The Bancorp also performs an individual review on loans and leases that are restructured in a troubled debt restructuring. The Bancorp considers the current value of collateral, credit quality of any guarantees, the loan structure, and other factors when evaluating whether an individual loan or lease is impaired. Other factors may include the geography and industry of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower, and the Bancorp's evaluation of the borrower's management. Smaller-balance homogenous loans or leases that are collectively evaluated for impairment are not included in the following tables. | |||||||||||||||
The following tables summarize the Bancorp’s impaired loans and leases (by class) that were subject to individual review, which includes all loans and leases restructured in a troubled debt restructuring: | |||||||||||||||
Unpaid | |||||||||||||||
As of March 31, 2014 | Principal | Recorded | |||||||||||||
($ in millions) | Balance | Investment | Allowance | ||||||||||||
With a related allowance recorded: | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 663 | 531 | 140 | |||||||||||
Commercial mortgage owner occupied loans(b) | 85 | 71 | 11 | ||||||||||||
Commercial mortgage non-owner occupied loans | 105 | 82 | 12 | ||||||||||||
Commercial construction loans | 76 | 60 | 5 | ||||||||||||
Commercial leases | 3 | 3 | 3 | ||||||||||||
Restructured residential mortgage loans | 1,074 | 1,044 | 140 | ||||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 366 | 363 | 36 | ||||||||||||
Automobile loans | 22 | 21 | 3 | ||||||||||||
Credit card | 57 | 57 | 12 | ||||||||||||
Total impaired loans and leases with a related allowance | $ | 2,451 | 2,232 | 362 | |||||||||||
With no related allowance recorded: | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 242 | 198 | - | |||||||||||
Commercial mortgage owner occupied loans | 90 | 82 | - | ||||||||||||
Commercial mortgage non-owner occupied loans | 191 | 185 | - | ||||||||||||
Commercial construction loans | 64 | 52 | - | ||||||||||||
Commercial leases | 14 | 14 | - | ||||||||||||
Restructured residential mortgage loans | 300 | 266 | - | ||||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 43 | 39 | - | ||||||||||||
Automobile loans | 3 | 3 | - | ||||||||||||
Total impaired loans and leases with no related allowance | 947 | 839 | - | ||||||||||||
Total impaired loans and leases | $ | 3,398 | 3,071 | (a) | 362 | ||||||||||
Includes $847, $1,237 and $430, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $209, $73 and $53, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. | |||||||||||||||
Excludes five restructured loans at March 31, 2014 associated with a consolidated VIE 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 $28, a recorded investment of $28, and an allowance of $11. | |||||||||||||||
Unpaid | |||||||||||||||
As of December 31, 2013 | Principal | Recorded | |||||||||||||
($ in millions) | Balance | Investment | Allowance | ||||||||||||
With a related allowance recorded: | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 870 | 759 | 145 | |||||||||||
Commercial mortgage owner occupied loans(b) | 85 | 74 | 11 | ||||||||||||
Commercial mortgage non-owner occupied loans | 154 | 134 | 14 | ||||||||||||
Commercial construction loans | 68 | 54 | 5 | ||||||||||||
Commercial leases | 12 | 12 | - | ||||||||||||
Restructured residential mortgage loans | 1,081 | 1,052 | 139 | ||||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 377 | 373 | 39 | ||||||||||||
Automobile loans | 23 | 23 | 3 | ||||||||||||
Credit card | 59 | 58 | 11 | ||||||||||||
Total impaired loans and leases with a related allowance | $ | 2,729 | 2,539 | 367 | |||||||||||
With no related allowance recorded: | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 181 | 177 | - | |||||||||||
Commercial mortgage owner occupied loans | 106 | 98 | - | ||||||||||||
Commercial mortgage non-owner occupied loans | 154 | 147 | - | ||||||||||||
Commercial construction loans | 77 | 63 | - | ||||||||||||
Commercial leases | 14 | 14 | - | ||||||||||||
Restructured residential mortgage loans | 313 | 273 | - | ||||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 43 | 39 | - | ||||||||||||
Automobile loans | 3 | 3 | - | ||||||||||||
Total impaired loans and leases with no related allowance | 891 | 814 | - | ||||||||||||
Total impaired loans and leases | $ | 3,620 | 3,353 | (a) | 367 | ||||||||||
Includes $869, $1,241 and $444, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $228, $84 and $52, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. | |||||||||||||||
Excludes five restructured loans at December 31, 2013 associated with a consolidated VIE 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 $28, a recorded investment of $28, and an allowance of $11. | |||||||||||||||
The following table summarizes the Bancorp’s average impaired loans and leases and interest income by class: | |||||||||||||||
For the three months ended | For the three months ended | ||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||
Average | Interest | Average | Interest | ||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||
($ in millions) | Investment | Recognized | Investment | Recognized | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 832 | 5 | $ | 339 | 2 | |||||||||
Commercial mortgage owner occupied loans(a) | 162 | 1 | 140 | 1 | |||||||||||
Commercial mortgage non-owner occupied loans | 273 | 2 | 341 | 2 | |||||||||||
Commercial construction loans | 114 | - | 110 | 1 | |||||||||||
Commercial leases | 22 | - | 11 | - | |||||||||||
Restructured residential mortgage loans | 1,312 | 13 | 1,306 | 13 | |||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 406 | 5 | 439 | 6 | |||||||||||
Automobile loans | 24 | - | 32 | - | |||||||||||
Credit card | 57 | 1 | 73 | 1 | |||||||||||
Other consumer loans and leases | - | - | 2 | - | |||||||||||
Total impaired loans and leases | $ | 3,202 | 27 | $ | 2,793 | 26 | |||||||||
Excludes five restructured 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 $28 and $30 at March 31, 2014 and 2013, respectively. | |||||||||||||||
Nonperforming Assets | |||||||||||||||
Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain; restructured commercial and credit card loans which have not yet met the requirements to be classified as a performing asset; restructured consumer loans which are 90 days past due based on the restructured terms unless the loan is both well-secured and in the process of collection; and certain other assets, including OREO and other repossessed property. The following table summarizes the Bancorp’s nonperforming loans and leases, by class, as of: | |||||||||||||||
March 31, | December 31, | ||||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 297 | 281 | ||||||||||||
Commercial mortgage owner occupied loans(a) | 87 | 95 | |||||||||||||
Commercial mortgage non-owner occupied loans | 59 | 48 | |||||||||||||
Commercial construction loans | 17 | 29 | |||||||||||||
Commercial leases | 4 | 5 | |||||||||||||
Total commercial loans and leases | 464 | 458 | |||||||||||||
Residential mortgage loans | 141 | 166 | |||||||||||||
Consumer: | |||||||||||||||
Home equity | 94 | 93 | |||||||||||||
Automobile loans | 1 | 1 | |||||||||||||
Credit card | 33 | 33 | |||||||||||||
Total consumer loans and leases | 128 | 127 | |||||||||||||
Total nonperforming loans and leases(b) (c) | $ | 733 | 751 | ||||||||||||
OREO and other repossessed property(d) | 213 | 229 | |||||||||||||
Excludes $21 of restructured nonaccrual loans at both March 31, 2014 and December 31, 2013 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party. | |||||||||||||||
Excludes $3 and $6 of nonaccrual loans held for sale at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||
Includes $9 and $10 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at March 31, 2014 and December 31, 2013, respectively, and $2 of restructured nonaccrual government insured commercial loans at both March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||
Excludes $85 and $77 of OREO related to government insured loans at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||
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, 2013 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 March 31, 2014 and December 31, 2013, the Bancorp had $49 million and $46 million in line of credit commitments and $37 million and $40 million in letter of credit commitments, respectively, to lend additional funds to borrowers whose terms have been modified in a TDR. | |||||||||||||||
The following table provides a summary of loans modified in a TDR by the Bancorp during the three months ended: | |||||||||||||||
Recorded investment | Increase | ||||||||||||||
Number of loans | in loans modified | (Decrease) | Charge-offs | ||||||||||||
modified in a TDR | in a TDR | to ALLL upon | recognized upon | ||||||||||||
March 31, 2014 ($ in millions)(a) | during the period(b) | during the period | modification | modification | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | 22 | $ | 19 | -4 | - | ||||||||||
Commercial mortgage owner occupied loans | 16 | 12 | -1 | - | |||||||||||
Commercial mortgage non-owner occupied loans | 7 | 6 | -1 | - | |||||||||||
Residential mortgage loans | 310 | 45 | 3 | - | |||||||||||
Consumer: | |||||||||||||||
Home equity | 35 | 1 | - | - | |||||||||||
Automobile loans | 116 | 2 | - | - | |||||||||||
Credit card | 1,951 | 12 | 2 | - | |||||||||||
Total portfolio loans and leases | 2,457 | $ | 97 | -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 | ||||||||||||
March 31, 2013 ($ in millions)(a) | during the period(b) | during the period | modification | modification | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | 20 | $ | 9 | 1 | 1 | ||||||||||
Commercial mortgage owner occupied loans(c) | 10 | 4 | -1 | - | |||||||||||
Commercial mortgage non-owner occupied loans | 15 | 17 | -1 | - | |||||||||||
Commercial construction loans | 1 | 6 | -1 | - | |||||||||||
Residential mortgage loans | 394 | 61 | 8 | - | |||||||||||
Consumer: | |||||||||||||||
Home equity | 326 | 17 | - | - | |||||||||||
Automobile loans | 115 | 7 | - | - | |||||||||||
Credit card | 2,312 | 14 | 2 | - | |||||||||||
Total portfolio loans and leases | 3,193 | $ | 135 | 8 | 1 | ||||||||||
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 three months ended March 31, 2013 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party. The TDR had a recorded investment of $29, ALLL increased $7 upon modification, and a charge-off of $2 was recognized upon modification. | |||||||||||||||
The Bancorp considers TDRs that become 90 days or more past due under the modified terms as subsequently defaulted. For commercial loans not subject to individual review for impairment, the historical loss rates that are applied to such commercial loans for purposes of determining the allowance include historical losses associated with subsequent defaults on loans previously modified in a TDR. For consumer loans, the Bancorp performs a qualitative assessment of the adequacy of the consumer ALLL by comparing the consumer ALLL to forecasted consumer losses over the projected loss emergence period (the forecasted losses include the impact of subsequent defaults of consumer TDRs). When a residential mortgage, home equity, auto or other consumer loan that has been modified in a TDR subsequently defaults, the present value of expected cash flows used in the measurement of the potential impairment loss is generally limited to the expected net proceeds from the sale of the loan's underlying collateral and any resulting impairment loss is reflected as a charge-off or an increase in ALLL. When a credit card loan that has been modified in a TDR subsequently defaults, the calculation of the impairment loss is consistent with the Bancorp's calculation for other credit card loans that have become 90 days or more past due. | |||||||||||||||
The following table provides a summary of subsequent defaults of TDRs that occurred during the three months ended March 31, 2014 and 2013 and within 12 months of the restructuring date: | |||||||||||||||
Number of | Recorded | ||||||||||||||
March 31, 2014 ($ in millions)(a) | Contracts | Investment | |||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | 6 | $ | 14 | ||||||||||||
Commercial mortgage owner-occupied loans | 2 | 3 | |||||||||||||
Residential mortgage loans | 41 | 6 | |||||||||||||
Consumer: | |||||||||||||||
Home equity | 10 | - | |||||||||||||
Automobile loans | 2 | - | |||||||||||||
Credit card | 507 | 3 | |||||||||||||
Total portfolio loans and leases | 568 | $ | 26 | ||||||||||||
Number of | Recorded | ||||||||||||||
March 31, 2013 ($ in millions)(a) | Contracts | Investment | |||||||||||||
Residential mortgage loans | 42 | $ | 8 | ||||||||||||
Consumer: | |||||||||||||||
Home equity | 14 | 1 | |||||||||||||
Automobile loans | 3 | - | |||||||||||||
Credit card | 515 | 3 | |||||||||||||
Total portfolio loans and leases | 574 | $ | 12 | ||||||||||||
Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. | |||||||||||||||
Intangible_Assets
Intangible Assets | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Intangible Assets | ' | ||||||||
Intangible Assets | ' | ||||||||
7. Intangible Assets | |||||||||
Intangible assets consist of 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 have an estimated remaining weighted-average life at March 31, 2014 of 4.3 years. | |||||||||
The details of the Bancorp’s intangible assets are shown in the following table: | |||||||||
Gross Carrying | Accumulated | Net Carrying | |||||||
($ in millions) | Amount | Amortization | Amount | ||||||
As of March 31, 2014 | |||||||||
Core deposit intangibles | $ | 122 | -109 | 13 | |||||
Other | 45 | -40 | 5 | ||||||
Total intangible assets | $ | 167 | -149 | 18 | |||||
As of December 31, 2013 | |||||||||
Core deposit intangibles | $ | 154 | -141 | 13 | |||||
Other | 45 | -39 | 6 | ||||||
Total intangible assets | $ | 199 | -180 | 19 | |||||
As of March 31, 2014, all of the Bancorp's intangible assets were being amortized. Amortization expense recognized on intangible assets for the three months ended March 31, 2014 and 2013 was $1 million and $2 million, respectively. | |||||||||
The Bancorp's projections of amortization expense shown below are based on existing asset balances as of March 31, 2014. Future amortization expense may vary from these projections. Estimated amortization expense for the remainder of 2014 through 2018 is as follows: | |||||||||
($ in millions) | Total | ||||||||
Remainder of 2014 | $ | 3 | |||||||
2015 | 2 | ||||||||
2016 | 2 | ||||||||
2017 | 2 | ||||||||
2018 | 2 |
VIE
VIE | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Variable Interest Entities | ' | |||||||
Variable Interest Entities | ' | |||||||
8. 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 | |||||||
March 31, 2014 ($ in millions) | Securitizations | Investments | Total | |||||
Assets: | ||||||||
Cash and due from banks | $ | 102 | - | 102 | ||||
Other short-term investments | 7 | - | 7 | |||||
Commercial mortgage loans | - | 48 | 48 | |||||
Automobile loans(a) | 2,031 | - | 2,031 | |||||
ALLL | -5 | -13 | -18 | |||||
Other assets | 20 | 3 | 23 | |||||
Total assets | 2,155 | 38 | 2,193 | |||||
Liabilities: | ||||||||
Other liabilities | $ | 3 | - | 3 | ||||
Long-term debt | 2,119 | - | 2,119 | |||||
Total liabilities | $ | 2,122 | - | 2,122 | ||||
Noncontrolling interests | - | 38 | 38 | |||||
Automobile Loan | CDC | |||||||
December 31, 2013 ($ in millions) | Securitization | Investments | Total | |||||
Assets: | ||||||||
Cash and due from banks | $ | 49 | - | 49 | ||||
Commercial mortgage loans | - | 48 | 48 | |||||
Automobile loans(a) | 1,010 | - | 1,010 | |||||
ALLL | -2 | -13 | -15 | |||||
Other assets | 11 | 2 | 13 | |||||
Total assets | $ | 1,068 | 37 | 1,105 | ||||
Liabilities | ||||||||
Other liabilities | $ | 1 | - | 1 | ||||
Long-term debt | 1,048 | - | 1,048 | |||||
Total liabilities | $ | 1,049 | - | 1,049 | ||||
Noncontrolling interests | - | 37 | 37 | |||||
Net of $98 and $52 of unamortized fees and discounts at March 31, 2014 and December 31, 2013, respectively. | ||||||||
Automobile Loan Securitizations | ||||||||
In securitizations that occurred in August of 2013 and February of 2014, the Bancorp transferred an aggregate amount of $2.5 billion in fixed-rate consumer automobile loans to bankruptcy remote trusts which were deemed to be VIEs. The primary purposes for which the VIEs were created was to issue asset-backed securities with varying levels of credit subordination and payment priority, as well as residual interests, and to provide the Bancorp with access to liquidity for its originated loans. The Bancorp retained residual interests in the VIEs and, therefore, has an obligation to absorb losses and a right to receive benefits from the VIEs that could potentially be significant to the VIEs. In addition, the Bancorp retained servicing rights for the underlying loans and, therefore, holds the power to direct the activities of the VIEs that most significantly impact the economic performance of the VIEs. As a result, the Bancorp concluded that it is the primary beneficiary of the VIEs and, therefore, has consolidated these VIEs. The assets of the VIEs are restricted to the settlement of the notes and other obligations of the VIEs. Third-party holders of the notes do not have recourse to the general assets of the Bancorp. | ||||||||
The economic performance of the VIEs is most significantly impacted by the performance of the underlying loans. The principal risks to which the VIEs are exposed include credit risk and prepayment risk. The credit and prepayment risks are managed through credit enhancements in the form of reserve accounts, overcollateralization, excess interest on the loans and the subordination of certain classes of asset-backed securities to other classes. | ||||||||
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 March 31, 2014 and December 31, 2013 was $21 million, which is based on an amount required to meet the investor member's defined target rate of return. | ||||||||
Non-consolidated VIEs | ||||||||
The following tables provide a summary of assets and liabilities carried on the Bancorp’s Condensed Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities: | ||||||||
Total | Total | Maximum | ||||||
As of March 31, 2014 ($ in millions) | Assets | Liabilities | Exposure | |||||
CDC investments | $ | 1,418 | 369 | 1,418 | ||||
Private equity investments | 209 | - | 304 | |||||
Loans provided to VIEs | 1,843 | - | 2,807 | |||||
Automobile loan securitization | 3 | - | 3 | |||||
Total | Total | Maximum | ||||||
As of December 31, 2013 ($ in millions) | Assets | Liabilities | Exposure | |||||
CDC investments | $ | 1,436 | 407 | 1,436 | ||||
Private equity investments | 204 | - | 294 | |||||
Loans provided to VIEs | 1,830 | - | 2,792 | |||||
Automobile loan securitization | 4 | - | 4 | |||||
Restructured loans | 1 | - | 1 | |||||
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 the 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 previous tables. Also, as of March 31, 2014 and December 31, 2013, the unfunded commitment amounts to the funds were $95 million and $90 million, respectively. The Bancorp made capital contributions of $7 million and $3 million, respectively, to private equity funds during the three months ended March 31, 2014 and 2013. | ||||||||
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 March 31, 2014 and December 31, 2013, the Bancorp's unfunded commitments to these entities were $964 million and $962 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 and does not currently intend 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 met the definition of a VIE because the Bancorp was involved in their refinancing and because their equity capital was insufficient to fund ongoing operations. The Bancorp accounted 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 was limited to the equity investments, the principal and accrued interest on the outstanding loans, and any unfunded commitments. The Bancorp had outstanding loans to these VIEs, included in commercial loans in the Condensed Consolidated Balance Sheets. The Bancorp had no unfunded loan commitments to these VIEs as of March 31, 2014 and December 31, 2013. 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 | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Sales of Receivables and Servicing Rights | ' | |||||||||||||||||||||||
Sales of Receivables and Servicing Rights | ' | |||||||||||||||||||||||
9. 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 $6 million. | ||||||||||||||||||||||||
Residential Mortgage Loan Sales | ||||||||||||||||||||||||
The Bancorp sold fixed and adjustable rate residential mortgage loans during the three months ended March 31, 2014 and 2013. In those sales, the Bancorp obtained servicing responsibilities and the investors have no recourse to the Bancorp's other assets for failure of debtors to pay when due. The Bancorp receives annual servicing fees based on a percentage of the outstanding balance. The Bancorp identifies classes of servicing assets based on financial asset type and interest rates. | ||||||||||||||||||||||||
Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Condensed Consolidated Statements of Income, is as follows: | ||||||||||||||||||||||||
For the three months | ||||||||||||||||||||||||
ended March 31, | ||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||||||||||
Residential mortgage loan sales | $ | 1,672 | 6,888 | |||||||||||||||||||||
Origination fees and gains on loan sales | 41 | 169 | ||||||||||||||||||||||
Gross mortgage servicing fees | 62 | 61 | ||||||||||||||||||||||
Servicing Rights | ||||||||||||||||||||||||
The following table presents changes in the servicing rights related to residential mortgage and automobile loans for the three months ended March 31: | ||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||||||||||
Carrying amount before valuation allowance as of the beginning of the period | $ | 1,440 | 1,358 | |||||||||||||||||||||
Servicing rights that result from the transfer of residential mortgage loans | 23 | 73 | ||||||||||||||||||||||
Servicing rights that result from the transfer of automobile loans | - | 6 | ||||||||||||||||||||||
Amortization | -23 | -53 | ||||||||||||||||||||||
Carrying amount before valuation allowance | 1,440 | 1,384 | ||||||||||||||||||||||
Valuation allowance for servicing rights: | ||||||||||||||||||||||||
Beginning balance | -469 | -661 | ||||||||||||||||||||||
Recovery of MSR impairment | 4 | 49 | ||||||||||||||||||||||
Ending balance | -465 | -612 | ||||||||||||||||||||||
Carrying amount as of the end of the period | $ | 975 | 772 | |||||||||||||||||||||
The Bancorp's projections of amortization expense shown below are based on existing asset balances as of March 31, 2014. Future amortization expense may vary from these projections. Estimated amortization expense for the remainder of 2014 through 2018 is as follows: | ||||||||||||||||||||||||
($ in millions) | Total | |||||||||||||||||||||||
Remainder of 2014 | $ | 71 | ||||||||||||||||||||||
2015 | 89 | |||||||||||||||||||||||
2016 | 82 | |||||||||||||||||||||||
2017 | 77 | |||||||||||||||||||||||
2018 | 72 | |||||||||||||||||||||||
Temporary impairment or impairment recovery, affected through a change in the MSR valuation allowance, is 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 three months ended March 31: | ||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||||||||||
Fixed rate residential mortgage loans: | ||||||||||||||||||||||||
Beginning balance | $ | 929 | 664 | |||||||||||||||||||||
Ending balance | 935 | 731 | ||||||||||||||||||||||
Adjustable rate residential mortgage loans: | ||||||||||||||||||||||||
Beginning balance | 38 | 33 | ||||||||||||||||||||||
Ending balance | 37 | 35 | ||||||||||||||||||||||
Fixed rate automobile loans: | ||||||||||||||||||||||||
Beginning balance | 4 | - | ||||||||||||||||||||||
Ending balance | 3 | 6 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||||
ended March 31, | ||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||||||||||
Securities gains, net - non-qualifying hedges on MSRs | $ | - | 2 | |||||||||||||||||||||
Changes in fair value and settlement of free-standing derivatives purchased | ||||||||||||||||||||||||
to economically hedge the MSR portfolio (Mortgage banking net revenue) | 24 | -6 | ||||||||||||||||||||||
Recovery of MSR impairment (Mortgage banking net revenue) | 4 | 49 | ||||||||||||||||||||||
As of March 31, 2014 and 2013, 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 were as follows: | ||||||||||||||||||||||||
31-Mar-14 | 31-Mar-13 | |||||||||||||||||||||||
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 | 6.7 | 10.8 | % | 10 | % | N/A | 7.3 | 8.8 | % | 10 | % | N/A | |||||||||||
Servicing assets | Adjustable | 3.7 | 22.5 | 11.7 | N/A | 3.5 | 23.4 | 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 March 31, 2014 and December 31, 2013, the Bancorp serviced $68.9 billion and $69.2 billion, respectively, of residential mortgage loans for other investors. The value of MSRs that continue to be held by the Bancorp is subject to credit, prepayment and interest rate risks on the sold financial assets. | ||||||||||||||||||||||||
At March 31, 2014, the sensitivity of the current fair value of residual cash flows to immediate 10%, 20% and 50% adverse changes in prepayment speed assumptions and immediate 10% and 20% adverse changes in other assumptions are as follows: | ||||||||||||||||||||||||
Prepayment | Residual Servicing | |||||||||||||||||||||||
Speed Assumption | Cash Flows | |||||||||||||||||||||||
Fair | Weighted-Average Life (in | Impact of Adverse Change on Fair Value | Discount | Impact of Adverse Change on Fair Value | ||||||||||||||||||||
($ in millions)(a) | Rate | Value | years) | Rate | 10% | 20% | 50% | Rate | 10% | 20% | ||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||
Servicing assets | Fixed | $ | 935 | 6.6 | 10.6 | % | $ | -37 | -72 | -163 | 9.9 | % | $ | -36 | -69 | |||||||||
Servicing assets | Adjustable | 37 | 3.1 | 26.1 | -2 | -3 | -7 | 11.8 | -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 | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Derivative Financial Instruments | ' | ||||||||
Derivative Financial Instruments | ' | ||||||||
10. 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 March 31, 2014 and December 31, 2013, the balance of collateral held by the Bancorp for derivative assets was $528 million and $514 million, respectively. The credit component negatively impacting the fair value of derivative assets associated with customer accommodation contracts as of March 31, 2014 and December 31, 2013 was $10 million and $12 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 March 31, 2014 and December 31, 2013, the balance of collateral posted by the Bancorp for derivative liabilities was $543 million and $559 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 March 31, 2014, the fair value of the additional collateral that could be required to be posted as a result of the credit-risk related contingent features being triggered was immaterial to the Bancorp's Condensed Consolidated Financial Statements. The posting of collateral has been determined to remove the need for further consideration of credit risk. As a result, the Bancorp determined that the impact of the Bancorp's credit risk to the valuation of its derivative liabilities was immaterial to the Bancorp's Condensed Consolidated Financial Statements. | |||||||||
The Bancorp holds certain derivative instruments that qualify for hedge accounting treatment and are designated as either fair value hedges or cash flow hedges. Derivative instruments that do not qualify for hedge accounting treatment, or for which hedge accounting is not established, are held as free-standing derivatives. All customer accommodation derivatives are held as free-standing derivatives. | |||||||||
The 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 11 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 | |||||||
March 31, 2014 ($ in millions) | Amount | Assets | Liabilities | ||||||
Qualifying hedging instruments | |||||||||
Fair value hedges: | |||||||||
Interest rate swaps related to long-term debt | $ | 3,205 | 325 | 11 | |||||
Total fair value hedges | 325 | 11 | |||||||
Cash flow hedges: | |||||||||
Interest rate swaps related to C&I loans | 2,200 | 36 | 12 | ||||||
Total cash flow hedges | 36 | 12 | |||||||
Total derivatives designated as qualifying hedging instruments | 361 | 23 | |||||||
Derivatives not designated as qualifying hedging instruments | |||||||||
Free-standing derivatives - risk management and other business purposes | |||||||||
Interest rate contracts related to MSRs | 5,277 | 151 | 9 | ||||||
Forward contracts related to held for sale mortgage loans | 1,844 | 2 | 1 | ||||||
Stock warrant associated with Vantiv Holding, LLC | 616 | 348 | - | ||||||
Swap associated with the sale of Visa, Inc. Class B shares | 918 | - | 43 | ||||||
Total free-standing derivatives - risk management and other business purposes | 501 | 53 | |||||||
Free-standing derivatives - customer accommodation: | |||||||||
Interest rate contracts for customers | 27,418 | 306 | 315 | ||||||
Interest rate lock commitments | 994 | 16 | - | ||||||
Commodity contracts | 3,179 | 66 | 68 | ||||||
Foreign exchange contracts | 20,020 | 204 | 164 | ||||||
Total free-standing derivatives - customer accommodation | 592 | 547 | |||||||
Total derivatives not designated as qualifying hedging instruments | 1,093 | 600 | |||||||
Total | $ | 1,454 | 623 | ||||||
Fair Value | |||||||||
Notional | Derivative | Derivative | |||||||
December 31, 2013 ($ in millions) | Amount | Assets | Liabilities | ||||||
Qualifying hedging instruments | |||||||||
Fair value hedges: | |||||||||
Interest rate swaps related to long-term debt | $ | 3,205 | 292 | 13 | |||||
Total fair value hedges | 292 | 13 | |||||||
Cash flow hedges: | |||||||||
Interest rate swaps related to C&I loans | 2,200 | 40 | 21 | ||||||
Total cash flow hedges | 40 | 21 | |||||||
Total derivatives designated as qualifying hedging instruments | 332 | 34 | |||||||
Derivatives not designated as qualifying hedging instruments | |||||||||
Free-standing derivatives - risk management and other business purposes | |||||||||
Interest rate contracts related to MSRs | 4,092 | 141 | 14 | ||||||
Forward contracts related to held for sale mortgage loans | 1,448 | 13 | 1 | ||||||
Stock warrant associated with Vantiv Holding, LLC | 664 | 384 | - | ||||||
Swap associated with the sale of Visa, Inc. Class B shares | 947 | - | 48 | ||||||
Total free-standing derivatives - risk management and other business purposes | 538 | 63 | |||||||
Free-standing derivatives - customer accommodation: | |||||||||
Interest rate contracts for customers | 28,112 | 329 | 339 | ||||||
Interest rate lock commitments | 924 | 12 | 1 | ||||||
Commodity contracts | 3,300 | 66 | 65 | ||||||
Foreign exchange contracts | 19,688 | 276 | 252 | ||||||
Total free-standing derivatives - customer accommodation | 683 | 657 | |||||||
Total derivatives not designated as qualifying hedging instruments | 1,221 | 720 | |||||||
Total | $ | 1,553 | 754 | ||||||
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 March 31, 2014 and December 31, 2013, 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 | ||||||||
Statements of | ended March 31, | ||||||||
($ in millions) | Income Caption | 2014 | 2013 | ||||||
Interest rate contracts: | |||||||||
Change in fair value of interest rate swaps hedging long-term debt | Interest on long-term debt | $ | 35 | -67 | |||||
Change in fair value of hedged long-term debt attributable to the risk being hedged | Interest on long-term debt | -37 | 66 | ||||||
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 March 31, 2014, 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 March 31, 2014, the maximum length of time over which the Bancorp is hedging its exposure to the variability in future cash flows is 69 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 March 31, 2014 and December 31, 2013, $16 million and $13 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 March 31, 2014, approximately $26 million of net deferred gains, net of tax, recorded in accumulated other comprehensive income are expected to be reclassified into earnings during the next twelve months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to March 31, 2014. | |||||||||
During the three months ended March 31, 2014 and 2013, there were no gains or losses reclassified from accumulated other comprehensive income into earnings associated with the discontinuance of cash flow hedges because it was probable that the original forecasted transaction would not occur by the end of the originally specified time period or within the additional period of time as defined by U.S. GAAP. | |||||||||
The following table presents the net gains recorded in the Condensed Consolidated Statements of Income and in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: | |||||||||
For the three months | |||||||||
ended March 31, | |||||||||
($ in millions) | 2014 | 2013 | |||||||
Amount of net gain recognized in OCI | $ | 15 | 1 | ||||||
Amount of net gain reclassified from OCI into net income | 10 | 21 | |||||||
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 initial sale of the Bancorp's 51% interest in Vantiv Holding, LLC, the Bancorp received a warrant which is accounted for as a free-standing derivative. Refer to Note 19 for further discussion of significant inputs and assumptions used in the valuation of the warrant. | |||||||||
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 19 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 | ||||||||
Statements of | ended March 31, | ||||||||
($ in millions) | Income Caption | 2014 | 2013 | ||||||
Interest rate contracts: | |||||||||
Forward contracts related to mortgage loans held for sale | Mortgage banking net revenue | $ | -12 | -3 | |||||
Interest rate contracts related to MSR portfolio | Mortgage banking net revenue | 24 | -6 | ||||||
Foreign exchange contracts: | |||||||||
Foreign exchange contracts for risk management purposes | Other noninterest income | 4 | 2 | ||||||
Equity contracts: | |||||||||
Stock warrant associated with Vantiv Holding, LLC | Other noninterest income | -36 | 34 | ||||||
Swap associated with sale of Visa, Inc. Class B shares | Other noninterest income | 1 | -7 | ||||||
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 March 31, 2014 and December 31, 2013, the total notional amount of the risk participation agreements was $1.2 billion, and the fair value was a liability of $3 million at March 31, 2014 and December 31, 2013, which is included in interest rate contracts for customers. As of March 31, 2014, the risk participation agreements had an average remaining life of 2.9 years. | |||||||||
The Bancorp's maximum exposure in the risk participation agreements is contingent on the fair value of the underlying interest rate derivative contracts in an asset position at the time of default. The Bancorp monitors the credit risk associated with the underlying customers in the risk participation agreements through the same risk grading system currently utilized for establishing loss reserves in its loan and lease portfolio. | |||||||||
Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table: | |||||||||
March 31, | December 31, | ||||||||
As of ($ in millions) | 2014 | 2013 | |||||||
Pass | $ | 1,118 | 1,153 | ||||||
Special mention | 2 | 38 | |||||||
Substandard | 50 | 12 | |||||||
Total | $ | 1,170 | 1,203 | ||||||
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 | |||||||||
Condensed Consolidated | ended March 31, | ||||||||
($ in millions) | Statements of Income Caption | 2014 | 2013 | ||||||
Interest rate contracts: | |||||||||
Interest rate contracts for customers (contract revenue) | Corporate banking revenue | $ | 4 | 5 | |||||
Interest rate contracts for customers (credit losses) | Other noninterest expense | - | -1 | ||||||
Interest rate contracts for customers (credit portion of | |||||||||
fair value adjustment) | Other noninterest expense | 1 | 1 | ||||||
Interest rate lock commitments | Mortgage banking net revenue | 36 | 56 | ||||||
Commodity contracts: | |||||||||
Commodity contracts for customers (contract revenue) | Corporate banking revenue | 1 | 2 | ||||||
Foreign exchange contracts: | |||||||||
Foreign exchange contracts - customers (contract revenue) | Corporate banking revenue | 15 | 18 | ||||||
Foreign exchange contracts - customers (credit portion of | |||||||||
fair value adjustment) | Other noninterest expense | 2 | - |
Offsetting_Derivative_Financia
Offsetting Derivative Financial Instruments | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Offsetting Derivative Financial Instruments | ' | ||||||||||||
Offsetting Derivative Financial Instruments | ' | ||||||||||||
11. 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. | |||||||||||||
Gross Amount | Gross Amounts Not Offset in the | ||||||||||||
Recognized in the | Condensed Consolidated Balance Sheet | ||||||||||||
March 31, 2014 ($ in millions) | Condensed Consolidated Balance Sheet(a) | Derivatives | Collateral(b) | Net Amount | |||||||||
Assets | |||||||||||||
Derivatives | $ | 1,090 | -236 | -443 | $ | 411 | |||||||
Total assets | 1,090 | -236 | -443 | 411 | |||||||||
Liabilities | |||||||||||||
Derivatives | 623 | -236 | -291 | 96 | |||||||||
Total liabilities | $ | 623 | -236 | -291 | $ | 96 | |||||||
Gross Amount | Gross Amounts Not Offset in the | ||||||||||||
Recognized in the | Condensed Consolidated Balance Sheet | ||||||||||||
December 31, 2013 ($ in millions) | Condensed Consolidated Balance Sheet(a) | Derivatives | Collateral(b) | Net Amount | |||||||||
Assets | |||||||||||||
Derivatives | $ | 1,157 | -321 | -390 | $ | 446 | |||||||
Total assets | 1,157 | -321 | -390 | 446 | |||||||||
Liabilities | |||||||||||||
Derivatives | 753 | -321 | -302 | 130 | |||||||||
Total liabilities | $ | 753 | -321 | -302 | $ | 130 | |||||||
Amount does not include the stock warrant associated with Vantiv Holding, LLC and IRLCs because these instruments are not subject to master netting or similar arrangements. | |||||||||||||
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 | 3 Months Ended |
Mar. 31, 2014 | |
Long-Term Debt | ' |
Long-Term Debt | ' |
12. Long-Term Debt | |
On February 28, 2014, the Bancorp issued and sold $500 million of 2.30% unsecured senior fixed rate notes, with a maturity of five years, due on March 1, 2019. These notes will be redeemable by the Bancorp, 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 up to, but excluding, the redemption date. | |
As previously discussed in Note 8, a consolidated VIE of the Bancorp issued $1.3 billion of asset-backed securities related to an automobile loan securitization in the first quarter of 2014. Third-party holders of the debt associated with this transaction do not have recourse to the general assets of the Bancorp. | |
For further information on subsequent events related to long-term debt refer to Note 21. |
Capital_Actions
Capital Actions | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Capital Actions | ' | ||||||||
Capital Actions | ' | ||||||||
13. Capital Actions | |||||||||
On March 18, 2014, 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 replaced the Board's previous authorization from March of 2013. | |||||||||
During 2013 and the three months ended March 31, 2014, the Bancorp entered into a number of accelerated share repurchase transactions. As part of these transactions, the Bancorp entered into forward contracts in which the final number of shares delivered at settlement was based generally on a discount to the average daily volume weighted average price of the Bancorp's common stock during the term of these repurchase agreements. The accelerated share repurchases were 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. | |||||||||
For further information on subsequent events related to capital actions refer to Note 21 | |||||||||
The following table presents a summary of the Bancorp's accelerated share repurchase transactions that were entered into or settled during the three months ended March 31, 2014: | |||||||||
Repurchase Date | Amount ($ in millions) | Shares Repurchased | Shares Received from Forward Contract Settlement | Total Shares Repurchased | Settlement Date | ||||
18-Nov-13 | $ | 200 | 8,538,423 | 1,132,495 | 9,670,918 | 5-Mar-14 | |||
13-Dec-13 | 456 | 19,084,195 | 2,294,932 | 21,379,127 | 31-Mar-14 | ||||
31-Jan-14 | 99 | 3,950,705 | 602,109 | 4,552,814 | 31-Mar-14 |
Commitments_Contingent_Liabili
Commitments, Contingent Liabilities and Guarantees | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Commitments, Contingent Liabilities and Guarantees | ' | ||||||||||
Commitments, Contingent Liabilities and Guarantees | ' | ||||||||||
14. 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: | |||||||||||
March 31, | December 31, | ||||||||||
($ in millions) | 2014 | 2013 | |||||||||
Commitments to extend credit | $ | 63,021 | 62,050 | ||||||||
Letters of credit | 4,194 | 4,129 | |||||||||
Forward contracts to sell mortgage loans | 1,844 | 1,448 | |||||||||
Noncancelable lease obligations | 729 | 746 | |||||||||
Capital commitments for private equity investments | 95 | 90 | |||||||||
Purchase obligations | 80 | 84 | |||||||||
Capital expenditures | 29 | 33 | |||||||||
Capital lease obligations | 17 | 19 | |||||||||
Commitments to extend credit | |||||||||||
Commitments to extend credit are agreements to lend, typically having fixed expiration dates or other termination clauses that may require payment of a fee. Since many of the commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. The Bancorp is exposed to credit risk in the event of nonperformance by the counterparty for the amount of the contract. Fixed-rate commitments are also subject to market risk resulting from fluctuations in interest rates and the Bancorp's exposure is limited to the replacement value of those commitments. As of March 31, 2014 and December 31, 2013, the Bancorp had a reserve for unfunded commitments, including letters of credit, totaling $153 million and $162 million, respectively, included in other liabilities in the Condensed Consolidated Balance Sheets. The Bancorp monitors the credit risk associated with commitments to extend credit using the same risk rating system utilized within its loan and lease portfolio. | |||||||||||
Risk ratings under this risk rating system are summarized in the following table as of: | |||||||||||
March 31, | December 31, | ||||||||||
($ in millions) | 2014 | 2013 | |||||||||
Pass | $ | 62,301 | 61,364 | ||||||||
Special mention | 382 | 369 | |||||||||
Substandard | 338 | 316 | |||||||||
Doubtful | - | 1 | |||||||||
Total | $ | 63,021 | 62,050 | ||||||||
Letters of credit | |||||||||||
Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of: | |||||||||||
March 31, | |||||||||||
($ in millions) | 2014 | ||||||||||
Less than 1 year(a) | $ | 1,849 | |||||||||
1 - 5 years(a) | 2,302 | ||||||||||
Over 5 years | 43 | ||||||||||
Total | $ | 4,194 | |||||||||
Includes $69 and $3 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 March 31, 2014 compared to 97% at December 31, 2013 and are considered guarantees in accordance with U.S. GAAP. Approximately 48% of the total standby letters of credit were fully secured as of March 31, 2014 and December 31, 2013, 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 $2 million at both March 31, 2014 and December 31, 2013. The Bancorp monitors the credit risk associated with letters of credit using the same risk rating system utilized within its loan and lease portfolio. | |||||||||||
Risk ratings under this risk rating system are summarized in the following table as of: | |||||||||||
March 31, | December 31, | ||||||||||
($ in millions) | 2014 | 2013 | |||||||||
Pass | $ | 3,755 | 3,651 | ||||||||
Special mention | 109 | 99 | |||||||||
Substandard | 301 | 355 | |||||||||
Doubtful | 29 | 24 | |||||||||
Total | $ | 4,194 | 4,129 | ||||||||
At March 31, 2014 and December 31, 2013, the Bancorp had outstanding letters of credit that were supporting certain securities issued as VRDNs. The Bancorp facilitates financing for its commercial customers, which consist of companies and municipalities, by marketing the VRDNs to investors. The VRDNs pay interest to holders at a rate of interest that fluctuates based upon market demand. The VRDNs generally have long-term maturity dates, but can be tendered by the holder for purchase at par value upon proper advance notice. When the VRDNs are tendered, a remarketing agent generally finds another investor to purchase the VRDNs to keep the securities outstanding in the market. As of March 31, 2014 and December 31, 2013, total VRDNs in which the Bancorp was the remarketing agent or were supported by a Bancorp letter of credit were $2.0 billion and $2.1 billion of which FTS acted as the remarketing agent to issuers on $1.7 billion and $1.8 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 $1.4 billion and $1.5 billion to the VRDNs remarketed by FTS, in addition to $277 million and $300 million in VRDNs remarketed by third parties at March 31, 2014 and December 31, 2013, respectively. These letters of credit are included in the total letters of credit balance provided in the previous table. | |||||||||||
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. | |||||||||||
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 $33 million at March 31, 2014 and $37 million at December 31, 2013. As of March 31, 2014 and December 31, 2013, the Bancorp maintained a reserve of $7 million and $10 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 15 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. | |||||||||||
During the fourth quarter of 2013, the Bancorp settled certain repurchase claims related to mortgage loans originated and sold to FHLMC prior to January 1, 2009 for $25 million, after paid claim credits and other adjustments. The settlement removes the Bancorp's responsibility to repurchase or indemnify FHLMC for representation and warranty violations on any loan sold prior to January 1, 2009 except in limited circumstances. | |||||||||||
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 $38 million and $44 million as of March 31, 2014 and December 31, 2013, 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 March 31, 2014, 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 $50 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. | |||||||||||
For the three months ended March 31, 2014 and 2013, the Bancorp paid $7 million and $13 million, respectively, in the form of make whole payments and repurchased $23 million and $30 million, respectively, in outstanding principal of loans to satisfy investor demands. Total repurchase demand requests during the three months ended March 31, 2014 and 2013 were $35 million and $67 million, respectively. Total outstanding repurchase demand inventory was $21 million at March 31, 2014 compared to $46 million at December 31, 2013. | |||||||||||
The following table summarizes activity in the reserve for representation and warranty provisions: | |||||||||||
For the three months ended March 31, | |||||||||||
($ in millions) | 2014 | 2013 | |||||||||
Balance, beginning of period | $ | 44 | 110 | ||||||||
Net additions to the reserve | 2 | 19 | |||||||||
Losses charged against the reserve | -8 | -17 | |||||||||
Balance, end of period | $ | 38 | 112 | ||||||||
The following table provides a rollforward of unresolved demands by claimant type for the three months ended March 31, 2014: | |||||||||||
GSE | Private Label | ||||||||||
($ in millions) | Units | Dollars | Units | Dollars | |||||||
Balance, beginning of period | 264 | $ | 41 | 33 | $ | 5 | |||||
New demands | 230 | 34 | 10 | 1 | |||||||
Loan paydowns/payoffs | -16 | -1 | -2 | -1 | |||||||
Resolved demands | -375 | -55 | -31 | -3 | |||||||
Balance, end of period | 103 | $ | 19 | 10 | $ | 2 | |||||
The following table provides a rollforward of unresolved demands by claimant type for the three months ended March 31, 2013: | |||||||||||
GSE | Private Label | ||||||||||
($ in millions) | Units | Dollars | Units | Dollars | |||||||
Balance, beginning of period | 294 | $ | 48 | 124 | $ | 19 | |||||
New demands | 458 | 66 | 76 | 1 | |||||||
Loan paydowns/payoffs | -5 | -1 | -4 | -1 | |||||||
Resolved demands | -484 | -71 | -163 | -14 | |||||||
Balance, end of period | 263 | $ | 42 | 33 | $ | 5 | |||||
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 $563 million and $579 million at March 31, 2014 and December 31, 2013, respectively, and the delinquency rates were 3.6% and 4.4% at March 31, 2014 and December 31, 2013, respectively. The Bancorp maintained an estimated credit loss reserve on these loans sold with credit recourse of $15 million and $16 million at March 31, 2014 and December 31, 2013, 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 $16 million and $12 million at March 31, 2014 and December 31, 2013, 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 $62 million at March 31, 2014. | |||||||||||
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 for the Bancorp to recognize a liability equal to the fair value of the indemnification liability. | |||||||||||
In conjunction with the IPO, the Bancorp received 10.1 million of Visa's Class B 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. | |||||||||||
In 2009, the Bancorp completed the sale of Visa, Inc. Class B shares and entered into a total return swap in which the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Class B shares into Class A shares. The swap terminates on the later of the third anniversary of Visa's IPO or the date on which the Covered Litigation is settled. See Note 19 for additional information on the valuation of the swap. The counterparty to the swap as a result of its ownership of the Class B shares will be impacted by dilutive adjustments to the conversion rate of the Class B shares into Class A shares caused by any Covered Litigation losses in excess of the litigation escrow account. If actual judgments in, or settlements of, the Covered Litigation significantly exceed current expectations, then additional funding by Visa of the litigation escrow account and the resulting dilution of the Class B shares could result in a scenario where the Bancorp's ultimate exposure associated with the Covered Litigation (the “Visa Litigation Exposure”) exceeds the value of the Class B shares owned by the swap counterparty (the “Class B Value”). In the event the Bancorp concludes that it is probable that the Visa Litigation Exposure exceeds the Class B Value, the Bancorp would record a litigation reserve liability and a corresponding amount of other noninterest expense for the amount of the excess. Any such litigation reserve liability would be separate and distinct from the fair value derivative liability associated with the total return swap. | |||||||||||
As of the date of the Bancorp's sale of Visa Class B shares and through March 31, 2014, the Bancorp has concluded that it is not probable that the Visa Litigation Exposure will exceed the Class B value. Based on this determination, upon the sale of Class B shares, the Bancorp reversed its net Visa litigation reserve liability and recognized a free-standing derivative liability associated with the total return swap. The fair value of the swap liability was $43 million and $48 million at March 31, 2014 and December 31, 2013, respectively. Refer to Note 15 for further information. | |||||||||||
After the Bancorp's sale of Visa Class B shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further dilution in the conversion of Class B shares into Class A shares, and along with other terms of the total return swap, required the Bancorp to make cash payments to the swap counterparty as follows: | |||||||||||
($ in millions) | |||||||||||
Visa | Bancorp Cash | ||||||||||
Period | Funding Amount | Payment Amount | |||||||||
Q2 2010 | $ | 500 | $ | 20 | |||||||
Q4 2010 | 800 | 35 | |||||||||
Q2 2011 | 400 | 19 | |||||||||
Q1 2012 | 1,565 | 75 | |||||||||
Q3 2012 | 150 | 6 |
Legal_and_Regulatory_Proceedin
Legal and Regulatory Proceedings | 3 Months Ended |
Mar. 31, 2014 | |
Legal And Regulatory Proceedings | ' |
Legal and Regulatory Proceedings | ' |
15. 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, claimed that the interchange fees charged by card-issuing banks were unreasonable and sought injunctive relief and unspecified damages. In addition to being a named defendant, the Bancorp is also subject to a possible indemnification obligation of Visa as discussed in Note 14 and has also entered into judgment and loss sharing agreements with Visa, MasterCard and certain other named defendants. In October 2012, the parties to the litigation entered into a settlement agreement. The court entered a Class Settlement Preliminary Approval Order in November 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 have been returned to the control of the defendants through Class Exclusion Takedown Payments. Approximately 460 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 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. On January 14, 2014, the court entered a final order approving the class settlement. A number of merchants have filed appeals from that approval. Refer to Note 14 for further information. | |
In 2008, two cases were filed in the United States District Court for the Southern District of Ohio against the Bancorp and certain officers styled Dudenhoeffer v Fifth Third Bancorp et al. Case No. 1:08-cv-538. The complaints alleged violations of ERISA based on allegations similar to those set forth in the previously reported securities class action cases. The ERISA actions 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 views of the United States on the issues raised in the Bancorp petition and this brief was filed on November 12, 2013. On December 13, 2013 the Supreme Court granted certiorari and agreed to hear the appeal. Oral argument was held on April 2, 2014 and a decision is expected in June of 2014. | |
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 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. Additionally, the Bancorp is also cooperating with an investigation by the Department of Justice to determine whether the Bank engaged in any discriminatory practices in connection with the Bank's indirect automobile loan portfolio. Any claim resulting from this investigation could include direct and indirect damages and civil money penalties. | |
The Bancorp is party to numerous claims and lawsuits as well as threatened or potential actions or claims concerning matters arising from the conduct of its business activities. The outcome of claims or litigation and the timing of ultimate resolution are inherently difficult to predict. The following factors, among others, contribute to this lack of predictability: 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 $117 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. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
16. Income Taxes | |
The Bancorp's provision for income taxes was $119 million and $179 million for the three months ended March 31, 2014 and 2013, respectively. The effective tax rates for the three months ended March 31, 2014 and 2013 were 27.3% and 30.4%, respectively. The decrease in the effective tax rate for the three months ended March 31, 2014 compared to the same period in the prior year was primarily due to a non-cash charge recorded in 2013 related to previously recognized tax benefits associated with stock-based awards that were not realized. | |
While it is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of the Bancorp's uncertain tax positions could increase or decrease during the next 12 months, the Bancorp believes it is unlikely that its unrecognized tax benefits will change by a material amount during the next 12 months. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||
17. Accumulated Other Comprehensive Income | |||||||||||||||
The activity of the components of other comprehensive income and accumulated other comprehensive income for the three months ended March 31, 2014 and 2013 was as follows: | |||||||||||||||
Total Other | Total Accumulated Other | ||||||||||||||
Comprehensive Income | Comprehensive Income | ||||||||||||||
Pretax | Tax | Net | Beginning | Net | Ending | ||||||||||
($ in millions) | Activity | Effect | Activity | Balance | Activity | Balance | |||||||||
31-Mar-14 | |||||||||||||||
Unrealized holding gains on available-for-sale securities arising | |||||||||||||||
during period | $ | 173 | -60 | 113 | |||||||||||
Reclassification adjustment for net gains included in net income | -5 | 2 | -3 | ||||||||||||
Net unrealized gains on available-for-sale securities | 168 | -58 | 110 | 121 | 110 | 231 | |||||||||
Unrealized holding gains on cash flow hedge derivatives arising | |||||||||||||||
during period | 15 | -5 | 10 | ||||||||||||
Reclassification adjustment for net gains on cash flow | |||||||||||||||
hedge derivatives included in net income | -10 | 3 | -7 | ||||||||||||
Net unrealized gains on cash flow hedge derivatives | 5 | -2 | 3 | 13 | 3 | 16 | |||||||||
Reclassification of amounts to net periodic benefit costs | 2 | -1 | 1 | ||||||||||||
Defined benefit plans, net | 2 | -1 | 1 | -52 | 1 | -51 | |||||||||
Total | $ | 175 | -61 | 114 | 82 | 114 | 196 | ||||||||
Total Other | Total Accumulated Other | ||||||||||||||
Comprehensive Income | Comprehensive Income | ||||||||||||||
Pretax | Tax | Net | Beginning | Net | Ending | ||||||||||
($ in millions) | Activity | Effect | Activity | Balance | Activity | Balance | |||||||||
31-Mar-13 | |||||||||||||||
Unrealized holding losses on available-for-sale securities arising | |||||||||||||||
during period | $ | -56 | 20 | -36 | |||||||||||
Reclassification adjustment for net losses included in net income | 7 | -2 | 5 | ||||||||||||
Net unrealized gains on available-for-sale securities | -49 | 18 | -31 | 412 | -31 | 381 | |||||||||
Unrealized holding gains on cash flow hedge derivatives arising | |||||||||||||||
during period | 1 | - | 1 | ||||||||||||
Reclassification adjustment for net gains on cash flow | |||||||||||||||
hedge derivatives included in net income | -21 | 7 | -14 | ||||||||||||
Net unrealized gains on cash flow hedge derivatives | -20 | 7 | -13 | 50 | -13 | 37 | |||||||||
Reclassification of amounts to net periodic benefit costs | 3 | -1 | 2 | ||||||||||||
Defined benefit plans, net | 3 | -1 | 2 | -87 | 2 | -85 | |||||||||
Total | $ | -66 | 24 | -42 | 375 | -42 | 333 | ||||||||
The table below presents reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2014: | |||||||||||||||
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 | ||||||||||||||
-2 | Applicable income tax expense | ||||||||||||||
3 | Net income | ||||||||||||||
Net unrealized gains on cash flow hedge derivatives | |||||||||||||||
Interest rate contracts related to C&I loans | 10 | Interest and fees on loans and leases | |||||||||||||
10 | Income before income taxes | ||||||||||||||
-3 | Applicable income tax expense | ||||||||||||||
7 | Net income | ||||||||||||||
Net periodic benefit costs | |||||||||||||||
Amortization of net actuarial loss | -2 | Employee benefits expense (a) | |||||||||||||
-2 | Income before income taxes | ||||||||||||||
1 | Applicable income tax expense | ||||||||||||||
-1 | Net income | ||||||||||||||
Total reclassifications for the period | $ | 9 | Net income | ||||||||||||
The table below presents reclassifications out of accumulated other comprehensive income for the three months ended March 31, 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 | $ | -7 | Securities gains, net | ||||||||||||
-7 | Income before income taxes | ||||||||||||||
2 | Applicable income tax expense | ||||||||||||||
-5 | Net income | ||||||||||||||
Net unrealized gains on cash flow hedge derivatives | |||||||||||||||
Interest rate contracts related to C&I loans | 22 | Interest and fees on loans and leases | |||||||||||||
Interest rate contracts related to long-term debt | -1 | Interest on long-term debt | |||||||||||||
21 | Income before income taxes | ||||||||||||||
-7 | Applicable income tax expense | ||||||||||||||
14 | Net income | ||||||||||||||
Net periodic benefit costs | |||||||||||||||
Amortization of net actuarial loss | -3 | Employee benefits expense (a) | |||||||||||||
-3 | Income before income taxes | ||||||||||||||
1 | Applicable income tax expense | ||||||||||||||
-2 | Net income | ||||||||||||||
Total reclassifications for the period | $ | 7 | Net income | ||||||||||||
This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 21 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2013 for information on the computation of net periodic benefit cost. | |||||||||||||||
Amounts in parentheses indicate reductions to net income | |||||||||||||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share | ' | ||||||||
Earnings Per Share | ' | ||||||||
18. Earnings Per Share | |||||||||
The calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share were as follows: | |||||||||
2014 | 2013 | ||||||||
For the three months ended March 31, | 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 | $ | 318 | 422 | ||||||
Dividends on preferred stock | 9 | 9 | |||||||
Net income available to common shareholders | 309 | 413 | |||||||
Less: Income allocated to participating securities | 3 | 3 | |||||||
Net income allocated to common shareholders | $ | 306 | 846 | 0.36 | 410 | 871 | 0.47 | ||
Earnings per diluted share: | |||||||||
Net income available to common shareholders | $ | 309 | 413 | ||||||
Effect of dilutive securities: | |||||||||
Stock-based awards | - | 12 | - | 6 | |||||
Series G convertible preferred stock | - | - | 9 | 36 | |||||
Net income available to common shareholders | 309 | 422 | |||||||
plus assumed conversions | |||||||||
Less: Income allocated to participating securities | 3 | 3 | |||||||
Net income allocated to common shareholders | |||||||||
plus assumed conversions | $ | 306 | 858 | 0.36 | 419 | 913 | 0.46 | ||
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 months ended March 31, 2014 excludes 11 million of stock appreciation rights and an immaterial amount of stock options. The diluted earnings per share computation for the three months ended March 31, 2013 excludes 27 million of stock appreciation rights and 3 million of stock options. | |||||||||
The diluted earnings per share computation for the three months ended March 31, 2013 excludes the impact of the forward contract related to the January 28, 2013 accelerated share repurchase transaction. Based upon the average daily volume weighted average price of the Bancorp's common stock during the first quarter of 2013, the counterparty to the transaction would have been required to deliver approximately 1 million shares as of March 31, 2013, and thus the impact of the accelerated share repurchase transaction would have been anti-dilutive to earnings per share. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Fair Value Measurements | ' | ||||||||||||
Fair Value Measurements | ' | ||||||||||||
19. 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, 2013. | |||||||||||||
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 | |||||||||||||
March 31, 2014 ($ 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 | - | 1,635 | - | 1,635 | |||||||||
Obligations of states and political subdivisions | - | 194 | - | 194 | |||||||||
Agency mortgage-backed securities | - | 14,185 | - | 14,185 | |||||||||
Other bonds, notes and debentures | - | 3,991 | - | 3,991 | |||||||||
Other securities(a) | 85 | 34 | - | 119 | |||||||||
Available-for-sale securities(a) | 111 | 20,039 | - | 20,150 | |||||||||
Trading securities: | |||||||||||||
U.S. Government sponsored agencies | - | 5 | - | 5 | |||||||||
Obligations of states and political subdivisions | - | 14 | 1 | 15 | |||||||||
Agency mortgage-backed securities | - | 3 | - | 3 | |||||||||
Other bonds, notes and debentures | - | 10 | - | 10 | |||||||||
Other securities | 314 | - | - | 314 | |||||||||
Trading securities | 314 | 32 | 1 | 347 | |||||||||
Residential mortgage loans held for sale | - | 649 | - | 649 | |||||||||
Residential mortgage loans(b) | - | - | 103 | 103 | |||||||||
Derivative assets: | |||||||||||||
Interest rate contracts | 2 | 818 | 16 | 836 | |||||||||
Foreign exchange contracts | - | 204 | - | 204 | |||||||||
Equity contracts | - | - | 348 | 348 | |||||||||
Commodity contracts | 10 | 56 | - | 66 | |||||||||
Derivative assets | 12 | 1,078 | 364 | 1,454 | |||||||||
Total assets | $ | 437 | 21,798 | 468 | 22,703 | ||||||||
Liabilities: | |||||||||||||
Derivative liabilities: | |||||||||||||
Interest rate contracts | $ | 1 | 344 | 3 | 348 | ||||||||
Foreign exchange contracts | - | 164 | - | 164 | |||||||||
Equity contracts | - | - | 43 | 43 | |||||||||
Commodity contracts | 17 | 51 | - | 68 | |||||||||
Derivative liabilities | 18 | 559 | 46 | 623 | |||||||||
Short positions | 9 | 2 | - | 11 | |||||||||
Total liabilities | $ | 27 | 561 | 46 | 634 | ||||||||
Fair Value Measurements Using | |||||||||||||
December 31, 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 | - | 1,644 | - | 1,644 | |||||||||
Obligations of states and political subdivisions | - | 192 | - | 192 | |||||||||
Agency mortgage-backed securities | - | 12,284 | - | 12,284 | |||||||||
Other bonds, notes and debentures | - | 3,582 | - | 3,582 | |||||||||
Other securities(a) | 89 | 29 | - | 118 | |||||||||
Available-for-sale securities(a) | 115 | 17,731 | - | 17,846 | |||||||||
Trading securities: | |||||||||||||
U.S. Treasury and Government agencies | 1 | - | - | 1 | |||||||||
U.S. Government sponsored agencies | - | 4 | - | 4 | |||||||||
Obligations of states and political subdivisions | - | 12 | 1 | 13 | |||||||||
Agency mortgage-backed securities | - | 3 | - | 3 | |||||||||
Other bonds, notes and debentures | - | 7 | - | 7 | |||||||||
Other securities | 315 | - | - | 315 | |||||||||
Trading securities | 316 | 26 | 1 | 343 | |||||||||
Residential mortgage loans held for sale | - | 890 | - | 890 | |||||||||
Residential mortgage loans(b) | - | - | 92 | 92 | |||||||||
Derivative assets: | |||||||||||||
Interest rate contracts | 13 | 802 | 12 | 827 | |||||||||
Foreign exchange contracts | - | 276 | - | 276 | |||||||||
Equity contracts | - | - | 384 | 384 | |||||||||
Commodity contracts | 18 | 48 | - | 66 | |||||||||
Derivative assets | 31 | 1,126 | 396 | 1,553 | |||||||||
Total assets | $ | 462 | 19,773 | 489 | 20,724 | ||||||||
Liabilities: | |||||||||||||
Derivative liabilities: | |||||||||||||
Interest rate contracts | $ | 1 | 384 | 4 | 389 | ||||||||
Foreign exchange contracts | - | 252 | - | 252 | |||||||||
Equity contracts | - | - | 48 | 48 | |||||||||
Commodity contracts | 9 | 56 | - | 65 | |||||||||
Derivative liabilities | 10 | 692 | 52 | 754 | |||||||||
Short positions | 4 | 4 | - | 8 | |||||||||
Total liabilities | $ | 14 | 696 | 52 | 762 | ||||||||
Excludes FHLB and FRB restricted stock totaling $249 and $350, respectively, at March 31, 2014 and $402 and $349 at December 31, 2013, respectively. | |||||||||||||
Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. | |||||||||||||
During the three months ended March 31, 2014 and the year ended December 31, 2013, 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. | |||||||||||||
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 March 31, 2014 and December 31, 2013, derivatives classified as Level 3, which are valued using models containing unobservable inputs, consisted primarily of a warrant 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 warrant allows 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 warrant 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 warrant, 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 warrant. 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 March 31, 2014 was $16 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 $9 million and $16 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 $9 million and $19 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 $3 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 $3 million, respectively. These sensitivities are hypothetical and should be used with caution, as changes in fair value based on a variation in assumptions typically cannot be extrapolated because the relationship of the change in assumptions to the change in fair value may not be linear. | |||||||||||||
The Secondary Marketing Department and the Consumer Line of Business Finance Department, which reports to the Bancorp's Chief Financial Officer, are responsible for determining the valuation methodology for IRLCs. Secondary Marketing, in conjunction with a third party valuation provider, periodically review loan closing rate assumptions and recent loan sales to determine if adjustments are needed for current market conditions not reflected in historical data. | |||||||||||||
The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): | |||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||
Residential | Interest Rate | Equity | |||||||||||
For the three months ended March 31, 2014 | Trading | Mortgage | Derivatives, | Derivatives, | Total | ||||||||
($ in millions) | Securities | Loans | Net(a) | Net(a) | Fair Value | ||||||||
Beginning balance | $ | 1 | 92 | 8 | 336 | 437 | |||||||
Total gains or losses (realized/unrealized): | |||||||||||||
Included in earnings | - | 1 | 37 | -35 | 3 | ||||||||
Settlements | - | -2 | -32 | 4 | -30 | ||||||||
Transfers into Level 3(b) | - | 12 | - | - | 12 | ||||||||
Ending balance | $ | 1 | 103 | 13 | 305 | 422 | |||||||
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 March 31, 2014(c) | $ | - | 1 | 16 | -35 | -18 | |||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||
Residential | Interest Rate | Equity | |||||||||||
For the three months ended March 31, 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 | 56 | 27 | 84 | ||||||||
Settlements | - | -4 | -65 | 3 | -66 | ||||||||
Transfers into Level 3(b) | - | 8 | - | - | 8 | ||||||||
Ending balance | $ | 1 | 81 | 48 | 174 | 304 | |||||||
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 March 31, 2013(c) | $ | - | 1 | 51 | 27 | 79 | |||||||
Net interest rate derivatives include derivative assets and liabilities of $16 and $3, respectively, as of March 31, 2014 and $51 and $3, respectively, as of March 31, 2013. Net equity derivatives include derivative assets and liabilities of $348 and $43, respectively, as of March 31, 2014, and $211 and $37, respectively, as of March 31, 2013. | |||||||||||||
Includes residential mortgage loans held for sale that were transferred to held for investment. | |||||||||||||
Includes interest income and expense. | |||||||||||||
The total gains and losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Condensed Consolidated Statements of Income as follows: | |||||||||||||
For the three months | |||||||||||||
ended March 31, | |||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||
Mortgage banking net revenue | $ | 38 | 57 | ||||||||||
Other noninterest income | -35 | 27 | |||||||||||
Total gains | $ | 3 | 84 | ||||||||||
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 March 31, 2014 and 2013 were recorded in the Condensed Consolidated Statements of Income as follows: | |||||||||||||
For the three months | |||||||||||||
ended March 31, | |||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||
Mortgage banking net revenue | $ | 17 | 52 | ||||||||||
Other noninterest income | -35 | 27 | |||||||||||
Total (losses) gains | $ | -18 | 79 | ||||||||||
The following tables present information as of March 31, 2014 and 2013 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 March 31, 2014 ($ in millions) | |||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted-Average | ||||||||
Residential mortgage loans | $ | 103 | Loss rate model | Interest rate risk factor | (21.8) - 20.1% | 3.00% | |||||||
Credit risk factor | 0 - 62.4% | 2.00% | |||||||||||
IRLCs, net | 16 | Discounted cash flow | Loan closing rates | 7.3 - 95.0% | 67.60% | ||||||||
Stock warrant associated with Vantiv | 348 | Black-Scholes option | Expected term (years) | 2.00 - 15.25 | 6 | ||||||||
Holding, LLC | valuation model | Expected volatility(a) | 25.0 - 32.7% | 28.10% | |||||||||
Expected dividend rate | - | - | |||||||||||
Swap associated with the sale of Visa, Inc. | -43 | Discounted cash flow | Timing of the resolution | 12/31/2014 - | NM | ||||||||
Class B shares | of the Covered Litigation | 12/31/19 | |||||||||||
As of March 31, 2013 ($ in millions) | |||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted-Average | ||||||||
Residential mortgage loans | $ | 81 | Loss rate model | Interest rate risk factor | (91.0) - 49.0% | 6.00% | |||||||
Credit risk factor | 0 - 68.4% | 3.40% | |||||||||||
IRLCs, net | 50 | Discounted cash flow | Loan closing rates | 9.9 - 95.0% | 65.80% | ||||||||
Stock warrant associated with Vantiv | 211 | Black-Scholes option | Expected term (years) | 2.00 - 16.50 | 5.1 | ||||||||
Holding, LLC | valuation model | Expected volatility(a) | 23.6 - 35.0% | 28.90% | |||||||||
Expected dividend rate | - | - | |||||||||||
Swap associated with the sale of Visa, Inc. | -37 | Discounted cash flow | Timing of the resolution | 3/31/2014 - | NM | ||||||||
Class B shares | of the Covered Litigation | 3/31/17 | |||||||||||
Based on historical and implied volatilities of Vantiv, Inc. and 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 quarters ended March 31, 2014 and 2013 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 | ||||||||||||
For the three months | |||||||||||||
As of March 31, 2014 ($ in millions) | Level 1 | Level 2 | Level 3 | Total | ended March 31, 2014 | ||||||||
Commercial loans held for sale(a) | $ | - | - | - | - | - | |||||||
Commercial and industrial loans | - | - | 22 | 22 | -41 | ||||||||
Commercial mortgage loans | - | - | 31 | 31 | -11 | ||||||||
Commercial construction loans | - | - | 2 | 2 | - | ||||||||
MSRs | - | - | 972 | 972 | 4 | ||||||||
OREO | - | - | 95 | 95 | -13 | ||||||||
Total | $ | - | - | 1,122 | 1,122 | -61 | |||||||
Fair Value Measurements Using | Total Losses | ||||||||||||
For the three months | |||||||||||||
As of March 31, 2013 ($ in millions) | Level 1 | Level 2 | Level 3 | Total | ended March 31, 2013 | ||||||||
Commercial loans held for sale(a) | $ | - | - | 4 | 4 | -4 | |||||||
Commercial and industrial loans | - | - | 20 | 20 | -6 | ||||||||
Commercial mortgage loans | - | - | 34 | 34 | -17 | ||||||||
Commercial construction loans | - | - | 7 | 7 | - | ||||||||
MSRs | - | - | 766 | 766 | 49 | ||||||||
OREO | - | - | 120 | 120 | -22 | ||||||||
Total | $ | - | - | 951 | 951 | - | |||||||
Includes commercial nonaccrual loans held for sale. | |||||||||||||
The following tables present information as of March 31, 2014 and 2013 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a nonrecurring basis: | |||||||||||||
As of March 31, 2014 ($ 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 | 22 | Appraised value | Collateral value | NM | NM | ||||||||
Commercial mortgage loans | 31 | Appraised value | Collateral value | NM | NM | ||||||||
Commercial construction loans | 2 | Appraised value | Collateral value | NM | NM | ||||||||
MSRs | 972 | Discounted cash flow | Prepayment speed | 0 - 100% | (Fixed) 10.6% (Adjustable) 26.1% | ||||||||
Discount rates | 9.6 - 13.2% | (Fixed) 9.9% (Adjustable) 11.8% | |||||||||||
OREO | 95 | Appraised value | Appraised value | NM | NM | ||||||||
As of March 31, 2013 ($ in millions) | |||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted-Average | ||||||||
Commercial loans held for sale | $ | 4 | Appraised value | Appraised value | NM | NM | |||||||
Cost to sell | NM | 10.00% | |||||||||||
Commercial and industrial loans | 20 | Appraised value | Default rates | 100% | NM | ||||||||
Collateral value | NM | NM | |||||||||||
Commercial mortgage loans | 34 | Appraised value | Default rates | 100% | NM | ||||||||
Collateral value | NM | NM | |||||||||||
Commercial construction loans | 7 | Appraised value | Default rates | 100% | NM | ||||||||
Collateral value | NM | NM | |||||||||||
MSRs | 766 | Discounted cash flow | Prepayment speed | 0 - 100% | (Fixed) 14.0% (Adjustable) 26.8% | ||||||||
Discount rates | 9.4 - 18.0% | (Fixed) 10.5% (Adjustable) 11.7% | |||||||||||
OREO | 120 | Appraised value | Appraised value | NM | NM | ||||||||
Commercial loans held for sale | |||||||||||||
During the first quarter of 2014, the Bancorp did not transfer any commercial loans from the portfolio to loans held for sale that upon transfer were measured at fair value. During the first quarter of 2013, the Bancorp transferred $3 million of commercial loans from the portfolio to loans held for sale that upon transfer were measured at fair value using significant unobservable inputs. There were no fair value adjustments for the three months ended March 31, 2014 and $3 million of fair value adjustments for the three months ended March 31, 2013 that were generally based on appraisals of the underlying collateral and were therefore, classified within Level 3 of the valuation hierarchy. Additionally, there were immaterial fair value adjustments on existing commercial loans held for sale for the three months ended March 31, 2014 and $1 million for the three months ended March 31, 2013. The fair value adjustments are 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 held for sale 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, carrying values and vintages. | |||||||||||||
Commercial loans held for investment | |||||||||||||
During the three months ended March 31, 2014 and 2013, the Bancorp recorded nonrecurring impairment adjustments to certain commercial and industrial, commercial mortgage and commercial construction loans 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. In cases where the carrying value exceeds the fair value, an impairment loss is recognized. | |||||||||||||
An adverse change in the fair value of the underlying collateral would result in a decrease in the fair value measurement. 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. | |||||||||||||
Mortgage servicing rights | |||||||||||||
MSRs do not trade in an active, open market with readily observable prices. While sales of MSRs do occur, the precise terms and conditions typically are not readily available. Accordingly, the Bancorp estimates the fair value of MSRs using internal 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 9 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 months ended March 31, 2014, 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 $12 million in losses, recorded as charge-offs, on new OREO properties transferred from loans during the three months ended March 31, 2014 and 2013, respectively, and $10 million in losses for the three months ended March 31, 2014 and 2013, recorded as negative fair value adjustments on OREO in other noninterest income 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 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 instruments held at March 31, 2014 and 2013 for which the fair value option was elected as well as the changes in fair value of the underlying IRLCs, included gains of $23 million and $114 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 $2 million at March 31, 2014 and December 31, 2013. Interest on residential mortgage loans measured at fair value is accrued as it is earned using the effective interest method and is reported as interest income in the Condensed Consolidated Statements of Income. | |||||||||||||
The following table summarizes the difference between the fair value and the principal balance for residential mortgage loans measured at fair value as of: | |||||||||||||
Aggregate | Aggregate Unpaid | ||||||||||||
($ in millions) | Fair Value | Principal Balance | Difference | ||||||||||
31-Mar-14 | |||||||||||||
Residential mortgage loans measured at fair value | $ | 752 | 729 | 23 | |||||||||
Past due loans of 90 days or more | 2 | 2 | - | ||||||||||
Nonaccrual loans | 3 | 3 | - | ||||||||||
31-Dec-13 | |||||||||||||
Residential mortgage loans measured at fair value | 982 | 962 | 20 | ||||||||||
Past due loans of 90 days or more | 1 | 2 | -1 | ||||||||||
Nonaccrual loans | 2 | 2 | - | ||||||||||
Fair Value of Certain Financial Instruments | |||||||||||||
The following tables summarize the carrying amounts and estimated fair values for certain financial instruments, excluding financial instruments measured at fair value on a recurring basis: | |||||||||||||
Net Carrying | Fair Value Measurements Using | Total | |||||||||||
As of March 31, 2014 ($ in millions) | Amount | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||
Financial assets: | |||||||||||||
Cash and due from banks | $ | 3,153 | 3,153 | - | - | 3,153 | |||||||
Other securities | 599 | - | 599 | - | 599 | ||||||||
Held-to-maturity securities | 195 | - | - | 195 | 195 | ||||||||
Other short-term investments | 2,202 | 2,202 | - | - | 2,202 | ||||||||
Loans held for sale | 131 | - | - | 131 | 131 | ||||||||
Portfolio loans and leases: | |||||||||||||
Commercial and industrial loans | 39,872 | - | - | 41,192 | 41,192 | ||||||||
Commercial mortgage loans | 7,767 | - | - | 7,365 | 7,365 | ||||||||
Commercial construction loans | 1,195 | - | - | 1,015 | 1,015 | ||||||||
Commercial leases | 3,529 | - | - | 3,270 | 3,270 | ||||||||
Residential mortgage loans | 12,343 | - | - | 11,841 | 11,841 | ||||||||
Home equity | 9,039 | - | - | 9,081 | 9,081 | ||||||||
Automobile loans | 12,060 | - | - | 11,818 | 11,818 | ||||||||
Credit card | 2,087 | - | - | 2,263 | 2,263 | ||||||||
Other consumer loans and leases | 332 | - | - | 342 | 342 | ||||||||
Unallocated allowance for loan and lease losses | -105 | - | - | - | - | ||||||||
Total portfolio loans and leases, net | $ | 88,119 | - | - | 88,187 | 88,187 | |||||||
Financial liabilities: | |||||||||||||
Deposits | 96,874 | - | 96,893 | - | 96,893 | ||||||||
Federal funds purchased | 268 | 268 | - | - | 268 | ||||||||
Other short-term borrowings | 2,717 | - | 2,718 | - | 2,718 | ||||||||
Long-term debt | 11,233 | 11,257 | 606 | - | 11,863 | ||||||||
Net Carrying | Fair Value Measurements Using | ||||||||||||
As of December 31, 2013 ($ in millions) | Amount | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||
Financial assets: | |||||||||||||
Cash and due from banks | $ | 3,178 | 3,178 | - | - | 3,178 | |||||||
Other securities | 751 | - | 751 | - | 751 | ||||||||
Held-to-maturity securities | 208 | - | - | 208 | 208 | ||||||||
Other short-term investments | 5,116 | 5,116 | - | - | 5,116 | ||||||||
Loans held for sale | 54 | - | - | 54 | 54 | ||||||||
Portfolio loans and leases: | |||||||||||||
Commercial and industrial loans | 38,549 | - | - | 39,804 | 39,804 | ||||||||
Commercial mortgage loans | 7,854 | - | - | 7,430 | 7,430 | ||||||||
Commercial construction loans | 1,013 | - | - | 856 | 856 | ||||||||
Commercial leases | 3,572 | - | - | 3,261 | 3,261 | ||||||||
Residential mortgage loans | 12,399 | - | - | 11,541 | 11,541 | ||||||||
Home equity | 9,152 | - | - | 9,181 | 9,181 | ||||||||
Automobile loans | 11,961 | - | - | 11,748 | 11,748 | ||||||||
Credit card | 2,202 | - | - | 2,380 | 2,380 | ||||||||
Other consumer loans and leases | 348 | - | - | 361 | 361 | ||||||||
Unallocated allowance for loan and lease losses | -110 | - | - | - | - | ||||||||
Total portfolio loans and leases, net | $ | 86,940 | - | - | 86,562 | 86,562 | |||||||
Financial liabilities: | |||||||||||||
Deposits | 99,275 | - | 99,288 | - | 99,288 | ||||||||
Federal funds purchased | 284 | 284 | - | - | 284 | ||||||||
Other short-term borrowings | 1,380 | - | 1,380 | - | 1,380 | ||||||||
Long-term debt | 9,633 | 9,645 | 577 | - | 10,222 | ||||||||
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), federal funds purchased, and other short-term borrowings excluding FHLB borrowings. Fair values for other time deposits, certificates of deposit $100,000 and over and FHLB borrowings were estimated using a discounted cash flow calculation that applies prevailing LIBOR/swap rates and a spread for new issuances with similar terms. | |||||||||||||
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, similar remaining maturities, prepayment speeds, and loss severities. | |||||||||||||
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, Fifth Third credit and/or debt instrument spreads for new issuances with similar terms. |
Business_Segments
Business Segments | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Business Segments | ' | ||||||||
Business Segments | ' | ||||||||
20. 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, 2014 to reflect the current market rates and updated market assumptions. These rates were generally higher than those in place during 2013, thus net interest income for deposit providing businesses was positively impacted during 2014. | |||||||||
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. | |||||||||
The results of operations and financial position for the three months ended March 31, 2013 were restated to reflect the transfer of certain customers and Bancorp employees from Branch Banking to Commercial Banking, effective January 1, 2014. In addition, the prior year balances were restated to reflect a change in internal allocation methodology. | |||||||||
The following is a description of each of the Bancorp's business segments, and the products and services they provide to their respective client bases. | |||||||||
Commercial Banking offers credit intermediation, cash management and financial services to large and middle-market businesses and government and professional customers. In addition to the traditional lending and depository offerings, Commercial Banking products and services include global cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing and syndicated finance. | |||||||||
Branch Banking provides a full range of deposit and loan and lease products to individuals and small businesses through 1,311 full-service Banking Centers. Branch Banking offers depository and loan products, such as checking and savings accounts, home equity loans and lines of credit, credit cards and loans for automobiles and other personal financing needs, as well as products designed to meet the specific needs of small businesses, including cash management services. | |||||||||
Consumer Lending includes the Bancorp's mortgage, home equity, automobile and other indirect lending activities. Mortgage and home equity lending activities include the origination, retention and servicing of mortgage, automobile and home equity loans or lines of credit, sales and securitizations of those loans, pools of loans or lines of credit, and all associated hedging activities. Indirect lending activities include extending loans to consumers through mortgage brokers and automobile dealers. | |||||||||
Investment Advisors provides a full range of investment alternatives for individuals, companies and not-for-profit organizations. Investment Advisors is made up of four main businesses: FTS, an indirect wholly-owned subsidiary of the Bancorp; ClearArc Capital, Inc., an indirect wholly-owned subsidiary of the Bancorp; Fifth Third Private Bank; and Fifth Third Institutional Services. FTS offers full service retail brokerage services to individual clients and broker dealer services to the institutional marketplace. ClearArc Capital, Inc. provides asset management services and previously advised the Bancorp's proprietary family of mutual funds. Fifth Third Private Bank offers holistic strategies to affluent clients in wealth planning, investing, insurance and wealth protection. Fifth Third Institutional Services provides advisory services for institutional clients including states and municipalities. | |||||||||
Results of operations and assets by segment for the three months ended March 31, 2014 and 2013 are: | |||||||||
General | |||||||||
Commercial | Branch | Consumer | Investment | Corporate | |||||
($ in millions) | Banking | Banking | Lending | Advisors | and Other | Eliminations | Total | ||
Three months ended March 31, 2014 | |||||||||
Net interest income | $ | 404 | 385 | 64 | 32 | 8 | - | 893 | |
Provision for loan and lease losses | 97 | 45 | 25 | - | -98 | - | 69 | ||
Net interest income after provision for loan | |||||||||
and lease losses | 307 | 340 | 39 | 32 | 106 | - | 824 | ||
Noninterest income: | |||||||||
Service charges on deposits | 69 | 63 | - | 1 | - | - | 133 | ||
Mortgage banking net revenue | - | 1 | 108 | - | - | - | 109 | ||
Corporate banking revenue | 104 | 1 | - | 1 | -2 | - | 104 | ||
Investment advisory revenue | 1 | 36 | - | 100 | - | (35)(a) | 102 | ||
Card and processing revenue | 16 | 51 | - | 1 | - | - | 68 | ||
Other noninterest income | 20 | 20 | 10 | - | -9 | - | 41 | ||
Securities gains, net | - | - | - | - | 7 | - | 7 | ||
Securities gains, net - non-qualifying hedges on | |||||||||
mortgage servicing rights | - | - | - | - | - | - | - | ||
Total noninterest income | 210 | 172 | 118 | 103 | -4 | -35 | 564 | ||
Noninterest expense: | |||||||||
Salaries, wages and incentives | 64 | 105 | 25 | 34 | 131 | - | 359 | ||
Employee benefits | 19 | 35 | 9 | 9 | 29 | - | 101 | ||
Net occupancy expense | 6 | 46 | 2 | 2 | 24 | - | 80 | ||
Technology and communications | 3 | 2 | - | - | 48 | - | 53 | ||
Card and processing expense | 2 | 29 | - | - | - | - | 31 | ||
Equipment expense | 2 | 15 | - | - | 13 | - | 30 | ||
Other noninterest expense | 238 | 158 | 130 | 65 | -260 | -35 | 296 | ||
Total noninterest expense | 334 | 390 | 166 | 110 | -15 | -35 | 950 | ||
Income (loss) before income taxes | 183 | 122 | -9 | 25 | 117 | - | 438 | ||
Applicable income tax expense (benefit) | 19 | 42 | -3 | 8 | 53 | - | 119 | ||
Net income (loss) | 164 | 80 | -6 | 17 | 64 | - | 319 | ||
Less: Net income attributable to noncontrolling interests | - | - | - | - | 1 | - | 1 | ||
Net income (loss) attributable to Bancorp | 164 | 80 | -6 | 17 | 63 | - | 318 | ||
Dividends on preferred stock | - | - | - | - | 9 | - | 9 | ||
Net income (loss) available to common shareholders | $ | 164 | 80 | -6 | 17 | 54 | - | 309 | |
Total goodwill | $ | 613 | 1,655 | - | 148 | - | - | 2,416 | |
Total assets | $ | 55,676 | 48,888 | 22,436 | 9,775 | -7,121 | - | 129,654 | |
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 March 31, 2013 | |||||||||
Net interest income | $ | 384 | 323 | 85 | 36 | 60 | - | 888 | |
Provision for loan and lease losses | 44 | 57 | 29 | 1 | -69 | - | 62 | ||
Net interest income after provision for loan | |||||||||
and lease losses | 340 | 266 | 56 | 35 | 129 | - | 826 | ||
Noninterest income: | |||||||||
Service charges on deposits | 65 | 65 | - | 1 | - | - | 131 | ||
Mortgage banking net revenue | - | 4 | 216 | - | - | - | 220 | ||
Corporate banking revenue | 97 | 1 | - | 1 | - | - | 99 | ||
Investment advisory revenue | 1 | 37 | - | 98 | - | (36)(a) | 100 | ||
Card and processing revenue | 15 | 49 | - | 1 | - | - | 65 | ||
Other noninterest income | 16 | 22 | 11 | 7 | 53 | - | 109 | ||
Securities gains, net | - | - | - | - | 17 | - | 17 | ||
Securities gains, net - non-qualifying hedges on | |||||||||
mortgage servicing rights | - | - | 2 | - | - | - | 2 | ||
Total noninterest income | 194 | 178 | 229 | 108 | 70 | -36 | 743 | ||
Noninterest expense: | |||||||||
Salaries, wages and incentives | 70 | 109 | 50 | 33 | 137 | - | 399 | ||
Employee benefits | 20 | 36 | 13 | 9 | 36 | - | 114 | ||
Net occupancy expense | 6 | 46 | 2 | 3 | 22 | - | 79 | ||
Technology and communications | 3 | 1 | - | - | 45 | - | 49 | ||
Card and processing expense | 1 | 29 | - | - | 1 | - | 31 | ||
Equipment expense | 1 | 14 | - | - | 13 | - | 28 | ||
Other noninterest expense | 199 | 155 | 112 | 70 | -222 | -36 | 278 | ||
Total noninterest expense | 300 | 390 | 177 | 115 | 32 | -36 | 978 | ||
Income before income taxes | 234 | 54 | 108 | 28 | 167 | - | 591 | ||
Applicable income tax expense | 36 | 20 | 38 | 10 | 75 | - | 179 | ||
Net income | 198 | 34 | 70 | 18 | 92 | - | 412 | ||
Less: Net income attributable to noncontrolling interests | - | - | - | - | -10 | - | -10 | ||
Net income attributable to Bancorp | 198 | 34 | 70 | 18 | 102 | - | 422 | ||
Dividends on preferred stock | - | - | - | - | 9 | - | 9 | ||
Net income available to common shareholders | $ | 198 | 34 | 70 | 18 | 93 | - | 413 | |
Total goodwill | $ | 613 | 1,655 | - | 148 | - | - | 2,416 | |
Total assets | $ | 52,117 | 47,527 | 24,026 | 9,114 | -11,402 | - | 121,382 | |
Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income. | |||||||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events | ' |
Subsequent Event | ' |
21. Subsequent Events | |
On April 25, 2014, the Bank issued and sold $1.5 billion in aggregate principal amount of unsecured senior bank notes. The bank notes consisted of: $850 million of 2.375% senior fixed rate notes, with a maturity of five years, due on April 25, 2019 and $650 million of 1.35% senior fixed rate notes with a maturity of three years, due on June 1, 2017. 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 up to, but excluding, the redemption date. | |
On April 28, 2014, the Bancorp entered into an accelerated share repurchase transaction with a counterparty pursuant to which the Bancorp purchased 6,216,480 shares, or approximately $150 million, of its outstanding common stock on May 1, 2014. The Bancorp repurchased the shares of its common stock as part of its Board approved 100 million share repurchase program previously announced on March 18, 2014. The Bancorp expects the settlement of the transaction to occur on or before July 28, 2014. |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Supplemental Cash Flow | ' | |||
Noncash Investing and Financing Activities | ' | |||
Cash payments related to interest and income taxes in addition to noncash investing and financing activities are presented in the following table for the three months ended March 31: | ||||
($ in millions) | 2014 | 2013 | ||
Cash payments: | ||||
Interest | $ | 133 | 122 | |
Income taxes | 21 | 34 | ||
Transfers: | ||||
Portfolio loans to loans held for sale | 73 | 590 | ||
Loans held for sale to portfolio loans | 12 | 12 | ||
Portfolio loans to OREO | 37 | 64 | ||
Loans held for sale to OREO | 2 | 3 | ||
Securities_Tables
Securities (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
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 | |||||||||||
March 31, 2014 ($ in millions) | Cost | Gains | Losses | Value | ||||||||||
Available-for-sale and other: | ||||||||||||||
U.S. Treasury and government agencies | $ | 26 | - | - | 26 | |||||||||
U.S. Government sponsored agencies | 1,522 | 113 | - | 1,635 | ||||||||||
Obligations of states and political subdivisions | 186 | 8 | - | 194 | ||||||||||
Agency mortgage-backed securities(a) | 14,029 | 220 | -64 | 14,185 | ||||||||||
Other bonds, notes and debentures | 3,917 | 81 | -7 | 3,991 | ||||||||||
Other securities(b) | 713 | 6 | -1 | 718 | ||||||||||
Total | $ | 20,393 | 428 | -72 | 20,749 | |||||||||
Held-to-maturity: | ||||||||||||||
Obligations of states and political subdivisions | $ | 194 | - | - | 194 | |||||||||
Other debt securities | 1 | - | - | 1 | ||||||||||
Total | $ | 195 | - | - | 195 | |||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||
December 31, 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 | 1,523 | 121 | - | 1,644 | ||||||||||
Obligations of states and political subdivisions | 187 | 5 | - | 192 | ||||||||||
Agency mortgage-backed securities(a) | 12,294 | 140 | -150 | 12,284 | ||||||||||
Other bonds, notes and debentures | 3,514 | 76 | -8 | 3,582 | ||||||||||
Other securities(b) | 865 | 5 | -1 | 869 | ||||||||||
Total | $ | 18,409 | 347 | -159 | 18,597 | |||||||||
Held-to-maturity: | ||||||||||||||
Obligations of states and political subdivisions | $ | 207 | - | - | 207 | |||||||||
Other debt securities | 1 | - | - | 1 | ||||||||||
Total | $ | 208 | - | - | 208 | |||||||||
Includes interest-only mortgage backed securities of $217 and $262 as of March 31, 2014 and December 31, 2013, 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 $249 and $350, respectively, at March 31, 2014 and $402 and $349, respectively, at December 31, 2013, that are carried at cost, and certain mutual fund and equity security holdings. | ||||||||||||||
Realized Gains and Losses Recognized in Income from Available-for-Sale Securities | ' | |||||||||||||
The following table presents realized gains and losses that were recognized in income from available-for-sale securities: | ||||||||||||||
For the three months | ||||||||||||||
ended March 31, | ||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||
Realized gains | $ | 27 | 18 | |||||||||||
Realized losses | -5 | -25 | ||||||||||||
OTTI | -17 | - | ||||||||||||
Net realized gains (losses)(a) | $ | 5 | -7 | |||||||||||
Excludes net gains on interest-only mortgage-backed securities of $1 and $24 for the three months ended March 31, 2014 and 2013, respectively. | ||||||||||||||
Amortized Cost and Fair Value of Available-for-Sale and Other and Held-to-Maturity Securities | ' | |||||||||||||
The expected maturity distribution of the Bancorp’s agency mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale and other and held-to-maturity securities as of March 31, 2014 are shown in the following table: | ||||||||||||||
Available-for-Sale & Other | Held-to-Maturity | |||||||||||||
($ in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||
Debt securities:(a) | ||||||||||||||
Under 1 year | $ | 92 | 95 | 16 | 16 | |||||||||
1-5 years | 3,626 | 3,814 | 160 | 160 | ||||||||||
5-10 years | 12,430 | 12,507 | 17 | 17 | ||||||||||
Over 10 years | 3,532 | 3,615 | 2 | 2 | ||||||||||
Other securities | 713 | 718 | - | - | ||||||||||
Total | $ | 20,393 | 20,749 | 195 | 195 | |||||||||
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 | ||||||||
31-Mar-14 | ||||||||||||||
Agency mortgage-backed securities | 5,323 | -64 | - | - | 5,323 | -64 | ||||||||
Other bonds, notes and debentures | 942 | -5 | 156 | -2 | 1,098 | -7 | ||||||||
Other securities | 33 | -1 | 4 | - | 37 | -1 | ||||||||
Total | $ | 6,298 | -70 | 160 | -2 | 6,458 | -72 | |||||||
31-Dec-13 | ||||||||||||||
Agency mortgage-backed securities | $ | 7,221 | -150 | 1 | - | 7,222 | -150 | |||||||
Other bonds, notes and debentures | 595 | -5 | 132 | -3 | 727 | -8 | ||||||||
Other securities | 33 | -1 | 4 | - | 37 | -1 | ||||||||
Total | $ | 7,849 | -156 | 137 | -3 | 7,986 | -159 | |||||||
Loans_and_Leases_Tables
Loans and Leases (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
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: | ||||||||||||
March 31, | December 31, | |||||||||||
($ in millions) | 2014 | 2013 | ||||||||||
Loans and leases held for sale: | ||||||||||||
Commercial and industrial loans | $ | 101 | 31 | |||||||||
Commercial mortgage loans | 1 | 3 | ||||||||||
Commercial construction loans | 2 | 2 | ||||||||||
Commercial leases | - | 1 | ||||||||||
Residential mortgage loans | 649 | 890 | ||||||||||
Other consumer loans and leases | 27 | 17 | ||||||||||
Total loans and leases held for sale | $ | 780 | 944 | |||||||||
Portfolio loans and leases: | ||||||||||||
Commercial and industrial loans | $ | 40,591 | 39,316 | |||||||||
Commercial mortgage loans | 7,958 | 8,066 | ||||||||||
Commercial construction loans | 1,218 | 1,039 | ||||||||||
Commercial leases | 3,577 | 3,625 | ||||||||||
Total commercial loans and leases | 53,344 | 52,046 | ||||||||||
Residential mortgage loans | 12,626 | 12,680 | ||||||||||
Home equity | 9,125 | 9,246 | ||||||||||
Automobile loans | 12,088 | 11,984 | ||||||||||
Credit card | 2,177 | 2,294 | ||||||||||
Other consumer loans and leases | 345 | 364 | ||||||||||
Total consumer loans and leases | 36,361 | 36,568 | ||||||||||
Total portfolio loans and leases | $ | 89,705 | 88,614 | |||||||||
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 | |||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||
($ in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||
Commercial and industrial loans | $ | 40,692 | 39,347 | $ | 1 | - | ||||||
Commercial mortgage loans | 7,959 | 8,069 | - | - | ||||||||
Commercial construction loans | 1,220 | 1,041 | - | - | ||||||||
Commercial leases | 3,577 | 3,626 | - | - | ||||||||
Residential mortgage loans | 13,275 | 13,570 | 56 | 66 | ||||||||
Home equity | 9,125 | 9,246 | - | - | ||||||||
Automobile loans | 12,088 | 11,984 | 7 | 8 | ||||||||
Credit card | 2,177 | 2,294 | 30 | 29 | ||||||||
Other consumer loans and leases | 372 | 381 | - | - | ||||||||
Total loans and leases | $ | 90,485 | 89,558 | $ | 94 | 103 | ||||||
Less: Loans held for sale | $ | 780 | 944 | |||||||||
Total portfolio loans and leases | $ | 89,705 | 88,614 | |||||||||
The following table presents a summary of net charge-offs: | ||||||||||||
For the three months | ||||||||||||
ended March 31, | ||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||
Commercial and industrial loans | $ | 97 | 25 | |||||||||
Commercial mortgage loans | 3 | 26 | ||||||||||
Commercial construction loans | 5 | 3 | ||||||||||
Residential mortgage loans | 15 | 20 | ||||||||||
Home equity | 16 | 30 | ||||||||||
Automobile loans | 8 | 4 | ||||||||||
Credit card | 19 | 20 | ||||||||||
Other consumer loans and leases | 5 | 5 | ||||||||||
Total | $ | 168 | 133 |
Credit_Quality_and_the_Allowan1
Credit Quality and the Allowance for Loan and Lease Losses (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
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 March 31, 2014 | Residential | ||||||||||||||
($ in millions) | Commercial | Mortgage | Consumer | Unallocated | Total | ||||||||||
Transactions in the ALLL: | |||||||||||||||
Balance, beginning of period | $ | 1,058 | 189 | 225 | 110 | 1,582 | |||||||||
Losses charged off | -110 | -19 | -61 | - | -190 | ||||||||||
Recoveries of losses previously charged off | 5 | 4 | 13 | - | 22 | ||||||||||
Provision for loan and lease losses | 28 | 6 | 40 | -5 | 69 | ||||||||||
Balance, end of period | $ | 981 | 180 | 217 | 105 | 1,483 | |||||||||
For the three months ended March 31, 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 | -68 | -22 | -78 | - | -168 | ||||||||||
Recoveries of losses previously charged off | 14 | 2 | 19 | - | 35 | ||||||||||
Provision for loan and lease losses | 9 | 3 | 53 | -3 | 62 | ||||||||||
Balance, end of period | $ | 1,191 | 212 | 272 | 108 | 1,783 | |||||||||
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 March 31, 2014 ($ in millions) | Commercial | Mortgage | Consumer | Unallocated | Total | ||||||||||
ALLL:(a) | |||||||||||||||
Individually evaluated for impairment | $ | 182 | (c) | 140 | 51 | - | 373 | ||||||||
Collectively evaluated for impairment | 799 | 40 | 166 | - | 1,005 | ||||||||||
Unallocated | - | - | - | 105 | 105 | ||||||||||
Total ALLL | $ | 981 | 180 | 217 | 105 | 1,483 | |||||||||
Loans and leases:(b) | |||||||||||||||
Individually evaluated for impairment | $ | 1,306 | (c) | 1,310 | 483 | - | 3,099 | ||||||||
Collectively evaluated for impairment | 52,038 | 11,209 | 23,252 | - | 86,499 | ||||||||||
Loans acquired with deteriorated credit quality | - | 4 | - | - | 4 | ||||||||||
Total portfolio loans and leases | $ | 53,344 | 12,523 | 23,735 | - | 89,602 | |||||||||
Includes $8 related to leveraged leases. | |||||||||||||||
Excludes $103 of residential mortgage loans measured at fair value, and includes $878 of leveraged leases, net of unearned income. | |||||||||||||||
Includes five restructured loans at March 31, 2014 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $28 and an allowance of $11. | |||||||||||||||
Residential | |||||||||||||||
As of December 31, 2013 ($ in millions) | Commercial | Mortgage | Consumer | Unallocated | Total | ||||||||||
ALLL:(a) | |||||||||||||||
Individually evaluated for impairment | $ | 186 | (c) | 139 | 53 | - | 378 | ||||||||
Collectively evaluated for impairment | 872 | 50 | 172 | - | 1,094 | ||||||||||
Unallocated | - | - | - | 110 | 110 | ||||||||||
Total ALLL | $ | 1,058 | 189 | 225 | 110 | 1,582 | |||||||||
Loans and leases:(b) | |||||||||||||||
Individually evaluated for impairment | $ | 1,560 | (c) | 1,325 | 496 | - | 3,381 | ||||||||
Collectively evaluated for impairment | 50,486 | 11,259 | 23,392 | - | 85,137 | ||||||||||
Loans acquired with deteriorated credit quality | - | 4 | - | - | 4 | ||||||||||
Total portfolio loans and leases | $ | 52,046 | 12,588 | 23,888 | - | 88,522 | |||||||||
Includes $9 related to leveraged leases. | |||||||||||||||
Excludes $92 of residential mortgage loans measured at fair value, and includes $881 of leveraged leases, net of unearned income. | |||||||||||||||
Includes five restructured loans at December 31, 2013 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $28 and an allowance of $11. | |||||||||||||||
Loan and leases balances by credit quality indicator | ' | ||||||||||||||
The following table summarizes the credit risk profile of the Bancorp’s commercial portfolio segment, by class: | |||||||||||||||
Special | |||||||||||||||
As of March 31, 2014 ($ in millions) | Pass | Mention | Substandard | Doubtful | Total | ||||||||||
Commercial and industrial loans | $ | 38,061 | 1,175 | 1,313 | 42 | 40,591 | |||||||||
Commercial mortgage owner occupied loans | 3,825 | 196 | 375 | 2 | 4,398 | ||||||||||
Commercial mortgage non-owner occupied loans | 2,913 | 242 | 405 | - | 3,560 | ||||||||||
Commercial construction loans | 1,078 | 37 | 103 | - | 1,218 | ||||||||||
Commercial leases | 3,500 | 47 | 30 | - | 3,577 | ||||||||||
Total | $ | 49,377 | 1,697 | 2,226 | 44 | 53,344 | |||||||||
Special | |||||||||||||||
As of December 31, 2013 ($ in millions) | Pass | Mention | Substandard | Doubtful | Total | ||||||||||
Commercial and industrial loans | $ | 36,776 | 1,118 | 1,419 | 3 | 39,316 | |||||||||
Commercial mortgage owner occupied loans | 3,866 | 209 | 415 | 17 | 4,507 | ||||||||||
Commercial mortgage non-owner occupied loans | 2,879 | 248 | 431 | 1 | 3,559 | ||||||||||
Commercial construction loans | 855 | 32 | 152 | - | 1,039 | ||||||||||
Commercial leases | 3,546 | 56 | 23 | - | 3,625 | ||||||||||
Total | $ | 47,922 | 1,663 | 2,440 | 21 | 52,046 | |||||||||
The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments disaggregated into performing versus nonperforming status as of: | |||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||
($ in millions) | Performing | Nonperforming | Performing | Nonperforming | |||||||||||
Residential mortgage loans(a) | $ | 12,382 | 141 | 12,423 | 165 | ||||||||||
Home equity | 9,031 | 94 | 9,153 | 93 | |||||||||||
Automobile loans | 12,087 | 1 | 11,982 | 2 | |||||||||||
Credit card | 2,144 | 33 | 2,261 | 33 | |||||||||||
Other consumer loans and leases | 345 | - | 364 | - | |||||||||||
Total | $ | 35,989 | 269 | 36,183 | 293 | ||||||||||
Excludes $103 and $92 of loans measured at fair value at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||
Summary by Age and Class of the Recorded Investment in Delinquencies Included in the Bancorp's Portfolio of Loans and Leases | ' | ||||||||||||||
Age Analysis of Past Due Loans and Leases | |||||||||||||||
The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases by age and class: | |||||||||||||||
Past Due | |||||||||||||||
Current | 90 Days | 90 Days Past | |||||||||||||
As of March 31, 2014 | Loans and | 30-89 | and | Total | Total Loans | Due and Still | |||||||||
($ in millions) | Leases(c) | Days(c) | Greater(c) | Past Due | and Leases | Accruing | |||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 40,402 | 35 | 154 | 189 | 40,591 | 1 | ||||||||
Commercial mortgage owner occupied loans | 4,321 | 10 | 67 | 77 | 4,398 | - | |||||||||
Commercial mortgage non-owner occupied loans | 3,524 | 4 | 32 | 36 | 3,560 | - | |||||||||
Commercial construction loans | 1,199 | 15 | 4 | 19 | 1,218 | - | |||||||||
Commercial leases | 3,573 | 2 | 2 | 4 | 3,577 | - | |||||||||
Residential mortgage loans(a) (b) | 12,255 | 71 | 197 | 268 | 12,523 | 56 | |||||||||
Consumer: | |||||||||||||||
Home equity | 8,947 | 99 | 79 | 178 | 9,125 | - | |||||||||
Automobile loans | 12,037 | 42 | 9 | 51 | 12,088 | 7 | |||||||||
Credit card | 2,111 | 31 | 35 | 66 | 2,177 | 30 | |||||||||
Other consumer loans and leases | 344 | 1 | - | 1 | 345 | - | |||||||||
Total portfolio loans and leases(a) | $ | 88,713 | 310 | 579 | 889 | 89,602 | 94 | ||||||||
Excludes $103 of loans measured at fair value. | |||||||||||||||
Information for current residential mortgage loans includes loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of March 31, 2014, $75 of these loans were 30-89 days past due and $347 were 90 days or more past due. The Bancorp recognized $5 of losses during the three months ended March 31, 2014 due to claim denials and curtailments associated with these loans. | |||||||||||||||
Includes accrual and nonaccrual loans and leases. | |||||||||||||||
Past Due | |||||||||||||||
Current | 90 Days | 90 Days Past | |||||||||||||
As of December 31, 2013 | Loans and | 30-89 | and | Total | Total Loans | Due and Still | |||||||||
($ in millions) | Leases(c) | Days(c) | Greater(c) | Past Due | and Leases | Accruing | |||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 39,118 | 53 | 145 | 198 | 39,316 | - | ||||||||
Commercial mortgage owner occupied loans | 4,423 | 15 | 69 | 84 | 4,507 | - | |||||||||
Commercial mortgage non-owner occupied loans | 3,515 | 9 | 35 | 44 | 3,559 | - | |||||||||
Commercial construction loans | 1,010 | - | 29 | 29 | 1,039 | - | |||||||||
Commercial leases | 3,620 | - | 5 | 5 | 3,625 | - | |||||||||
Residential mortgage loans(a) (b) | 12,284 | 73 | 231 | 304 | 12,588 | 66 | |||||||||
Consumer: | |||||||||||||||
Home equity | 9,058 | 102 | 86 | 188 | 9,246 | - | |||||||||
Automobile loans | 11,919 | 55 | 10 | 65 | 11,984 | 8 | |||||||||
Credit card | 2,225 | 36 | 33 | 69 | 2,294 | 29 | |||||||||
Other consumer loans and leases | 362 | 2 | - | 2 | 364 | - | |||||||||
Total portfolio loans and leases(a) | $ | 87,534 | 345 | 643 | 988 | 88,522 | 103 | ||||||||
Excludes $92 of loans measured at fair value. | |||||||||||||||
Information for current residential mortgage loans includes loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of December 31, 2013, $81 of these loans were 30-89 days past due and $378 were 90 days or more past due. The Bancorp recognized $5 of losses for the year ended December 31, 2013 due to claim denials and curtailments associated with these loans. | |||||||||||||||
Includes accrual and nonaccrual loans and leases. | |||||||||||||||
Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class | ' | ||||||||||||||
The following tables summarize the Bancorp’s impaired loans and leases (by class) that were subject to individual review, which includes all loans and leases restructured in a troubled debt restructuring: | |||||||||||||||
Unpaid | |||||||||||||||
As of March 31, 2014 | Principal | Recorded | |||||||||||||
($ in millions) | Balance | Investment | Allowance | ||||||||||||
With a related allowance recorded: | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 663 | 531 | 140 | |||||||||||
Commercial mortgage owner occupied loans(b) | 85 | 71 | 11 | ||||||||||||
Commercial mortgage non-owner occupied loans | 105 | 82 | 12 | ||||||||||||
Commercial construction loans | 76 | 60 | 5 | ||||||||||||
Commercial leases | 3 | 3 | 3 | ||||||||||||
Restructured residential mortgage loans | 1,074 | 1,044 | 140 | ||||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 366 | 363 | 36 | ||||||||||||
Automobile loans | 22 | 21 | 3 | ||||||||||||
Credit card | 57 | 57 | 12 | ||||||||||||
Total impaired loans and leases with a related allowance | $ | 2,451 | 2,232 | 362 | |||||||||||
With no related allowance recorded: | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 242 | 198 | - | |||||||||||
Commercial mortgage owner occupied loans | 90 | 82 | - | ||||||||||||
Commercial mortgage non-owner occupied loans | 191 | 185 | - | ||||||||||||
Commercial construction loans | 64 | 52 | - | ||||||||||||
Commercial leases | 14 | 14 | - | ||||||||||||
Restructured residential mortgage loans | 300 | 266 | - | ||||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 43 | 39 | - | ||||||||||||
Automobile loans | 3 | 3 | - | ||||||||||||
Total impaired loans and leases with no related allowance | 947 | 839 | - | ||||||||||||
Total impaired loans and leases | $ | 3,398 | 3,071 | (a) | 362 | ||||||||||
Includes $847, $1,237 and $430, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $209, $73 and $53, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. | |||||||||||||||
Excludes five restructured loans at March 31, 2014 associated with a consolidated VIE 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 $28, a recorded investment of $28, and an allowance of $11. | |||||||||||||||
Unpaid | |||||||||||||||
As of December 31, 2013 | Principal | Recorded | |||||||||||||
($ in millions) | Balance | Investment | Allowance | ||||||||||||
With a related allowance recorded: | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 870 | 759 | 145 | |||||||||||
Commercial mortgage owner occupied loans(b) | 85 | 74 | 11 | ||||||||||||
Commercial mortgage non-owner occupied loans | 154 | 134 | 14 | ||||||||||||
Commercial construction loans | 68 | 54 | 5 | ||||||||||||
Commercial leases | 12 | 12 | - | ||||||||||||
Restructured residential mortgage loans | 1,081 | 1,052 | 139 | ||||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 377 | 373 | 39 | ||||||||||||
Automobile loans | 23 | 23 | 3 | ||||||||||||
Credit card | 59 | 58 | 11 | ||||||||||||
Total impaired loans and leases with a related allowance | $ | 2,729 | 2,539 | 367 | |||||||||||
With no related allowance recorded: | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 181 | 177 | - | |||||||||||
Commercial mortgage owner occupied loans | 106 | 98 | - | ||||||||||||
Commercial mortgage non-owner occupied loans | 154 | 147 | - | ||||||||||||
Commercial construction loans | 77 | 63 | - | ||||||||||||
Commercial leases | 14 | 14 | - | ||||||||||||
Restructured residential mortgage loans | 313 | 273 | - | ||||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 43 | 39 | - | ||||||||||||
Automobile loans | 3 | 3 | - | ||||||||||||
Total impaired loans and leases with no related allowance | 891 | 814 | - | ||||||||||||
Total impaired loans and leases | $ | 3,620 | 3,353 | (a) | 367 | ||||||||||
Includes $869, $1,241 and $444, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $228, $84 and $52, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. | |||||||||||||||
Excludes five restructured loans at December 31, 2013 associated with a consolidated VIE 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 $28, a recorded investment of $28, and an allowance of $11. | |||||||||||||||
The following table summarizes the Bancorp’s average impaired loans and leases and interest income by class: | |||||||||||||||
For the three months ended | For the three months ended | ||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||
Average | Interest | Average | Interest | ||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||
($ in millions) | Investment | Recognized | Investment | Recognized | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 832 | 5 | $ | 339 | 2 | |||||||||
Commercial mortgage owner occupied loans(a) | 162 | 1 | 140 | 1 | |||||||||||
Commercial mortgage non-owner occupied loans | 273 | 2 | 341 | 2 | |||||||||||
Commercial construction loans | 114 | - | 110 | 1 | |||||||||||
Commercial leases | 22 | - | 11 | - | |||||||||||
Restructured residential mortgage loans | 1,312 | 13 | 1,306 | 13 | |||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 406 | 5 | 439 | 6 | |||||||||||
Automobile loans | 24 | - | 32 | - | |||||||||||
Credit card | 57 | 1 | 73 | 1 | |||||||||||
Other consumer loans and leases | - | - | 2 | - | |||||||||||
Total impaired loans and leases | $ | 3,202 | 27 | $ | 2,793 | 26 | |||||||||
Excludes five restructured 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 $28 and $30 at March 31, 2014 and 2013, respectively. | |||||||||||||||
Summary of the Bancorp's Nonperforming Loans and Leases by Class | ' | ||||||||||||||
Nonperforming Assets | |||||||||||||||
Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain; restructured commercial and credit card loans which have not yet met the requirements to be classified as a performing asset; restructured consumer loans which are 90 days past due based on the restructured terms unless the loan is both well-secured and in the process of collection; and certain other assets, including OREO and other repossessed property. The following table summarizes the Bancorp’s nonperforming loans and leases, by class, as of: | |||||||||||||||
March 31, | December 31, | ||||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 297 | 281 | ||||||||||||
Commercial mortgage owner occupied loans(a) | 87 | 95 | |||||||||||||
Commercial mortgage non-owner occupied loans | 59 | 48 | |||||||||||||
Commercial construction loans | 17 | 29 | |||||||||||||
Commercial leases | 4 | 5 | |||||||||||||
Total commercial loans and leases | 464 | 458 | |||||||||||||
Residential mortgage loans | 141 | 166 | |||||||||||||
Consumer: | |||||||||||||||
Home equity | 94 | 93 | |||||||||||||
Automobile loans | 1 | 1 | |||||||||||||
Credit card | 33 | 33 | |||||||||||||
Total consumer loans and leases | 128 | 127 | |||||||||||||
Total nonperforming loans and leases(b) (c) | $ | 733 | 751 | ||||||||||||
OREO and other repossessed property(d) | 213 | 229 | |||||||||||||
Excludes $21 of restructured nonaccrual loans at both March 31, 2014 and December 31, 2013 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party. | |||||||||||||||
Excludes $3 and $6 of nonaccrual loans held for sale at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||
Includes $9 and $10 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at March 31, 2014 and December 31, 2013, respectively, and $2 of restructured nonaccrual government insured commercial loans at both March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||
Excludes $85 and $77 of OREO related to government insured loans at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||
Summary of Loans Modified in a TDR | ' | ||||||||||||||
The following table provides a summary of loans modified in a TDR by the Bancorp during the three months ended: | |||||||||||||||
Recorded investment | Increase | ||||||||||||||
Number of loans | in loans modified | (Decrease) | Charge-offs | ||||||||||||
modified in a TDR | in a TDR | to ALLL upon | recognized upon | ||||||||||||
March 31, 2014 ($ in millions)(a) | during the period(b) | during the period | modification | modification | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | 22 | $ | 19 | -4 | - | ||||||||||
Commercial mortgage owner occupied loans | 16 | 12 | -1 | - | |||||||||||
Commercial mortgage non-owner occupied loans | 7 | 6 | -1 | - | |||||||||||
Residential mortgage loans | 310 | 45 | 3 | - | |||||||||||
Consumer: | |||||||||||||||
Home equity | 35 | 1 | - | - | |||||||||||
Automobile loans | 116 | 2 | - | - | |||||||||||
Credit card | 1,951 | 12 | 2 | - | |||||||||||
Total portfolio loans and leases | 2,457 | $ | 97 | -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 | ||||||||||||
March 31, 2013 ($ in millions)(a) | during the period(b) | during the period | modification | modification | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | 20 | $ | 9 | 1 | 1 | ||||||||||
Commercial mortgage owner occupied loans(c) | 10 | 4 | -1 | - | |||||||||||
Commercial mortgage non-owner occupied loans | 15 | 17 | -1 | - | |||||||||||
Commercial construction loans | 1 | 6 | -1 | - | |||||||||||
Residential mortgage loans | 394 | 61 | 8 | - | |||||||||||
Consumer: | |||||||||||||||
Home equity | 326 | 17 | - | - | |||||||||||
Automobile loans | 115 | 7 | - | - | |||||||||||
Credit card | 2,312 | 14 | 2 | - | |||||||||||
Total portfolio loans and leases | 3,193 | $ | 135 | 8 | 1 | ||||||||||
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 three months ended March 31, 2013 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party. The TDR had a recorded investment of $29, ALLL increased $7 upon modification, and a charge-off of $2 was recognized upon modification. | |||||||||||||||
Summary of Subsequent Defaults | ' | ||||||||||||||
The following table provides a summary of subsequent defaults of TDRs that occurred during the three months ended March 31, 2014 and 2013 and within 12 months of the restructuring date: | |||||||||||||||
Number of | Recorded | ||||||||||||||
March 31, 2014 ($ in millions)(a) | Contracts | Investment | |||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | 6 | $ | 14 | ||||||||||||
Commercial mortgage owner-occupied loans | 2 | 3 | |||||||||||||
Residential mortgage loans | 41 | 6 | |||||||||||||
Consumer: | |||||||||||||||
Home equity | 10 | - | |||||||||||||
Automobile loans | 2 | - | |||||||||||||
Credit card | 507 | 3 | |||||||||||||
Total portfolio loans and leases | 568 | $ | 26 | ||||||||||||
Number of | Recorded | ||||||||||||||
March 31, 2013 ($ in millions)(a) | Contracts | Investment | |||||||||||||
Residential mortgage loans | 42 | $ | 8 | ||||||||||||
Consumer: | |||||||||||||||
Home equity | 14 | 1 | |||||||||||||
Automobile loans | 3 | - | |||||||||||||
Credit card | 515 | 3 | |||||||||||||
Total portfolio loans and leases | 574 | $ | 12 | ||||||||||||
Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. | |||||||||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Intangible Assets | ' | ||||||||
Intangible Assets | ' | ||||||||
The details of the Bancorp’s intangible assets are shown in the following table: | |||||||||
Gross Carrying | Accumulated | Net Carrying | |||||||
($ in millions) | Amount | Amortization | Amount | ||||||
As of March 31, 2014 | |||||||||
Core deposit intangibles | $ | 122 | -109 | 13 | |||||
Other | 45 | -40 | 5 | ||||||
Total intangible assets | $ | 167 | -149 | 18 | |||||
As of December 31, 2013 | |||||||||
Core deposit intangibles | $ | 154 | -141 | 13 | |||||
Other | 45 | -39 | 6 | ||||||
Total intangible assets | $ | 199 | -180 | 19 | |||||
Estimated Amortization Expense | ' | ||||||||
The Bancorp's projections of amortization expense shown below are based on existing asset balances as of March 31, 2014. Future amortization expense may vary from these projections. Estimated amortization expense for the remainder of 2014 through 2018 is as follows: | |||||||||
($ in millions) | Total | ||||||||
Remainder of 2014 | $ | 3 | |||||||
2015 | 2 | ||||||||
2016 | 2 | ||||||||
2017 | 2 | ||||||||
2018 | 2 |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 | |||||||
March 31, 2014 ($ in millions) | Securitizations | Investments | Total | |||||
Assets: | ||||||||
Cash and due from banks | $ | 102 | - | 102 | ||||
Other short-term investments | 7 | - | 7 | |||||
Commercial mortgage loans | - | 48 | 48 | |||||
Automobile loans(a) | 2,031 | - | 2,031 | |||||
ALLL | -5 | -13 | -18 | |||||
Other assets | 20 | 3 | 23 | |||||
Total assets | 2,155 | 38 | 2,193 | |||||
Liabilities: | ||||||||
Other liabilities | $ | 3 | - | 3 | ||||
Long-term debt | 2,119 | - | 2,119 | |||||
Total liabilities | $ | 2,122 | - | 2,122 | ||||
Noncontrolling interests | - | 38 | 38 | |||||
Automobile Loan | CDC | |||||||
December 31, 2013 ($ in millions) | Securitization | Investments | Total | |||||
Assets: | ||||||||
Cash and due from banks | $ | 49 | - | 49 | ||||
Commercial mortgage loans | - | 48 | 48 | |||||
Automobile loans(a) | 1,010 | - | 1,010 | |||||
ALLL | -2 | -13 | -15 | |||||
Other assets | 11 | 2 | 13 | |||||
Total assets | $ | 1,068 | 37 | 1,105 | ||||
Liabilities | ||||||||
Other liabilities | $ | 1 | - | 1 | ||||
Long-term debt | 1,048 | - | 1,048 | |||||
Total liabilities | $ | 1,049 | - | 1,049 | ||||
Noncontrolling interests | - | 37 | 37 | |||||
Net of $98 and $52 of unamortized fees and discounts at March 31, 2014 and December 31, 2013, respectively. | ||||||||
Assets and Liabilities Related to Non-consolidated VIEs and Maximum Exposure to Losses | ' | |||||||
Non-consolidated VIEs | ||||||||
The following tables provide a summary of assets and liabilities carried on the Bancorp’s Condensed Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities: | ||||||||
Total | Total | Maximum | ||||||
As of March 31, 2014 ($ in millions) | Assets | Liabilities | Exposure | |||||
CDC investments | $ | 1,418 | 369 | 1,418 | ||||
Private equity investments | 209 | - | 304 | |||||
Loans provided to VIEs | 1,843 | - | 2,807 | |||||
Automobile loan securitization | 3 | - | 3 | |||||
Total | Total | Maximum | ||||||
As of December 31, 2013 ($ in millions) | Assets | Liabilities | Exposure | |||||
CDC investments | $ | 1,436 | 407 | 1,436 | ||||
Private equity investments | 204 | - | 294 | |||||
Loans provided to VIEs | 1,830 | - | 2,792 | |||||
Automobile loan securitization | 4 | - | 4 | |||||
Restructured loans | 1 | - | 1 | |||||
Sales_of_Receivables_and_Servi1
Sales of Receivables and Servicing Rights (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
ended March 31, | ||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||||||||||
Residential mortgage loan sales | $ | 1,672 | 6,888 | |||||||||||||||||||||
Origination fees and gains on loan sales | 41 | 169 | ||||||||||||||||||||||
Gross mortgage servicing fees | 62 | 61 | ||||||||||||||||||||||
Changes in the Servicing Assets | ' | |||||||||||||||||||||||
Servicing Rights | ||||||||||||||||||||||||
The following table presents changes in the servicing rights related to residential mortgage and automobile loans for the three months ended March 31: | ||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||||||||||
Carrying amount before valuation allowance as of the beginning of the period | $ | 1,440 | 1,358 | |||||||||||||||||||||
Servicing rights that result from the transfer of residential mortgage loans | 23 | 73 | ||||||||||||||||||||||
Servicing rights that result from the transfer of automobile loans | - | 6 | ||||||||||||||||||||||
Amortization | -23 | -53 | ||||||||||||||||||||||
Carrying amount before valuation allowance | 1,440 | 1,384 | ||||||||||||||||||||||
Valuation allowance for servicing rights: | ||||||||||||||||||||||||
Beginning balance | -469 | -661 | ||||||||||||||||||||||
Recovery of MSR impairment | 4 | 49 | ||||||||||||||||||||||
Ending balance | -465 | -612 | ||||||||||||||||||||||
Carrying amount as of the end of the period | $ | 975 | 772 | |||||||||||||||||||||
Estimated Amortization Expense on Servicing Rights | ' | |||||||||||||||||||||||
The Bancorp's projections of amortization expense shown below are based on existing asset balances as of March 31, 2014. Future amortization expense may vary from these projections. Estimated amortization expense for the remainder of 2014 through 2018 is as follows: | ||||||||||||||||||||||||
($ in millions) | Total | |||||||||||||||||||||||
Remainder of 2014 | $ | 71 | ||||||||||||||||||||||
2015 | 89 | |||||||||||||||||||||||
2016 | 82 | |||||||||||||||||||||||
2017 | 77 | |||||||||||||||||||||||
2018 | 72 | |||||||||||||||||||||||
Fair Value of the Servicing Assets | ' | |||||||||||||||||||||||
The following table displays the beginning and ending fair value of the servicing assets for the three months ended March 31: | ||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||||||||||
Fixed rate residential mortgage loans: | ||||||||||||||||||||||||
Beginning balance | $ | 929 | 664 | |||||||||||||||||||||
Ending balance | 935 | 731 | ||||||||||||||||||||||
Adjustable rate residential mortgage loans: | ||||||||||||||||||||||||
Beginning balance | 38 | 33 | ||||||||||||||||||||||
Ending balance | 37 | 35 | ||||||||||||||||||||||
Fixed rate automobile loans: | ||||||||||||||||||||||||
Beginning balance | 4 | - | ||||||||||||||||||||||
Ending balance | 3 | 6 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||||
ended March 31, | ||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||||||||||
Securities gains, net - non-qualifying hedges on MSRs | $ | - | 2 | |||||||||||||||||||||
Changes in fair value and settlement of free-standing derivatives purchased | ||||||||||||||||||||||||
to economically hedge the MSR portfolio (Mortgage banking net revenue) | 24 | -6 | ||||||||||||||||||||||
Recovery of MSR impairment (Mortgage banking net revenue) | 4 | 49 | ||||||||||||||||||||||
Servicing Assets and Residual Interests Economic Assumptions | ' | |||||||||||||||||||||||
As of March 31, 2014 and 2013, 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 were as follows: | ||||||||||||||||||||||||
31-Mar-14 | 31-Mar-13 | |||||||||||||||||||||||
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 | 6.7 | 10.8 | % | 10 | % | N/A | 7.3 | 8.8 | % | 10 | % | N/A | |||||||||||
Servicing assets | Adjustable | 3.7 | 22.5 | 11.7 | N/A | 3.5 | 23.4 | 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 March 31, 2014, 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 | $ | 935 | 6.6 | 10.6 | % | $ | -37 | -72 | -163 | 9.9 | % | $ | -36 | -69 | |||||||||
Servicing assets | Adjustable | 37 | 3.1 | 26.1 | -2 | -3 | -7 | 11.8 | -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) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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 | |||||||
March 31, 2014 ($ in millions) | Amount | Assets | Liabilities | ||||||
Qualifying hedging instruments | |||||||||
Fair value hedges: | |||||||||
Interest rate swaps related to long-term debt | $ | 3,205 | 325 | 11 | |||||
Total fair value hedges | 325 | 11 | |||||||
Cash flow hedges: | |||||||||
Interest rate swaps related to C&I loans | 2,200 | 36 | 12 | ||||||
Total cash flow hedges | 36 | 12 | |||||||
Total derivatives designated as qualifying hedging instruments | 361 | 23 | |||||||
Derivatives not designated as qualifying hedging instruments | |||||||||
Free-standing derivatives - risk management and other business purposes | |||||||||
Interest rate contracts related to MSRs | 5,277 | 151 | 9 | ||||||
Forward contracts related to held for sale mortgage loans | 1,844 | 2 | 1 | ||||||
Stock warrant associated with Vantiv Holding, LLC | 616 | 348 | - | ||||||
Swap associated with the sale of Visa, Inc. Class B shares | 918 | - | 43 | ||||||
Total free-standing derivatives - risk management and other business purposes | 501 | 53 | |||||||
Free-standing derivatives - customer accommodation: | |||||||||
Interest rate contracts for customers | 27,418 | 306 | 315 | ||||||
Interest rate lock commitments | 994 | 16 | - | ||||||
Commodity contracts | 3,179 | 66 | 68 | ||||||
Foreign exchange contracts | 20,020 | 204 | 164 | ||||||
Total free-standing derivatives - customer accommodation | 592 | 547 | |||||||
Total derivatives not designated as qualifying hedging instruments | 1,093 | 600 | |||||||
Total | $ | 1,454 | 623 | ||||||
Fair Value | |||||||||
Notional | Derivative | Derivative | |||||||
December 31, 2013 ($ in millions) | Amount | Assets | Liabilities | ||||||
Qualifying hedging instruments | |||||||||
Fair value hedges: | |||||||||
Interest rate swaps related to long-term debt | $ | 3,205 | 292 | 13 | |||||
Total fair value hedges | 292 | 13 | |||||||
Cash flow hedges: | |||||||||
Interest rate swaps related to C&I loans | 2,200 | 40 | 21 | ||||||
Total cash flow hedges | 40 | 21 | |||||||
Total derivatives designated as qualifying hedging instruments | 332 | 34 | |||||||
Derivatives not designated as qualifying hedging instruments | |||||||||
Free-standing derivatives - risk management and other business purposes | |||||||||
Interest rate contracts related to MSRs | 4,092 | 141 | 14 | ||||||
Forward contracts related to held for sale mortgage loans | 1,448 | 13 | 1 | ||||||
Stock warrant associated with Vantiv Holding, LLC | 664 | 384 | - | ||||||
Swap associated with the sale of Visa, Inc. Class B shares | 947 | - | 48 | ||||||
Total free-standing derivatives - risk management and other business purposes | 538 | 63 | |||||||
Free-standing derivatives - customer accommodation: | |||||||||
Interest rate contracts for customers | 28,112 | 329 | 339 | ||||||
Interest rate lock commitments | 924 | 12 | 1 | ||||||
Commodity contracts | 3,300 | 66 | 65 | ||||||
Foreign exchange contracts | 19,688 | 276 | 252 | ||||||
Total free-standing derivatives - customer accommodation | 683 | 657 | |||||||
Total derivatives not designated as qualifying hedging instruments | 1,221 | 720 | |||||||
Total | $ | 1,553 | 754 | ||||||
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 | ||||||||
Statements of | ended March 31, | ||||||||
($ in millions) | Income Caption | 2014 | 2013 | ||||||
Interest rate contracts: | |||||||||
Change in fair value of interest rate swaps hedging long-term debt | Interest on long-term debt | $ | 35 | -67 | |||||
Change in fair value of hedged long-term debt attributable to the risk being hedged | Interest on long-term debt | -37 | 66 | ||||||
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 in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: | |||||||||
For the three months | |||||||||
ended March 31, | |||||||||
($ in millions) | 2014 | 2013 | |||||||
Amount of net gain recognized in OCI | $ | 15 | 1 | ||||||
Amount of net gain reclassified from OCI into net income | 10 | 21 | |||||||
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 | ||||||||
Statements of | ended March 31, | ||||||||
($ in millions) | Income Caption | 2014 | 2013 | ||||||
Interest rate contracts: | |||||||||
Forward contracts related to mortgage loans held for sale | Mortgage banking net revenue | $ | -12 | -3 | |||||
Interest rate contracts related to MSR portfolio | Mortgage banking net revenue | 24 | -6 | ||||||
Foreign exchange contracts: | |||||||||
Foreign exchange contracts for risk management purposes | Other noninterest income | 4 | 2 | ||||||
Equity contracts: | |||||||||
Stock warrant associated with Vantiv Holding, LLC | Other noninterest income | -36 | 34 | ||||||
Swap associated with sale of Visa, Inc. Class B shares | Other noninterest income | 1 | -7 | ||||||
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: | |||||||||
March 31, | December 31, | ||||||||
As of ($ in millions) | 2014 | 2013 | |||||||
Pass | $ | 1,118 | 1,153 | ||||||
Special mention | 2 | 38 | |||||||
Substandard | 50 | 12 | |||||||
Total | $ | 1,170 | 1,203 | ||||||
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 | |||||||||
Condensed Consolidated | ended March 31, | ||||||||
($ in millions) | Statements of Income Caption | 2014 | 2013 | ||||||
Interest rate contracts: | |||||||||
Interest rate contracts for customers (contract revenue) | Corporate banking revenue | $ | 4 | 5 | |||||
Interest rate contracts for customers (credit losses) | Other noninterest expense | - | -1 | ||||||
Interest rate contracts for customers (credit portion of | |||||||||
fair value adjustment) | Other noninterest expense | 1 | 1 | ||||||
Interest rate lock commitments | Mortgage banking net revenue | 36 | 56 | ||||||
Commodity contracts: | |||||||||
Commodity contracts for customers (contract revenue) | Corporate banking revenue | 1 | 2 | ||||||
Foreign exchange contracts: | |||||||||
Foreign exchange contracts - customers (contract revenue) | Corporate banking revenue | 15 | 18 | ||||||
Foreign exchange contracts - customers (credit portion of | |||||||||
fair value adjustment) | Other noninterest expense | 2 | - |
Offsetting_Derivative_Financia1
Offsetting Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Offsetting Derivative Financial Instruments | ' | ||||||||||||
Offsetting Derivative Financial Instruments | ' | ||||||||||||
Gross Amount | Gross Amounts Not Offset in the | ||||||||||||
Recognized in the | Condensed Consolidated Balance Sheet | ||||||||||||
March 31, 2014 ($ in millions) | Condensed Consolidated Balance Sheet(a) | Derivatives | Collateral(b) | Net Amount | |||||||||
Assets | |||||||||||||
Derivatives | $ | 1,090 | -236 | -443 | $ | 411 | |||||||
Total assets | 1,090 | -236 | -443 | 411 | |||||||||
Liabilities | |||||||||||||
Derivatives | 623 | -236 | -291 | 96 | |||||||||
Total liabilities | $ | 623 | -236 | -291 | $ | 96 | |||||||
Gross Amount | Gross Amounts Not Offset in the | ||||||||||||
Recognized in the | Condensed Consolidated Balance Sheet | ||||||||||||
December 31, 2013 ($ in millions) | Condensed Consolidated Balance Sheet(a) | Derivatives | Collateral(b) | Net Amount | |||||||||
Assets | |||||||||||||
Derivatives | $ | 1,157 | -321 | -390 | $ | 446 | |||||||
Total assets | 1,157 | -321 | -390 | 446 | |||||||||
Liabilities | |||||||||||||
Derivatives | 753 | -321 | -302 | 130 | |||||||||
Total liabilities | $ | 753 | -321 | -302 | $ | 130 | |||||||
Amount does not include the stock warrant associated with Vantiv Holding, LLC and IRLCs because these instruments are not subject to master netting or similar arrangements. | |||||||||||||
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 | |||||||||||||
Capital_Actions_Tables
Capital Actions (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Capital Actions [Abstract] | ' | ||||||||
Summary of the Bancorp's Accelerated Share Repurchase Transactions | ' | ||||||||
The following table presents a summary of the Bancorp's accelerated share repurchase transactions that were entered into or settled during the three months ended March 31, 2014: | |||||||||
Repurchase Date | Amount ($ in millions) | Shares Repurchased | Shares Received from Forward Contract Settlement | Total Shares Repurchased | Settlement Date | ||||
18-Nov-13 | $ | 200 | 8,538,423 | 1,132,495 | 9,670,918 | 5-Mar-14 | |||
13-Dec-13 | 456 | 19,084,195 | 2,294,932 | 21,379,127 | 31-Mar-14 | ||||
31-Jan-14 | 99 | 3,950,705 | 602,109 | 4,552,814 | 31-Mar-14 |
Commitments_Contingent_Liabili1
Commitments, Contingent Liabilities and Guarantees (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
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: | |||||||||||
March 31, | December 31, | ||||||||||
($ in millions) | 2014 | 2013 | |||||||||
Commitments to extend credit | $ | 63,021 | 62,050 | ||||||||
Letters of credit | 4,194 | 4,129 | |||||||||
Forward contracts to sell mortgage loans | 1,844 | 1,448 | |||||||||
Noncancelable lease obligations | 729 | 746 | |||||||||
Capital commitments for private equity investments | 95 | 90 | |||||||||
Purchase obligations | 80 | 84 | |||||||||
Capital expenditures | 29 | 33 | |||||||||
Capital lease obligations | 17 | 19 | |||||||||
Credit Risk Associated With Commitments | ' | ||||||||||
Risk ratings under this risk rating system are summarized in the following table as of: | |||||||||||
March 31, | December 31, | ||||||||||
($ in millions) | 2014 | 2013 | |||||||||
Pass | $ | 62,301 | 61,364 | ||||||||
Special mention | 382 | 369 | |||||||||
Substandard | 338 | 316 | |||||||||
Doubtful | - | 1 | |||||||||
Total | $ | 63,021 | 62,050 | ||||||||
Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party | ' | ||||||||||
Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of: | |||||||||||
March 31, | |||||||||||
($ in millions) | 2014 | ||||||||||
Less than 1 year(a) | $ | 1,849 | |||||||||
1 - 5 years(a) | 2,302 | ||||||||||
Over 5 years | 43 | ||||||||||
Total | $ | 4,194 | |||||||||
Includes $69 and $3 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than one year and between one and five years, respectively. | |||||||||||
Credit Risk associated with Letters of Credit | ' | ||||||||||
Risk ratings under this risk rating system are summarized in the following table as of: | |||||||||||
March 31, | December 31, | ||||||||||
($ in millions) | 2014 | 2013 | |||||||||
Pass | $ | 3,755 | 3,651 | ||||||||
Special mention | 109 | 99 | |||||||||
Substandard | 301 | 355 | |||||||||
Doubtful | 29 | 24 | |||||||||
Total | $ | 4,194 | 4,129 | ||||||||
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 March 31, | |||||||||||
($ in millions) | 2014 | 2013 | |||||||||
Balance, beginning of period | $ | 44 | 110 | ||||||||
Net additions to the reserve | 2 | 19 | |||||||||
Losses charged against the reserve | -8 | -17 | |||||||||
Balance, end of period | $ | 38 | 112 | ||||||||
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | ' | ||||||||||
The following table provides a rollforward of unresolved demands by claimant type for the three months ended March 31, 2014: | |||||||||||
GSE | Private Label | ||||||||||
($ in millions) | Units | Dollars | Units | Dollars | |||||||
Balance, beginning of period | 264 | $ | 41 | 33 | $ | 5 | |||||
New demands | 230 | 34 | 10 | 1 | |||||||
Loan paydowns/payoffs | -16 | -1 | -2 | -1 | |||||||
Resolved demands | -375 | -55 | -31 | -3 | |||||||
Balance, end of period | 103 | $ | 19 | 10 | $ | 2 | |||||
The following table provides a rollforward of unresolved demands by claimant type for the three months ended March 31, 2013: | |||||||||||
GSE | Private Label | ||||||||||
($ in millions) | Units | Dollars | Units | Dollars | |||||||
Balance, beginning of period | 294 | $ | 48 | 124 | $ | 19 | |||||
New demands | 458 | 66 | 76 | 1 | |||||||
Loan paydowns/payoffs | -5 | -1 | -4 | -1 | |||||||
Resolved demands | -484 | -71 | -163 | -14 | |||||||
Balance, end of period | 263 | $ | 42 | 33 | $ | 5 | |||||
Visa Funding and Bancorp Cash Payments | ' | ||||||||||
After the Bancorp's sale of Visa Class B shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further dilution in the conversion of Class B shares into Class A shares, and along with other terms of the total return swap, required the Bancorp to make cash payments to the swap counterparty as follows: | |||||||||||
($ in millions) | |||||||||||
Visa | Bancorp Cash | ||||||||||
Period | Funding Amount | Payment Amount | |||||||||
Q2 2010 | $ | 500 | $ | 20 | |||||||
Q4 2010 | 800 | 35 | |||||||||
Q2 2011 | 400 | 19 | |||||||||
Q1 2012 | 1,565 | 75 | |||||||||
Q3 2012 | 150 | 6 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
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 March 31, 2014 and 2013 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 | |||||||||
31-Mar-14 | |||||||||||||||
Unrealized holding gains on available-for-sale securities arising | |||||||||||||||
during period | $ | 173 | -60 | 113 | |||||||||||
Reclassification adjustment for net gains included in net income | -5 | 2 | -3 | ||||||||||||
Net unrealized gains on available-for-sale securities | 168 | -58 | 110 | 121 | 110 | 231 | |||||||||
Unrealized holding gains on cash flow hedge derivatives arising | |||||||||||||||
during period | 15 | -5 | 10 | ||||||||||||
Reclassification adjustment for net gains on cash flow | |||||||||||||||
hedge derivatives included in net income | -10 | 3 | -7 | ||||||||||||
Net unrealized gains on cash flow hedge derivatives | 5 | -2 | 3 | 13 | 3 | 16 | |||||||||
Reclassification of amounts to net periodic benefit costs | 2 | -1 | 1 | ||||||||||||
Defined benefit plans, net | 2 | -1 | 1 | -52 | 1 | -51 | |||||||||
Total | $ | 175 | -61 | 114 | 82 | 114 | 196 | ||||||||
Total Other | Total Accumulated Other | ||||||||||||||
Comprehensive Income | Comprehensive Income | ||||||||||||||
Pretax | Tax | Net | Beginning | Net | Ending | ||||||||||
($ in millions) | Activity | Effect | Activity | Balance | Activity | Balance | |||||||||
31-Mar-13 | |||||||||||||||
Unrealized holding losses on available-for-sale securities arising | |||||||||||||||
during period | $ | -56 | 20 | -36 | |||||||||||
Reclassification adjustment for net losses included in net income | 7 | -2 | 5 | ||||||||||||
Net unrealized gains on available-for-sale securities | -49 | 18 | -31 | 412 | -31 | 381 | |||||||||
Unrealized holding gains on cash flow hedge derivatives arising | |||||||||||||||
during period | 1 | - | 1 | ||||||||||||
Reclassification adjustment for net gains on cash flow | |||||||||||||||
hedge derivatives included in net income | -21 | 7 | -14 | ||||||||||||
Net unrealized gains on cash flow hedge derivatives | -20 | 7 | -13 | 50 | -13 | 37 | |||||||||
Reclassification of amounts to net periodic benefit costs | 3 | -1 | 2 | ||||||||||||
Defined benefit plans, net | 3 | -1 | 2 | -87 | 2 | -85 | |||||||||
Total | $ | -66 | 24 | -42 | 375 | -42 | 333 | ||||||||
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 March 31, 2014: | |||||||||||||||
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 | ||||||||||||||
-2 | Applicable income tax expense | ||||||||||||||
3 | Net income | ||||||||||||||
Net unrealized gains on cash flow hedge derivatives | |||||||||||||||
Interest rate contracts related to C&I loans | 10 | Interest and fees on loans and leases | |||||||||||||
10 | Income before income taxes | ||||||||||||||
-3 | Applicable income tax expense | ||||||||||||||
7 | Net income | ||||||||||||||
Net periodic benefit costs | |||||||||||||||
Amortization of net actuarial loss | -2 | Employee benefits expense (a) | |||||||||||||
-2 | Income before income taxes | ||||||||||||||
1 | Applicable income tax expense | ||||||||||||||
-1 | Net income | ||||||||||||||
Total reclassifications for the period | $ | 9 | Net income | ||||||||||||
The table below presents reclassifications out of accumulated other comprehensive income for the three months ended March 31, 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 | $ | -7 | Securities gains, net | ||||||||||||
-7 | Income before income taxes | ||||||||||||||
2 | Applicable income tax expense | ||||||||||||||
-5 | Net income | ||||||||||||||
Net unrealized gains on cash flow hedge derivatives | |||||||||||||||
Interest rate contracts related to C&I loans | 22 | Interest and fees on loans and leases | |||||||||||||
Interest rate contracts related to long-term debt | -1 | Interest on long-term debt | |||||||||||||
21 | Income before income taxes | ||||||||||||||
-7 | Applicable income tax expense | ||||||||||||||
14 | Net income | ||||||||||||||
Net periodic benefit costs | |||||||||||||||
Amortization of net actuarial loss | -3 | Employee benefits expense (a) | |||||||||||||
-3 | Income before income taxes | ||||||||||||||
1 | Applicable income tax expense | ||||||||||||||
-2 | Net income | ||||||||||||||
Total reclassifications for the period | $ | 7 | Net income | ||||||||||||
This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 21 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2013 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) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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: | |||||||||
2014 | 2013 | ||||||||
For the three months ended March 31, | 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 | $ | 318 | 422 | ||||||
Dividends on preferred stock | 9 | 9 | |||||||
Net income available to common shareholders | 309 | 413 | |||||||
Less: Income allocated to participating securities | 3 | 3 | |||||||
Net income allocated to common shareholders | $ | 306 | 846 | 0.36 | 410 | 871 | 0.47 | ||
Earnings per diluted share: | |||||||||
Net income available to common shareholders | $ | 309 | 413 | ||||||
Effect of dilutive securities: | |||||||||
Stock-based awards | - | 12 | - | 6 | |||||
Series G convertible preferred stock | - | - | 9 | 36 | |||||
Net income available to common shareholders | 309 | 422 | |||||||
plus assumed conversions | |||||||||
Less: Income allocated to participating securities | 3 | 3 | |||||||
Net income allocated to common shareholders | |||||||||
plus assumed conversions | $ | 306 | 858 | 0.36 | 419 | 913 | 0.46 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
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 | |||||||||||||
March 31, 2014 ($ 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 | - | 1,635 | - | 1,635 | |||||||||
Obligations of states and political subdivisions | - | 194 | - | 194 | |||||||||
Agency mortgage-backed securities | - | 14,185 | - | 14,185 | |||||||||
Other bonds, notes and debentures | - | 3,991 | - | 3,991 | |||||||||
Other securities(a) | 85 | 34 | - | 119 | |||||||||
Available-for-sale securities(a) | 111 | 20,039 | - | 20,150 | |||||||||
Trading securities: | |||||||||||||
U.S. Government sponsored agencies | - | 5 | - | 5 | |||||||||
Obligations of states and political subdivisions | - | 14 | 1 | 15 | |||||||||
Agency mortgage-backed securities | - | 3 | - | 3 | |||||||||
Other bonds, notes and debentures | - | 10 | - | 10 | |||||||||
Other securities | 314 | - | - | 314 | |||||||||
Trading securities | 314 | 32 | 1 | 347 | |||||||||
Residential mortgage loans held for sale | - | 649 | - | 649 | |||||||||
Residential mortgage loans(b) | - | - | 103 | 103 | |||||||||
Derivative assets: | |||||||||||||
Interest rate contracts | 2 | 818 | 16 | 836 | |||||||||
Foreign exchange contracts | - | 204 | - | 204 | |||||||||
Equity contracts | - | - | 348 | 348 | |||||||||
Commodity contracts | 10 | 56 | - | 66 | |||||||||
Derivative assets | 12 | 1,078 | 364 | 1,454 | |||||||||
Total assets | $ | 437 | 21,798 | 468 | 22,703 | ||||||||
Liabilities: | |||||||||||||
Derivative liabilities: | |||||||||||||
Interest rate contracts | $ | 1 | 344 | 3 | 348 | ||||||||
Foreign exchange contracts | - | 164 | - | 164 | |||||||||
Equity contracts | - | - | 43 | 43 | |||||||||
Commodity contracts | 17 | 51 | - | 68 | |||||||||
Derivative liabilities | 18 | 559 | 46 | 623 | |||||||||
Short positions | 9 | 2 | - | 11 | |||||||||
Total liabilities | $ | 27 | 561 | 46 | 634 | ||||||||
Fair Value Measurements Using | |||||||||||||
December 31, 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 | - | 1,644 | - | 1,644 | |||||||||
Obligations of states and political subdivisions | - | 192 | - | 192 | |||||||||
Agency mortgage-backed securities | - | 12,284 | - | 12,284 | |||||||||
Other bonds, notes and debentures | - | 3,582 | - | 3,582 | |||||||||
Other securities(a) | 89 | 29 | - | 118 | |||||||||
Available-for-sale securities(a) | 115 | 17,731 | - | 17,846 | |||||||||
Trading securities: | |||||||||||||
U.S. Treasury and Government agencies | 1 | - | - | 1 | |||||||||
U.S. Government sponsored agencies | - | 4 | - | 4 | |||||||||
Obligations of states and political subdivisions | - | 12 | 1 | 13 | |||||||||
Agency mortgage-backed securities | - | 3 | - | 3 | |||||||||
Other bonds, notes and debentures | - | 7 | - | 7 | |||||||||
Other securities | 315 | - | - | 315 | |||||||||
Trading securities | 316 | 26 | 1 | 343 | |||||||||
Residential mortgage loans held for sale | - | 890 | - | 890 | |||||||||
Residential mortgage loans(b) | - | - | 92 | 92 | |||||||||
Derivative assets: | |||||||||||||
Interest rate contracts | 13 | 802 | 12 | 827 | |||||||||
Foreign exchange contracts | - | 276 | - | 276 | |||||||||
Equity contracts | - | - | 384 | 384 | |||||||||
Commodity contracts | 18 | 48 | - | 66 | |||||||||
Derivative assets | 31 | 1,126 | 396 | 1,553 | |||||||||
Total assets | $ | 462 | 19,773 | 489 | 20,724 | ||||||||
Liabilities: | |||||||||||||
Derivative liabilities: | |||||||||||||
Interest rate contracts | $ | 1 | 384 | 4 | 389 | ||||||||
Foreign exchange contracts | - | 252 | - | 252 | |||||||||
Equity contracts | - | - | 48 | 48 | |||||||||
Commodity contracts | 9 | 56 | - | 65 | |||||||||
Derivative liabilities | 10 | 692 | 52 | 754 | |||||||||
Short positions | 4 | 4 | - | 8 | |||||||||
Total liabilities | $ | 14 | 696 | 52 | 762 | ||||||||
Excludes FHLB and FRB restricted stock totaling $249 and $350, respectively, at March 31, 2014 and $402 and $349 at December 31, 2013, respectively. | |||||||||||||
Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. | |||||||||||||
During the three months ended March 31, 2014 and the year ended December 31, 2013, no assets or liabilities were transferred between Level 1 and Level 2. | |||||||||||||
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ||||||||||||
The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): | |||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||
Residential | Interest Rate | Equity | |||||||||||
For the three months ended March 31, 2014 | Trading | Mortgage | Derivatives, | Derivatives, | Total | ||||||||
($ in millions) | Securities | Loans | Net(a) | Net(a) | Fair Value | ||||||||
Beginning balance | $ | 1 | 92 | 8 | 336 | 437 | |||||||
Total gains or losses (realized/unrealized): | |||||||||||||
Included in earnings | - | 1 | 37 | -35 | 3 | ||||||||
Settlements | - | -2 | -32 | 4 | -30 | ||||||||
Transfers into Level 3(b) | - | 12 | - | - | 12 | ||||||||
Ending balance | $ | 1 | 103 | 13 | 305 | 422 | |||||||
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 March 31, 2014(c) | $ | - | 1 | 16 | -35 | -18 | |||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||
Residential | Interest Rate | Equity | |||||||||||
For the three months ended March 31, 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 | 56 | 27 | 84 | ||||||||
Settlements | - | -4 | -65 | 3 | -66 | ||||||||
Transfers into Level 3(b) | - | 8 | - | - | 8 | ||||||||
Ending balance | $ | 1 | 81 | 48 | 174 | 304 | |||||||
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 March 31, 2013(c) | $ | - | 1 | 51 | 27 | 79 | |||||||
Net interest rate derivatives include derivative assets and liabilities of $16 and $3, respectively, as of March 31, 2014 and $51 and $3, respectively, as of March 31, 2013. Net equity derivatives include derivative assets and liabilities of $348 and $43, respectively, as of March 31, 2014, and $211 and $37, respectively, as of March 31, 2013. | |||||||||||||
Includes residential mortgage loans held for sale that were transferred to held for investment. | |||||||||||||
Includes interest income and expense. | |||||||||||||
Total Gains and Losses Included in Earnings for Assets and Liabilites Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ||||||||||||
The total gains and losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Condensed Consolidated Statements of Income as follows: | |||||||||||||
For the three months | |||||||||||||
ended March 31, | |||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||
Mortgage banking net revenue | $ | 38 | 57 | ||||||||||
Other noninterest income | -35 | 27 | |||||||||||
Total gains | $ | 3 | 84 | ||||||||||
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 March 31, 2014 and 2013 were recorded in the Condensed Consolidated Statements of Income as follows: | |||||||||||||
For the three months | |||||||||||||
ended March 31, | |||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||
Mortgage banking net revenue | $ | 17 | 52 | ||||||||||
Other noninterest income | -35 | 27 | |||||||||||
Total (losses) gains | $ | -18 | 79 | ||||||||||
Quantitative information about significant unobservable level 3 fair value measurement inputs | ' | ||||||||||||
The following tables present information as of March 31, 2014 and 2013 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 March 31, 2014 ($ in millions) | |||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted-Average | ||||||||
Residential mortgage loans | $ | 103 | Loss rate model | Interest rate risk factor | (21.8) - 20.1% | 3.00% | |||||||
Credit risk factor | 0 - 62.4% | 2.00% | |||||||||||
IRLCs, net | 16 | Discounted cash flow | Loan closing rates | 7.3 - 95.0% | 67.60% | ||||||||
Stock warrant associated with Vantiv | 348 | Black-Scholes option | Expected term (years) | 2.00 - 15.25 | 6 | ||||||||
Holding, LLC | valuation model | Expected volatility(a) | 25.0 - 32.7% | 28.10% | |||||||||
Expected dividend rate | - | - | |||||||||||
Swap associated with the sale of Visa, Inc. | -43 | Discounted cash flow | Timing of the resolution | 12/31/2014 - | NM | ||||||||
Class B shares | of the Covered Litigation | 12/31/19 | |||||||||||
As of March 31, 2013 ($ in millions) | |||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted-Average | ||||||||
Residential mortgage loans | $ | 81 | Loss rate model | Interest rate risk factor | (91.0) - 49.0% | 6.00% | |||||||
Credit risk factor | 0 - 68.4% | 3.40% | |||||||||||
IRLCs, net | 50 | Discounted cash flow | Loan closing rates | 9.9 - 95.0% | 65.80% | ||||||||
Stock warrant associated with Vantiv | 211 | Black-Scholes option | Expected term (years) | 2.00 - 16.50 | 5.1 | ||||||||
Holding, LLC | valuation model | Expected volatility(a) | 23.6 - 35.0% | 28.90% | |||||||||
Expected dividend rate | - | - | |||||||||||
Swap associated with the sale of Visa, Inc. | -37 | Discounted cash flow | Timing of the resolution | 3/31/2014 - | NM | ||||||||
Class B shares | of the Covered Litigation | 3/31/17 | |||||||||||
Based on historical and implied volatilities of Vantiv, Inc. and comparable companies assuming similar expected terms. | |||||||||||||
The following tables present information as of March 31, 2014 and 2013 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a nonrecurring basis: | |||||||||||||
As of March 31, 2014 ($ 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 | 22 | Appraised value | Collateral value | NM | NM | ||||||||
Commercial mortgage loans | 31 | Appraised value | Collateral value | NM | NM | ||||||||
Commercial construction loans | 2 | Appraised value | Collateral value | NM | NM | ||||||||
MSRs | 972 | Discounted cash flow | Prepayment speed | 0 - 100% | (Fixed) 10.6% (Adjustable) 26.1% | ||||||||
Discount rates | 9.6 - 13.2% | (Fixed) 9.9% (Adjustable) 11.8% | |||||||||||
OREO | 95 | Appraised value | Appraised value | NM | NM | ||||||||
As of March 31, 2013 ($ in millions) | |||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted-Average | ||||||||
Commercial loans held for sale | $ | 4 | Appraised value | Appraised value | NM | NM | |||||||
Cost to sell | NM | 10.00% | |||||||||||
Commercial and industrial loans | 20 | Appraised value | Default rates | 100% | NM | ||||||||
Collateral value | NM | NM | |||||||||||
Commercial mortgage loans | 34 | Appraised value | Default rates | 100% | NM | ||||||||
Collateral value | NM | NM | |||||||||||
Commercial construction loans | 7 | Appraised value | Default rates | 100% | NM | ||||||||
Collateral value | NM | NM | |||||||||||
MSRs | 766 | Discounted cash flow | Prepayment speed | 0 - 100% | (Fixed) 14.0% (Adjustable) 26.8% | ||||||||
Discount rates | 9.4 - 18.0% | (Fixed) 10.5% (Adjustable) 11.7% | |||||||||||
OREO | 120 | 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 quarters ended March 31, 2014 and 2013 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 | ||||||||||||
For the three months | |||||||||||||
As of March 31, 2014 ($ in millions) | Level 1 | Level 2 | Level 3 | Total | ended March 31, 2014 | ||||||||
Commercial loans held for sale(a) | $ | - | - | - | - | - | |||||||
Commercial and industrial loans | - | - | 22 | 22 | -41 | ||||||||
Commercial mortgage loans | - | - | 31 | 31 | -11 | ||||||||
Commercial construction loans | - | - | 2 | 2 | - | ||||||||
MSRs | - | - | 972 | 972 | 4 | ||||||||
OREO | - | - | 95 | 95 | -13 | ||||||||
Total | $ | - | - | 1,122 | 1,122 | -61 | |||||||
Fair Value Measurements Using | Total Losses | ||||||||||||
For the three months | |||||||||||||
As of March 31, 2013 ($ in millions) | Level 1 | Level 2 | Level 3 | Total | ended March 31, 2013 | ||||||||
Commercial loans held for sale(a) | $ | - | - | 4 | 4 | -4 | |||||||
Commercial and industrial loans | - | - | 20 | 20 | -6 | ||||||||
Commercial mortgage loans | - | - | 34 | 34 | -17 | ||||||||
Commercial construction loans | - | - | 7 | 7 | - | ||||||||
MSRs | - | - | 766 | 766 | 49 | ||||||||
OREO | - | - | 120 | 120 | -22 | ||||||||
Total | $ | - | - | 951 | 951 | - | |||||||
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 | ||||||||||
31-Mar-14 | |||||||||||||
Residential mortgage loans measured at fair value | $ | 752 | 729 | 23 | |||||||||
Past due loans of 90 days or more | 2 | 2 | - | ||||||||||
Nonaccrual loans | 3 | 3 | - | ||||||||||
31-Dec-13 | |||||||||||||
Residential mortgage loans measured at fair value | 982 | 962 | 20 | ||||||||||
Past due loans of 90 days or more | 1 | 2 | -1 | ||||||||||
Nonaccrual loans | 2 | 2 | - | ||||||||||
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 March 31, 2014 ($ in millions) | Amount | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||
Financial assets: | |||||||||||||
Cash and due from banks | $ | 3,153 | 3,153 | - | - | 3,153 | |||||||
Other securities | 599 | - | 599 | - | 599 | ||||||||
Held-to-maturity securities | 195 | - | - | 195 | 195 | ||||||||
Other short-term investments | 2,202 | 2,202 | - | - | 2,202 | ||||||||
Loans held for sale | 131 | - | - | 131 | 131 | ||||||||
Portfolio loans and leases: | |||||||||||||
Commercial and industrial loans | 39,872 | - | - | 41,192 | 41,192 | ||||||||
Commercial mortgage loans | 7,767 | - | - | 7,365 | 7,365 | ||||||||
Commercial construction loans | 1,195 | - | - | 1,015 | 1,015 | ||||||||
Commercial leases | 3,529 | - | - | 3,270 | 3,270 | ||||||||
Residential mortgage loans | 12,343 | - | - | 11,841 | 11,841 | ||||||||
Home equity | 9,039 | - | - | 9,081 | 9,081 | ||||||||
Automobile loans | 12,060 | - | - | 11,818 | 11,818 | ||||||||
Credit card | 2,087 | - | - | 2,263 | 2,263 | ||||||||
Other consumer loans and leases | 332 | - | - | 342 | 342 | ||||||||
Unallocated allowance for loan and lease losses | -105 | - | - | - | - | ||||||||
Total portfolio loans and leases, net | $ | 88,119 | - | - | 88,187 | 88,187 | |||||||
Financial liabilities: | |||||||||||||
Deposits | 96,874 | - | 96,893 | - | 96,893 | ||||||||
Federal funds purchased | 268 | 268 | - | - | 268 | ||||||||
Other short-term borrowings | 2,717 | - | 2,718 | - | 2,718 | ||||||||
Long-term debt | 11,233 | 11,257 | 606 | - | 11,863 | ||||||||
Net Carrying | Fair Value Measurements Using | ||||||||||||
As of December 31, 2013 ($ in millions) | Amount | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||
Financial assets: | |||||||||||||
Cash and due from banks | $ | 3,178 | 3,178 | - | - | 3,178 | |||||||
Other securities | 751 | - | 751 | - | 751 | ||||||||
Held-to-maturity securities | 208 | - | - | 208 | 208 | ||||||||
Other short-term investments | 5,116 | 5,116 | - | - | 5,116 | ||||||||
Loans held for sale | 54 | - | - | 54 | 54 | ||||||||
Portfolio loans and leases: | |||||||||||||
Commercial and industrial loans | 38,549 | - | - | 39,804 | 39,804 | ||||||||
Commercial mortgage loans | 7,854 | - | - | 7,430 | 7,430 | ||||||||
Commercial construction loans | 1,013 | - | - | 856 | 856 | ||||||||
Commercial leases | 3,572 | - | - | 3,261 | 3,261 | ||||||||
Residential mortgage loans | 12,399 | - | - | 11,541 | 11,541 | ||||||||
Home equity | 9,152 | - | - | 9,181 | 9,181 | ||||||||
Automobile loans | 11,961 | - | - | 11,748 | 11,748 | ||||||||
Credit card | 2,202 | - | - | 2,380 | 2,380 | ||||||||
Other consumer loans and leases | 348 | - | - | 361 | 361 | ||||||||
Unallocated allowance for loan and lease losses | -110 | - | - | - | - | ||||||||
Total portfolio loans and leases, net | $ | 86,940 | - | - | 86,562 | 86,562 | |||||||
Financial liabilities: | |||||||||||||
Deposits | 99,275 | - | 99,288 | - | 99,288 | ||||||||
Federal funds purchased | 284 | 284 | - | - | 284 | ||||||||
Other short-term borrowings | 1,380 | - | 1,380 | - | 1,380 | ||||||||
Long-term debt | 9,633 | 9,645 | 577 | - | 10,222 |
Business_Segments_Tables
Business Segments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Business Segments | ' | ||||||||
Results of Operations and Average Assets by Segment | ' | ||||||||
Results of operations and assets by segment for the three months ended March 31, 2014 and 2013 are: | |||||||||
General | |||||||||
Commercial | Branch | Consumer | Investment | Corporate | |||||
($ in millions) | Banking | Banking | Lending | Advisors | and Other | Eliminations | Total | ||
Three months ended March 31, 2014 | |||||||||
Net interest income | $ | 404 | 385 | 64 | 32 | 8 | - | 893 | |
Provision for loan and lease losses | 97 | 45 | 25 | - | -98 | - | 69 | ||
Net interest income after provision for loan | |||||||||
and lease losses | 307 | 340 | 39 | 32 | 106 | - | 824 | ||
Noninterest income: | |||||||||
Service charges on deposits | 69 | 63 | - | 1 | - | - | 133 | ||
Mortgage banking net revenue | - | 1 | 108 | - | - | - | 109 | ||
Corporate banking revenue | 104 | 1 | - | 1 | -2 | - | 104 | ||
Investment advisory revenue | 1 | 36 | - | 100 | - | (35)(a) | 102 | ||
Card and processing revenue | 16 | 51 | - | 1 | - | - | 68 | ||
Other noninterest income | 20 | 20 | 10 | - | -9 | - | 41 | ||
Securities gains, net | - | - | - | - | 7 | - | 7 | ||
Securities gains, net - non-qualifying hedges on | |||||||||
mortgage servicing rights | - | - | - | - | - | - | - | ||
Total noninterest income | 210 | 172 | 118 | 103 | -4 | -35 | 564 | ||
Noninterest expense: | |||||||||
Salaries, wages and incentives | 64 | 105 | 25 | 34 | 131 | - | 359 | ||
Employee benefits | 19 | 35 | 9 | 9 | 29 | - | 101 | ||
Net occupancy expense | 6 | 46 | 2 | 2 | 24 | - | 80 | ||
Technology and communications | 3 | 2 | - | - | 48 | - | 53 | ||
Card and processing expense | 2 | 29 | - | - | - | - | 31 | ||
Equipment expense | 2 | 15 | - | - | 13 | - | 30 | ||
Other noninterest expense | 238 | 158 | 130 | 65 | -260 | -35 | 296 | ||
Total noninterest expense | 334 | 390 | 166 | 110 | -15 | -35 | 950 | ||
Income (loss) before income taxes | 183 | 122 | -9 | 25 | 117 | - | 438 | ||
Applicable income tax expense (benefit) | 19 | 42 | -3 | 8 | 53 | - | 119 | ||
Net income (loss) | 164 | 80 | -6 | 17 | 64 | - | 319 | ||
Less: Net income attributable to noncontrolling interests | - | - | - | - | 1 | - | 1 | ||
Net income (loss) attributable to Bancorp | 164 | 80 | -6 | 17 | 63 | - | 318 | ||
Dividends on preferred stock | - | - | - | - | 9 | - | 9 | ||
Net income (loss) available to common shareholders | $ | 164 | 80 | -6 | 17 | 54 | - | 309 | |
Total goodwill | $ | 613 | 1,655 | - | 148 | - | - | 2,416 | |
Total assets | $ | 55,676 | 48,888 | 22,436 | 9,775 | -7,121 | - | 129,654 | |
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 March 31, 2013 | |||||||||
Net interest income | $ | 384 | 323 | 85 | 36 | 60 | - | 888 | |
Provision for loan and lease losses | 44 | 57 | 29 | 1 | -69 | - | 62 | ||
Net interest income after provision for loan | |||||||||
and lease losses | 340 | 266 | 56 | 35 | 129 | - | 826 | ||
Noninterest income: | |||||||||
Service charges on deposits | 65 | 65 | - | 1 | - | - | 131 | ||
Mortgage banking net revenue | - | 4 | 216 | - | - | - | 220 | ||
Corporate banking revenue | 97 | 1 | - | 1 | - | - | 99 | ||
Investment advisory revenue | 1 | 37 | - | 98 | - | (36)(a) | 100 | ||
Card and processing revenue | 15 | 49 | - | 1 | - | - | 65 | ||
Other noninterest income | 16 | 22 | 11 | 7 | 53 | - | 109 | ||
Securities gains, net | - | - | - | - | 17 | - | 17 | ||
Securities gains, net - non-qualifying hedges on | |||||||||
mortgage servicing rights | - | - | 2 | - | - | - | 2 | ||
Total noninterest income | 194 | 178 | 229 | 108 | 70 | -36 | 743 | ||
Noninterest expense: | |||||||||
Salaries, wages and incentives | 70 | 109 | 50 | 33 | 137 | - | 399 | ||
Employee benefits | 20 | 36 | 13 | 9 | 36 | - | 114 | ||
Net occupancy expense | 6 | 46 | 2 | 3 | 22 | - | 79 | ||
Technology and communications | 3 | 1 | - | - | 45 | - | 49 | ||
Card and processing expense | 1 | 29 | - | - | 1 | - | 31 | ||
Equipment expense | 1 | 14 | - | - | 13 | - | 28 | ||
Other noninterest expense | 199 | 155 | 112 | 70 | -222 | -36 | 278 | ||
Total noninterest expense | 300 | 390 | 177 | 115 | 32 | -36 | 978 | ||
Income before income taxes | 234 | 54 | 108 | 28 | 167 | - | 591 | ||
Applicable income tax expense | 36 | 20 | 38 | 10 | 75 | - | 179 | ||
Net income | 198 | 34 | 70 | 18 | 92 | - | 412 | ||
Less: Net income attributable to noncontrolling interests | - | - | - | - | -10 | - | -10 | ||
Net income attributable to Bancorp | 198 | 34 | 70 | 18 | 102 | - | 422 | ||
Dividends on preferred stock | - | - | - | - | 9 | - | 9 | ||
Net income available to common shareholders | $ | 198 | 34 | 70 | 18 | 93 | - | 413 | |
Total goodwill | $ | 613 | 1,655 | - | 148 | - | - | 2,416 | |
Total assets | $ | 52,117 | 47,527 | 24,026 | 9,114 | -11,402 | - | 121,382 | |
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 $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash Payments: | ' | ' |
Interest | $133 | $122 |
Income Taxes Paid | 21 | 34 |
Transfers: | ' | ' |
Portfolio loans to loans held for sale | 73 | 590 |
Loans held for sale to portfolio loans | 12 | 12 |
Portfolio loans to OREO | 37 | 64 |
Loans held for sale to OREO | $2 | $3 |
AvailableforSale_and_HeldtoMat
Available-for-Sale and Held-to-Maturity Securities (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Investment Holdings | ' | ' | ||
Amortized Cost | $20,393 | $18,409 | ||
Total Unrealized Losses | -72 | -159 | ||
Available for sale securities | 20,749 | [1] | 18,597 | [1] |
Amortized Cost | 195 | [2] | 208 | [2] |
Held-to-maturity securities | 195 | 208 | ||
Available-for-sale Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 20,393 | [3] | 18,409 | |
Unrealized Gains | 428 | 347 | ||
Total Unrealized Losses | -72 | -159 | ||
Available for sale securities | 20,749 | [3] | 18,597 | |
Held-to-maturity Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 195 | [3] | 208 | |
Held-to-maturity securities | 195 | [3] | 208 | |
US Treasury and Government | Available-for-sale Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 26 | 26 | ||
Available for sale securities | 26 | 26 | ||
US Government-sponsored Enterprises Debt Securities | Available-for-sale Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 1,522 | 1,523 | ||
Unrealized Gains | 113 | 121 | ||
Available for sale securities | 1,635 | 1,644 | ||
US States and Political Subdivisions Debt Securities | Available-for-sale Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 186 | 187 | ||
Unrealized Gains | 8 | 5 | ||
Available for sale securities | 194 | 192 | ||
US States and Political Subdivisions Debt Securities | Held-to-maturity Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 194 | 207 | ||
Held-to-maturity securities | 194 | 207 | ||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ' | ' | ||
Investment Holdings | ' | ' | ||
Total Unrealized Losses | -64 | -150 | ||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | Available-for-sale Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 14,029 | [4] | 12,294 | [4] |
Unrealized Gains | 220 | [4] | 140 | [4] |
Total Unrealized Losses | -64 | [4] | -150 | [4] |
Available for sale securities | 14,185 | [4] | 12,284 | [4] |
Other Debt Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Total Unrealized Losses | -7 | -8 | ||
Other Debt Securities | Available-for-sale Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 3,917 | 3,514 | ||
Unrealized Gains | 81 | 76 | ||
Total Unrealized Losses | -7 | -8 | ||
Available for sale securities | 3,991 | 3,582 | ||
Other Debt Securities | Held-to-maturity Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 1 | 1 | ||
Held-to-maturity securities | 1 | 1 | ||
Other Debt And Equity Securities [Member] | ' | ' | ||
Investment Holdings | ' | ' | ||
Total Unrealized Losses | -1 | -1 | ||
Other Debt And Equity Securities [Member] | Available-for-sale Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 713 | [5] | 865 | [5] |
Unrealized Gains | 6 | [5] | 5 | [5] |
Total Unrealized Losses | -1 | [5] | -1 | [5] |
Available for sale securities | $718 | [5] | $869 | [5] |
[1] | Amortized cost of $20,393 and $18,409 at March 31, 2014 and December 31, 2013, respectively. | |||
[2] | Fair value of $195 and $208 at March 31, 2014 and December 31, 2013, respectively. | |||
[3] | Actual maturities may differ from contractual maturities when there exists a right to call or prepay obligations with or without call or prepayment penalties. | |||
[4] | Includes interest-only mortgage backed securities of $217 and $262 as of March 31, 2014 and December 31, 2013, 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. | |||
[5] | Other securities consist of FHLB and FRB restricted stock holdings of $249 and $350, respectively, at March 31, 2014 and $402 and $349, respectively, at December 31, 2013, 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 $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Investment Holdings | ' | ' | ||
FHLB, restricted stock holdings | $249 | $402 | ||
Federal Reserve Bank, restricted stock holdings | 350 | 349 | ||
Available-for-sale and other securities | 20,749 | [1] | 18,597 | [1] |
Interest-Only-Strip [Member] | ' | ' | ||
Investment Holdings | ' | ' | ||
Available-for-sale and other securities | $217 | $262 | ||
[1] | Amortized cost of $20,393 and $18,409 at March 31, 2014 and December 31, 2013, respectively. |
Realized_Gains_and_Losses_Reco
Realized Gains and Losses Recognized in Income from Available-for-Sale Securities (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Gain (loss) on investments | ' | ' | ||
Realized gains | $27 | $18 | ||
Realized losses | -5 | -25 | ||
OTTI | -17 | ' | ||
Net realized gains (losses) | $5 | [1] | ($7) | [1] |
[1] | Excludes net gains on interest-only mortgage-backed securities of $1 and $24 for the three months ended March 31, 2014 and 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 | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest-Only-Strip [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Net gains on interest-only mortgage-backed securities | $1 | $24 |
Securities_Additional_Informat
Securities - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Investment Holdings | ' | ' | ' |
Trading securities | $347,000,000 | ' | $343,000,000 |
Securities with a fair value, pledged as collateral | 10,600,000,000 | ' | 11,600,000,000 |
Marketable Securities, Realized Loss, Other than Temporary Impairments, Amount | 17,000,000 | ' | ' |
Net Unrealized Gain(Loss) on Trading Securities | $1,000,000 | $2,000,000 | ' |
Amortized_Cost_and_Fair_Value_
Amortized Cost and Fair Value of Available-for-Sale and Held-to-Maturity Securities (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Debt securities: | ' | ' | ||
Total | $20,393 | $18,409 | ||
Debt securities: | ' | ' | ||
Fair Value | 20,749 | [1] | 18,597 | [1] |
Debt securities: | ' | ' | ||
Total | 195 | [2] | 208 | [2] |
Debt securities: | ' | ' | ||
Fair Value | 195 | 208 | ||
Available-for-sale Securities | ' | ' | ||
Debt securities: | ' | ' | ||
Under 1 year | 92 | [3] | ' | |
1-5 years | 3,626 | [3] | ' | |
5-10 years | 12,430 | [3] | ' | |
Over 10 years | 3,532 | [3] | ' | |
Other securities | 713 | [3] | ' | |
Total | 20,393 | [3] | 18,409 | |
Debt securities: | ' | ' | ||
Under 1 year | 95 | [3] | ' | |
1-5 years | 3,814 | [3] | ' | |
5-10 years | 12,507 | [3] | ' | |
Over 10 years | 3,615 | [3] | ' | |
Other securities | 718 | [3] | ' | |
Fair Value | 20,749 | [3] | 18,597 | |
Held-to-maturity Securities [Member] | ' | ' | ||
Debt securities: | ' | ' | ||
Under 1 year | 16 | [3] | ' | |
1-5 years | 160 | [3] | ' | |
5-10 years | 17 | [3] | ' | |
Over 10 years | 2 | [3] | ' | |
Total | 195 | [3] | 208 | |
Debt securities: | ' | ' | ||
Under 1 year | 16 | [3] | ' | |
1-5 years | 160 | [3] | ' | |
5-10 years | 17 | [3] | ' | |
Over 10 years | 2 | [3] | ' | |
Fair Value | $195 | [3] | $208 | |
[1] | Amortized cost of $20,393 and $18,409 at March 31, 2014 and December 31, 2013, respectively. | |||
[2] | Fair value of $195 and $208 at March 31, 2014 and December 31, 2013, respectively. | |||
[3] | 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_Unrealize
Fair Value and Gross Unrealized Losses on Available-for-Sale Securities (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments, Unrealized Loss Position | ' | ' |
Less than 12 months Fair Value | $6,298 | $7,849 |
Less than 12 months Unrealized Losses | -70 | -156 |
12 months or more Fair Value | 160 | 137 |
12 months or more Unrealized Losses | -2 | -3 |
Total Fair Value | 6,458 | 7,986 |
Total Unrealized Losses | -72 | -159 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ' | ' |
Investments, Unrealized Loss Position | ' | ' |
Less than 12 months Fair Value | 5,323 | 7,221 |
Less than 12 months Unrealized Losses | -64 | -150 |
12 months or more Fair Value | ' | 1 |
Total Fair Value | 5,323 | 7,222 |
Total Unrealized Losses | -64 | -150 |
Other Debt Securities | ' | ' |
Investments, Unrealized Loss Position | ' | ' |
Less than 12 months Fair Value | 942 | 595 |
Less than 12 months Unrealized Losses | -5 | -5 |
12 months or more Fair Value | 156 | 132 |
12 months or more Unrealized Losses | -2 | -3 |
Total Fair Value | 1,098 | 727 |
Total Unrealized Losses | -7 | -8 |
Other Debt And Equity Securities [Member] | ' | ' |
Investments, Unrealized Loss Position | ' | ' |
Less than 12 months Fair Value | 33 | 33 |
Less than 12 months Unrealized Losses | -1 | -1 |
12 months or more Fair Value | 4 | 4 |
Total Fair Value | 37 | 37 |
Total Unrealized Losses | ($1) | ($1) |
Loans_and_Leases_Classified_by
Loans and Leases Classified by Primary Purpose (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Loans and leases held for sale: | ' | ' | ||
Commercial and industrial loans | $101 | $31 | ||
Commercial mortgage loans | 1 | 3 | ||
Commercial leases | ' | 1 | ||
Commercial construction loans | 2 | 2 | ||
Residential mortgage loans | 649 | 890 | ||
Other consumer loans and leases | 27 | 17 | ||
Total loans and leases held for sale | 780 | [1] | 944 | [1] |
Portfolio loans and leases: | ' | ' | ||
Commercial and industrial loans | 40,591 | 39,316 | ||
Commercial mortgage loans | 7,958 | [2] | 8,066 | [2] |
Commercial construction loans | 1,218 | 1,039 | ||
Commercial leases | 3,577 | 3,625 | ||
Total commercial loans and leases | 53,344 | 52,046 | ||
Residential mortgage loans | 12,626 | [3] | 12,680 | [3] |
Home equity | 9,125 | 9,246 | ||
Automobile loans | 12,088 | [2] | 11,984 | [2] |
Credit card | 2,177 | 2,294 | ||
Other consumer loans and leases | 345 | 364 | ||
Total consumer loans and leases | 36,361 | 36,568 | ||
Portfolio loans and leases | $89,705 | $88,614 | ||
[1] | Includes $649 and $890 of residential mortgage loans held for sale measured at fair value at March 31, 2014 and December 31, 2013, respectively. | |||
[2] | Includes $102 and $49 of cash and due from banks, $7 and $0 of other short-term investments, $48 and $48 of commercial mortgage loans, $2,031 and $1,010 of automobile loans, $(18) and $(15) of ALLL, $23 and $13 of other assets, $3 and $1 of other liabilities, and $2,119 and $1,048 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2014 and December 31, 2013, respectively. See Note 8. | |||
[3] | Includes $103 and $92 of residential mortgage loans measured at fair value at March 31, 2014 and December 31, 2013, respectively. |
Loans_and_Leases_Additional_In
Loans and Leases - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable | ' | ' |
Unamortized premiums and discounts, deferred loan fees and costs, and fair value adjustments | $125,000,000 | $111,000,000 |
Unearned Income | 680,000,000 | 700,000,000 |
Loans pledged at the FHLB | 10,600,000,000 | 10,900,000,000 |
Loans pledged at the FRB | $34,100,000,000 | $33,500,000,000 |
Total_Loans_And_Leases_Managed
Total Loans And Leases Managed By The Bancorp (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | $89,705 | ' | $88,614 |
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 | 40,692 | ' | 39,347 |
Balance of Loans 90 days or More Past Due | 1 | ' | ' |
Net Credit Losses | 97 | 25 | ' |
Commercial Mortgage Loans | ' | ' | ' |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | 7,959 | ' | 8,069 |
Net Credit Losses | 3 | 26 | ' |
Commercial Construction | ' | ' | ' |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | 1,220 | ' | 1,041 |
Net Credit Losses | 5 | 3 | ' |
Commercial Leases | ' | ' | ' |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | 3,577 | ' | 3,626 |
Residential Mortgage | ' | ' | ' |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | 13,275 | ' | 13,570 |
Balance of Loans 90 days or More Past Due | 56 | ' | 66 |
Net Credit Losses | 15 | 20 | ' |
Home Equity | ' | ' | ' |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | 9,125 | ' | 9,246 |
Net Credit Losses | 16 | 30 | ' |
Automobile Loan | ' | ' | ' |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | 12,088 | ' | 11,984 |
Balance of Loans 90 days or More Past Due | 7 | ' | 8 |
Net Credit Losses | 8 | 4 | ' |
Credit Card | ' | ' | ' |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | 2,177 | ' | 2,294 |
Balance of Loans 90 days or More Past Due | 30 | ' | 29 |
Net Credit Losses | 19 | 20 | ' |
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 | 372 | ' | 381 |
Net Credit Losses | 5 | 5 | ' |
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 | 780 | ' | 944 |
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 | 90,485 | ' | 89,558 |
Balance of Loans 90 days or More Past Due | 94 | ' | 103 |
Net Credit Losses | $168 | $133 | ' |
Summary_of_Transactions_in_the
Summary of Transactions in the ALLL by Portfolio segment (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Beginning Balance | $1,582 | [1] | $1,854 |
Losses charged off | -190 | -168 | |
Recoveries of losses previously charged off | 22 | 35 | |
Provision for loan and lease losses | 69 | 62 | |
Ending Balance | 1,483 | [1] | 1,783 |
Commercial Portfolio Segment | ' | ' | |
Beginning Balance | 1,058 | [2] | 1,236 |
Losses charged off | -110 | -68 | |
Recoveries of losses previously charged off | 5 | 14 | |
Provision for loan and lease losses | 28 | 9 | |
Ending Balance | 981 | [3] | 1,191 |
Residential Mortgage Loans | ' | ' | |
Beginning Balance | 189 | [2] | 229 |
Losses charged off | -19 | -22 | |
Recoveries of losses previously charged off | 4 | 2 | |
Provision for loan and lease losses | 6 | 3 | |
Ending Balance | 180 | [3] | 212 |
Consumer Portfolio Segment | ' | ' | |
Beginning Balance | 225 | [2] | 278 |
Losses charged off | -61 | -78 | |
Recoveries of losses previously charged off | 13 | 19 | |
Provision for loan and lease losses | 40 | 53 | |
Ending Balance | 217 | [3] | 272 |
Unallocated | ' | ' | |
Beginning Balance | 110 | [2] | 111 |
Provision for loan and lease losses | -5 | -3 | |
Ending Balance | $105 | [3] | $108 |
[1] | Includes $102 and $49 of cash and due from banks, $7 and $0 of other short-term investments, $48 and $48 of commercial mortgage loans, $2,031 and $1,010 of automobile loans, $(18) and $(15) of ALLL, $23 and $13 of other assets, $3 and $1 of other liabilities, and $2,119 and $1,048 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2014 and December 31, 2013, respectively. See Note 8. | ||
[2] | Includes $9 related to leveraged leases. | ||
[3] | Includes $8 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 $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||||
Financing Receivable, Allowance for Credit Losses | ' | ' | ' | ' | ||
Individually evaluated for impairment | $373 | [1] | $378 | [2] | ' | ' |
Collectively evaluated for impairment | 1,005 | [1] | 1,094 | [2] | ' | ' |
Unallocated | 105 | [1] | 110 | [2] | ' | ' |
Total allowance for loan and lease losses | 1,483 | [3] | 1,582 | [3] | 1,783 | 1,854 |
Individually evaluated for impairment | 3,099 | [4] | 3,381 | [5] | ' | ' |
Collectively evaluated for impairment | 86,499 | [4] | 85,137 | [5] | ' | ' |
Loans acquired with deteriorated credit quality | 4 | [4] | 4 | [5] | ' | ' |
Total Loans and Leases | 89,602 | [6] | 88,522 | [7] | ' | ' |
Commercial Portfolio Segment | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses | ' | ' | ' | ' | ||
Individually evaluated for impairment | 182 | [1],[8] | 186 | [2],[9] | ' | ' |
Collectively evaluated for impairment | 799 | [1] | 872 | [2] | ' | ' |
Total allowance for loan and lease losses | 981 | [1] | 1,058 | [2] | 1,191 | 1,236 |
Individually evaluated for impairment | 1,306 | [4],[8] | 1,560 | [5],[9] | ' | ' |
Collectively evaluated for impairment | 52,038 | [4] | 50,486 | [5] | ' | ' |
Total Loans and Leases | 53,344 | [4] | 52,046 | [5] | ' | ' |
Residential Mortgage Loans | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses | ' | ' | ' | ' | ||
Individually evaluated for impairment | 140 | [1] | 139 | [2] | ' | ' |
Collectively evaluated for impairment | 40 | [1] | 50 | [2] | ' | ' |
Total allowance for loan and lease losses | 180 | [1] | 189 | [2] | 212 | 229 |
Individually evaluated for impairment | 1,310 | [4] | 1,325 | [5] | ' | ' |
Collectively evaluated for impairment | 11,209 | [4] | 11,259 | [5] | ' | ' |
Loans acquired with deteriorated credit quality | 4 | [4] | 4 | [5] | ' | ' |
Total Loans and Leases | 12,523 | [4] | 12,588 | [5] | ' | ' |
Consumer Portfolio Segment | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses | ' | ' | ' | ' | ||
Individually evaluated for impairment | 51 | [1] | 53 | [2] | ' | ' |
Collectively evaluated for impairment | 166 | [1] | 172 | [2] | ' | ' |
Total allowance for loan and lease losses | 217 | [1] | 225 | [2] | 272 | 278 |
Individually evaluated for impairment | 483 | [4] | 496 | [5] | ' | ' |
Collectively evaluated for impairment | 23,252 | [4] | 23,392 | [5] | ' | ' |
Total Loans and Leases | 23,735 | [4] | 23,888 | [5] | ' | ' |
Unallocated | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses | ' | ' | ' | ' | ||
Unallocated | 105 | [1] | 110 | [2] | ' | ' |
Total allowance for loan and lease losses | $105 | [1] | $110 | [2] | $108 | $111 |
[1] | Includes $8 related to leveraged leases. | |||||
[2] | Includes $9 related to leveraged leases. | |||||
[3] | Includes $102 and $49 of cash and due from banks, $7 and $0 of other short-term investments, $48 and $48 of commercial mortgage loans, $2,031 and $1,010 of automobile loans, $(18) and $(15) of ALLL, $23 and $13 of other assets, $3 and $1 of other liabilities, and $2,119 and $1,048 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2014 and December 31, 2013, respectively. See Note 8. | |||||
[4] | Excludes $103 of residential mortgage loans measured at fair value, and includes $878 of leveraged leases, net of unearned income. | |||||
[5] | Excludes $92 of residential mortgage loans measured at fair value, and includes $881 of leveraged leases, net of unearned income. Includes five restructured loans at December 31, 2013 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $28 and an allowance of $11. | |||||
[6] | Excludes $103 of loans measured at fair value. | |||||
[7] | Excludes $92 of loans measured at fair value. | |||||
[8] | Includes five restructured loans at March 31, 2014 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $28 and an allowance of $11. | |||||
[9] | Includes five restructured loans at December 31, 2013 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $28 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 $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||||
Financing Receivable, Allowance for Credit Losses | ' | ' | ' | ' | ||
Allowance for loan and lease losses | $1,483 | [1] | $1,582 | [1] | $1,783 | $1,854 |
Portfolio loans and leases | 89,602 | [2] | 88,522 | [3] | ' | ' |
Recorded Investment | 3,071 | [4] | 3,353 | [5] | ' | ' |
Leveraged Leases | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses | ' | ' | ' | ' | ||
Allowance for loan and lease losses | 8 | 9 | ' | ' | ||
Portfolio loans and leases | 878 | 881 | ' | ' | ||
Residential Mortgage Loans | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 103 | 92 | ' | ' | ||
Variable Interest Entity, Primary Beneficiary | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses | ' | ' | ' | ' | ||
Allowance for loan and lease losses | 11 | 11 | ' | ' | ||
Recorded Investment | $28 | $28 | ' | ' | ||
[1] | Includes $102 and $49 of cash and due from banks, $7 and $0 of other short-term investments, $48 and $48 of commercial mortgage loans, $2,031 and $1,010 of automobile loans, $(18) and $(15) of ALLL, $23 and $13 of other assets, $3 and $1 of other liabilities, and $2,119 and $1,048 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2014 and December 31, 2013, respectively. See Note 8. | |||||
[2] | Excludes $103 of loans measured at fair value. | |||||
[3] | Excludes $92 of loans measured at fair value. | |||||
[4] | Includes $847, $1,237 and $430, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $209, $73 and $53, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. | |||||
[5] | Includes $869, $1,241 and $444, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $228, $84 and $52, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. Excludes five restructured loans at December 31, 2013 associated with a consolidated VIE 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 $28, a recorded investment of $28, and an allowance of $11. |
Summary_of_the_Credit_Risk_Pro
Summary of the Credit Risk Profile of the Bancorp's Commercial Portfolio Segment by Class (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | $89,602 | [1] | $88,522 | [2] |
Commercial Portfolio Segment | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 53,344 | [3] | 52,046 | [4] |
Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 40,591 | 39,316 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 4,398 | 4,507 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 3,560 | 3,559 | ||
Commercial Portfolio Segment | Commercial Construction | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 1,218 | 1,039 | ||
Commercial Portfolio Segment | Commercial Leases | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 3,577 | 3,625 | ||
Pass | Commercial Portfolio Segment | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 49,377 | 47,922 | ||
Pass | Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 38,061 | 36,776 | ||
Pass | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 3,825 | 3,866 | ||
Pass | Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 2,913 | 2,879 | ||
Pass | Commercial Portfolio Segment | Commercial Construction | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 1,078 | 855 | ||
Pass | Commercial Portfolio Segment | Commercial Leases | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 3,500 | 3,546 | ||
Special Mention | Commercial Portfolio Segment | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 1,697 | 1,663 | ||
Special Mention | Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 1,175 | 1,118 | ||
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 196 | 209 | ||
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 242 | 248 | ||
Special Mention | Commercial Portfolio Segment | Commercial Construction | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 37 | 32 | ||
Special Mention | Commercial Portfolio Segment | Commercial Leases | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 47 | 56 | ||
Risk Level, Substandard | Commercial Portfolio Segment | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 2,226 | 2,440 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 1,313 | 1,419 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 375 | 415 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 405 | 431 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial Construction | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 103 | 152 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial Leases | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 30 | 23 | ||
Risk Level, Doubtful | Commercial Portfolio Segment | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 44 | 21 | ||
Risk Level, Doubtful | Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 42 | 3 | ||
Risk Level, Doubtful | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 2 | 17 | ||
Risk Level, Doubtful | Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | ' | $1 | ||
[1] | Excludes $103 of loans measured at fair value. | |||
[2] | Excludes $92 of loans measured at fair value. | |||
[3] | Excludes $103 of residential mortgage loans measured at fair value, and includes $878 of leveraged leases, net of unearned income. | |||
[4] | Excludes $92 of residential mortgage loans measured at fair value, and includes $881 of leveraged leases, net of unearned income. Includes five restructured loans at December 31, 2013 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $28 and an allowance of $11. |
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 $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Total loans and leases | $89,602 | [1] | $88,522 | [2] |
Residential Mortgage Loans | ' | ' | ||
Total loans and leases | 12,523 | [3] | 12,588 | [4] |
Consumer Portfolio Segment | ' | ' | ||
Total loans and leases | 23,735 | [3] | 23,888 | [4] |
Home Equity | Consumer Portfolio Segment | ' | ' | ||
Total loans and leases | 9,125 | 9,246 | ||
Automobile Loans | Consumer Portfolio Segment | ' | ' | ||
Total loans and leases | 12,088 | 11,984 | ||
Credit Card | Consumer Portfolio Segment | ' | ' | ||
Total loans and leases | 2,177 | 2,294 | ||
Consumer Other Financing Receivable | Consumer Portfolio Segment | ' | ' | ||
Total loans and leases | 345 | 364 | ||
Performing Financing Receivable | ' | ' | ||
Total loans and leases | 35,989 | 36,183 | ||
Performing Financing Receivable | Residential Mortgage | ' | ' | ||
Total loans and leases | 12,382 | [5] | 12,423 | [5] |
Performing Financing Receivable | Home Equity | ' | ' | ||
Total loans and leases | 9,031 | 9,153 | ||
Performing Financing Receivable | Automobile Loans | ' | ' | ||
Total loans and leases | 12,087 | 11,982 | ||
Performing Financing Receivable | Credit Card | ' | ' | ||
Total loans and leases | 2,144 | 2,261 | ||
Performing Financing Receivable | Consumer Other Financing Receivable | ' | ' | ||
Total loans and leases | 345 | 364 | ||
Nonperforming Financing Receivable | ' | ' | ||
Total loans and leases | 269 | 293 | ||
Nonperforming Financing Receivable | Residential Mortgage | ' | ' | ||
Total loans and leases | 141 | [5] | 165 | [5] |
Nonperforming Financing Receivable | Home Equity | ' | ' | ||
Total loans and leases | 94 | 93 | ||
Nonperforming Financing Receivable | Automobile Loans | ' | ' | ||
Total loans and leases | 1 | 2 | ||
Nonperforming Financing Receivable | Credit Card | ' | ' | ||
Total loans and leases | $33 | $33 | ||
[1] | Excludes $103 of loans measured at fair value. | |||
[2] | Excludes $92 of loans measured at fair value. | |||
[3] | Excludes $103 of residential mortgage loans measured at fair value, and includes $878 of leveraged leases, net of unearned income. | |||
[4] | Excludes $92 of residential mortgage loans measured at fair value, and includes $881 of leveraged leases, net of unearned income. Includes five restructured loans at December 31, 2013 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $28 and an allowance of $11. | |||
[5] | Excludes $103 and $92 of loans measured at fair value at March 31, 2014 and December 31, 2013, 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 $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Residential Mortgage | ' | ' |
Portfolio loans and leases at fair value | $103 | $92 |
Summarizes_the_Bancorps_Record
Summarizes the Bancorp's Recorded Investment in Portfolio Loans and Leases by Age and Class (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | $88,713 | [1],[2] | $87,534 | [1],[3] |
30-89 Days Past Due | 310 | [1],[2] | 345 | [1],[3] |
90 Days and Greater | 579 | [1],[2] | 643 | [1],[3] |
Total Past Due | 889 | [2] | 988 | [3] |
Total Loans and Leases | 89,602 | [2] | 88,522 | [3] |
90-Days past Due and Still Accruing | 94 | [2] | 103 | [3] |
Commercial Portfolio Segment | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Total Loans and Leases | 53,344 | [4] | 52,046 | [5] |
Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 40,402 | [1] | 39,118 | [1] |
30-89 Days Past Due | 35 | [1] | 53 | [1] |
90 Days and Greater | 154 | [1] | 145 | [1] |
Total Past Due | 189 | 198 | ||
Total Loans and Leases | 40,591 | 39,316 | ||
90-Days past Due and Still Accruing | 1 | ' | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 4,321 | [1] | 4,423 | [1] |
30-89 Days Past Due | 10 | [1] | 15 | [1] |
90 Days and Greater | 67 | [1] | 69 | [1] |
Total Past Due | 77 | 84 | ||
Total Loans and Leases | 4,398 | 4,507 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 3,524 | [1] | 3,515 | [1] |
30-89 Days Past Due | 4 | [1] | 9 | [1] |
90 Days and Greater | 32 | [1] | 35 | [1] |
Total Past Due | 36 | 44 | ||
Total Loans and Leases | 3,560 | 3,559 | ||
Commercial Portfolio Segment | Commercial Construction | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 1,199 | [1] | 1,010 | [1] |
30-89 Days Past Due | 15 | [1] | ' | |
90 Days and Greater | 4 | [1] | 29 | [1] |
Total Past Due | 19 | 29 | ||
Total Loans and Leases | 1,218 | 1,039 | ||
Commercial Portfolio Segment | Commercial Leases | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 3,573 | [1] | 3,620 | [1] |
30-89 Days Past Due | 2 | [1] | ' | |
90 Days and Greater | 2 | [1] | 5 | [1] |
Total Past Due | 4 | 5 | ||
Total Loans and Leases | 3,577 | 3,625 | ||
Residential Mortgage | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 12,255 | [1],[2],[6] | 12,284 | [1],[3],[7] |
30-89 Days Past Due | 71 | [1],[2],[6] | 73 | [1],[3],[7] |
90 Days and Greater | 197 | [1],[2],[6] | 231 | [1],[3],[7] |
Total Past Due | 268 | [2],[6] | 304 | [3],[7] |
Total Loans and Leases | 12,523 | [2],[6] | 12,588 | [3],[7] |
90-Days past Due and Still Accruing | 56 | [2],[6] | 66 | [3],[7] |
Consumer Portfolio Segment | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Total Loans and Leases | 23,735 | [4] | 23,888 | [5] |
Consumer Portfolio Segment | Home Equity | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 8,947 | [1] | 9,058 | [1] |
30-89 Days Past Due | 99 | [1] | 102 | [1] |
90 Days and Greater | 79 | [1] | 86 | [1] |
Total Past Due | 178 | 188 | ||
Total Loans and Leases | 9,125 | 9,246 | ||
Consumer Portfolio Segment | Automobile Loans | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 12,037 | [1] | 11,919 | [1] |
30-89 Days Past Due | 42 | [1] | 55 | [1] |
90 Days and Greater | 9 | [1] | 10 | [1] |
Total Past Due | 51 | 65 | ||
Total Loans and Leases | 12,088 | 11,984 | ||
90-Days past Due and Still Accruing | 7 | 8 | ||
Consumer Portfolio Segment | Credit Card | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 2,111 | [1] | 2,225 | [1] |
30-89 Days Past Due | 31 | [1] | 36 | [1] |
90 Days and Greater | 35 | [1] | 33 | [1] |
Total Past Due | 66 | 69 | ||
Total Loans and Leases | 2,177 | 2,294 | ||
90-Days past Due and Still Accruing | 30 | 29 | ||
Consumer Portfolio Segment | Consumer Other Financing Receivable | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 344 | [1] | 362 | [1] |
30-89 Days Past Due | 1 | [1] | 2 | [1] |
Total Past Due | 1 | 2 | ||
Total Loans and Leases | $345 | $364 | ||
[1] | Includes accrual and nonaccrual loans and leases. | |||
[2] | Excludes $103 of loans measured at fair value. | |||
[3] | Excludes $92 of loans measured at fair value. | |||
[4] | Excludes $103 of residential mortgage loans measured at fair value, and includes $878 of leveraged leases, net of unearned income. | |||
[5] | Excludes $92 of residential mortgage loans measured at fair value, and includes $881 of leveraged leases, net of unearned income. Includes five restructured loans at December 31, 2013 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $28 and an allowance of $11. | |||
[6] | Information for current residential mortgage loans includes loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of March 31, 2014, $75 of these loans were 30-89 days past due and $347 were 90 days or more past due. The Bancorp recognized $5 of losses during the three months ended March 31, 2014 due to claim denials and curtailments associated with these loans. | |||
[7] | Information for current residential mortgage loans includes loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of December 31, 2013, $81 of these loans were 30-89 days past due and $378 were 90 days or more past due. The Bancorp recognized $5 of losses for the year ended December 31, 2013 due to claim denials and curtailments associated with these loans. |
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 | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Financing Receivable Recorded Investment 30 To 89 Days Past Due | $310 | [1],[2] | $345 | [1],[3] |
Past Due 90 Days and Greater | 579 | [1],[2] | 643 | [1],[3] |
Residential Mortgage | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Financing Receivable Recorded Investment 30 To 89 Days Past Due | 71 | [1],[2],[4] | 73 | [1],[3],[5] |
Past Due 90 Days and Greater | 197 | [1],[2],[4] | 231 | [1],[3],[5] |
Residential Mortgage Loans | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Portfolio loans and leases at fair value | 103 | 92 | ||
Residential Mortgage Loans | Federal Housing Administration Loan | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Financing Receivable Recorded Investment 30 To 89 Days Past Due | 75 | 81 | ||
Past Due 90 Days and Greater | 347 | 378 | ||
Losses Due To Claim Denials And Curtailments | $5 | $5 | ||
[1] | Includes accrual and nonaccrual loans and leases. | |||
[2] | Excludes $103 of loans measured at fair value. | |||
[3] | Excludes $92 of loans measured at fair value. | |||
[4] | Information for current residential mortgage loans includes loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of March 31, 2014, $75 of these loans were 30-89 days past due and $347 were 90 days or more past due. The Bancorp recognized $5 of losses during the three months ended March 31, 2014 due to claim denials and curtailments associated with these loans. | |||
[5] | Information for current residential mortgage loans includes loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of December 31, 2013, $81 of these loans were 30-89 days past due and $378 were 90 days or more past due. The Bancorp recognized $5 of losses for the year ended December 31, 2013 due to claim denials and curtailments associated with these loans. |
Summarizes_the_Bancorps_Record2
Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | $2,451 | $2,729 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 947 | 891 | ||
Unpaid Principal Balance | 3,398 | 3,620 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | 2,232 | 2,539 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 839 | 814 | ||
Recorded Investment | 3,071 | [1] | 3,353 | [2] |
Allowance | 362 | 367 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 663 | 870 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 242 | 181 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | 531 | 759 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 198 | 177 | ||
Allowance | 140 | 145 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 85 | [3] | 85 | [4] |
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 90 | 106 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | 71 | [3] | 74 | [4] |
Impaired Financing Receivable With No Related Allowance Recorded Investment | 82 | 98 | ||
Allowance | 11 | [3] | 11 | [4] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 105 | 154 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 191 | 154 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | 82 | 134 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 185 | 147 | ||
Allowance | 12 | 14 | ||
Commercial Portfolio Segment | Commercial Construction | ' | ' | ||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 76 | 68 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 64 | 77 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | 60 | 54 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 52 | 63 | ||
Allowance | 5 | 5 | ||
Commercial Portfolio Segment | Commercial Leases | ' | ' | ||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 3 | 12 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 14 | 14 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | 3 | 12 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 14 | 14 | ||
Allowance | 3 | ' | ||
Residential Mortgage Loans | ' | ' | ||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 1,074 | 1,081 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 300 | 313 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | 1,044 | 1,052 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 266 | 273 | ||
Allowance | 140 | 139 | ||
Consumer Portfolio Segment | Home Equity | ' | ' | ||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 366 | 377 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 43 | 43 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | 363 | 373 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 39 | 39 | ||
Allowance | 36 | 39 | ||
Consumer Portfolio Segment | Automobile Loans | ' | ' | ||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 22 | 23 | ||
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 | 21 | 23 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 3 | 3 | ||
Allowance | 3 | 3 | ||
Consumer Portfolio Segment | Credit Card | ' | ' | ||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 57 | 59 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | 57 | 58 | ||
Allowance | $12 | $11 | ||
[1] | Includes $847, $1,237 and $430, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $209, $73 and $53, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. | |||
[2] | Includes $869, $1,241 and $444, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $228, $84 and $52, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. Excludes five restructured loans at December 31, 2013 associated with a consolidated VIE 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 $28, a recorded investment of $28, and an allowance of $11. | |||
[3] | Excludes five restructured loans at March 31, 2014 associated with a consolidated VIE 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 $28, a recorded investment of $28, and an allowance of $11. | |||
[4] | Excludes five restructured loans at December 31, 2013 associated with a consolidated VIE 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 $28, a recorded investment of $28, 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 $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Impaired | ' | ' | ||
Unpaid Principal Balance | $3,398 | $3,620 | ||
Recorded Investment | 3,071 | [1] | 3,353 | [2] |
Allowance | 362 | 367 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Allowance | 140 | 145 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Allowance | 11 | [3] | 11 | [4] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Allowance | 12 | 14 | ||
Commercial Portfolio Segment | Troubled Debt Restructuring On Accrual Status | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Recorded Investment | 847 | 869 | ||
Commercial Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Recorded Investment | 209 | 228 | ||
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 | 28 | 28 | ||
Recorded Investment | 28 | 28 | ||
Allowance | 11 | 11 | ||
Residential Mortgage Loans | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Allowance | 140 | 139 | ||
Residential Mortgage Loans | Troubled Debt Restructuring On Accrual Status | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Recorded Investment | 1,237 | 1,241 | ||
Residential Mortgage Loans | Troubled Debt Restructuring On Nonaccrual Status | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Recorded Investment | 73 | 84 | ||
Consumer Portfolio Segment | Troubled Debt Restructuring On Accrual Status | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Recorded Investment | 430 | 444 | ||
Consumer Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Recorded Investment | $53 | $52 | ||
[1] | Includes $847, $1,237 and $430, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $209, $73 and $53, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. | |||
[2] | Includes $869, $1,241 and $444, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $228, $84 and $52, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. Excludes five restructured loans at December 31, 2013 associated with a consolidated VIE 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 $28, a recorded investment of $28, and an allowance of $11. | |||
[3] | Excludes five restructured loans at March 31, 2014 associated with a consolidated VIE 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 $28, a recorded investment of $28, and an allowance of $11. | |||
[4] | Excludes five restructured loans at December 31, 2013 associated with a consolidated VIE 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 $28, a recorded investment of $28, 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 | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Average Recorded Investment | $3,202 | $2,793 | ||
Interest Income Recognized | 27 | 26 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Average Recorded Investment | 832 | 339 | ||
Interest Income Recognized | 5 | 2 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Average Recorded Investment | 162 | [1] | 140 | [1] |
Interest Income Recognized | 1 | [1] | 1 | [1] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Average Recorded Investment | 273 | 341 | ||
Interest Income Recognized | 2 | 2 | ||
Commercial Portfolio Segment | Commercial Construction | ' | ' | ||
Average Recorded Investment | 114 | 110 | ||
Interest Income Recognized | ' | 1 | ||
Commercial Portfolio Segment | Commercial Leases | ' | ' | ||
Average Recorded Investment | 22 | 11 | ||
Residential Mortgage Loans | ' | ' | ||
Average Recorded Investment | 1,312 | 1,306 | ||
Interest Income Recognized | 13 | 13 | ||
Consumer Portfolio Segment | Home Equity | ' | ' | ||
Average Recorded Investment | 406 | 439 | ||
Interest Income Recognized | 5 | 6 | ||
Consumer Portfolio Segment | Automobile Loan | ' | ' | ||
Average Recorded Investment | 24 | 32 | ||
Consumer Portfolio Segment | Credit Card | ' | ' | ||
Average Recorded Investment | 57 | 73 | ||
Interest Income Recognized | 1 | 1 | ||
Consumer Portfolio Segment | Consumer Other Financing Receivable | ' | ' | ||
Average Recorded Investment | ' | $2 | ||
[1] | Excludes five restructured 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 $28 and $30 at March 31, 2014 and 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 | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | ||
Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | |||||
Commercial Mortgage Loans, Owner Occupied | Commercial Mortgage Loans, Owner Occupied | Commercial Mortgage Loans, Owner Occupied | Commercial Mortgage Loans, Owner Occupied | |||||
Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | |||||||
Average Recorded Investment | $3,202 | $2,793 | $162 | [1] | $140 | [1] | $28 | $30 |
[1] | Excludes five restructured 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 $28 and $30 at March 31, 2014 and 2013, respectively. |
Summary_of_the_Bancorps_Nonper
Summary of the Bancorp's Nonperforming Loans and Leases by Class (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | $733 | [1],[2] | $751 | [1],[2] |
OREO and other repossessed property | 213 | [3] | 229 | [3] |
Commercial Portfolio Segment | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 464 | 458 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 297 | 281 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 87 | [4] | 95 | [4] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 59 | 48 | ||
Commercial Portfolio Segment | Commercial Construction | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 17 | 29 | ||
Commercial Portfolio Segment | Commercial Leases | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 4 | 5 | ||
Residential Mortgage Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 141 | 166 | ||
Consumer Portfolio Segment | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 128 | 127 | ||
Consumer Portfolio Segment | Home Equity | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 94 | 93 | ||
Consumer Portfolio Segment | Automobile Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 1 | 1 | ||
Consumer Portfolio Segment | Credit Card | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | $33 | $33 | ||
[1] | Excludes $3 and $6 of nonaccrual loans held for sale at March 31, 2014 and December 31, 2013, respectively. | |||
[2] | Includes $9 and $10 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at March 31, 2014 and December 31, 2013, respectively, and $2 of restructured nonaccrual government insured commercial loans at both March 31, 2014 and December 31, 2013, respectively. | |||
[3] | Excludes $85 and $77 of OREO related to government insured loans at March 31, 2014 and December 31, 2013, respectively. | |||
[4] | Excludes $21 of restructured nonaccrual loans at both March 31, 2014 and December 31, 2013 associated with a consolidated VIE 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 $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | ||||
In Millions, unless otherwise specified | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Government Insured | Government Insured | Nonperforming Financing Receivable | Nonperforming Financing Receivable | Nonperforming Financing Receivable | Nonperforming Financing Receivable | Nonperforming Financing Receivable | Nonperforming Financing Receivable | ||||||
Commercial Mortgage Loans, Owner Occupied | Commercial Mortgage Loans, Owner Occupied | Commercial Mortgage Loans, Owner Occupied | Commercial Mortgage Loans, Owner Occupied | Government Insured | Government Insured | Government Insured | Government Insured | |||||||||||||
Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | |||||||||||||||
Small Business Administration | Small Business Administration | |||||||||||||||||||
Financing Receivable, Modifications | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Loans held for sale | $780 | [1] | $944 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | $3 | $6 | ' | ' | ' | ' | ||
OREO and other repossessed property | 213 | [2] | 229 | [2] | ' | ' | ' | ' | ' | ' | 85 | 77 | ' | ' | ' | ' | ' | ' | ||
Portfolio loans and leases | 89,602 | [3] | 88,522 | [4] | 53,344 | [5] | 52,046 | [6] | 4,398 | 4,507 | ' | ' | ' | ' | 269 | 293 | ' | ' | 9 | 10 |
Restructured nonaccrual loans and leases | ' | ' | ' | ' | ' | ' | $21 | $21 | ' | ' | ' | ' | $2 | $2 | ' | ' | ||||
[1] | Includes $649 and $890 of residential mortgage loans held for sale measured at fair value at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||
[2] | Excludes $85 and $77 of OREO related to government insured loans at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||
[3] | Excludes $103 of loans measured at fair value. | |||||||||||||||||||
[4] | Excludes $92 of loans measured at fair value. | |||||||||||||||||||
[5] | Excludes $103 of residential mortgage loans measured at fair value, and includes $878 of leveraged leases, net of unearned income. | |||||||||||||||||||
[6] | Excludes $92 of residential mortgage loans measured at fair value, and includes $881 of leveraged leases, net of unearned income. Includes five restructured loans at December 31, 2013 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $28 and an allowance of $11. |
Troubled_Debt_Restructuring_Ad
Troubled Debt Restructuring Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Troubled Debt Restructuring | ' | ' |
Line of credit commitments for modified troubled debt restructurings | $49 | $46 |
Letter of credit commitments for modified troubled debt restructurings | $37 | $40 |
Summary_of_Loans_Modified_in_a
Summary of Loans Modified in a TDR (Detail) (Quarterly, USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Financing Receivable, Modifications | ' | ' | ||
Number of Loans Modified in a TDR During the Period | 2,457 | [1],[2] | 3,193 | [1],[2] |
Recorded Investment in Loans Modified in a TDR During the Period | $97 | [1],[2] | $135 | [1],[2] |
Increase (Decrease) to ALLL Upon Modification | -1 | [1],[2] | 8 | [1],[2] |
Charge-offs Recognized Upon Modification | ' | 1 | [1],[2] | |
Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Number of Loans Modified in a TDR During the Period | 22 | [1],[2] | 20 | [1],[2] |
Recorded Investment in Loans Modified in a TDR During the Period | 19 | [1],[2] | 9 | [1],[2] |
Increase (Decrease) to ALLL Upon Modification | -4 | [1],[2] | 1 | [1],[2] |
Charge-offs Recognized Upon Modification | ' | 1 | [1],[2] | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Number of Loans Modified in a TDR During the Period | 16 | [1],[2] | 10 | [1],[2],[3] |
Recorded Investment in Loans Modified in a TDR During the Period | 12 | [1],[2] | 4 | [1],[2],[3] |
Increase (Decrease) to ALLL Upon Modification | -1 | [1],[2] | -1 | [1],[2],[3] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Number of Loans Modified in a TDR During the Period | 7 | [1],[2] | 15 | [1],[2] |
Recorded Investment in Loans Modified in a TDR During the Period | 6 | [1],[2] | 17 | [1],[2] |
Increase (Decrease) to ALLL Upon Modification | -1 | [1],[2] | -1 | [1],[2] |
Commercial Portfolio Segment | Commercial Construction | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Number of Loans Modified in a TDR During the Period | ' | 1 | [1],[2] | |
Recorded Investment in Loans Modified in a TDR During the Period | ' | 6 | [1],[2] | |
Increase (Decrease) to ALLL Upon Modification | ' | -1 | [1],[2] | |
Residential Mortgage Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Number of Loans Modified in a TDR During the Period | 310 | [1],[2] | 394 | [1],[2] |
Recorded Investment in Loans Modified in a TDR During the Period | 45 | [1],[2] | 61 | [1],[2] |
Increase (Decrease) to ALLL Upon Modification | 3 | [1],[2] | 8 | [1],[2] |
Consumer Portfolio Segment | Home Equity | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Number of Loans Modified in a TDR During the Period | 35 | [1],[2] | 326 | [1],[2] |
Recorded Investment in Loans Modified in a TDR During the Period | 1 | [1],[2] | 17 | [1],[2] |
Consumer Portfolio Segment | Automobile Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Number of Loans Modified in a TDR During the Period | 116 | [1],[2] | 115 | [1],[2] |
Recorded Investment in Loans Modified in a TDR During the Period | 2 | [1],[2] | 7 | [1],[2] |
Consumer Portfolio Segment | Credit Card | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Number of Loans Modified in a TDR During the Period | 1,951 | [1],[2] | 2,312 | [1],[2] |
Recorded Investment in Loans Modified in a TDR During the Period | 12 | [1],[2] | 14 | [1],[2] |
Increase (Decrease) to ALLL Upon Modification | $2 | [1],[2] | $2 | [1],[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 three months ended March 31, 2013 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party. The TDR had 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) (Commercial Portfolio Segment, Commercial Mortgage Loans, Owner Occupied, Consolidated Variable Interest Entity, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2013 |
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 |
Summary_of_Subsequent_Defaults
Summary of Subsequent Defaults (Detail) (Quarter to date, USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Financing Receivable, Modifications | ' | ' | ||
Number of contracts | 568 | [1] | 574 | [1] |
Recorded Investment in Loans Modified in a TDR During the Period | $26 | [1] | $12 | [1] |
Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Number of contracts | 6 | [1] | ' | |
Recorded Investment in Loans Modified in a TDR During the Period | 14 | [1] | ' | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Number of contracts | 2 | [1] | ' | |
Recorded Investment in Loans Modified in a TDR During the Period | 3 | [1] | ' | |
Consumer Portfolio Segment | Home Equity | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Number of contracts | 10 | [1] | 14 | [1] |
Recorded Investment in Loans Modified in a TDR During the Period | ' | 1 | [1] | |
Consumer Portfolio Segment | Automobile Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Number of contracts | 2 | [1] | 3 | [1] |
Consumer Portfolio Segment | Credit Card | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Number of contracts | 507 | [1] | 515 | [1] |
Recorded Investment in Loans Modified in a TDR During the Period | 3 | [1] | 3 | [1] |
Residential Mortgage Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Number of contracts | 41 | [1] | 42 | [1] |
Recorded Investment in Loans Modified in a TDR During the Period | $6 | [1] | $8 | [1] |
[1] | Â Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Intangible Assets by Major Class | ' | ' |
Estimated weighted-average life (in years) | '4 years 3 months 18 days | ' |
Amortization of Intangible Assets | $1 | $2 |
Intangible_Assets_Detail
Intangible Assets (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | $167 | $199 |
Accumulated Amortization | -149 | -180 |
Net Carrying Amount | 18 | 19 |
Core Deposits | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 122 | 154 |
Accumulated Amortization | -109 | -141 |
Net Carrying Amount | 13 | 13 |
Other Intangible Assets | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 45 | 45 |
Accumulated Amortization | -40 | -39 |
Net Carrying Amount | $5 | $6 |
Estimated_Amortization_Expense
Estimated Amortization Expense Other Intangible Assets (Detail) (Other Intangible Assets, USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Other Intangible Assets | ' |
Expected Amortization Expense | ' |
2014 | $3 |
2015 | 2 |
2016 | 2 |
2017 | 2 |
2018 | $2 |
Classifications_of_Consolidate
Classifications of Consolidated VIE Assets, Liabilities and Noncontrolling Interest Included in the Bancorp's Consolidated Balance Sheets (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||||
Assets | ' | ' | ' | ' | ||
Cash and due from banks | $3,153 | [1] | $3,178 | [1] | $2,186 | $2,441 |
Other Short-term Investments | 2,202 | [1] | 5,116 | [1] | ' | ' |
Commercial mortgage loans | 7,958 | [1] | 8,066 | [1] | ' | ' |
Automobile loans | 12,088 | [1] | 11,984 | [1] | ' | ' |
Allowance for loan and lease losses | -1,483 | [1] | -1,582 | [1] | -1,783 | -1,854 |
Other assets | 7,355 | [1] | 8,358 | [1] | ' | ' |
Total Assets | 129,654 | 130,443 | 121,382 | ' | ||
Liabilities | ' | ' | ' | ' | ||
Other liabilities | 2,029 | [1] | 3,487 | [1] | ' | ' |
Long-term debt | 11,233 | [1] | 9,633 | [1] | ' | ' |
Total Liabilities | 114,790 | 115,817 | ' | ' | ||
Noncontrolling interests | 38 | 37 | ' | ' | ||
Variable Interest Entity, Primary Beneficiary | ' | ' | ' | ' | ||
Assets | ' | ' | ' | ' | ||
Cash and due from banks | 102 | 49 | ' | ' | ||
Other Short-term Investments | 7 | ' | ' | ' | ||
Commercial mortgage loans | 48 | 48 | ' | ' | ||
Automobile loans | 2,031 | [2] | 1,010 | [2] | ' | ' |
Allowance for loan and lease losses | -18 | -15 | ' | ' | ||
Other assets | 23 | 13 | ' | ' | ||
Total Assets | 2,193 | 1,105 | ' | ' | ||
Liabilities | ' | ' | ' | ' | ||
Other liabilities | 3 | 1 | ' | ' | ||
Long-term debt | 2,119 | 1,048 | ' | ' | ||
Total Liabilities | 2,122 | 1,049 | ' | ' | ||
Noncontrolling interests | 38 | 37 | ' | ' | ||
Variable Interest Entity, Primary Beneficiary | Automobile Loan | ' | ' | ' | ' | ||
Assets | ' | ' | ' | ' | ||
Cash and due from banks | 102 | 49 | ' | ' | ||
Other Short-term Investments | 7 | ' | ' | ' | ||
Automobile loans | 2,031 | [2] | 1,010 | [2] | ' | ' |
Allowance for loan and lease losses | -5 | -2 | ' | ' | ||
Other assets | 20 | 11 | ' | ' | ||
Total Assets | 2,155 | 1,068 | ' | ' | ||
Liabilities | ' | ' | ' | ' | ||
Other liabilities | 3 | 1 | ' | ' | ||
Long-term debt | 2,119 | 1,048 | ' | ' | ||
Total Liabilities | 2,122 | 1,049 | ' | ' | ||
Variable Interest Entity, Primary Beneficiary | Fifth Third Community Development Corporation Investments | ' | ' | ' | ' | ||
Assets | ' | ' | ' | ' | ||
Commercial mortgage loans | 48 | 48 | ' | ' | ||
Allowance for loan and lease losses | -13 | -13 | ' | ' | ||
Other assets | 3 | 2 | ' | ' | ||
Total Assets | 38 | 37 | ' | ' | ||
Liabilities | ' | ' | ' | ' | ||
Noncontrolling interests | $38 | $37 | ' | ' | ||
[1] | Includes $102 and $49 of cash and due from banks, $7 and $0 of other short-term investments, $48 and $48 of commercial mortgage loans, $2,031 and $1,010 of automobile loans, $(18) and $(15) of ALLL, $23 and $13 of other assets, $3 and $1 of other liabilities, and $2,119 and $1,048 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2014 and December 31, 2013, respectively. See Note 8. | |||||
[2] | Net of $98 and $52 of unamortized fees and discounts at March 31, 2014 and December 31, 2013, respectively. |
Classifications_of_Consolidate1
Classifications of Consolidated VIE Assets, Liabilities and Noncontrolling Interest Included in the Bancorp's Consolidated Balance Sheets (Parenthetical) (Detail) (Variable Interest Entity, Primary Beneficiary, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Variable Interest Entity, Primary Beneficiary | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' |
Unamortized Fees Discounts | $98 | $52 |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||
In Millions, unless otherwise specified | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Variable Interest Entity, Primary Beneficiary | 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 | ||
Automobile Loan | 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 | Restructured Loans | ||
Variable Interest Entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carry Value Of Loans Leases Or Lines Of Credit Securitized | $509 | $2,500 | $2,500 | ' | ' | ' | ' | $509 | ' | ' | ' | ' | ' | ' |
Maximum Exposure | ' | ' | ' | 21 | 21 | ' | ' | ' | 1,418 | 1,436 | 304 | ' | 294 | 1 |
Unfunded commitment amounts | ' | ' | ' | ' | ' | 964 | 962 | ' | ' | ' | 95 | ' | 90 | ' |
Capital Contribution To Private Equity Funds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7 | $3 | ' | ' |
Assets_and_Liabilities_Related
Assets and Liabilities Related to Non-consolidated VIEs and Maximum Exposure to Losses (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | |||
Variable Interest Entity | ' | ' | ' |
Total Assets | $129,654 | $130,443 | $121,382 |
Total Liabilities | 114,790 | 115,817 | ' |
Variable Interest Entity, Not Primary Beneficiary | Fifth Third Community Development Corporation Investments | ' | ' | ' |
Variable Interest Entity | ' | ' | ' |
Total Assets | 1,418 | 1,436 | ' |
Total Liabilities | 369 | 407 | ' |
Maximum Exposure | 1,418 | 1,436 | ' |
Variable Interest Entity, Not Primary Beneficiary | Private Equity Funds | ' | ' | ' |
Variable Interest Entity | ' | ' | ' |
Total Assets | 209 | 204 | ' |
Maximum Exposure | 304 | 294 | ' |
Variable Interest Entity, Not Primary Beneficiary | Loans Receivable | ' | ' | ' |
Variable Interest Entity | ' | ' | ' |
Total Assets | 1,843 | 1,830 | ' |
Maximum Exposure | 2,807 | 2,792 | ' |
Variable Interest Entity, Not Primary Beneficiary | Automobile Loan Securitizations | ' | ' | ' |
Variable Interest Entity | ' | ' | ' |
Total Assets | 3 | 4 | ' |
Maximum Exposure | 3 | 4 | ' |
Variable Interest Entity, Not Primary Beneficiary | Restructured Loans | ' | ' | ' |
Variable Interest Entity | ' | ' | ' |
Total Assets | ' | 1 | ' |
Maximum Exposure | ' | $1 | ' |
Activity_Related_to_Mortgage_B
Activity Related to Mortgage Banking Net Revenue (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale | ' | ' |
Residential mortgage loan sales | $1,672 | $6,888 |
Origination fees and gains on loan sales | 41 | 169 |
Servicing fees | $62 | $61 |
Changes_in_the_Servicing_Asset
Changes in the Servicing Assets (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Servicing Assets at Fair Value | ' | ' |
Carrying amount as of the beginning of the period | $1,440 | $1,358 |
Servicing Obligations From Transfers | 23 | 73 |
Servicing Asset At Amortized Value Amortization | -23 | -53 |
Carrying amount before valuation allowance | 1,440 | 1,384 |
Valuation allowance for servicing assets: | ' | ' |
Beginning balance | -469 | -661 |
Servicing impairment | 4 | 49 |
Ending balance | -465 | -612 |
Carrying amount as of the end of the period | 975 | 772 |
Automobile Loan Securitizations | ' | ' |
Servicing Assets at Fair Value | ' | ' |
Servicing Obligations From Transfers | ' | $6 |
Estimated_Amortization_Expense1
Estimated Amortization Expense Mortgage Servicing Rights (Detail) (Mortgage Servicing Rights, USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Mortgage Servicing Rights | ' |
Expected Amortization Expense [Line Items] | ' |
2014 | $71 |
2015 | 89 |
2016 | 82 |
2017 | 77 |
2018 | $72 |
Fair_Value_of_the_Servicing_As
Fair Value of the Servicing Assets (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Servicing Assets at Fair Value | ' | ' | ' | ' |
Fair value at beginning of period | ' | ' | $6 | ' |
Fair value at end of period | ' | ' | 6 | ' |
Fixed Rate Residential Mortgage | ' | ' | ' | ' |
Servicing Assets at Fair Value | ' | ' | ' | ' |
Fair value at beginning of period | 935 | 929 | 731 | 664 |
Fair value at end of period | 935 | 929 | 731 | 664 |
Adjustable Rate Residential Mortgage | ' | ' | ' | ' |
Servicing Assets at Fair Value | ' | ' | ' | ' |
Fair value at beginning of period | 37 | 38 | 35 | 33 |
Fair value at end of period | 37 | 38 | 35 | 33 |
Fixed Rate Automobile Loans | ' | ' | ' | ' |
Servicing Assets at Fair Value | ' | ' | ' | ' |
Fair value at beginning of period | 3 | 4 | 6 | ' |
Fair value at end of period | $3 | $4 | $6 | ' |
Activity_Related_to_the_MSR_Po
Activity Related to the MSR Portfolio (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Servicing Assets at Fair Value | ' | ' |
Securities gains, net - non-qualifying hedges on MSRs | ' | $2 |
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (Mortgage banking net revenue) | 24 | -6 |
Recovery of (provision for) MSR impairment (Mortgage banking net revenue) | $4 | $49 |
Servicing_Assets_and_Residual_
Servicing Assets and Residual Interests Economic Assumptions (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Fixed Rate Residential Mortgage | ' | ' |
Servicing Assets at Amortized Value | ' | ' |
Weighted- Average Life (in years) | '6 years 8 months 12 days | '7 years 3 months 18 days |
Prepayment Speed (annual) | 10.80% | 8.80% |
Discount Rate (annual) | 10.00% | 10.00% |
Adjustable Rate Residential Mortgage | ' | ' |
Servicing Assets at Amortized Value | ' | ' |
Weighted- Average Life (in years) | '3 years 8 months 12 days | '3 years 6 months |
Prepayment Speed (annual) | 22.50% | 23.40% |
Discount Rate (annual) | 11.70% | 11.40% |
Sales_of_Receivables_and_Servi2
Sales of Receivables and Servicing Rights - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale | ' | ' | ' |
Sevicing of residential mortgage loans for other investors | ' | $68,900,000,000 | $69,200,000,000 |
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 $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | |
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 | $935 | [1] |
Weighted- Average Life (in years) | '6 years 7 months 6 days | [1] |
Prepayment Speed (annual) | 10.60% | [1] |
Impact of Adverse Change on Fair Value 10% | -37 | [1] |
Impact of Adverse Change on Fair Value 20% | -72 | [1] |
Impact of Adverse Change on Fair Value 50% | -163 | [1] |
Discount Rate (annual) | 9.90% | [1] |
Impact of Adverse Change on Fair Value 10% | -36 | [1] |
Impact of Adverse Change on Fair Value 20% | -69 | [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 | 37 | [1] |
Weighted- Average Life (in years) | '3 years 1 month 6 days | [1] |
Prepayment Speed (annual) | 26.10% | [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) | 11.80% | [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 $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2009 |
Derivative | ' | ' | ' |
Valuation adjustments related to the credit risk associated with counterparties of customer accomodation derivative contracts | $10 | $12 | ' |
Maximum length of time hedged in cash flow hedge | '5 years 9 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 | 1,170 | 1,203 | ' |
Credit Risk Derivatives Average Remaining Life | '2 years 10 months 24 days | ' | ' |
Fair value of risk participation agreements | 3 | 3 | ' |
Interest Rate Contract | Cash Flow Hedging | ' | ' | ' |
Derivative | ' | ' | ' |
Deferred gains, net of tax, on cash flow hedges were recorded in accumulated other comprehensive income | 16 | 13 | ' |
Net deferred gains, net of tax, recorded in accumulated other comprehensive income are expected to be reclassified into earnings during the next twelve months | 26 | ' | ' |
Total collateral (up to and exceeding 100% of the net position) | ' | ' | ' |
Derivative | ' | ' | ' |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 528 | 514 | ' |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $543 | $559 | ' |
Notional_Amounts_and_Fair_Valu
Notional Amounts and Fair Values for All Derivative Instruments Included in the Consolidated Balance Sheets (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value | ' | ' |
Fair value - Derivative Assets | $1,454 | $1,553 |
Fair value - Derivative Liabilities | 623 | 754 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair value - Derivative Assets | 361 | 332 |
Fair value - Derivative Liabilities | 23 | 34 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Fair Value Hedging | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair value - Derivative Assets | 325 | 292 |
Fair value - Derivative Liabilities | 11 | 13 |
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 | 3,205 |
Fair value - Derivative Assets | 325 | 292 |
Fair value - Derivative Liabilities | 11 | 13 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair value - Derivative Assets | 36 | 40 |
Fair value - Derivative Liabilities | 12 | 21 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | Interest Rate Swap | Commercial and Industrial Loans | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | 2,200 | 2,200 |
Fair value - Derivative Assets | 36 | 40 |
Fair value - Derivative Liabilities | 12 | 21 |
Nondesignated | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair value - Derivative Assets | 1,093 | 1,221 |
Fair value - Derivative Liabilities | 600 | 720 |
Nondesignated | Risk Management and Other Business Purposes | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair value - Derivative Assets | 501 | 538 |
Fair value - Derivative Liabilities | 53 | 63 |
Nondesignated | Risk Management and Other Business Purposes | Interest Rate Contract | Servicing Rights | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | 5,277 | 4,092 |
Fair value - Derivative Assets | 151 | 141 |
Fair value - Derivative Liabilities | 9 | 14 |
Nondesignated | Risk Management and Other Business Purposes | Forward Contracts | Assets Held-for-sale | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | 1,844 | 1,448 |
Fair value - Derivative Assets | 2 | 13 |
Fair value - Derivative Liabilities | 1 | 1 |
Nondesignated | Risk Management and Other Business Purposes | Warrant | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | 616 | 664 |
Fair value - Derivative Assets | 348 | 384 |
Nondesignated | Risk Management and Other Business Purposes | Swap | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | 918 | 947 |
Fair value - Derivative Liabilities | 43 | 48 |
Nondesignated | Customer Accommodation | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair value - Derivative Assets | 592 | 683 |
Fair value - Derivative Liabilities | 547 | 657 |
Nondesignated | Customer Accommodation | Interest Rate Contract | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | 27,418 | 28,112 |
Fair value - Derivative Assets | 306 | 329 |
Fair value - Derivative Liabilities | 315 | 339 |
Nondesignated | Customer Accommodation | Foreign Exchange Contract | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | 20,020 | 19,688 |
Fair value - Derivative Assets | 204 | 276 |
Fair value - Derivative Liabilities | 164 | 252 |
Nondesignated | Customer Accommodation | Interest Rate Lock Commitments | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | 994 | 924 |
Fair value - Derivative Assets | 16 | 12 |
Fair value - Derivative Liabilities | ' | 1 |
Nondesignated | Customer Accommodation | Commodity Contract | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | 3,179 | 3,300 |
Fair value - Derivative Assets | 66 | 66 |
Fair value - Derivative Liabilities | $68 | $65 |
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, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Fair Value Hedging | Interest Rate Contract | ' | ' |
Derivatives, Fair Value | ' | ' |
Change in fair value of interest rate swaps hedging long-term debt | $35 | ($67) |
Change in fair value of hedged long-term debt | ($37) | $66 |
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 | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) | ' | ' |
Amount of gain recognized in OCI | $15 | $1 |
Interest Income (Expense) Net | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Amount of gain reclassified from OCI into net interest income | $10 | $21 |
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 | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest Rate Contract | Forward Contracts | Mortgage Banking Revenue | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Net gains (losses) recorded in earnings | ($12) | ($3) |
Interest Rate Contract | Servicing Rights | Mortgage Banking Revenue | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Net gains (losses) recorded in earnings | 24 | -6 |
Foreign Exchange Contract | Forward Contracts | Other Noninterest Income | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Net gains (losses) recorded in earnings | 4 | 2 |
Equity Contract | Warrant | Other Noninterest Income | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Net gains (losses) recorded in earnings | -36 | 34 |
Equity Contract | Swap | Other Noninterest Income | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Net gains (losses) recorded in earnings | $1 | ($7) |
Risk_Ratings_of_the_Notional_A
Risk Ratings of the Notional Amount of Risk Participation Agreements (Detail) (Interest Rate Contract, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Notional amount of the risk participation agreements | $1,170 | $1,203 |
Lender Concentration Risk | Pass | ' | ' |
Notional amount of the risk participation agreements | 1,118 | 1,153 |
Lender Concentration Risk | Risk Level, Special Mention | ' | ' |
Notional amount of the risk participation agreements | 2 | 38 |
Lender Concentration Risk | Risk Level, Substandard | ' | ' |
Notional amount of the risk participation agreements | $50 | $12 |
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 | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest Rate Contract | Customer Contracts | Corporate Banking Revenue | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Net gains (losses) recorded in earnings | $4 | $5 |
Interest Rate Contract | Customer Contracts | Other Noninterest Expense | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Net gains (losses) recorded in earnings | ' | -1 |
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 | 1 | 1 |
Interest Rate Contract | Interest Rate Lock Commitments | Mortgage Banking Revenue | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Net gains (losses) recorded in earnings | 36 | 56 |
Commodity Contract | Customer Contracts | Corporate Banking Revenue | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Net gains (losses) recorded in earnings | 1 | 2 |
Foreign Exchange Contract | Customer Contracts | Corporate Banking Revenue | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Net gains (losses) recorded in earnings | 15 | 18 |
Foreign Exchange Contract | Customer Contracts | Other Noninterest Expense | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Net gains (losses) recorded in earnings | $2 | ' |
Offsetting_Derivative_Financia2
Offsetting Derivative Financial Instruments (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Assets | ' | ' | ||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ' | ' | ||
Gross amount recognized in the balance sheet | $1,090 | [1] | $1,157 | [1] |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | -236 | -321 | ||
Derivative, Collateral, Obligation to Return Cash | -443 | [2] | -390 | [2] |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 411 | 446 | ||
Liability | ' | ' | ||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ' | ' | ||
Gross amount recognized in the balance sheet | 623 | [1] | 753 | [1] |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | -236 | -321 | ||
Derivative, Collateral, Right to Reclaim Cash | -291 | [2] | -302 | [2] |
Derivative Fair Value Amount Offset Against Collateral Net | 96 | 130 | ||
Derivative | Assets | ' | ' | ||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ' | ' | ||
Gross amount recognized in the balance sheet | 1,090 | [1] | 1,157 | [1] |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | -236 | -321 | ||
Derivative, Collateral, Obligation to Return Cash | -443 | [2] | -390 | [2] |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 411 | 446 | ||
Derivative | Liability | ' | ' | ||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ' | ' | ||
Gross amount recognized in the balance sheet | 623 | [1] | 753 | [1] |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | -236 | -321 | ||
Derivative, Collateral, Right to Reclaim Cash | -291 | [2] | -302 | [2] |
Derivative Fair Value Amount Offset Against Collateral Net | $96 | $130 | ||
[1] | Amount does not include the stock warrant associated with Vantiv Holding, LLC and IRLCs because these instruments are not subject to master netting or similar arrangements. | |||
[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) (Parent company, USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Senior Debt Obligations | Fixed Rate 2.30 Percent Notes Due 2019 | ' |
Debt Instrument | ' |
Issue of senior notes to third party investors | $500,000,000 |
Maturity date(s) Start | 28-Feb-14 |
Maturity date(s) End | 1-Mar-19 |
Variable Interest Entity, Primary Beneficiary | Automobile Loan | ' |
Debt Instrument | ' |
Other Long Term Debt | $1,300,000,000 |
Capital_Actions_Detail
Capital Actions (Detail) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Capital Actions | ' | ' |
Amount | ($99) | ($125) |
November 13, 2013 ASR | March 2013 Repurchase Program | ' | ' |
Capital Actions | ' | ' |
Repurchase date | 18-Nov-13 | ' |
Amount | 200 | ' |
Shares repurchased | 8,538,423 | ' |
Shares received from forward contract settlement | 1,132,495 | ' |
Total shares repurchased | 9,670,918 | ' |
Settlement date | 5-Mar-14 | ' |
December 10, 2013 ASR | March 2013 Repurchase Program | ' | ' |
Capital Actions | ' | ' |
Repurchase date | 13-Dec-13 | ' |
Amount | 456 | ' |
Shares repurchased | 19,084,195 | ' |
Shares received from forward contract settlement | 2,294,932 | ' |
Total shares repurchased | 21,379,127 | ' |
Settlement date | 31-Mar-14 | ' |
January 28, 2014 ASR | March 2013 Repurchase Program | ' | ' |
Capital Actions | ' | ' |
Repurchase date | 31-Jan-14 | ' |
Amount | $99 | ' |
Shares repurchased | 3,950,705 | ' |
Shares received from forward contract settlement | 602,109 | ' |
Total shares repurchased | 4,552,814 | ' |
Settlement date | 31-Mar-14 | ' |
Capital_Actions_Additional_Inf
Capital Actions - Additional Information (Detail) (March 2014 Repurchase Program) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
March 2014 Repurchase Program | ' |
Capital Actions | ' |
Repurchase Shares Authorized | 100 |
Summary_of_Significant_Commitm
Summary of Significant Commitments (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Long-term Purchase Commitment | ' | ' |
Commitments | $4,194 | ' |
Commitments to Extend Credit | ' | ' |
Long-term Purchase Commitment | ' | ' |
Commitments | 63,021 | 62,050 |
Financial Standby Letter of Credit | ' | ' |
Long-term Purchase Commitment | ' | ' |
Commitments | 1,844 | 1,448 |
Forward Contracts | ' | ' |
Long-term Purchase Commitment | ' | ' |
Commitments | 4,194 | 4,129 |
Noncancelable Lease Obligations | ' | ' |
Long-term Purchase Commitment | ' | ' |
Commitments | 729 | 746 |
Private Equity Funds | ' | ' |
Long-term Purchase Commitment | ' | ' |
Commitments | 95 | 90 |
Purchase Commitment | ' | ' |
Long-term Purchase Commitment | ' | ' |
Commitments | 80 | 84 |
Capital Additions | ' | ' |
Long-term Purchase Commitment | ' | ' |
Commitments | 29 | 33 |
Capital Lease Obligations | ' | ' |
Long-term Purchase Commitment | ' | ' |
Commitments | $17 | $19 |
Risk_Rating_Under_the_Risk_Rat
Risk Rating Under the Risk Rating System (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Credit Risk Associated With Commitments To Extend Credit | ' | ' |
Commitments To Extend Credit | $63,021 | $62,050 |
Pass | ' | ' |
Credit Risk Associated With Commitments To Extend Credit | ' | ' |
Commitments To Extend Credit | 62,301 | 61,364 |
Risk Level, Special Mention | ' | ' |
Credit Risk Associated With Commitments To Extend Credit | ' | ' |
Commitments To Extend Credit | 382 | 369 |
Risk Level, Substandard | ' | ' |
Credit Risk Associated With Commitments To Extend Credit | ' | ' |
Commitments To Extend Credit | 338 | 316 |
Risk Level, Doubtful | ' | ' |
Credit Risk Associated With Commitments To Extend Credit | ' | ' |
Commitments To Extend Credit | ' | $1 |
Commitments_Contingent_Liabili2
Commitments, Contingent Liabilities and Guarantees - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
Share data in Millions, unless otherwise specified | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2009 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2010 | Jun. 30, 2010 | Dec. 31, 2009 | ||
Residential Mortgage | Residential Mortgage | Residential Mortgage | Residential Mortgage | Secured Debt | 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 | Visa | Visa | Visa | 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 | $2,000,000 | ' | ' | ' | ' | $153,000,000 | $162,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Percentage of the total standby letters of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | 98.00% | 97.00% | 48.00% | 48.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Fifth Third Securities, Inc. (FTS) acted as the remarketing agent to issuers of VRDNs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000,000 | 1,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Letters of credit | 4,129,000,000 | 4,194,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 277,000,000 | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total Variable Rate Demand Notes | 2,100,000,000 | 2,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Letters of credit issued by the Bancorp related to variable rate demand notes | 1,500,000,000 | 1,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total outstanding reinsurance coverage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,000,000 | 37,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Approximate reserve related to exposures within the reinsurance portfolio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Margin account balance held by the brokerage clearing agent | 12,000,000 | 16,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Fully and unconditionally guaranteed certain long-term borrowing obligations issued by wholly-owned issuing trust entities | ' | ' | ' | ' | ' | ' | ' | ' | 62,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Repurchase Claim Settlement | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Amount in excess of amounts reserved | ' | 117,000,000 | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Reinsurance coverage ranges of the total PMI coverage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | ' | ' | ' | ' | 38,000,000 | 112,000,000 | 44,000,000 | 110,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,000,000 | 44,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding balances on residential mortgage loans sold with credit recourse | ' | ' | ' | ' | 563,000,000 | ' | 579,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Delinquency Rates | ' | ' | ' | ' | 3.60% | ' | 4.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Credit loss reserve | 1,582,000,000 | [1] | 1,483,000,000 | [1] | 1,783,000,000 | 1,854,000,000 | 15,000,000 | ' | 16,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recorded share of litigation formally settled by Visa and for probable future litigation settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43,000,000 | 48,000,000 | ' | ' | ' | ' | ' | ' | ' | ||
Visa IPO, shares of Visa's Class B common stock received | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.1 | ||
Received Class B common shares, carryover basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ||
Visa deposited into the litigation escrow account | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000,000 | 150,000,000 | 1,565,000,000 | 400,000,000 | 800,000,000 | 500,000,000 | ' | ||
Repurchase Demand Request | ' | ' | ' | ' | ' | 67,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding Repurchase Demand Inventory | ' | ' | ' | ' | $21,000,000 | ' | $46,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | Includes $102 and $49 of cash and due from banks, $7 and $0 of other short-term investments, $48 and $48 of commercial mortgage loans, $2,031 and $1,010 of automobile loans, $(18) and $(15) of ALLL, $23 and $13 of other assets, $3 and $1 of other liabilities, and $2,119 and $1,048 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2014 and December 31, 2013, respectively. See Note 8. |
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 $) | Mar. 31, 2014 | |
In Millions, unless otherwise specified | ||
Line of Credit Facility | ' | |
Commitments | $4,194 | |
Less Than One Year From The Balance Sheet Date | Financial Standby Letter of Credit | ' | |
Line of Credit Facility | ' | |
Commitments | 1,849 | [1] |
More than One and within Five Years from Balance Sheet Date | Financial Standby Letter of Credit | ' | |
Line of Credit Facility | ' | |
Commitments | 2,302 | [1] |
More than five years from balance sheet date | Financial Standby Letter of Credit | ' | |
Line of Credit Facility | ' | |
Commitments | $43 | |
[1] | Includes $69 and $3 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 $) | Mar. 31, 2014 | |
In Millions, unless otherwise specified | ||
Line of Credit Facility | ' | |
Commitments | $4,194 | |
Less Than One Year From The Balance Sheet Date | Commercial | ' | |
Line of Credit Facility | ' | |
Commitments | 69 | |
Less Than One Year From The Balance Sheet Date | Financial Standby Letter of Credit | ' | |
Line of Credit Facility | ' | |
Commitments | 1,849 | [1] |
More than One and within Five Years from Balance Sheet Date | Commercial | ' | |
Line of Credit Facility | ' | |
Commitments | 3 | |
More than One and within Five Years from Balance Sheet Date | Financial Standby Letter of Credit | ' | |
Line of Credit Facility | ' | |
Commitments | 2,302 | [1] |
More than five years from balance sheet date | Financial Standby Letter of Credit | ' | |
Line of Credit Facility | ' | |
Commitments | $43 | |
[1] | Includes $69 and $3 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 $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ' | ' |
Letters of credit | $4,194 | $4,129 |
Pass | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information | ' | ' |
Letters of credit | 3,755 | 3,651 |
Risk Level, Special Mention | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information | ' | ' |
Letters of credit | 109 | 99 |
Risk Level, Substandard | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information | ' | ' |
Letters of credit | 301 | 355 |
Risk Level, Doubtful | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information | ' | ' |
Letters of credit | $29 | $24 |
Activity_in_Reserve_for_Repres
Activity in Reserve for Representation and Warranty Provisions (Detail) (Residential Mortgage, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Residential Mortgage | ' | ' |
Balance, beginning of period | $44 | $110 |
Net additions to the reserve | 2 | 19 |
Losses charged against the reserve | -8 | -17 |
Balance, end of period | $38 | $112 |
Unresolved_Claims_by_Claimant_
Unresolved Claims by Claimant (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
number | number | |
GSE | ' | ' |
Loss Contingencies Dollars | ' | ' |
Balance, beginning of period | $41 | $48 |
New demands | 34 | 66 |
Loan paydowns/payoffs | -1 | -1 |
Resolved claims | -55 | -71 |
Balance, end of period | 19 | 42 |
Loss Contingencies Units | ' | ' |
Balance, beginning of period | 264,000,000 | 294,000,000 |
New demands | 230,000,000 | 458,000,000 |
Loan paydowns/payoffs | -16,000,000 | -5,000,000 |
Resolved claims | -375,000,000 | -484,000,000 |
Balance, end of period | 103,000,000 | 263,000,000 |
Private Label | ' | ' |
Loss Contingencies Dollars | ' | ' |
Balance, beginning of period | 5 | 19 |
New demands | 1 | 1 |
Loan paydowns/payoffs | -1 | -1 |
Resolved claims | -3 | -14 |
Balance, end of period | $2 | $5 |
Loss Contingencies Units | ' | ' |
Balance, beginning of period | 33,000,000 | 124,000,000 |
New demands | 10,000,000 | 76,000,000 |
Loan paydowns/payoffs | -2,000,000 | -4,000,000 |
Resolved claims | -31,000,000 | -163,000,000 |
Balance, end of period | 10,000,000 | 33,000,000 |
Visa_Funding_and_Bancorp_Cash_
Visa Funding and Bancorp Cash Payments (Detail) (USD $) | 3 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2010 | Jun. 30, 2010 |
Visa Funding | ' | ' | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' |
Visa deposited into the litigation escrow account | $150 | $1,565 | $400 | $800 | $500 |
Bancorp Cash Payment | ' | ' | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' |
Reduction of liability in cash to the swap counterparty | $6 | $75 | $19 | $35 | $20 |
Legal_and_Regulatory_Proceedin1
Legal and Regulatory Proceedings - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2008 | Dec. 31, 2012 |
Legal And Regulatory Proceedings | ' | ' | ' |
Number of alleging violations of ERISA that were dismissed | ' | 2 | ' |
Merchants requesting exclusion from class settlement | 7,900 | ' | ' |
Percentage of funds returned to defendants | 25.00% | ' | ' |
Merchants filing separate federal lawsuits | 460 | ' | ' |
Merchant filing separate state lawsuit | 1 | ' | ' |
Class Settlement Escrow | ' | ' | $46 |
Non Class Action Escrow | ' | ' | 4 |
Amount in excess of amounts reserved | $117 | ' | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Taxes | ' | ' |
Provision for income tax | $119 | $179 |
Effective tax rate | 27.30% | 30.40% |
Activity_of_the_Components_of_
Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
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 | $113 | ($36) |
Reclassification adjustment for net gains included in net income | -3 | 5 |
Net activity for net unrealized gain (loss) on cash flow hedge derivatives | ' | ' |
Unrealized holding gains on cash flow hedge derivatives arising during period | 10 | 1 |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | -7 | -14 |
Net activity for defined benefit plans, net | ' | ' |
Reclassification of amounts to net periodic benefit costs | 1 | 2 |
Total Other Comprehensive Activity | ' | ' |
Pre-tax activity total | 175 | -66 |
Total, Tax | -61 | 24 |
Other comprehensive income (loss), Net of Tax | 114 | -42 |
Total Accumulated Other Comprehensive Income | ' | ' |
Total Accumulated Other Comprehensive Income - Beginning Balance | 82 | 375 |
Other comprehensive income (loss), Net of Tax | 114 | -42 |
Total Accumulated Other Comprehensive Income - Ending Balance | 196 | 333 |
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 | 173 | -56 |
Reclassification adjustment for net losses (gains) included in net income | -5 | 7 |
Net unrealized gains on available-for-sale securities | 168 | -49 |
Tax effect for accumulated net unrealized gain (loss) on available-for-sale securities | ' | ' |
Unrealized holding losses on available-for-sale securities arising during period | -60 | 20 |
Reclassification adjustment for net losses (gains) included in net income | 2 | -2 |
Net unrealized gains on available-for-sale securities | -58 | 18 |
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 | 113 | -36 |
Reclassification adjustment for net gains included in net income | -3 | 5 |
Net unrealized gains on available-for-sale securities | 110 | -31 |
Total Other Comprehensive Activity | ' | ' |
Other comprehensive income (loss), Net of Tax | 110 | -31 |
Total Accumulated Other Comprehensive Income | ' | ' |
Total Accumulated Other Comprehensive Income - Beginning Balance | 121 | 412 |
Other comprehensive income (loss), Net of Tax | 110 | -31 |
Total Accumulated Other Comprehensive Income - Ending Balance | 231 | 381 |
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 | 15 | 1 |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | -10 | -21 |
Net unrealized gains on cash flow hedge derivatives | 5 | -20 |
Tax effect for net unrealized gain (loss) on cash flow hedge derivatives | ' | ' |
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period | -5 | ' |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 3 | 7 |
Net unrealized gains on cash flow hedge derivatives | -2 | 7 |
Net activity for net unrealized gain (loss) on cash flow hedge derivatives | ' | ' |
Unrealized holding gains on cash flow hedge derivatives arising during period | 10 | 1 |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | -7 | -14 |
Net unrealized gains on cash flow hedge derivatives | 3 | -13 |
Total Other Comprehensive Activity | ' | ' |
Other comprehensive income (loss), Net of Tax | 3 | -13 |
Total Accumulated Other Comprehensive Income | ' | ' |
Total Accumulated Other Comprehensive Income - Beginning Balance | 13 | 50 |
Other comprehensive income (loss), Net of Tax | 3 | -13 |
Total Accumulated Other Comprehensive Income - Ending Balance | 16 | 37 |
Accumulated Defined Benefit Plans Adjustment | ' | ' |
Pre-tax activity for defined benefit plans, net | ' | ' |
Reclassification of amounts to net periodic benefit costs | -2 | -3 |
Defined benefit plans, net | 2 | 3 |
Tax effect for defined benefit plans, net | ' | ' |
Reclassification of amounts to net periodic benefit costs | 1 | 1 |
Defined benefit plans, net | -1 | -1 |
Net activity for defined benefit plans, net | ' | ' |
Reclassification of amounts to net periodic benefit costs | -1 | -2 |
Defined benefit plans, net | 1 | 2 |
Total Other Comprehensive Activity | ' | ' |
Other comprehensive income (loss), Net of Tax | -1 | -2 |
Total Accumulated Other Comprehensive Income | ' | ' |
Total Accumulated Other Comprehensive Income - Beginning Balance | -52 | -87 |
Other comprehensive income (loss), Net of Tax | -1 | -2 |
Total Accumulated Other Comprehensive Income - Ending Balance | ($51) | ($85) |
Reclassifications_Out_of_Accum
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Reclassifications Out Of Accumulated Other Comprehensive Income | ' | ' | ||
Income Before Income Taxes | $438 | $591 | ||
Applicable income tax expense | 119 | 179 | ||
Net income | 318 | 422 | ||
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] | -7 | [1] |
Income Before Income Taxes | 5 | [1] | -7 | [1] |
Applicable income tax expense | -2 | [1] | 2 | [1] |
Net income | 3 | [1] | -5 | [1] |
Net Unrealized Gains On Cash Flow Hedge Activities | ' | ' | ||
Reclassifications Out Of Accumulated Other Comprehensive Income | ' | ' | ||
Income Before Income Taxes | 10 | [1] | 21 | [1] |
Applicable income tax expense | -3 | [1] | -7 | [1] |
Net income | 7 | [1] | 14 | [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 | 10 | [1] | 22 | [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 | -2 | [1],[2] | -3 | [1],[2] |
Income Before Income Taxes | -2 | [1] | -3 | [1] |
Applicable income tax expense | 1 | [1] | 1 | [1] |
Net income | -1 | [1] | -2 | [1] |
Total Reclassifications For The Period | ' | ' | ||
Reclassifications Out Of Accumulated Other Comprehensive Income | ' | ' | ||
Net income | $9 | [1] | $7 | [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 21 in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2013 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 | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings per share: | ' | ' |
Net income attributable to Bancorp | $318 | $422 |
Dividends on preferred stock | 9 | 9 |
Net income (loss) available to common shareholders | 309 | 413 |
Less: Income allocated to participating securities | 3 | 3 |
Net income allocated to common shareholders | 306 | 410 |
Earnings per diluted share: | ' | ' |
Net income available to common shareholders | 309 | 413 |
Series G convertible preferred stock | ' | 9 |
Net income available to common shareholders plus assumed conversions | 309 | 422 |
Less: Income allocated to participating securities | 3 | 3 |
Net income allocated to common shareholders plus assumed conversions | $306 | $419 |
Earnings per share: | ' | ' |
Net income allocated to common shareholders | 846,000,000 | 871,000,000 |
Effect of dilutive securities: | ' | ' |
Stock-based awards | 12,000,000 | 6,000,000 |
Series G convertible preferred stock | ' | 36,000,000 |
Net income allocated to common shareholders plus assumed converstions | 858,000,000 | 913,000,000 |
Earnings per share: | ' | ' |
Net income allocated to common shareholders | $0.36 | $0.47 |
Earnings per diluted share: | ' | ' |
Net income allocated to common shareholders plus assumed conversions | $0.36 | $0.46 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share Disclosure | ' | ' |
Incremental Common Shares Attributable to Accelerated Share Repurchase Agreements | ' | 1 |
Stock Appreciation Rights | ' | ' |
Earnings Per Share Disclosure | ' | ' |
Anti-dilutive securities | 11 | 27 |
Stock Options | ' | ' |
Earnings Per Share Disclosure | ' | ' |
Anti-dilutive securities | ' | 3 |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Assets: | ' | ' | ||
Available for sale securities | $20,749 | [1] | $18,597 | [1] |
Trading securities | 347 | 343 | ||
Residential mortgage loans held for sale | 103 | 92 | ||
Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 20,150 | 17,846 | [2] | |
Trading securities | 347 | 343 | ||
Residential mortgage loans held for sale | 649 | 890 | ||
Residential mortgage loans | 103 | [3] | 92 | [3] |
Derivative assets | 1,454 | 1,553 | ||
Total assets | 22,703 | 20,724 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 623 | 754 | ||
Short positions | 11 | 8 | ||
Total liabilities | 634 | 762 | ||
Interest Rate Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 836 | 827 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 348 | 389 | ||
Foreign Exchange Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 204 | 276 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 164 | 252 | ||
Equity Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 348 | 384 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 43 | 48 | ||
Commodity Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 66 | 66 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 68 | 65 | ||
US Treasury and Government | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 26 | 26 | ||
Trading securities | ' | 1 | ||
US Government Agencies Debt Securities | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 1,635 | 1,644 | ||
Trading securities | 5 | 4 | ||
US States and Political Subdivisions Debt Securities | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 194 | 192 | ||
Trading securities | 15 | 13 | ||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 14,185 | 12,284 | ||
Trading securities | 3 | 3 | ||
Other Debt Securities | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 3,991 | 3,582 | ||
Trading securities | 10 | 7 | ||
Other Debt And Equity Securities [Member] | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 119 | [2] | 118 | [2] |
Trading securities | 314 | 315 | ||
Fair Value, Inputs, Level 1 | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 111 | [4] | 115 | [2],[4] |
Trading securities | 314 | [4] | 316 | [4] |
Derivative assets | 12 | [4] | 31 | [4] |
Total assets | 437 | [4] | 462 | [4] |
Liabilities: | ' | ' | ||
Derivative liabilities | 18 | 10 | [4] | |
Short positions | 9 | 4 | [4] | |
Total liabilities | 27 | 14 | [4] | |
Fair Value, Inputs, Level 1 | Interest Rate Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 2 | [4] | 13 | [4] |
Liabilities: | ' | ' | ||
Derivative liabilities | 1 | 1 | [4] | |
Fair Value, Inputs, Level 1 | Commodity Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 10 | [4] | 18 | [4] |
Liabilities: | ' | ' | ||
Derivative liabilities | 17 | 9 | [4] | |
Fair Value, Inputs, Level 1 | US Treasury and Government | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 26 | [4] | 26 | [4] |
Trading securities | ' | 1 | [4] | |
Fair Value, Inputs, Level 1 | Other Debt And Equity Securities [Member] | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 85 | [2],[4] | 89 | [2],[4] |
Trading securities | 314 | [4] | 315 | [4] |
Fair Value, Inputs, Level 2 | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 20,039 | [4] | 17,731 | [2],[4] |
Trading securities | 32 | [4] | 26 | [4] |
Residential mortgage loans held for sale | 649 | [4] | 890 | [4] |
Derivative assets | 1,078 | [4] | 1,126 | [4] |
Total assets | 21,798 | [4] | 19,773 | [4] |
Liabilities: | ' | ' | ||
Derivative liabilities | 559 | 692 | [4] | |
Short positions | 2 | 4 | [4] | |
Total liabilities | 561 | 696 | [4] | |
Fair Value, Inputs, Level 2 | Interest Rate Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 818 | [4] | 802 | [4] |
Liabilities: | ' | ' | ||
Derivative liabilities | 344 | 384 | [4] | |
Fair Value, Inputs, Level 2 | Foreign Exchange Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 204 | [4] | 276 | [4] |
Liabilities: | ' | ' | ||
Derivative liabilities | 164 | 252 | [4] | |
Fair Value, Inputs, Level 2 | Commodity Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 56 | [4] | 48 | [4] |
Liabilities: | ' | ' | ||
Derivative liabilities | 51 | 56 | [4] | |
Fair Value, Inputs, Level 2 | US Government Agencies Debt Securities | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 1,635 | [4] | 1,644 | [4] |
Trading securities | 5 | [4] | 4 | [4] |
Fair Value, Inputs, Level 2 | US States and Political Subdivisions Debt Securities | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 194 | [4] | 192 | [4] |
Trading securities | 14 | [4] | 12 | [4] |
Fair Value, Inputs, Level 2 | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 14,185 | [4] | 12,284 | [4] |
Trading securities | 3 | [4] | 3 | [4] |
Fair Value, Inputs, Level 2 | Other Debt Securities | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 3,991 | [4] | 3,582 | [4] |
Trading securities | 10 | [4] | 7 | [4] |
Fair Value, Inputs, Level 2 | Other Debt And Equity Securities [Member] | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 34 | [2],[4] | 29 | [2],[4] |
Fair Value, Inputs, Level 3 | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Trading securities | 1 | 1 | ||
Residential mortgage loans | 103 | [3] | 92 | [3] |
Derivative assets | 364 | 396 | ||
Total assets | 468 | 489 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 46 | 52 | ||
Total liabilities | 46 | 52 | ||
Fair Value, Inputs, Level 3 | Interest Rate Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 16 | 12 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 3 | 4 | ||
Fair Value, Inputs, Level 3 | Equity Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 348 | 384 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 43 | 48 | ||
Fair Value, Inputs, Level 3 | US States and Political Subdivisions Debt Securities | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Trading securities | $1 | $1 | ||
[1] | Amortized cost of $20,393 and $18,409 at March 31, 2014 and December 31, 2013, respectively. | |||
[2] | Excludes FHLB and FRB restricted stock totaling $249 and $350, respectively, at March 31, 2014 and $402 and $349 at December 31, 2013, respectively. | |||
[3] | Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. | |||
[4] | During the three months ended March 31, 2014 and the year ended December 31, 2013, 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 $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Federal Home Loan Bank Stock | $249 | $402 |
Federal Reserve Bank Stock | $350 | $349 |
Fair_Values_of_Assets_and_Liab
Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs) (Detail) (Fair Value, Inputs, Level 3, USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Commercial Loans Held For Sale | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Fair value measurements nonrecurring assets | ' | 4 | ||
Commercial and Industrial Loans | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Fair value measurements nonrecurring assets | 22 | 20 | ||
Commercial Mortgage Loans | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Fair value measurements nonrecurring assets | 31 | 34 | ||
Commercial Construction Loans | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Fair value measurements nonrecurring assets | 2 | 7 | ||
Servicing Rights | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Fair value measurements nonrecurring assets | 972 | 766 | ||
OREO Property | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Fair value measurements nonrecurring assets | 95 | 120 | ||
Residential mortgage loans | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Residential mortgage loans | 103 | 81 | ||
IRLCs, net | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Derivative instruments | 16 | 50 | ||
Stock warrants associated with Vantiv Holding, LLC | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Derivative instruments | 348 | 211 | ||
Swap associated with the sale of Visa, Inc. Class B shares | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Derivative instruments | -43 | -37 | ||
Minimum | Servicing Rights | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Prepayment speed | 0.00% | 0.00% | ||
Discount rate | 9.60% | 9.40% | ||
Minimum | Residential mortgage loans | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Interest rate risk factor | -21.80% | -91.00% | ||
Credit risk factor | 0.00% | 0.00% | ||
Minimum | IRLCs, net | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Loan closing rates | 7.30% | 9.90% | ||
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 | 25.00% | [1] | 23.60% | [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 | '2014-12-31 | '2014-03-31 | ||
Maximum | Servicing Rights | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Prepayment speed | 100.00% | 100.00% | ||
Discount rate | 13.20% | 18.00% | ||
Maximum | Residential mortgage loans | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Interest rate risk factor | 20.10% | 49.00% | ||
Credit risk factor | 62.40% | 68.40% | ||
Maximum | IRLCs, net | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Loan closing rates | 95.00% | 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 3 months | '16 years 6 months | ||
Expected volatility | 32.70% | [1] | 35.00% | [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 | '2019-12-31 | '2017-03-31 | ||
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 | 3.00% | 6.00% | ||
Credit risk factor | 2.00% | 3.40% | ||
Weighted average | IRLCs, net | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Loan closing rates | 67.60% | 65.80% | ||
Weighted average | Stock warrants associated with Vantiv Holding, LLC | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Expected term (years) | '6 years | '5 years 1 month 6 days | ||
Expected volatility | 28.10% | [1] | 28.90% | [1] |
Fixed | Servicing Rights | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Prepayment speed | 10.60% | 14.00% | ||
Discount rate | 9.90% | 10.50% | ||
Adjustable | Servicing Rights | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Prepayment speed | 26.10% | 26.80% | ||
Discount rate | 11.80% | 11.70% | ||
[1] | Based on historical and implied volatilities of Vantiv, Inc. and comparable companies assuming similar expected terms. |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | |||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2009 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 |
Residential Mortgage Loans | Residential Mortgage Loans | Fair Value, Inputs, Level 3 | Interest Rate Lock Commitments | 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 | ' | ' | ' | ' | ' | ' | ' | $16 | ' | ' | ' | ' |
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 25 bp | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' | ' | ' |
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 50 bp | ' | ' | ' | ' | ' | ' | ' | 16 | ' | ' | ' | ' |
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 25 bp | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' | ' | ' |
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 50 bp | ' | ' | ' | ' | ' | ' | ' | 19 | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' |
Commercial loans transferred from the portfolio to loans held for sale | 73 | 590 | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' |
Existing loans held for sale, further adjusted | 649 | ' | 890 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net impact related to fair value adjustments | ' | ' | ' | ' | ' | ' | ' | ' | 10 | 10 | 1 | 3 |
Fair value changes included in earnings for instruments for which the fair value option was elected | 23 | 114 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The fair value of loans | ' | ' | ' | ' | 2 | 2 | ' | ' | ' | ' | ' | ' |
Nonrecurring Losses Included As Charge-Offs | ' | ' | ' | ' | ' | ' | ' | ' | $3 | $12 | ' | ' |
Incremental Unit Purchase Option | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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) (Quarter to date, USD $) | 3 Months Ended | 3 Months Ended | ||||||||||||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | ||||||||
Trading Securities | Trading Securities | Trading Securities | Trading Securities | Residential Mortgage | Residential Mortgage | Interest Rate Contract | Interest Rate Contract | Equity Contract | Equity Contract | |||||||||||
FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationCalculationRollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Beginning Balance | $437 | $278 | $1 | $1 | $1 | $1 | $92 | $76 | $8 | [1] | $57 | [1] | $336 | [1] | $144 | [1] | ||||
Included in earnings | 3 | 84 | ' | ' | ' | ' | 1 | 1 | 37 | [1] | 56 | [1] | -35 | [1] | 27 | [1] | ||||
Settlements | -30 | -66 | ' | ' | ' | ' | -2 | -4 | -32 | [1] | -65 | [1] | 4 | [1] | 3 | [1] | ||||
Transfers Into Level 3 | 12 | [2] | 8 | [2] | ' | ' | ' | ' | 12 | [2] | 8 | [2] | ' | ' | ' | ' | ||||
Ending Balance | 422 | 304 | 1 | 1 | 1 | 1 | 103 | 81 | 13 | [1] | 48 | [1] | 305 | [1] | 174 | [1] | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Relating To Assets | ($18) | [3] | $79 | [3] | ' | ' | ' | ' | $1 | [3] | $1 | [3] | $16 | [1],[3] | $51 | [1],[3] | ($35) | [1],[3] | $27 | [1],[3] |
[1] | Net interest rate derivatives include derivative assets and liabilities of $16 and $3, respectively, as of March 31, 2014 and $51 and $3, respectively, as of March 31, 2013. Net equity derivatives include derivative assets and liabilities of $348 and $43, respectively, as of March 31, 2014, and $211 and $37, respectively, as of March 31, 2013. | |||||||||||||||||||
[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 $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Millions, unless otherwise specified | ||
Interest Rates | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' |
Derivative assets | $16 | $51 |
Derivative liabilities | 3 | 3 |
Equity Contract | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' |
Derivative assets | 348 | 211 |
Derivative liabilities | $43 | $37 |
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 | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' |
Gains and losses included in earnings | $3 | $84 |
Mortgage Banking Revenue | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' |
Gains and losses included in earnings | 38 | 57 |
Other Noninterest Income | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' |
Gains and losses included in earnings | ($35) | $27 |
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 | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
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 | ($18) | $79 |
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 | 17 | 52 |
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 | ($35) | $27 |
Assets_and_Liabilities_Measure2
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | |
Fair Value Measurements | $1,122 | $951 | |
Fair Value Measured On Nonrecurring Basis Gains Losses | -61 | ' | |
Loans Held-for-Sale | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | |
Fair Value Measurements | ' | 4 | [1] |
Fair Value Measured On Nonrecurring Basis Gains Losses | ' | -4 | [1] |
Commercial and Industrial Loans | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | |
Fair Value Measurements | 22 | 20 | |
Fair Value Measured On Nonrecurring Basis Gains Losses | -41 | -6 | |
Commercial Mortgage Loans | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | |
Fair Value Measurements | 31 | 34 | |
Fair Value Measured On Nonrecurring Basis Gains Losses | -11 | -17 | |
Commercial Construction | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | |
Fair Value Measurements | 2 | 7 | |
Servicing Rights | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | |
Fair Value Measurements | 972 | 766 | |
Fair Value Measured On Nonrecurring Basis Gains Losses | 4 | 49 | |
Other Real Estate Owned | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | |
Fair Value Measurements | 95 | 120 | |
Fair Value Measured On Nonrecurring Basis Gains Losses | -13 | -22 | |
Fair Value, Inputs, Level 3 | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | |
Fair Value Measurements | 1,122 | 951 | |
Fair Value, Inputs, Level 3 | Loans Held-for-Sale | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | |
Fair Value Measurements | ' | 4 | [1] |
Fair Value, Inputs, Level 3 | Commercial and Industrial Loans | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | |
Fair Value Measurements | 22 | 20 | |
Fair Value, Inputs, Level 3 | Commercial Mortgage Loans | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | |
Fair Value Measurements | 31 | 34 | |
Fair Value, Inputs, Level 3 | Commercial Construction | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | |
Fair Value Measurements | 2 | 7 | |
Fair Value, Inputs, Level 3 | Servicing Rights | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | |
Fair Value Measurements | 972 | 766 | |
Fair Value, Inputs, Level 3 | Other Real Estate Owned | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | |
Fair Value Measurements | $95 | $120 | |
[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 $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Aggregate fair value | ' | ' |
Residential mortgage loans measured at fair value | $103 | $92 |
Residential mortgage loans | ' | ' |
Aggregate fair value | ' | ' |
Residential mortgage loans measured at fair value | 752 | 982 |
Past due loans of 90 days or more | 2 | 1 |
Nonaccrual loans | 3 | 2 |
Aggregate unpaid principal balance | ' | ' |
Residential mortgage loans measured at fair value | 729 | 962 |
Past due loans of 90 days or more | 2 | 2 |
Nonaccrual loans | 3 | 2 |
Difference | ' | ' |
Residential mortgage loans measured at fair value | 23 | 20 |
Past due loans of 90 days or more | ' | ($1) |
Carrying_Amounts_and_Estimated
Carrying Amounts and Estimated Fair Values for Certain Financial Instruments (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||||
Financial assets: | ' | ' | ' | ' | ||
Cash and due from banks | $3,153 | [1] | $3,178 | [1] | $2,186 | $2,441 |
Held-to-maturity securities | 195 | [2] | 208 | [2] | ' | ' |
Other short-term investments | 2,202 | [1] | 5,116 | [1] | ' | ' |
Loans held for sale | 780 | [3] | 944 | [3] | ' | ' |
Portfolio loans and leases, net | 88,222 | 87,032 | ' | ' | ||
Other securities, fair value | 20,749 | [4] | 18,597 | [4] | ' | ' |
Held-to-maturity securities, fair value | 195 | 208 | ' | ' | ||
Loans held for sale | 649 | 890 | ' | ' | ||
Financial liabilities: | ' | ' | ' | ' | ||
Deposits | 96,874 | 99,275 | ' | ' | ||
Federal funds purchased | 268 | 284 | ' | ' | ||
Other short-term borrowings | 2,717 | 1,380 | ' | ' | ||
Long-term debt | 11,233 | [1] | 9,633 | [1] | ' | ' |
Carrying (Reported) Amount, Fair Value Disclosure | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Cash and due from banks | 3,153 | 3,178 | ' | ' | ||
Held-to-maturity securities | 195 | 208 | ' | ' | ||
Other short-term investments | 2,202 | 5,116 | ' | ' | ||
Unallocated Allowance For Loan And Lease Losses | -105 | -110 | ' | ' | ||
Portfolio loans and leases at fair value | 88,119 | 86,940 | ' | ' | ||
Financial liabilities: | ' | ' | ' | ' | ||
Deposits | 96,874 | 99,275 | ' | ' | ||
Federal funds purchased | 268 | 284 | ' | ' | ||
Other short-term borrowings | 2,717 | 1,380 | ' | ' | ||
Long-term debt | 11,233 | 9,633 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Non Fair Value Option Held For Sale Loans [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Loans held for sale | 131 | 54 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | FHLB and FRB restricted stock holdings | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Other securities | 599 | 751 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial And Industrial Loans [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases, net | 39,872 | 38,549 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Mortgage Loans [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases, net | 7,767 | 7,854 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Construction | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases, net | 1,195 | 1,013 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Leases [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases, net | 3,529 | 3,572 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Residential Mortgage | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases, net | 12,343 | 12,399 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Home Equity | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases, net | 9,039 | 9,152 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Automobile Loan | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases, net | 12,060 | 11,961 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Credit Card Loan [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases, net | 2,087 | 2,202 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Other Consumer Loans And Leases [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases, net | 332 | 348 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Cash and due from banks, fair value | 3,153 | 3,178 | ' | ' | ||
Other securities, fair value | 599 | 751 | ' | ' | ||
Held-to-maturity securities, fair value | 195 | 208 | ' | ' | ||
Other short term investments, fair value | 2,202 | 5,116 | ' | ' | ||
Portfolio loans and leases at fair value | 88,187 | 86,562 | ' | ' | ||
Financial liabilities: | ' | ' | ' | ' | ||
Deposits, fair value | 96,893 | 99,288 | ' | ' | ||
Federal funds purchased, fair value | 268 | 284 | ' | ' | ||
Other short-term borrowings, fair value | 2,718 | 1,380 | ' | ' | ||
Long term debt, fair value | 11,863 | 10,222 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Non Fair Value Option Held For Sale Loans [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Loans held for sale | 131 | 54 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Commercial And Industrial Loans [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 41,192 | 39,804 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Commercial Mortgage Loans [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 7,365 | 7,430 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Commercial Construction | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 1,015 | 856 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Commercial Leases [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 3,270 | 3,261 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Residential Mortgage | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 11,841 | 11,541 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Home Equity | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 9,081 | 9,181 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Automobile Loan | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 11,818 | 11,748 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Credit Card Loan [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 2,263 | 2,380 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Other Consumer Loans And Leases [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 342 | 361 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 1 | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Cash and due from banks, fair value | 3,153 | 3,178 | ' | ' | ||
Other short term investments, fair value | 2,202 | 5,116 | ' | ' | ||
Financial liabilities: | ' | ' | ' | ' | ||
Federal funds purchased, fair value | 268 | 284 | ' | ' | ||
Long term debt, fair value | 11,257 | 9,645 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | ' | ' | ' | ' | ||
Financial liabilities: | ' | ' | ' | ' | ||
Deposits, fair value | 96,893 | 99,288 | ' | ' | ||
Other short-term borrowings, fair value | 2,718 | 1,380 | ' | ' | ||
Long term debt, fair value | 606 | 577 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | FHLB and FRB restricted stock holdings | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Other securities, fair value | 599 | 751 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 3 | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Held-to-maturity securities, fair value | 195 | 208 | ' | ' | ||
Portfolio loans and leases at fair value | 88,187 | 86,562 | ' | ' | ||
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 | 131 | 54 | ' | ' | ||
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 | 41,192 | 39,804 | ' | ' | ||
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 | 7,365 | 7,430 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 3 | Commercial Construction | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 1,015 | 856 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 3 | Commercial Leases [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 3,270 | 3,261 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 3 | Residential Mortgage | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 11,841 | 11,541 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 3 | Home Equity | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 9,081 | 9,181 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 3 | Automobile Loan | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 11,818 | 11,748 | ' | ' | ||
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 | 2,263 | 2,380 | ' | ' | ||
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 | $342 | $361 | ' | ' | ||
[1] | Includes $102 and $49 of cash and due from banks, $7 and $0 of other short-term investments, $48 and $48 of commercial mortgage loans, $2,031 and $1,010 of automobile loans, $(18) and $(15) of ALLL, $23 and $13 of other assets, $3 and $1 of other liabilities, and $2,119 and $1,048 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2014 and December 31, 2013, respectively. See Note 8. | |||||
[2] | Fair value of $195 and $208 at March 31, 2014 and December 31, 2013, respectively. | |||||
[3] | Includes $649 and $890 of residential mortgage loans held for sale measured at fair value at March 31, 2014 and December 31, 2013, respectively. | |||||
[4] | Amortized cost of $20,393 and $18,409 at March 31, 2014 and December 31, 2013, respectively. |
Results_of_Operations_and_Aver
Results of Operations and Average Assets by Segment (Detail) (USD $) | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Segment Reporting Information | ' | ' | ' | ||
Net interest income | $893 | $888 | ' | ||
Provision for loan and lease losses | 69 | 62 | ' | ||
Net interest income (loss) after provision for loan and lease losses | 824 | 826 | ' | ||
Noninterest income: | ' | ' | ' | ||
Service charges on deposits | 133 | 131 | ' | ||
Mortgage banking net revenue | 109 | 220 | ' | ||
Corporate banking revenue | 104 | 99 | ' | ||
Investment advisory revenue | 102 | 100 | ' | ||
Card and processing revenue | 68 | 65 | ' | ||
Other noninterest income | 41 | 109 | ' | ||
Securities gains, net | 7 | 17 | ' | ||
Securities gains, net - non-qualifying hedges on mortgage servicing rights | ' | 2 | ' | ||
Total noninterest income | 564 | 743 | ' | ||
Noninterest expense: | ' | ' | ' | ||
Salaries, wages and incentives | 359 | 399 | ' | ||
Employee benefits | 101 | 114 | ' | ||
Net occupancy expense | 80 | 79 | ' | ||
Technology and communications | 53 | 49 | ' | ||
Card and processing expense | 31 | 31 | ' | ||
Equipment expense | 30 | 28 | ' | ||
Other noninterest expense | 296 | 278 | ' | ||
Total noninterest expense | 950 | 978 | ' | ||
Income (loss) before income taxes | 438 | 591 | ' | ||
Income Tax Expense (Benefit) | 119 | 179 | ' | ||
Net income (loss) | 319 | 412 | ' | ||
Less: Net income attributable to noncontrolling interests | -1 | 10 | ' | ||
Net income attributable to Bancorp | 318 | 422 | ' | ||
Dividends on preferred stock | 9 | 9 | ' | ||
Net income available to common shareholders | 309 | 413 | ' | ||
Total goodwill | 2,416 | 2,416 | 2,416 | ||
Total Assets | 129,654 | 121,382 | 130,443 | ||
Commercial Banking | ' | ' | ' | ||
Segment Reporting Information | ' | ' | ' | ||
Net interest income | 404 | 384 | ' | ||
Provision for loan and lease losses | 97 | 44 | ' | ||
Net interest income (loss) after provision for loan and lease losses | 307 | 340 | ' | ||
Noninterest income: | ' | ' | ' | ||
Service charges on deposits | 69 | 65 | ' | ||
Corporate banking revenue | 104 | 97 | ' | ||
Investment advisory revenue | 1 | 1 | ' | ||
Card and processing revenue | 16 | 15 | ' | ||
Other noninterest income | 20 | 16 | ' | ||
Total noninterest income | 210 | 194 | ' | ||
Noninterest expense: | ' | ' | ' | ||
Salaries, wages and incentives | 64 | 70 | ' | ||
Employee benefits | 19 | 20 | ' | ||
Net occupancy expense | 6 | 6 | ' | ||
Technology and communications | 3 | 3 | ' | ||
Card and processing expense | 2 | 1 | ' | ||
Equipment expense | 2 | 1 | ' | ||
Other noninterest expense | 238 | 199 | ' | ||
Total noninterest expense | 334 | 300 | ' | ||
Income (loss) before income taxes | 183 | 234 | ' | ||
Income Tax Expense (Benefit) | 19 | 36 | ' | ||
Net income (loss) | 164 | 198 | ' | ||
Net income attributable to Bancorp | 164 | 198 | ' | ||
Net income available to common shareholders | 164 | 198 | ' | ||
Total goodwill | 613 | 613 | ' | ||
Total Assets | 55,676 | 52,117 | ' | ||
Branch Banking | ' | ' | ' | ||
Segment Reporting Information | ' | ' | ' | ||
Net interest income | 385 | 323 | ' | ||
Provision for loan and lease losses | 45 | 57 | ' | ||
Net interest income (loss) after provision for loan and lease losses | 340 | 266 | ' | ||
Noninterest income: | ' | ' | ' | ||
Service charges on deposits | 63 | 65 | ' | ||
Mortgage banking net revenue | 1 | 4 | ' | ||
Corporate banking revenue | 1 | 1 | ' | ||
Investment advisory revenue | 36 | 37 | ' | ||
Card and processing revenue | 51 | 49 | ' | ||
Other noninterest income | 20 | 22 | ' | ||
Total noninterest income | 172 | 178 | ' | ||
Noninterest expense: | ' | ' | ' | ||
Salaries, wages and incentives | 105 | 109 | ' | ||
Employee benefits | 35 | 36 | ' | ||
Net occupancy expense | 46 | 46 | ' | ||
Technology and communications | 2 | 1 | ' | ||
Card and processing expense | 29 | 29 | ' | ||
Equipment expense | 15 | 14 | ' | ||
Other noninterest expense | 158 | 155 | ' | ||
Total noninterest expense | 390 | 390 | ' | ||
Income (loss) before income taxes | 122 | 54 | ' | ||
Income Tax Expense (Benefit) | 42 | 20 | ' | ||
Net income (loss) | 80 | 34 | ' | ||
Net income attributable to Bancorp | 80 | 34 | ' | ||
Net income available to common shareholders | 80 | 34 | ' | ||
Total goodwill | 1,655 | 1,655 | ' | ||
Total Assets | 48,888 | 47,527 | ' | ||
Consumer Lending | ' | ' | ' | ||
Segment Reporting Information | ' | ' | ' | ||
Net interest income | 64 | 85 | ' | ||
Provision for loan and lease losses | 25 | 29 | ' | ||
Net interest income (loss) after provision for loan and lease losses | 39 | 56 | ' | ||
Noninterest income: | ' | ' | ' | ||
Mortgage banking net revenue | 108 | 216 | ' | ||
Other noninterest income | 10 | 11 | ' | ||
Securities gains, net - non-qualifying hedges on mortgage servicing rights | ' | 2 | ' | ||
Total noninterest income | 118 | 229 | ' | ||
Noninterest expense: | ' | ' | ' | ||
Salaries, wages and incentives | 25 | 50 | ' | ||
Employee benefits | 9 | 13 | ' | ||
Net occupancy expense | 2 | 2 | ' | ||
Other noninterest expense | 130 | 112 | ' | ||
Total noninterest expense | 166 | 177 | ' | ||
Income (loss) before income taxes | -9 | 108 | ' | ||
Income Tax Expense (Benefit) | -3 | 38 | ' | ||
Net income (loss) | -6 | 70 | ' | ||
Net income attributable to Bancorp | -6 | 70 | ' | ||
Net income available to common shareholders | -6 | 70 | ' | ||
Total Assets | 22,436 | 24,026 | ' | ||
Investment Advisors | ' | ' | ' | ||
Segment Reporting Information | ' | ' | ' | ||
Net interest income | 32 | 36 | ' | ||
Provision for loan and lease losses | ' | 1 | ' | ||
Net interest income (loss) after provision for loan and lease losses | 32 | 35 | ' | ||
Noninterest income: | ' | ' | ' | ||
Service charges on deposits | 1 | 1 | ' | ||
Corporate banking revenue | 1 | 1 | ' | ||
Investment advisory revenue | 100 | 98 | ' | ||
Card and processing revenue | 1 | 1 | ' | ||
Other noninterest income | ' | 7 | ' | ||
Total noninterest income | 103 | 108 | ' | ||
Noninterest expense: | ' | ' | ' | ||
Salaries, wages and incentives | 34 | 33 | ' | ||
Employee benefits | 9 | 9 | ' | ||
Net occupancy expense | 2 | 3 | ' | ||
Other noninterest expense | 65 | 70 | ' | ||
Total noninterest expense | 110 | 115 | ' | ||
Income (loss) before income taxes | 25 | 28 | ' | ||
Income Tax Expense (Benefit) | 8 | 10 | ' | ||
Net income (loss) | 17 | 18 | ' | ||
Net income attributable to Bancorp | 17 | 18 | ' | ||
Net income available to common shareholders | 17 | 18 | ' | ||
Total goodwill | 148 | 148 | ' | ||
Total Assets | 9,775 | 9,114 | ' | ||
General Corporate and Other | ' | ' | ' | ||
Segment Reporting Information | ' | ' | ' | ||
Net interest income | 8 | 60 | ' | ||
Provision for loan and lease losses | -98 | -69 | ' | ||
Net interest income (loss) after provision for loan and lease losses | 106 | 129 | ' | ||
Noninterest income: | ' | ' | ' | ||
Corporate banking revenue | -2 | ' | ' | ||
Other noninterest income | -9 | 53 | ' | ||
Securities gains, net | 7 | 17 | ' | ||
Total noninterest income | -4 | 70 | ' | ||
Noninterest expense: | ' | ' | ' | ||
Salaries, wages and incentives | 131 | 137 | ' | ||
Employee benefits | 29 | 36 | ' | ||
Net occupancy expense | 24 | 22 | ' | ||
Technology and communications | 48 | 45 | ' | ||
Card and processing expense | ' | 1 | ' | ||
Equipment expense | 13 | 13 | ' | ||
Other noninterest expense | -260 | -222 | ' | ||
Total noninterest expense | -15 | 32 | ' | ||
Income (loss) before income taxes | 117 | 167 | ' | ||
Income Tax Expense (Benefit) | 53 | 75 | ' | ||
Net income (loss) | 64 | 92 | ' | ||
Less: Net income attributable to noncontrolling interests | -1 | 10 | ' | ||
Net income attributable to Bancorp | 63 | 102 | ' | ||
Dividends on preferred stock | 9 | 9 | ' | ||
Net income available to common shareholders | 54 | 93 | ' | ||
Total Assets | -7,121 | -11,402 | ' | ||
Intersegment Elimination | ' | ' | ' | ||
Noninterest income: | ' | ' | ' | ||
Investment advisory revenue | -35 | [1] | -36 | [1] | ' |
Total noninterest income | -35 | -36 | ' | ||
Noninterest expense: | ' | ' | ' | ||
Other noninterest expense | -35 | -36 | ' | ||
Total noninterest expense | ($35) | ($36) | ' | ||
[1] | Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income. |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Subsequent Event | ' | ' |
Amount | ($99) | ($125) |
Subsequent events | ' | ' |
Subsequent Event | ' | ' |
Issuance date | 25-Apr-14 | ' |
Issue of senior notes to third party investors | 1,500 | ' |
Subsequent events | March 2014 Repurchase Program | ' | ' |
Subsequent Event | ' | ' |
Total shares repurchased | 6,216,480 | ' |
Amount | 150 | ' |
Redemption date | 1-May-14 | ' |
Subsequent events | Fixed rate 2.375% senior notes due 2019 | ' | ' |
Subsequent Event | ' | ' |
Maturity date | 25-Apr-19 | ' |
Issue of senior notes to third party investors | 850 | ' |
Subsequent events | Fixed rate 1.35% notes due 2017 | ' | ' |
Subsequent Event | ' | ' |
Maturity date | 1-Jun-17 | ' |
Issue of senior notes to third party investors | $650 | ' |