Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 31, 2016 | Jun. 30, 2015 | |
Document Entity Information | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FITB | ||
Entity Registrant Name | FIFTH THIRD BANCORP | ||
Entity Central Index Key | 35,527 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 783,231,128 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 16,277,829,299 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets | |||
Cash and due from banks | [1] | $ 2,540 | $ 3,091 |
Available-for-sale and other securities | [2] | 29,044 | 22,408 |
Held-to-matury securities | [3] | 70 | 187 |
Trading securities | 386 | 360 | |
Other short-term investments | 2,671 | 7,914 | |
Loans and leases held for sale | [4] | 903 | 1,261 |
Portfolio loans and leases | [1],[5] | 92,582 | 90,084 |
ALLL | [1] | (1,272) | (1,322) |
Portfolio loans and leases, net | 91,310 | 88,762 | |
Bank premises and equipment | [6] | 2,239 | 2,465 |
Operating lease equipment | 707 | 728 | |
Goodwill | 2,416 | 2,416 | |
Intangible assets | 12 | 15 | |
Servicing rights | 785 | 858 | |
Other assets | [1] | 7,999 | 8,241 |
Total Assets | 141,082 | 138,706 | |
Deposits: | |||
Noninterest-bearing deposits | 36,267 | 34,809 | |
Interest-bearing deposits | 66,938 | 66,903 | |
Total deposits | [7] | 103,205 | 101,712 |
Federal funds purchased | 151 | 144 | |
Other short-term borrowings | 1,507 | 1,556 | |
Accrued taxes, interest and expenses | 2,164 | 2,020 | |
Other liabilities | [1] | 2,341 | 2,642 |
Long-term debt | [1] | 15,844 | 14,967 |
Total liabilities | 125,212 | 123,041 | |
Equity | |||
Common stock | [8] | 2,051 | 2,051 |
Preferred stock | [9] | 1,331 | 1,331 |
Capital surplus | 2,666 | 2,646 | |
Retained earnings | 12,358 | 11,141 | |
Accumulated other comprehensive income | 197 | 429 | |
Treasury stock | [8] | (2,764) | (1,972) |
Total Bancorp Shareholders' Equity | 15,839 | 15,626 | |
Noncontrolling interests | 31 | 39 | |
Total Equity | 15,870 | 15,665 | |
Total Liabilities and Equity | $ 141,082 | $ 138,706 | |
[1] | Includes $152 and $179 of cash and due from banks, $2,537 and $3,378 of portfolio loans and leases, $(28) and $(22) of ALLL, $20 and $25 of other assets, $3 and $5 of other liabilities and $2,493 and $3,434 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2015 and 2014, respectively. For further information, refer to Note 11. | ||
[2] | Amortized cost of $28,678 and $21,677 at December 31, 2015 and 2014, respectively. | ||
[3] | Fair value of $70 and $187 at December 31, 2015 and 2014, respectively. | ||
[4] | Includes $519 and $561 of residential mortgage loans held for sale measured at fair value at December 31, 2015 and 2014, respectively. | ||
[5] | Includes $167 and $108 of residential mortgage loans measured at fair value at December 31, 2015 and 2014, respectively. | ||
[6] | Includes $81 and $26 of bank premises and equipment held for sale at December 31, 2015 and 2014, respectively. For further information refer to Note 7. | ||
[7] | Includes $628 and $0 of deposits held for sale at December 31, 2015 and 2014, respectively. For further information refer to Note 7. | ||
[8] | Common shares: Stated value $2.22 per share; authorized 2,000,000; outstanding at December 31, 2015 – 785,080,314 (excludes 138,812,267 treasury shares), 2014 – 824,046,952 (excludes 99,845,629 treasury shares). | ||
[9] | 446,000 shares of undesignated no par value preferred stock are authorized and unissued at December 31, 2015 and 2014; 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 December 31, 2015 and 2014; 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 December 31, 2015 and 2014; and fixed-to-floating rate non-cumulative Series J perpetual preferred stock with a $25,000 liquidation preference: 12,000 authorized shares, issued and outstanding at December 31, 2015 and 2014. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash and due from banks | [1] | $ 2,540 | $ 3,091 |
Portfolio loans and leases | [1],[2] | 92,582 | 90,084 |
ALLL | [1] | (1,272) | (1,322) |
Other assets | [1] | 7,999 | 8,241 |
Other liabilities | [1] | 2,341 | 2,642 |
Long-term debt | [1] | 15,844 | 14,967 |
Available For Sale Securities Amortized Cost | 28,678 | 21,677 | |
Held-to-maturity securities, fair value | 70 | 187 | |
Residential mortgage loans held for sale | 519 | 561 | |
Residential mortgage loans measured at fair value | 167 | 108 | |
Bank premises and equipment held for sale | 81 | $ 26 | |
Deposits held for sale | $ 628 | ||
Common stock, stated value | $ 2.22 | $ 2.22 | |
Common stock, authorized | 2,000,000,000 | 2,000,000,000 | |
Common stock, outstanding | 785,080,314 | 824,046,952 | |
Common stock, treasury shares | 138,812,267 | 99,845,629 | |
Residential Mortgage | |||
Residential mortgage loans measured at fair value | $ 167 | $ 108 | |
Variable Interest Entities | |||
Cash and due from banks | 152 | 179 | |
Portfolio loans and leases | 2,537 | 3,378 | |
ALLL | (28) | (22) | |
Other assets | 20 | 25 | |
Other liabilities | 3 | 5 | |
Long-term debt | $ 2,493 | $ 3,434 | |
Preferred Stock | |||
Preferred stock, authorized | 446,000 | 446,000 | |
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 | |
Preferred stock Series J | |||
Preferred stock, authorized | 12,000 | 12,000 | |
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | |
Preferred stock, issued | 12,000 | 12,000 | |
Preferred stock, outstanding | 12,000 | 12,000 | |
[1] | Includes $152 and $179 of cash and due from banks, $2,537 and $3,378 of portfolio loans and leases, $(28) and $(22) of ALLL, $20 and $25 of other assets, $3 and $5 of other liabilities and $2,493 and $3,434 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2015 and 2014, respectively. For further information, refer to Note 11. | ||
[2] | Includes $167 and $108 of residential mortgage loans measured at fair value at December 31, 2015 and 2014, respectively. |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Income | |||
Interest and fees on loans and leases | $ 3,151 | $ 3,298 | $ 3,447 |
Interest on securities | 869 | 724 | 520 |
Interest on other short-term investments | 8 | 8 | 6 |
Total interest income | 4,028 | 4,030 | 3,973 |
Interest Expense | |||
Interest on deposits | 186 | 202 | 202 |
Interest on federal funds purchased | 1 | ||
Interest on long-term debt | 306 | 247 | 204 |
Interest on other short-term borrowings | 2 | 2 | 6 |
Total interest expense | 495 | 451 | 412 |
Net Interest Income | 3,533 | 3,579 | 3,561 |
Provision for loan and lease losses | 396 | 315 | 229 |
Net Interest Income After Provision for Loan and Lease Losses | 3,137 | 3,264 | 3,332 |
Noninterest Income: | |||
Service charges on deposits | 563 | 560 | 549 |
Investment advisory revenue | 418 | 407 | 393 |
Corporate banking revenue | 384 | 430 | 400 |
Mortgage banking net revenue | 348 | 310 | 700 |
Card and processing revenue | 302 | 295 | 272 |
Other noninterest income | 979 | 450 | 879 |
Securities gains, net | 9 | 21 | 21 |
Securities gains, net - non-qualifying hedges on mortgage servicing rights | 13 | ||
Total noninterest income | 3,003 | 2,473 | 3,227 |
Noninterest Expense | |||
Salaries, wages and incentives | 1,525 | 1,449 | 1,581 |
Employee benefits | 323 | 334 | 357 |
Net occupancy expense | 321 | 313 | 307 |
Technology and communications | 224 | 212 | 204 |
Card and processing expense | 153 | 141 | 134 |
Equipment expense | 124 | 121 | 114 |
Other noninterest expense | 1,105 | 1,139 | 1,264 |
Total noninterest expense | 3,775 | 3,709 | 3,961 |
Income (Loss) Before Income Taxes | 2,365 | 2,028 | 2,598 |
Applicable income tax expense | 659 | 545 | 772 |
Net Income | 1,706 | 1,483 | 1,826 |
Less: Net income attributable to noncontrolling interests | (6) | 2 | (10) |
Net Income attributable to Bancorp | 1,712 | 1,481 | 1,836 |
Dividends on preferred stock | 75 | 67 | 37 |
Net income (loss) available to common shareholders | $ 1,637 | $ 1,414 | $ 1,799 |
Earnings per share - basic | $ 2.03 | $ 1.68 | $ 2.05 |
Earnings per share - diluted | $ 2.01 | $ 1.66 | $ 2.02 |
Average common shares outstanding - basic | 798,628,173 | 833,116,349 | 869,462,977 |
Average common shares outstanding - diluted | 807,658,669 | 842,967,356 | 894,736,445 |
Cash dividends declared per common share | $ 0.52 | $ 0.51 | $ 0.47 |
CONSOLIDATED STATEMENT OF OTHER
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement Of Income And Comprehensive Income [Table] | |||
Net income (loss) | $ 1,706 | $ 1,483 | $ 1,826 |
Other Comprehensive Income (Loss), Net of Tax | |||
Unrealized holding gains (losses) on available-for-sale securities arising during period | (227) | 378 | (295) |
Reclassification adjustment for net gains included in net income | (10) | (24) | 4 |
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period | 48 | 39 | (8) |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (49) | (29) | (29) |
Net actuarial gain (loss) arising during the period | (5) | (25) | 25 |
Reclassification of amounts to net periodic benefit costs | 11 | 8 | 10 |
Other Comprehensive Income (Loss) Net Of Tax | (232) | 347 | (293) |
Comprehensive income | 1,474 | 1,830 | 1,533 |
Comprehensive income attributable to noncontrolling interests | (6) | 2 | (10) |
Comprehensive income attributable to Bancorp | $ 1,480 | $ 1,828 | $ 1,543 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common Stock | Preferred Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income(Loss) | Treasury Stock | Total Bancorp Shareholders' Equity | Non- Controlling Interests | |
Beginning Balance at Dec. 31, 2012 | $ 13,764 | $ 2,051 | $ 398 | $ 2,758 | $ 8,768 | $ 375 | $ (634) | $ 13,716 | $ 48 | |
Net income | 1,826 | 1,836 | 1,836 | (10) | ||||||
Other Comprehensive Income (loss) | (293) | (293) | (293) | |||||||
Cash dividends declared: | ||||||||||
Common stock | (407) | (407) | (407) | |||||||
Preferred stock | [1] | (37) | (37) | (37) | ||||||
Shares acquired for treasury | (1,320) | (78) | (1,242) | (1,320) | ||||||
Issuance of preferred stock | 1,034 | 1,034 | 1,034 | |||||||
Redemption of preferred shares, Series G | (398) | (142) | 540 | |||||||
Impact of stock transactions under stock compensation plans, net | 60 | 22 | 38 | 60 | ||||||
Other | (1) | 1 | (4) | 3 | (1) | |||||
Ending Balance at Dec. 31, 2013 | 14,626 | 2,051 | 1,034 | 2,561 | 10,156 | 82 | (1,295) | 14,589 | 37 | |
Net income | 1,483 | 1,481 | 1,481 | 2 | ||||||
Other Comprehensive Income (loss) | 347 | 347 | 347 | |||||||
Cash dividends declared: | ||||||||||
Common stock | (427) | (427) | (427) | |||||||
Preferred stock | [2] | (67) | (67) | (67) | ||||||
Shares acquired for treasury | (654) | 72 | (726) | (654) | ||||||
Issuance of preferred stock | 297 | 297 | 297 | |||||||
Impact of stock transactions under stock compensation plans, net | 60 | 13 | 47 | 60 | ||||||
Other | (2) | 2 | ||||||||
Ending Balance at Dec. 31, 2014 | 15,665 | 2,051 | 1,331 | 2,646 | 11,141 | 429 | (1,972) | 15,626 | 39 | |
Net income | 1,706 | 1,712 | 1,712 | (6) | ||||||
Other Comprehensive Income (loss) | (232) | (232) | (232) | |||||||
Cash dividends declared: | ||||||||||
Common stock | (417) | (417) | (417) | |||||||
Preferred stock | [3] | (75) | (75) | (75) | ||||||
Shares acquired for treasury | (850) | (3) | (847) | (850) | ||||||
Impact of stock transactions under stock compensation plans, net | 75 | 23 | 52 | 75 | ||||||
Other | (2) | (3) | 3 | (2) | ||||||
Ending Balance at Dec. 31, 2015 | $ 15,870 | $ 2,051 | $ 1,331 | $ 2,666 | $ 12,358 | $ 197 | $ (2,764) | $ 15,839 | $ 31 | |
[1] | For the year ended December 31, 2013, dividends were $1,074.31 per preferred share for Perpetual Preferred Stock, Series G and $796.88 per preferred share for Perpetual Preferred Stock, Series H. | |||||||||
[2] | For the year ended December 31, 2014, dividends were $1,275.00 per preferred share for Perpetual Preferred Stock, Series H, $1,757.46 per preferred share for Perpetual Preferred Stock, Series I and $391.32 per preferred share for Perpetual Preferred Stock, Series J. | |||||||||
[3] | For the year ended December 31, 2015, dividends were $1,275.00 per preferred share for Perpetual Preferred Stock, Series H, $1,656.24 per preferred share for Perpetual Preferred Stock, Series I and $1,225.00 per preferred share for Perpetual Preferred Stock, Series J. |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Common stock, per share | $ 0.52 | $ 0.51 | $ 0.47 |
Preferred stock Series H | |||
Preferred stock, per share | 1,275 | 1,275 | 796.88 |
Preferred stock Series I | |||
Preferred stock, per share | 1,656.24 | 1,757.46 | |
Preferred stock Series J | |||
Preferred stock, per share | $ 1,225 | $ 391.32 | |
Preferred stock Series G | |||
Preferred stock, per share | $ 1,074.31 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Operating Activities | |||||
Net income | $ 1,706 | $ 1,483 | $ 1,826 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Provision for loan and lease losses | 396 | 315 | 229 | ||
Depreciation, amortization and accretion | 441 | 414 | 507 | ||
Stock-based compensation expense | 100 | 83 | 78 | ||
Provision (benefit) for deferred income taxes | (71) | 79 | 253 | ||
Securities gains, net | (5) | (21) | (21) | ||
Securities gains, net - non-qualifying hedges on mortgage servicing rights | (13) | ||||
(Recovery of) provision for MSR impairment | (4) | 65 | (192) | ||
Net gains on sales of loans and fair value adjustments on loans held for sale | (98) | (67) | (622) | ||
Net losses on disposition and impairment of bank premises and equipment | (101) | (19) | (6) | ||
Net losses on disposition and impairment of operating lease equipment | (33) | ||||
Loss (gain) on debt extinguishment | 8 | ||||
Proceeds from sales of loans held for sale | 5,102 | 5,477 | 22,047 | ||
Loans originated for sale, net of repayments | (5,142) | (4,874) | (19,003) | ||
Dividends representing return on equity method investments | 25 | 42 | 54 | ||
Gain on sale of Vantiv, Inc. shares | (331) | (125) | (327) | ||
Gain on the TRA associated with Vantiv, Inc. | (31) | (23) | (9) | ||
Net change in: | |||||
Trading securities | (34) | (16) | (131) | ||
Other assets | 94 | (221) | (672) | ||
Accrued taxes, interest and expenses | 327 | 1 | 8 | ||
Other liabilities | (191) | (555) | 569 | ||
Net Cash Provided by (Used in) Operating Activities | 2,418 | 2,076 | 4,595 | ||
Proceeds from sales: | |||||
Available-for-sale and other securities | 16,828 | 5,234 | 9,328 | ||
Loans | 741 | 147 | 657 | ||
Disposal of bank premises and equipment | 37 | 24 | 33 | ||
Proceeds from repayments / maturities: | |||||
Available-for-sale and other securities | 2,865 | 2,265 | 3,191 | ||
Held-to-maturity securities | 117 | 20 | 74 | ||
Purchases: | |||||
Available-for-sale and other securities | (26,733) | (10,691) | (16,216) | ||
Bank premises and equipment | (164) | (216) | (274) | ||
Proceeds from sale and dividends representing return of equity method investments | 458 | 279 | 674 | ||
Net change in: | |||||
Other short-term investments | 5,243 | (2,798) | (2,695) | ||
Loans and leases | (3,238) | (3,136) | (4,750) | ||
Operating lease equipment | (85) | (66) | (206) | ||
Net Cash (Used in) Provided by Investing Activities | (3,931) | (8,938) | (10,184) | ||
Net change in: | |||||
Deposits | 1,493 | 2,437 | 9,758 | ||
Federal funds purchased | 7 | (140) | (618) | ||
Other short-term borrowings | (49) | 176 | (4,900) | ||
Dividends paid on common shares | (422) | (423) | (393) | ||
Dividends paid on preferred shares | (75) | (67) | (37) | ||
Proceeds from issuance of long-term debt | 3,091 | 6,570 | 5,044 | ||
Repayment of long-term debt | (2,205) | (1,399) | (2,225) | ||
Repurchase of treasury shares and related forward contract | 850 | 654 | 1,320 | ||
Issuance of preferred shares | 297 | 1,034 | |||
Other | (28) | (22) | (17) | ||
Net Cash Used In Financing Activities | 962 | 6,775 | 6,326 | ||
Increase (Decrease) in Cash and Due from Banks | (551) | (87) | 737 | ||
Cash and Due from Banks at Beginning of Period | 3,091 | [1] | 3,178 | 2,441 | |
Cash and Due from Banks at End of Period | $ 2,540 | [1] | $ 3,091 | [1] | $ 3,178 |
[1] | Includes $152 and $179 of cash and due from banks, $2,537 and $3,378 of portfolio loans and leases, $(28) and $(22) of ALLL, $20 and $25 of other assets, $3 and $5 of other liabilities and $2,493 and $3,434 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2015 and 2014, respectively. For further information, refer to Note 11. |
Summary of Significant Accounti
Summary of Significant Accounting and Reporting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Basis of Presentation | |
Summary of Significant Accounting and Reporting Policies | 1. Summary of significant accounting and reporting policies Nature of Operations Fifth Third Bancorp, an Ohio corporation, conducts its principal lending, deposit gathering, transaction processing and service advisory activities through its banking and non-banking subsidiaries from banking centers located throughout the Midwestern and Southeastern regions of the United States. Basis of Presentation The 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 of accounting and not consolidated. The investments in those entities in which the Bancorp does not have the ability to exercise significant influence are generally carried at the lower of cost or fair value. Intercompany transactions and balances have been eliminated. Use of Estimates 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. Cash and Due From Banks Cash and due from banks consist of currency and coin, cash items in the process of collection and due from banks. Currency and coin includes both U.S. and foreign currency owned and held at Fifth Third offices and that is in-transit to the FRB. Cash items in the process of collection include checks and drafts that are drawn on another depository institution or the FRB that are payable immediately upon presentation in the U.S. Balances due from banks include noninterest - bearing balances that are funds on deposit at other depository institutions or the FRB. Securities Securities are classified as held-to-maturity, available-for-sale or trading on the date of purchase. Only those securities which management has the intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. Securities are classified as available-for-sale when, in management's judgment, they may be sold in response to, or in anticipation of, changes in market conditions. Securities are classified as trading when bought and held principally for the purpose of selling them in the near term. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of related deferred income taxes, included in OCI . Trading securities are reported at fair value with unrealized gains and losses included in noninterest income. The fair value of a security is determined based on quoted market prices. If quoted market prices are not available, fair value is determined based on quoted prices of similar instruments or DCF models that incorporate market inputs and assumptions including discount rates, prepayment speeds and loss rates. Realized securities gains or losses are reported within noninterest income in the Consolidated Statements of Income. The cost of securities sold is based on the specific identification method. Available-for-sale and held-to-maturity securities with unrealized losses are reviewed quarterly for possible OTTI. For debt securities, if the Bancorp intends to sell the debt security or will more likely than not be required to sell the debt security before recovery of the entire amortized cost basis, then an OTTI has occurred. However, even if the Bancorp does not intend to sell the debt security and will not likely be required to sell the debt security before recovery of its entire amortized cost basis, the Bancorp must evaluate expected cash flows to be received and determine if a credit loss has occurred. In the event of a credit loss, the credit component of the impairment is recognized within noninterest income and the non-credit component is recognized through OCI . For equity securities, the Bancorp's management evaluates the securities in an unrealized loss position in the available-for-sale portfolio for OTTI on the basis of the duration of the decline in value of the security and severity of that decline as well as the Bancorp's intent and ability to hold these securities for a period of time sufficient to allow for any anticipated recovery in the market value. If it is determined that the impairment on an equity security is other - than - temporary, an impairment loss equal to the difference between the amortized cost of the security and its fair value is recogn ized within noninterest income . Portfolio Loans and Leases Basis of Accounting Portfolio loans and leases are generally reported at the principal amount outstanding, net of unearned income, deferred loan fees and costs and any direct principal charge-offs. Direct loan origination fees and costs are deferred and the net amount is amortized over the estimated life of the related loans as a yield adjustment. Interest income is recognized based on the principal balance outstanding computed using the effective interest method. Loans acquired by the Bancorp through a purchase business combination are recorded at fair value as of the acquisition date. The Bancorp does not carry over the acquired company's ALLL, nor does the Bancorp add to its existing ALLL as part of purchase accounting. Purchased loans are evaluated for evidence of credit deterioration at acquisition and recorded at their initial fair value. For loans acquired with no evidence of credit deterioration, the fair value discount or premium is amortized over the contractual life of the loan as an adjustment to yield. For loans acquired with evidence of credit deterioration, the Bancorp determines at the acquisition date the excess of the loan's contractually required payments over all cash flows expected to be collected as an amount that should not be accreted into interest income ( nonaccretable difference). The remaining amount representing the difference in the expected cash flows of acquired loans and the initial investment in the acquired loans is accreted into interest income over the remaining life of the loan or pool of loans ( accretable yield). Subsequent to the acquisition date, increases in expected cash flows over those expected at the acquisition date are recognized prospectively as interest income over the remaining life of the loan. The present value of any decreases in expected cash flows resulting directly from a change in the contractual interest rate are recognized prospectively as a reduction of the accretable yield. The present value of any decreases in expected cash flows after the acquisition date as a result of credit deterioration is recognized by recording an ALLL or a direct charge-off. Subsequent to the purchase date, the methods utilized to estimate the required ALLL are similar to originated loans. Loans carried at fair value, residential mortgage loans held for sale and loans under revolving credit agreements are excluded from the scope of this guidance on loans acquired with deteriorated credit quality. The Bancorp's lease portfolio consists of both direct financing and leveraged leases. Direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased property, less unearned income. Interest income on direct financing leases is recognized over the term of the lease to achieve a constant periodic rate of return on the outstanding investment. Leveraged leases are carried at the aggregate of lease payments (less nonrecourse debt payments) plus estimated residual value of the leased property, less unearned income. Interest income on leveraged leases is recognized over the term of the lease to achieve a constant rate of return on the outstanding investment in the lease, net of the related deferred income tax liability, in the years in which the net investment is positive. Nonaccrual Loans and Leases When a loan is placed on nonaccrual status, the accrual of interest, amortization of loan premium, accretion of loan discount and amortization/accretion of deferred net loan fees are discontinued and all previously accrued and unpaid interest is charged against income. Commercial loans are placed on nonaccrual status when there is a clear indication that the borrower's cash flows may not be sufficient to meet payments as they become due. Such loans are also placed on nonaccrual status when the principal or interest is past due 90 days or more, unless the loan is both well - secured and in the process of collection. The Bancorp classifies residential mortgage loans that have principal and interest payments that have become past due 150 days as nonaccrual unless the loan is both well - secured and in the process of collection. Residential mortgage loans may stay on nonperforming status for an extended time as the foreclosure process typically lasts longer than 180 days. Home equity loans and lines of credit are reported on nonaccrual status if principal or interest has been in default for 90 days or more unless the loan is both well - secured and in the process of collection. Home equity loans and lines of credit that have been in default for 60 days or more are also reported on nonaccrual status if the senior lien has been in default 120 days or more, unless the loan is both well secured and in the process of collection. Residential mortgage, home equity, automobile and other consumer loans and leases that have been modified in a TDR and subsequently become past due 90 days are placed on nonaccrual status unless the loan is both well - secured and in the process of collection. Commercial and credit card loans that have been modified in a TDR are classified as nonaccrual unless such loans have sustained repayment performance of six months or more and are reasonably assured of repayment in accordance with the restructured terms. Well - secured loans are collateralized by perfected security interests in real and/or personal property for which the Bancorp estimates proceeds from the sale would be sufficient to recover the outstanding principal and accrued interest balance of the loan and pay all costs to sell the collateral. The Bancorp considers a loan in the process of collection if collection efforts or legal action is proceeding and the Bancorp expects to collect funds sufficient to bring the loan current or recover the entire outstanding principal and accrued interest balance. Nonaccrual commercial loans a nd nonaccrual credit card loans are generally accounted for on the cost recovery method. The Bancorp believes the cost recovery method is appropriate for nonaccrual commercial loans and nonaccrual credit card loans because the assessment of collectability of the remaining recorded investment of these loans involves a high degree of subjectivity and uncertainty due to the nature or absence of underlying collateral. Under the cost recovery method, any payments received are applied to reduce principal. Once the entire recorded investment is collected, additional payments received are treated as recoveries of amounts previously charged-off until recovered in full, and any subsequent payments are treated as interest income. Nonaccrual residential mortgage loans and other nonaccrual consumer loans are generally accounted for on the cash basis method. The Bancorp believes the cash basis method is appropriate for nonaccrual residential mortgage and other nonaccrual consumer loans because such loans have generally been written down to estimated collateral values and the collectability of the remaining investment involves only an assessment of the fair value of the underlying collateral, which can be measured more objectively with a lesser degree of uncertainty than assessments of typical commercial loan collateral. Under the cash basis method, interest income is recognized upon cash receipt to the extent to which it would have been accrued on the loan's remaining balance at the contractual rate. Nonaccrual loans may be returned to accrual status when all delinquent interest and principal payments become current in accordance with the loan agreement and are reasonably assured of repayment in accordance with the contractual terms of the loan agreement, or when the loan is both well-secured and in the process of collection. Commercial loans on nonaccrual status, including those modified in a TDR , as well as criticized commercial loans with aggregate borrower relationships exceeding $ 1 million, are subject to an individual review to identify charge-offs. The Bancorp does not have an established delinquency threshold for partially or fully charging off commercial loans. Residential mortgage loans, home equity loans and lines of credit and credit card loans that have principal and interest payments that have become past due 180 days are assessed for a charge-off to the ALLL, unless such loans are both well-secured and in the process of collection. Home equity loans and lines of credit are also assessed for charge-off to the ALLL when such loans or lines of credit have become past due 120 days if the senior lien is also 120 days past due, unless such loans are both well-secured and in the process of collection. Automobile and other consumer loans and leases that have principal and interest payments that have become past due 120 days are assessed for a charge-off to the ALLL, unless such loans are both well-secured and in the process of collection. Restructured Loans and Leases A loan is accounted for as a TDR if the Bancorp, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that it would not otherwise consider. A TDR typically involves a modification of terms such as a reduction of the stated interest rate or remaining principal amount of the loan, a reduction of accrued interest or an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan with similar risk. In 2012, the OCC, a national bank regulatory agency, issued interpretive guidance that requires non-reaffirmed loans included in Chapter 7 bankruptcy filings to be accounted for as nonperforming TDRs and collateral dependent loans regardless of their payment history and capacity to pay in the future. The Bancorp's banking subsidiary is a state chartered bank which therefore is not subject to guidance of the OCC. The Bancorp does not consider the bankruptcy court's discharge of the borrower's debt a concession when the discharged debt is not reaffirmed and as such , these loans are classified as TDRs only if one or more of the previously mentioned concessions are granted. The Bancorp measures the impairment loss of a TDR based on the difference between the original loan's carrying amount and the present value of expected future cash flows discounted at the original, effective yield of the loan. Residential mortgage loans, home equity loans, automobile loans and other consumer loans modified as part of a TDR are maintained on accrual status, provided there is reasonable assurance of repayment and of performance according to the modified terms based upon a current, well-documented credit evaluation. Commercial loans and credit card loans modified as part of a TDR are maintained on accrual status provided there is a sustained payment history of six months or more prior to the modification in accordance with the modified terms and all remaining contractual payments under the modified terms are reasonably assured of collection. TDRs of commercial loans and credit cards that do not have a sustained pa yment history of six months or more in accordance with their modified terms remain on nonaccrual status until a six month payment history is sustained. In certain cases, commercial TDRs on nonaccrual status may be accounted for using the cash basis method for income recognition, provided that full repayment of principal under the modified terms of the loan is reasonably assured. Impaired Loans and Leases A loan is considered to be impaired when, based on current information and events, it is probable that the Bancorp will be unable to collect all amounts due (including both principal and interest) according to the contractual terms of the loan agreement. Impaired loans generally consist of nonaccrual loans and leases, loans modified in a TDR and loans over $ 1 million that are currently on accrual status and not yet modified in a TDR, but for which the Bancorp has determined that it is probable that it will grant a payment concession in the near term due to the borrower's financial difficulties. For loans modified in a TDR, the contractual terms of the loan agreement refer to the terms specified in the original loan agreement. A loan restructured in a TDR is no longer considered impaired in years after the restructuring if the restructuring agreement specifies a rate equal to or greater than the rate the Bancorp was willing to accept at the time of the restructuring for a new loan with comparable risk and the loan is not impaired based on the terms specified by the restructuring agreement. Refer to the ALLL section for discussion regarding the Bancorp's methodology for identifying impaired loans and determination of the need for a loss accrual. Loans Held for Sale Loans held for sale prima rily represent conforming fixed- rate residential mortgage loans originated or acquired with the intent to sell in the secondary market and jumbo residential mortgage loans, commercial loans , other residential mortgage loans and other consumer loans that management has the intent to sell. Loans held for sale may be carried at the lower of cost or fair value, or carried at fair value where the Bancorp has elected the fair value option of accounting under U.S. GAAP. The Bancorp has elected to measure certain residential mortgage loans originated as held for sale under the fair value option. For loans in which the Bancorp has not elected the fair value option, the lower of cost or fair value is determined at the individual loan level. The fair value of residential mortgage loans held for sale for which the fair value election has been made 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 effects 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. These fair value marks are recorded as a component of noninterest income in mortgage banking net revenue. The Bancorp generally has commitments to sell residential mortgage loans held for sale in the secondary market. Gains or losses on sales are recognized in mortgage banking net revenue. 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, thereafter, reported within the Bancorp's residential mortgage class of portfolio loans and leases. In such cases, the residential mortgage loans will continue to be measured at fair value, which is based on mortgage-backed securities prices, interest rate risk and an internally developed credit component. Loans held for sale are placed on nonaccrual status consistent with the Bancorp's nonaccrual policy for portfolio loans and leases. Other Real Estate Owned OREO, which is included in other assets, represents property acquired through foreclosure or other proceedings and is carried at the lower of cost or fair value, less costs to sell. All OREO property is periodically evaluated for impairment and decreases in carrying value are recognized as reductions in other noninterest income in the Consolidated Statements of Income. For government- guaranteed mortgage loans, upon foreclosure, a separate other receivable is recognized if certain conditions are met for the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. This receivable is also included in other assets, separate from OREO, in the Consolidated Balance Sheets . ALLL The Bancorp disaggregates its portfolio loans and leases into portfolio segments for purposes of determining the ALLL. The Bancorp's portfolio segments include commercial, residential mortgage and consumer. The Bancorp further disaggregates its portfolio segments into classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Classes within the commercial portfolio segment include commercial and industrial, commercial mortgage owner-oc cupied, commercial mortgage nonowner - occupied, commercial construction and commercial leasing. The residential mortgage portfolio segment is also considered a class. Classes within the consumer portfolio segment include home equity, automobile, credit card and other consumer loans and leases. For an analysis of the Bancorp's ALLL by portfolio segment and credit q uality information by class, refer to Note 6 . The Bancorp maintains the ALLL to absorb probable loan and lease losses inherent in its portfolio segments. The ALLL is maintained at a level the Bancorp considers to be adequate and is based on ongoing quarterly assessments and evaluations of the collectability and historical loss experience of loans and leases. Credit losses are charged and recoveries are credited to the ALLL. Provisions for loan and lease losses are based on the Bancorp's review of the historical credit loss experience and such factors that, in management's judgment, deserve consideration under existing economic conditions in estimating probable credit losses. The Bancorp's strategy for credit risk management includes a combination of conservative exposure limits significantly below legal lending limits and conservative underwriting, documentation and collections standards. The strategy also emphasizes diversification on a geographic, industry and customer level, regular credit examinations and quarterly management reviews of large credit exposures and loans experiencing deterioration of credit quality. The Bancorp's methodology for determining the ALLL is based on historical loss rates, current credit grades, specific allocation on loans modified in a TDR and impaired commercial credits above specified thresholds and other qualitative adjustments. Allowances on individual commercial loans, TDRs and historical loss rates are reviewed quarterly and adjusted as necessary based on changing borrower and/or collateral conditions and actual collection and charge-off experience. An unallocated allowance is maintained to recognize the imprecision in estimating and measuring losses when evaluating allowances for individual loans or pools of loans. Larger commercial loans included within aggregate borrower relationship balances exceeding $ 1 million that exhibit probable or observed credit weaknesses, as well as loans that have been modified in a TDR, are 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. Other factors may include the industry and geographic region of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower and the Bancorp's evaluation of the borrower's management. When individual loans are impaired, allowances are determined based on management's estimate of the borrower's ability to repay the loan given the availability of collateral and other sources of cash flow, as well as an evaluation of legal options available to the Bancorp. Allowances for impaired loans are measured based on the present value of expected future cash flows discounted at the loan's effective interest rate, fair value of the underlying collateral or readily observable secondary market values. The Bancorp evaluates the collectability of both principal and interest when assessing the need for a loss accrual. Historical credit loss rates are applied to commercial loans that are not impaired or are impaired, but smaller than the established threshold of $ 1 million and thus not subject to specific allowance allocations. The loss rates are derived from a migration analysis, which tracks the historical net charge-off experience sustained on loans according to their internal risk grade. The risk grading system utilized for allowance analysis purposes encompasses ten categories. Homogenous loans and leases in the residential mortgage and consumer portfolio segments are not individually risk graded. Rather, standard credit scoring systems and delinquency monitoring are used to assess credit risks and allowances are established based on the expected net charge-offs. Loss rates are based on the trailing twelve month net charge-off history by loan category. Historical loss rates may be adjusted for certain prescriptive and qualitative factors that, in management's judgment, are necessary to reflect losses inherent in the portfolio. Factors that management considers in the analysis include the effects of the national and local economies; trends in the nature and volume of delinquencies, charge-offs and nonaccrual loans; changes in loan mix; credit score migration comparisons; asset quality trends; risk management and loan administration; changes in the internal lending policies and credit standards; collection practices; and examination results from bank regulatory agencies and the Bancorp's internal credit reviewers. The Bancorp's primary market areas for lending are the Midwestern and So utheastern regions of the United States. When evaluating the adequacy of allowances, consideration is given to these regional geographic concentrations and the closely associated effect changing economic conditions have on the Bancorp's customers. In the current year, the Bancorp has not substantively changed any material aspect to its overall approach to determining its ALLL for any of its portfolio segments. There have been no material changes in criteria or estimation techniques as compared to prior periods that impacted the determination of the current period ALLL for any of the Bancorp's portfolio segments. Reserve for Unfunded Commitments The reserve for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities and is included in other liabilities in the Consolidated Balance Sheets. The determination of the adequacy of the reserve is based upon an evaluation of the unfunded credit facilities, including an assessment of historical commitment utilization experience, credit risk grading and historical loss rates based on credit grade migration. This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of the Bancorp's ALLL, as previously discussed. Net adjustments to the reserve for unfunded commitments are included in other noninterest expense in the Consolidated Statements of Income. Loan Sales and Securitizations The Bancorp periodically sells loans through either securitizations or individual loan sales in accordance with its investment policies. The sold loans are removed from the balance sheet and a net ga in or loss is recognized in the Consolidated Financial Statements at the time of sale. The Bancorp typically isolates the loans through the use of a VIE and thus is required to assess whether the entity holding the sold or securitized loans is a VIE and whether the Bancorp is the primary beneficiary and therefore consolidator of that VIE. If the Bancorp holds the power to direct activities most significant to the economic performance of the VIE and has the obligation to absorb losses or right to receive benefits that could potentially be significant to the VIE, then the Bancorp will generally be deemed the primary beneficiary of the VIE. 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 accounti ng standards as appropriate. Refer to Note 11 for further information on consolidated and non-consolidated VIEs. The Bancorp's loan sales and securitizations are generally structured with servicing retained. As a result, servicing rights resulting from residential mortgage loan sales are initially recorded at fair value and subsequently amortized in proportion to and over the period of estimated net servicing revenues and are reported as a component of mortgage banking net r evenue in the Consolidated Statements of Income. Servicing rights are assessed for impairment monthly, based on fair value, with temporary impairment recognized through a valuation allowance and other-than-temporary impairment recognized through a write-off of the servicing asset and related valuation allowance. Key economic assumptions used in measuring any potential impairment of the servicing rights include the prepayment speeds of the underlying loans, the weighted-average life, the discount rate and the weighted-average coupon, as applicable. The primary risk of material changes to the value of the servicing rights resides in the potential volatility in the economic assumptions used, particularly the prepayment speeds. The Bancorp monitors risk and adjusts its valuation allowance as necessary to adequately reserve for impairment in the servicing portfolio. For purposes of measuring impairment, the mortgage servicing rights are stratified into classes based on the financial asset type (fixed- rate vs. adjustable- rate) and interest rates. Fees received for servicing loans owned by investors are based on a percentage of the outstanding monthly principal balance of such loans and are included in noninterest income in the Consolidated Statements of Income as loan payments are received. Costs of servicing loans are charged to expense as incurred. Reserve for 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 other noninterest income at the time of sale. Updates to the reserve are recorded in other noninterest expense. Legal Contingencies The Bancorp and its subsidiaries are part ies 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 a |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow | |
Supplemental Cash Flow Information | 2 . SUPPLEMENTAL CASH FLOW INFORMATION Cash payments related to interest and income taxes in addition to non-cash investing and financing activities are presented in the following table for the years ended December 31: ($ in millions) 2015 2014 2013 Cash Payments: Interest $ 475 429 406 Income taxes 400 550 535 Non-cash Investing and Financing Activities: Portfolio loans to loans held for sale 487 855 641 Loans held for sale to portfolio loans 288 31 44 Portfolio loans to OREO 105 145 204 Loans held for sale to OREO - 2 4 Capital lease obligation 4 15 - |
Restriction on Cash, Dividends
Restriction on Cash, Dividends and Other Capital Actions | 12 Months Ended |
Dec. 31, 2015 | |
Restriction On Cash | |
Restriction on Cash, Dividends and Other Capital Actions | 3. RESTRICTIONS ON CASH , DIVIDEND S AND OTHER CAPITAL ACTION S The FRB, under Regulation D, requires that banks hold cash in reserve against deposit liabilities, kn own as the reserve requirement. The reserve requirement is calculated based on a two-week average of daily net transaction account deposits as defined by the FRB and may be satisfied with average vault cash during the following two-week maintenance period . When vault cash is not sufficient to meet the reserve requirement, the remaining amount must be satisfied with average funds held at the FRB. At December 31, 2015 and 2014 , the Bancorp's banking subsidiary reserve requirement was $ 1. 9 billion and $ 1. 8 billion, respectively . The Bancorp's banking subsidiary satisfied its reserve requirement during the two-week maintenance periods covering December 31, 2015 and 2014. The noninterest-bearing portion of the Bancorp's deposit at the FRB is held in cash and due from banks in the Consolidated Ba lance Sheets while the interest- bearing portion is held in other short-term investments in the Consolidated Balance Sheets. The dividends paid by the Bancorp's indirect banking subsidiary are subject to regulations and limitations prescribed by state and federal supervisory agencies. The Bancorp's indirect banking subsidiary paid the Bancorp 's direct nonbank subsidiary holding company , which in turn paid the Bancorp $ 1. 0 b illion an d $ 1.1 b illion in dividends during the year s ended December 31, 2015 and 2014 , respectively . In 2011, the FRB adopted the capital plan rule, which requires BHCs with consolidated assets of $ 50 billion or more to submit annual capit al plans to the FRB for review. Under the rule, these capital plans must includ e detailed descriptions of the following: the BHC's internal processes for assessing capital adequacy; the policies governing capital actions such as common stock issuances, dividends, and share repurchases; and all planned capital actions over a nine -quarter planning horizon. Further, each BHC must also report to the FRB the results of stress tests conducted by the BHC under a number of scenarios that assess the sources and uses of capital under baseline a nd stressed economic scenarios. The FRB launched the 201 5 stress testing program and CCAR on October 23, 2014 , with firm submissions of stress test results and capital plans due to the FRB on January 5 , 201 5 , which the Bancorp submitted as required. The FRB's review of the capital plan assessed the comprehensiveness of the capital plan, the reasonableness of the assumptions and the analysis underlying the capital plan. Additionally, the FRB reviewed the robustness of the capital adequacy process, the capital policy and the Bancorp's ability to maintain capital above the minimum regulatory capital ratios and above a Tier I common ratio (changed to CET1 on January 1, 2015) of 5% on a pro forma basis under expected and stressful conditions throughout the planning horizon. The FRB assessed the Bancorp's strategies for addressing proposed revisions to the regulatory capital framework agreed upon by the BCBS and requirements arising from the DFA . On March 11, 2015, the Bancorp announced the results of its capital plan submitted to the FRB as part of the 2015 CCAR . For BHCs that proposed capital distributions in their plans, the FRB either objected to the plan or provided a non-objection whereby the FRB permitted the proposed 201 5 capital distributions. The FRB indicated to the Bancorp that it did not object to the following capital actions for the period beginning April 1, 201 5 and ending June 30 , 201 6 : The potential increase in the quarterly common stock dividend to $0.1 4 per shar e in 2016 ; The potential repurchase of common shares in an amount up to $ 765 million; and The additional ability to repurchase shares in the amount of any after-tax gains from the sale of Vantiv , Inc. common stock . As contemplated by the 2014 capital plan part of the FRB's CCAR, during the first quarter of 201 5 , the Bancorp entered into a $ 1 8 0 million accelerated share repurchase transaction . As contemplated by the 2015 capital plan part of the FRB's CCAR , the Bancorp entered into $ 155 million, $ 300 million and $ 215 million of accelerated share repurchase tra nsactions during the second, third and fourth quarters of 2015 , respectively . Additionally, as a CCAR institution, the Bancorp is required to disclose the results of its company-run stress test under the supervisory severely adverse scenario, and to provide information related to the types of risk included in its stress testing; a general description of the methodologies used; estimates of certain financial results and pro forma capital ratios; and an explanation of the most significant causes of changes in regulatory capital ratios. On March 5 , 201 5 the Bancorp publicly disclosed the results of its company-run stress test as required by the DFA stress testing rules , in a press release . The BHCs that participated in the 201 5 CCAR, including the Bancorp, wer e required to also conduct mid-cycle company-run stress tests using data as of March 31, 201 5 . The stress tests must be based on three BHC defined scenarios – baseline, adverse and severely adverse. T he Bancorp submitted the results of its mid-cycle stress test to the FRB by the required July 6 , 201 5 submission date . In addition, the Bancorp published a Form 8-K providing a summary of the results under the severely adverse scenario on July 27, 2015. These results represented estimates of the Bancorp's results from the second quarter of 2015 through the second quarter of 201 7 under the severely adverse scenario . |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investment Securities | |
Investment Securities | 4. INVESTMENT Sec urities 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 investment securities portfolios as of December 31: 2015 2014 Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair ($ in millions) Cost Gains Losses Value Cost Gains Losses Value Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 1,155 32 - 1,187 1,545 87 - 1,632 Obligations of states and political subdivisions securities 50 2 - 52 185 7 - 192 Mortgage-backed securities: Agency residential mortgage-backed securities (a) 14,811 283 (13) 15,081 11,968 437 (1) 12,404 Agency commercial mortgage-backed securities 7,795 100 (33) 7,862 4,465 101 (1) 4,565 Non-agency commercial mortgage-backed securities 2,801 35 (32) 2,804 1,489 61 - 1,550 Asset-backed securities and other debt securities 1,363 13 (21) 1,355 1,324 40 (2) 1,362 Equity securities (b) 703 2 (2) 703 701 3 (1) 703 Total available-for-sale and other securities $ 28,678 467 (101) 29,044 21,677 736 (5) 22,408 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 68 - - 68 186 - - 186 Asset-backed securities and other debt securities 2 - - 2 1 - - 1 Total held-to-maturity securities $ 70 - - 70 187 - - 187 Includes interest-only mortgage- backed securities of $ 50 and $ 175 as of December 31, 2015 and 2014, respectively, recorded at fair value with fair value changes recorded in securities gains, net , i n the Consolidated Statements of Income . Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 355 , and $ 1 , respectively, at December 31, 2015 and $ 248 , $ 352 and $0 , respectively, at December 31, 2014, that are carried at cost, and certain mutual fund and equity security holdings. The following table presents realized gains and losses that were recognized in income from available-for-sale securities for the years ended December 31: ($ in millions) 2015 2014 2013 Realized gains $ 97 70 77 Realized losses (76) (9) (102) OTTI (5) (24) (74) Net realized gains (losses) (a) $ 16 37 (99) Excludes net losses on interest-only mortgage-backed securities of $ 4 and $ 1 7 for the years ended December 31, 2015 and 2014, respectively, and net gains on interest-only mortgage-backed securities of $ 129 for the year ended December 31 , 2013 . Trading securities were $386 million as of December 31, 2015, compared to $360 million at December 31, 2014. The following table presents total gains and losses that were recognized in income from trading securities for the years ended December 31: ($ in millions) 2015 2014 2013 Realized gains (a) $ 6 8 5 Realized losses (b) (10) (7) (8) Net unrealized (losses) gains (c) (3) (3) 3 Total trading securities losses $ (7) (2) - Includes realized gains of $ 6 , $ 4 and $ 4 for the years ended December 31, 2015 , 2014 and 2013 , respectively, recorded in corporate banking revenue and investment advisory revenue in the Consolidated Statements of Income . Includes realized losses of $ 10 , $ 7 and $ 8 for the years ended December 31, 2015 , 2014 and 2013 , respectively, recorded in corporate banking revenue and investment advisory revenue in the Consolidated Statements of Income . Includes an immaterial amount of net unrealized gains for the years ended December 31, 2015 , 2014 and 2013 recorded in corporate banking revenue and investment advisory revenue in the Consolidated Statements of Income. At December 31, 2015 and 2014 , securities with a fair value of $ 1 1.0 billion and $ 1 4.2 billion, respectively, were pledged to secure borrowings, public deposits, trust funds, derivative contracts and for other purposes as required or permitted by law. The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale and other and held-to-maturity investment securities as of December 31, 2015 are shown in the following table: Available-for-Sale and Other Held-to-Maturity ($ in millions) Amortized Cost Fair Value Amortized Cost Fair Value Debt securities: (a) Less than 1 year $ 695 707 43 43 1-5 years 7,277 7,441 12 12 5-10 years 18,191 18,372 13 13 Over 10 years 1,812 1,821 2 2 Equity securities 703 703 - - Total $ 28,678 29,044 70 70 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 December 31: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized ($ in millions) Fair Value Losses Fair Value Losses Fair Value Losses 2015 Agency residential mortgage-backed securities $ 2,903 (13) - - 2,903 (13) Agency commercial mortgage-backed securities 3,111 (33) - - 3,111 (33) Non-agency commercial mortgage-backed securities 1,610 (32) - - 1,610 (32) Asset-backed securities and other debt securities 623 (11) 226 (10) 849 (21) Equity securities 1 (1) 37 (1) 38 (2) Total $ 8,248 (90) 263 (11) 8,511 (101) 2014 Agency residential mortgage-backed securities $ 73 (1) - - 73 (1) Agency commercial mortgage-backed securities 355 (1) - - 355 (1) Asset-backed securities and other debt securities 286 (1) 74 (1) 360 (2) Equity securities - - 30 (1) 30 (1) Total $ 714 (3) 104 (2) 818 (5) Other-T han-Temporary Impairments The Bancorp recognized $ 5 million, $ 2 4 million and $ 74 million of OTTI on its available-for-sale and other debt securities , included in securities gains , net and securities gains, net – non-qualifying hedges on mortgage servicing rights in the Co nsolidated Statements of Income during the year s ended December 31, 2015, 2014 and 2013, respectively. The Bancorp did not recognize OTTI on any of its available-for-sale equity securities or he ld-to-maturity debt securities during the y ears ended December 31, 2015, 2014 and 2013 . At December 31, 2015 , 1% of unrealized losses in the available-for-sale and other securities portfolio were represented by non -rated securities, compared to less than 1% at December 31, 2014. |
Loans and Leases
Loans and Leases | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Leases Receivable | |
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 generally 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, refer to Note 6 . The following table provides a summary of commercial loans and leases classified by primary purpose and consumer loans and leases classified based upon product or collateral as of December 31: ($ in millions) 2015 2014 Loans and leases held for sale: Commercial and industrial loans $ 20 36 Commercial mortgage loans 34 11 Commercial construction loans 0 2 Commercial leases 0 1 Residential mortgage loans 708 1,193 Home equity 35 0 Automobile loans 4 0 Credit card 101 0 Other consumer loans and leases 1 18 Total loans and leases held for sale $ 903 1,261 Portfolio loans and leases: Commercial and industrial loans $ 42,131 40,765 Commercial mortgage loans 6,957 7,399 Commercial construction loans 3,214 2,069 Commercial leases 3,854 3,720 Total commercial loans and leases 56,156 53,953 Residential mortgage loans 13,716 12,389 Home equity 8,301 8,886 Automobile loans 11,493 12,037 Credit card 2,259 2,401 Other consumer loans and leases 657 418 Total consumer loans and leases 36,426 36,131 Total portfolio loans and leases $ 92,582 90,084 T otal portfolio loans and leases are recorded net of unearned income, which totaled $ 6 24 million as of December 31, 2015 and $ 665 m illion as of December 31, 2014 . Additionally, portfolio loans and leases are recorded net of unamortized premiums and discount s, deferred loan fees and costs and fair value adjustments (associated with acquired loans or loans designated as fair value upon origination) which totaled a net premium of $ 220 million and $ 1 69 million as of December 31, 2015 and 2014 , respectively . The Bancorp's FHLB and FRB advances are generally secured by loans. The Bancorp had loans of $ 1 1 . 9 billion and $ 11 . 1 billion at December 31, 2015 and 2014, respectively, pledged at the FHLB, and loans of $ 3 3. 7 billion and $ 3 3 . 9 billion at December 31, 2015 and 2014, respectively , pledged at the FRB. The following table presents a summary of the total loans and leases owned by the Bancorp and net charge-offs as of and for the years ended December 31: 90 Days Past Due Net Balance and Still Accruing Charge-Offs ($ in millions) 2015 2014 2015 2014 2015 2014 Commercial and industrial loans $ 42,151 40,801 7 - 229 222 Commercial mortgage loans 6,991 7,410 - - 27 26 Commercial construction loans 3,214 2,071 - - 3 12 Commercial leases 3,854 3,721 - - 2 1 Residential mortgage loans 14,424 13,582 40 56 17 126 Home equity 8,336 8,886 - - 39 59 Automobile loans 11,497 12,037 10 8 28 27 Credit card 2,360 2,401 18 23 82 82 Other consumer loans and leases 658 436 - - 19 20 Total loans and leases $ 93,485 91,345 75 87 446 575 Less: Loans and leases held for sale $ 903 1,261 Total portfolio loans and leases $ 92,582 90,084 The Bancorp engages in commercial lease products primarily related to the financing of commercial equipment. The Bancorp had $ 3 . 1 billion and $ 2 . 8 billion of direct financing leases , net of unearned income, at December 31, 2015 and 2014 , respectively, and $ 8 01 million and $ 8 74 million of leveraged leases , net of unearned income, at December 31, 2015 and 2014 , respectively . Pre-tax incom e from leveraged leases was $ 27 million during the year ended December 31, 2015 and $ 25 million during both the years ended December 31, 2014 and 2013 and t he tax effect of this income was an expense of $ 1 million for the year ended December 31, 2015 and $ 9 m illion during both the years ended December 31, 2014 and 2013 . The following table provides the components of the commercial lease financing portfolio as of December 31: ($ in millions) 2015 2014 Rentals receivable, net of principal and interest on nonrecourse debt $ 3,550 3,589 Estimated residual value of leased assets 906 779 Initial direct cost, net of amortization 22 17 Gross investment in lease financing 4,478 4,385 Unearned income (624) (665) Net investment in commercial lease financing (a) $ 3,854 3,720 The accumulated allowance for uncollectible minimum lease payments was $ 4 7 and $ 45 at December 31, 2015 and 2014 , respectively. The Bancorp periodically reviews residual values associated with its leasing portfolio. Declines in residual values that are deemed to be other-than-temporary are recognized as a loss. The Bancorp recognized $ 8 million and $ 4 million of residual value write-downs related to commercial leases for the year s ended December 31, 2015 and 2014 , respectively . The residual value write-downs related to commercial leases are recorded in corporate banking revenue in the Con solidated Statements of Income. At December 31, 2015 , the minimum future lease payments recei vable for each of the years 2016 through 2020 was $ 715 million, $ 6 3 2 million, $ 5 32 million, $ 4 49 million and $ 3 33 million, respectively . |
Credit Quality and the Allowanc
Credit Quality and the Allowance for Loan and Lease Losses | 12 Months Ended |
Dec. 31, 2015 | |
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 . Allowance for Loan and Lease Losses The following tables summarize transactions in the ALLL by portfolio segment for the years ended December 31: Residential 2015 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 875 104 237 106 1,322 Losses charged-off (298) (28) (216) - (542) Recoveries of losses previously charged-off 37 11 48 - 96 Provision for loan and lease losses 226 13 148 9 396 Balance, end of period $ 840 100 217 115 1,272 Residential 2014 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 1,058 189 225 110 1,582 Losses charged-off (299) (139) (241) - (679) Recoveries of losses previously charged-off 38 13 53 - 104 Provision for loan and lease losses 78 41 200 (4) 315 Balance, end of period $ 875 104 237 106 1,322 Residential 2013 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 1,236 229 278 111 1,854 Losses charged-off (284) (70) (283) - (637) Recoveries of losses previously charged-off 64 10 62 - 136 Provision for loan and lease losses 42 20 168 (1) 229 Balance, end of period $ 1,058 189 225 110 1,582 The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: Residential As of December 31, 2015 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 119 a (c) 67 49 - 235 Collectively evaluated for impairment 721 33 168 - 922 Unallocated - - - 115 115 Total ALLL $ 840 100 217 115 1,272 Portfolio loans and leases: (b) Individually evaluated for impairment $ 815 a (c) 630 424 - 1,869 Collectively evaluated for impairment 55,341 12,917 22,286 - 90,544 Loans acquired with deteriorated credit quality - 2 - - 2 Total portfolio loans and leases $ 56,156 13,549 22,710 - 92,415 Includes $ 5 related to leverage d leases at December 31, 2015 . Excludes $ 167 of residential mortga ge loans measured at fair value and includes $ 8 01 of leverage d leases, net of unearned income , at December 31, 2015 . Includes five restructured l oans at December 31, 2015 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 $ 27 and an ALLL of $ 15 . Residential As of December 31, 2014 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 179 a (c) 65 61 - 305 Collectively evaluated for impairment 696 39 176 - 911 Unallocated - - - 106 106 Total ALLL $ 875 104 237 106 1,322 Portfolio loans and leases: (b) Individually evaluated for impairment $ 1,260 a (c) 518 483 - 2,261 Collectively evaluated for impairment 52,693 11,761 23,259 - 87,713 Loans acquired with deteriorated credit quality - 2 - - 2 Total portfolio loans and leases $ 53,953 12,281 23,742 - 89,976 Includes $ 6 related to leverage d leases at December 31 , 2014 . Excludes $ 108 of residential mortga ge loans measured at fair value and includes $ 8 74 of leverage d leases, net of unearned income , at December 31, 2014 . Includes five restructured loans at December 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 ALLL of $ 1 0 . C REDIT 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 leas es . 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 and loss. The five categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. Pass ratings, which are assigned to those borrowers that do not have identified potential or well defined weaknesses and for which there is a high likelihood of orderly repayment, are updated at least annually based on the size and credit characteristics of the borrower. All other categories are updated on a quarterly basis during the month preceding the end of the calendar quarter. The Bancorp assigns a special mention rating to loans and leases that have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan or lease or the Bancorp's credit position. The Bancorp assigns a substandard rating to loans and leases that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. Substandard loans and leases have well defined weaknesses or weaknesses that could jeopardize the orderly repayment of the debt. Loans and leases in this grade also are characterized by the distinct possibility that the Bancorp will sustain some loss if the deficiencies noted are not addressed and corrected. The Bancorp assigns a doubtful rating to loans and leases that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. Loans and leases classified as loss are considere d uncollectible and are charged- off in the period in which they are determined to be uncollectible. Because loans and leases in this category are ful ly charged-off , they are not included in the following tables. The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class: Special As of December 31, 2015 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 38,756 1,633 1,742 - 42,131 Commercial mortgage owner-occupied loans 3,344 124 191 - 3,659 Commercial mortgage nonowner-occupied loans 3,105 63 130 - 3,298 Commercial construction loans 3,201 4 9 - 3,214 Commercial leases 3,724 93 37 - 3,854 Total commercial loans and leases $ 52,130 1,917 2,109 - 56,156 Special As of December 31, 2014 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 38,013 1,352 1,400 - 40,765 Commercial mortgage owner-occupied loans 3,430 137 267 - 3,834 Commercial mortgage nonowner-occupied loans 3,198 76 284 7 3,565 Commercial construction loans 1,966 65 38 - 2,069 Commercial leases 3,678 9 33 - 3,720 Total commercial loans and leases $ 50,285 1,639 2,022 7 53,953 Residential Mortgage and Consumer Portfolio Segment s 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 while the performing versus nonperforming status is presented in the following table . Refer to the nonaccrual loans and leases section of Note 1 for additional delinquenc y and nonperforming information . The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class, disaggregated into performing versus nonperforming status as of December 31: 2015 2014 ($ in millions) Performing Nonperforming Performing Nonperforming Residential mortgage loans (a) $ 13,498 51 12,204 77 Home equity 8,222 79 8,793 93 Automobile loans 11,491 2 12,036 1 Credit card 2,226 33 2,360 41 Other consumer loans and leases 657 - 418 - Total residential mortgage and consumer loans and leases (a) $ 36,094 165 35,811 212 Excludes $ 167 and $ 108 of loans measured at fair value at December 31, 2015 and 2014 , respectivel y . 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: Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of December 31, 2015 ($ in millions) Leases (c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 41,996 55 80 135 42,131 7 Commercial mortgage owner-occupied loans 3,610 15 34 49 3,659 - Commercial mortgage nonowner-occupied loans 3,262 9 27 36 3,298 - Commercial construction loans 3,214 - - - 3,214 - Commercial leases 3,850 3 1 4 3,854 - Residential mortgage loans (a)(b) 13,420 37 92 129 13,549 40 Consumer loans and leases: Home equity 8,158 82 61 143 8,301 - Automobile loans 11,407 75 11 86 11,493 10 Credit card 2,207 29 23 52 2,259 18 Other consumer loans and leases 656 1 - 1 657 - Total portfolio loans and leases (a) $ 91,780 306 329 635 92,415 75 Excludes $ 167 of residential mortgage loans measured at fair value at December 31, 2015 . Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whos e repayments are insured by the FHA or guaranteed by the VA . As of December 31, 2015 , $ 102 of these lo an s were 30-89 days past due and $ 3 35 were 90 days or more past due. The Bancorp recognized $ 8 of losses during the year ended December 31, 2015 due to claim denials and curtailments associated with these insured or guaranteed loans . Includes accrual and nonaccrual loans and leases. Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of December 31, 2014 ($ in millions) Leases (c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 40,651 29 85 114 40,765 - Commercial mortgage owner-occupied loans 3,774 7 53 60 3,834 - Commercial mortgage nonowner-occupied loans 3,537 11 17 28 3,565 - Commercial construction loans 2,069 - - - 2,069 - Commercial leases 3,717 3 - 3 3,720 - Residential mortgage loans (a)(b) 12,109 38 134 172 12,281 56 Consumer loans and leases: Home equity 8,710 100 76 176 8,886 - Automobile loans 11,953 74 10 84 12,037 8 Credit card 2,335 34 32 66 2,401 23 Other consumer loans and leases 417 1 - 1 418 - Total portfolio loans and leases (a) $ 89,272 297 407 704 89,976 87 Excludes $ 108 of residential mortgage loans measured at fair value at December 31, 2014 . Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA . As of December 31, 2014 , $ 99 of these loans were 30-89 days past due and $ 37 3 were 90 days or more past due. The Bancorp recognized $ 14 of losses during the year ended December 31, 2014 due to claim denials and curtailments associated with these insured or guaranteed loans . Includes accrual and nonaccrual loans and leases . Impaired Portfolio Loans and Leases Larger commercial loans and leases included within aggregate borrower relationship balances exceeding $1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment . The Bancorp also performs an individual review on loans and leases that are restructured in a TDR . The Bancorp considers the current value of collateral, credit quality of any guarantees, the loan structure and other factors when evaluating whether an individual loan or lease is impaired. Other factors may include the geography and industry of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower and the Bancorp's evaluation of the borrower's management. Smaller - balance homogenous loans or leases that are collectively evaluated for impairment are not included in the following tables. The following tables summarize the Bancorp’s impaired portfolio loans and leases, by class, that were subject to individual review, which includes all portfolio loans and leases restructured in a TDR as of December 31: Unpaid Principal Recorded 2015 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 412 346 84 Commercial mortgage owner-occupied loans (b) 28 21 5 Commercial mortgage nonowner-occupied loans 75 64 12 Commercial construction loans 4 4 2 Commercial leases 3 3 1 Restructured residential mortgage loans 450 444 67 Restructured consumer loans and leases: Home equity 226 225 32 Automobile loans 17 16 2 Credit card 61 61 15 Total impaired portfolio loans and leases with a related ALLL $ 1,276 1,184 220 With no related ALLL: Commercial loans and leases: Commercial and industrial loans $ 228 182 - Commercial mortgage owner-occupied loans 54 51 - Commercial mortgage nonowner-occupied loans 126 111 - Commercial construction loans 9 5 - Commercial leases 1 1 - Restructured residential mortgage loans 210 186 - Restructured consumer loans and leases: Home equity 122 119 - Automobile loans 3 3 - Total impaired portfolio loans and leases with no related ALLL 753 658 - Total impaired portfolio loans and leases $ 2,029 1,842 a (a) 220 Includes $ 491 , $ 607 and $ 37 2 , respectively, of commercial , resid ential mortgage and consumer portfolio TDR s on accrual statu s and $ 203 , $ 23 and $ 52 , respectively , of commercial, reside ntial mortgage and consumer portfolio TDR s on nonaccrual status at December 31, 2015 . Excludes five restructured l oans at December 31 , 2015 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 $ 27 , a recorded investment of $ 27 and an ALLL of $ 15 . Unpaid Principal Recorded 2014 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 598 486 149 Commercial mortgage owner-occupied loans (b) 54 46 14 Commercial mortgage nonowner-occupied loans 69 57 4 Commercial construction loans 18 15 - Commercial leases 3 3 2 Restructured residential mortgage loans 388 383 65 Restructured consumer loans and leases: Home equity 203 201 42 Automobile loans 19 19 3 Credit card 78 78 16 Total impaired portfolio loans and leases with a related ALLL $ 1,430 1,288 295 With no related ALLL: Commercial loans and leases: Commercial and industrial loans $ 311 276 - Commercial mortgage owner-occupied loans 72 68 - Commercial mortgage nonowner-occupied loans 251 231 - Commercial construction loans 48 48 - Commercial leases 2 2 - Restructured residential mortgage loans 155 135 - Restructured consumer loans and leases: Home equity 183 180 - Automobile loans 5 5 - Total impaired portfolio loans and leases with no related ALLL 1,027 945 - Total impaired portfolio loans and leases $ 2,457 2,233 a (a) 295 Includes $ 869 , $ 485 and $ 4 20 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 2 14 , $ 33 and $ 63 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2014 . Excludes five restructured loans at December 31, 2014 as sociated 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 ALLL of $ 1 0 . The following table summarizes the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class, for the years ended December 31: 2015 2014 2013 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income ($ in millions) Investment Recognized Investment Recognized Investment Recognized Commercial loans and leases: Commercial and industrial loans $ 663 21 786 25 517 16 Commercial mortgage owner-occupied loans (a) 92 2 149 4 146 4 Commercial mortgage nonowner-occupied loans 224 7 268 8 321 8 Commercial construction loans 41 1 92 2 108 4 Commercial leases 5 - 13 - 11 - Restructured residential mortgage loans 586 23 1,273 54 1,311 53 Restructured consumer loans and leases: Home equity 361 13 394 20 429 23 Automobile loans 22 1 24 1 29 1 Credit card 68 6 62 5 68 4 Other consumer loans and leases - - - - 2 - Total average impaired portfolio loans and leases $ 2,062 74 3,061 119 2,942 113 Excludes five restructured loans 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 average recorded investment of $ 27 for the year ended December 31, 2015 and $ 28 f or both of the years ended December 31, 2014 and 2013 . A n immaterial amount of interest income was recognized during the years ended December 31, 2015 , 2014 and 2013 . 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 presents the Bancorp’s nonperforming loans and leases, by class, and OREO and other repossessed property as of December 31: ($ in millions) 2015 2014 Commercial loans and leases: Commercial and industrial loans $ 259 228 Commercial mortgage owner-occupied loans (a) 46 78 Commercial mortgage nonowner-occupied loans 35 57 Commercial leases 1 4 Total nonaccrual portfolio commercial loans and leases 341 367 Residential mortgage loans 51 77 Consumer loans and leases: Home equity 79 93 Automobile loans 2 1 Credit card 33 41 Total nonaccrual portfolio consumer loans and leases 114 135 Total nonaccrual portfolio loans and leases (b)(c) $ 506 579 OREO and other repossessed property (d) 141 165 Total nonperforming portfolio assets (b)(c)(d) $ 647 744 Excludes $ 20 and $ 21 of restructured nonaccrual loans at December 31, 2015 and 2014 , respectively, associated with a consolidated VIE in which the Bancorp has no continuing credit risk due the risk being assumed by a third party. Excludes $ 12 and $ 39 of nonaccrual loans held for sale at December 31 , 2015 and 2014 , respectively . Includes $ 6 and $ 9 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at December 31, 2015 and 2014 , respectively , and $ 2 and $ 4 of restructured nonaccrual government insured commercial loans at December 31, 2015 and 2014, respectively . Excludes $ 14 and $ 7 1 of OREO related to government insured loans at December 31, 2015 and 2014, respectively . The Bancorp has historically excluded government guaranteed loans classified in OREO from its nonperforming asset disclosures. Upon the prospective adoption on January 1, 2015 of ASU 2014-14 “Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure”, government guaranteed loans meeting certain criteria were reclassified to other receivables rather than OREO upon foreclosure. At December 31, 2015 , the Bancorp had $ 4 4 of government guaranteed loans classified as other receivables. Refer to Note 1 for further information on the adoption of this amended guidance. The Bancorp's recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction was $ 3 03 million as of December 31, 2015 . 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 o f the loan's maturity date with a stated rate lower than the current market rate for a new loan with similar risk, or in limited circumstances, a reduction of the principal balance of the loan or the loan's accrued interest. Modifying the terms of a loan may result in an increase or decrease to the ALLL depending upon the terms modified, the method used to measure the ALLL for a loan prior to modification, and whether any charge-offs were recorded on the loan before o r at the time of modification. Ref er to the ALLL section of Note 1 for information on t he Bancorp's ALLL methodology. Upon modification of a loan , the Bancorp measures the related imp airment as the difference between the estimated future cash fl ows expected to be collected on the modified loan , discounted at the original effective yield of the loan , and the carrying value of the loan. The resulting measurement may result in the need for minimal or no 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, upon a modification that reduces the stated interest rate on a loan, the Bancorp recognizes an impairment loss as an increase to the ALLL . If a TDR involves a reduction of the principal balance of the loan or the loan's accrued i nterest, that amount is charged- off to the ALLL. As of December 31, 2015, the Bancorp had $ 39 million and $ 23 million in line of credit and letter of credit commitments , respectively, compared to $ 63 million and $ 26 million in line of credit and letter of credit commitments as of December 31, 2014, respectively, to lend additional funds to borrowers whose terms have been modified in a TDR . The following tables provide a summary of loans by class modified in a TDR by the Bancorp during the years ended December 31: Recorded investment Increase Number of loans in loans modified (Decrease) Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon 2015 ($ in millions) (a) during the year (b) during the year modification modification Commercial loans and leases: Commercial and industrial loans 77 $ 146 7 3 Commercial mortgage owner-occupied loans 18 16 (2) - Commercial mortgage nonowner-occupied loans 12 7 (1) - Residential mortgage loans 1,089 155 8 - Consumer loans and leases: Home equity 267 16 (1) - Automobile loans 440 7 1 - Credit card 12,569 62 11 7 Total portfolio loans and leases 14,472 $ 409 23 10 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Recorded investment Increase Number of loans in loans modified (Decrease) Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon 2014 ($ in millions) (a) during the year (b) during the year modification modification Commercial loans and leases: Commercial and industrial loans 128 $ 230 12 6 Commercial mortgage owner-occupied loans 32 54 (1) - Commercial mortgage nonowner-occupied loans 28 30 (3) 2 Residential mortgage loans 1,093 160 8 - Consumer loans and leases: Home equity 284 12 - - Automobile loans 608 10 1 - Credit card 8,929 52 10 - Total portfolio loans and leases 11,102 $ 548 27 8 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Recorded investment Increase Number of loans in loans modified (Decrease) Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon 2013 ($ in millions) (a) during the year (b) during the year modification modification Commercial loans and leases: Commercial and industrial loans 146 $ 604 39 44 Commercial mortgage owner-occupied loans (c) 65 19 (2) - Commercial mortgage nonowner-occupied loans 59 72 (7) - Commercial construction loans 4 34 (2) - Commercial leases 1 2 (5) - Residential mortgage loans 1,620 249 28 - Consumer loans and leases: Home equity 695 37 (1) - Automobile loans 499 14 1 - Credit card 8,202 50 7 - Total portfolio loans and leases 11,291 $ 1,081 58 44 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Excludes five loans m odified in a TDR during the year ended December 31, 2013 associated with a consolidated VIE in which the Bancorp h as no continuing credit risk due to the risk being assumed by a third party. The TDR had a recorded investment of $ 2 9 at modification , the ALL L 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, loss rates that are applied for purposes of determining the ALLL 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 mobile 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. The Bancorp recognizes ALLL for the entire balance of the credit card loans modified in a TDR that subsequently default . The following tables provide a summary of TDRs that subsequently defaulted during the years ended December 31, 2015, 2014 and 2013 that was within twelve months of the restructuring date: Number of Recorded December 31, 2015 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 7 $ 11 Commercial mortgage owner-occupied loans 3 1 Residential mortgage loans 156 21 Consumer loans and leases: Home equity 15 1 Automobile loans 8 - Credit card 1,935 8 Total portfolio loans and leases 2,124 $ 42 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality . Number of Recorded December 31, 2014 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 11 $ 36 Commercial mortgage owner-occupied loans 3 4 Commercial mortgage nonowner-occupied loans 2 1 Residential mortgage loans 235 32 Consumer loans and leases: Home equity 30 2 Automobile loans 6 - Credit card 2,059 12 Total portfolio loans and leases 2,346 $ 87 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality . Number of Recorded December 31, 2013 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 6 $ 11 Commercial mortgage owner-occupied loans 7 1 Residential mortgage loans 375 58 Consumer loans and leases: Home equity 65 4 Automobile loans 4 - Credit card 1,768 11 Total portfolio loans and leases 2,225 $ 85 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality . |
Bank Premises and Equipment
Bank Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Bank Premises and Equipment | |
Bank Premises and Equipment | 7. BANK PREMISES AND EQUIPMENT The following table provides a summary of bank premises and equipment as of December 31: ($ in millions) Estimated Useful Life 2015 2014 Land and improvements (a) $ 685 793 Buildings 2 - 30 yrs. 1,755 1,807 Equipment 2 - 30 yrs. 1,696 1,682 Leasehold improvements 5 - 30 yrs. 403 416 Construction in progress 85 98 Bank premises and equipment held for sale: Land and improvements 55 23 Buildings 20 3 Equipment 3 - Leasehold improvements 3 - Accumulated depreciation and amortization (2,466) (2,357) Total bank premises and equipment $ 2,239 2,465 At December 31, 2015 and 2014, land and improvements included $ 102 and $ 165 , respectively, associated with parcels of undeveloped land intended for future branch expansion. Depreciation and amortization expense related to bank premises and equipment was $ 2 5 6 million , $ 2 54 million and $ 2 45 million for the years ended December 31, 2015 , 2014 and 2013 , respectively . The Bancorp monitors changing customer preferences associated with the channels it uses for banking transactions to evaluate the efficiency, competitiveness and quality of the customer service experience in its consumer distribution network. As part of this ongoing assessment, the Bancorp may determine that it is no longer fully committed to maintaining full-service branches at certain of its existing banking center locations. Similarly, the Bancorp may also determine that it is no longer fully committed to building banking centers on certain parcels of land which had previously been held for future branch expansion. On June 16, 2015, the Bancorp's Board of Directors authorized management to pursue a plan to further develop its distribution strategy, including a plan to consolidate and/or sell certain operating branch locations and certain parcels of undeveloped land that had been acquired by the Bancorp for future branch expansion (the “Branch Consolidation and Sales Plan”). On September 3, 2015, the Bancorp announced the decision to enter into an agreement to sell branch banking locations, retail accounts, certain private banking deposits and related loan relationships in the Pittsburgh MSA to First National Bank of Pennsylvania. On September 30, 2015, the Bancorp announced the decision to enter into an agreement to sell its retail operations, including retail accounts, certain private banking deposits and related loan relationships in the St. Louis MSA to Great Southern Bank. Both transactions are part of the Branch Consolidation and Sales Plan and are expected to close in the first half of 2016. As of Decemb er 31, 2015, the Bancorp intended to consolidate and/or sell 107 operating branch locations and to sell an additional 32 parcels of undeveloped land that had been acquired by the Bancorp for future branch expansion. For further information on a subsequent event related to the Branch Consolidation and Sales Plan, refer to No te 31 . The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable . Impairment losses a ssociated with such assessments and lower of cost or market adjustments were $ 10 9 million , $ 20 million and $ 6 million for the year s ended December 31, 2015 , 2014 and 2013 , respectively . The recognized impairment losses were recorded in other noninterest income in the Consolidated Statements of Income. The following table summarizes the assets and liabilities classified as held for sale as a result of the Branch Consolidation and Sales Plan as of: ($ in millions) December 31, 2015 (d) Assets: Loans held for sale: Commercial and industrial loans $ 20 Commercial mortgage loans 22 Residential mortgage loans 188 Home equity 35 Automobile loans 4 Total loans held for sale (a) $ 269 Bank premises and equipment held for sale (included in the preceding table): Land and improvements (b) 25 Buildings (b) 14 Equipment (b) 3 Leasehold improvements (b) 3 Total bank premises and equipment held for sale (included in the preceding table) $ 45 Total assets held for sale $ 314 Liabilities: Deposits held for sale: Noninterest-bearing deposits $ 117 Interest-bearing deposits 511 Total deposits held for sale (c) $ 628 Total liabilities held for sale $ 628 Included in loans held for sale in the Consolidated Balance Sheets. Included in bank premises and equipment in the Consolidated Balance Sheets. Included in non interest-bearing deposits and interest-bearing deposits in the Consolidated Balance Sheets. Included in the Branch Banking, Consumer Lending and Investment Advisors business segments. Gross occupancy expense for cancelable and noncancelable leases , which is included in net occupancy expense in the Consolidated Statements of Income , was $ 1 1 0 million , $ 100 million and $ 9 8 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, which was reduced by rental income from leased premises of $ 1 8 million , $ 1 7 million and $ 1 6 million during the years ended December 31, 2015 , 2014 and 2013 , respectively . The Bancorp's subsidiaries have entered into a number of noncancelable operating and capital lease agreements with respect to bank premises and equipment. The following table provides the annual future minimum payments under noncancelable operating leases and capital leases for the years ending December 31: ($ in millions) Noncancelable Operating Leases Capital Leases 2016 $ 91 7 2017 84 6 2018 82 6 2019 74 5 2020 62 1 Thereafter 242 2 Total minimum lease payments $ 635 27 Less: Amounts representing interest - 3 Present value of net minimum lease payments - 24 |
Operating Lease Equipment
Operating Lease Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Operating Lease Equipment | |
Operating Lease Equipment | 8 . OPERATING LEASE EQUIPMENT As part of a periodic review of long-lived assets for impairment associated with operating lease assets, during the first quarter of 2015, the Bancorp identified an impairment regarding certain medium and large cabin corporate aircraft subject to leases expiring in 2017 and later. After applying the appropriate tests under current accounting guidance, it was determined that such recoverability was in doubt and the assets had, in fact, been impaired. The impact of the impairment was $ 30 million which was recognized as a reduction to corporate banking revenue in the Consolidated Statements of Income during the first quarter of 2015 as such diminution in value of the assets was associated with both the first quarter of 2015 and prior periods. The Bancorp assessed the materiality of this impairment and concluded it was immaterial to interim amounts during the first quarter of 2015 and previously reported annual and interim amounts. During the second and third quarters of 2015, the Bancorp recorded $ 4 million and $ 2 million, respectively, of impairment associated with operating lease assets. The impact of the impairments was recognized as a reduction to corporate banking revenue in the Consolidated Statements of Income. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill | |
Goodwill | 9 . GOODWILL Business combinations entered into by the Bancorp typically include the acquisition of goodwill. Acquisition activity includes acquis itions in the respective period in addition to purchase accounting adjustments related to previous acquisitions. During the fourth quarter of 2008, the Bancorp determined that the Commercial Banking and Consumer Lending reporting units' goodwill carrying amounts exceeded their associated implied fair values by $ 750 million and $ 215 million, respectively. The resulting $ 965 million goodwill impairment charge was recorded in the fourth quarter of 2008 and represents the total amount of accumulated impairment losses as of December 31, 2015 . Changes in the net carrying amount of goodwill, by reporting unit, for the years ended December 31, 2015 and 2014 were as follows: Commercial Branch Consumer Investment ($ in millions) Banking Banking Lending Advisors Total Net carrying value as of December 31, 2013 $ 613 1,655 - 148 2,416 Acquisition activity - - - - - Net carrying value as of December 31, 2014 $ 613 1,655 - 148 2,416 Acquisition activity - - - - - Net carrying value as of December 31, 2015 $ 613 1,655 - 148 2,416 The Bancorp completed its annual goodwill impairme nt test as of September 30, 2015 and the estimated fair value s of the Commercial Banking, Branch Banking and Investment Advisors reporting units substantially exceeded their carrying values, including goodwill . |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets | |
Intangible Assets | 10. INTANGIBLE ASSETS Intangible assets consist of core deposit in tangibles, customer lists, non-compete agreements and cardholder re lationships. 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 December 31, 2015 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 December 31, 2015 Core deposit intangibles $ 34 (26) 8 Other 33 (29) 4 Total intangible assets $ 67 (55) 12 As of December 31, 2014 Core deposit intangibles $ 122 (112) 10 Other 45 (40) 5 Total intangible assets $ 167 (152) 15 As of December 31, 2015 , all of the Bancorp's intangible assets were being amortized. Amortization expense recognized on intangible assets for the years end ed December 31, 2015, 2014 and 2013 was $ 2 million, $ 4 million and $ 8 million, respectively . The Bancorp's projections of amortization expense shown below are based on existing asset balances as of December 31, 2015. Future amortization expense may vary from these projections. Estimated amortization expense for the years ending December 31, 2016 through 2020 is as follows: ($ in millions) Total 2016 $ 2 2017 2 2018 2 2019 1 2020 1 |
VIE
VIE | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities | |
Variable Interest Entities | 11. 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 equ ity to finance their activities or the equity investors of the entities as a group lack any of the characteristics of a controlling interest. T he 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 require s 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 accou nting standards as appropriate. Consolidated VIEs The following tables provide a summary of the classifications of consolidated VIE assets, liabilities and noncontrolling interests included in the Consolidated Balance Sheets as of: Automobile Loan CDC December 31, 2015 ($ in millions) Securitizations Investments Total Assets: Cash and due from banks $ 151 1 152 Commercial mortgage loans - 47 47 Automobile loans 2,490 - 2,490 ALLL (11) (17) (28) Other assets 20 - 20 Total assets $ 2,650 31 2,681 Liabilities: Other liabilities $ 3 - 3 Long-term debt 2,493 - 2,493 Total liabilities $ 2,496 - 2,496 Noncontrolling interests $ - 31 31 Automobile Loan CDC December 31, 2014 ($ in millions) Securitizations Investments Total Assets: Cash and due from banks $ 178 1 179 Commercial mortgage loans - 47 47 Automobile loans 3,331 - 3,331 ALLL (11) (11) (22) Other assets 23 2 25 Total assets $ 3,521 39 3,560 Liabilities: Other liabilities $ 5 - 5 Long-term debt 3,434 - 3,434 Total liabilities $ 3,439 - 3,439 Noncontrolling interests $ - 39 39 Automobile Loan Securitization s In securitization transactions that occurred during the years ended December 31, 2015 and 2014 , the Bancorp transferred an aggregate amount of approximately $ 750 m illion and $ 3. 8 billion, respectively, in consumer automobile loans to bankruptcy remote trust s which were deemed to be VIE s . The primary purposes of the VIEs were to issue asset-backed securities with varying levels of credit subordination and payment priority, as well as residual interests, and to provide the Bancorp with access to liquidity for its originated loans. The Bancorp retained residual interests in the VIEs and, therefore, has an obligation to absorb losses and a right to receive benefits from the VIEs that could potentially be significant to the VIEs. In addition, the Bancorp retained servicing rights for the underlying loans and, therefore, holds the power to direct the activities of the VIEs that most significantly impact the economic performance of the VIEs. As a result, the Bancorp concluded that it is the primary beneficiary of the VIEs and, 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. T he economic performance of the VIE s is most significantly impacted by the performance of the underlying loans. The principal risks to which the VIE s 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 Investment s 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 a s 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 guarante e to the investor member of these LLC s related to the qualification of tax credits generated by the investor members' investment. Accordingly, the Bancorp concluded that it is the primary beneficiary and, therefore, has consolidated these VIE s . As a result, the investor members' interests in these VIE s are presented as noncontrolling interest s in the Bancorp's Consolidated Financial Statements. This presentation includes reporting separately the equity attributable to the noncontrolling interest s in the Consolidated Balance Sheets and Consolidated Statements of Changes in Equity and reporting separately the comprehensive income attributable to the noncontrolling interests in the Consolidated Statements of Comprehensive Income and the net income attributable to the noncontrolling interest s in the Consolidated Statements of Income. The Bancorp's maxi mum exposure related to these indemnification s at December 31, 2015 and 2014 was $ 2 7 million and $ 2 4 million, respectively , which is based on an amount requi red 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 Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities as of: Total Total Maximum December 31, 2015 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,455 367 1,455 Private equity investments 211 - 271 Loans provided to VIEs 1,630 - 2,599 Automobile loan securitization 1 - 1 Total Total Maximum December 31, 2014 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,432 364 1,432 Private equity investments 189 - 267 Loans provided to VIEs 1,900 - 2,759 Automobile loan securitization 2 - 2 CDC Investments As noted previously, CDC typically invests in VIEs as a limited partner or investor member in the form of equity contributions. The Bancorp has determined that it is not the primary beneficiary of these VIEs because it lacks the power to direct the activities that most significantly impact the economic performance of the underlying project or the VIEs' ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. This power is held by the general partners/managing members who exercise full and exclusive control of the operations of the VIEs. Accordingly, the Bancorp accounts for these investments under the equity method of accounting. The Bancorp's funding requirements are limited to its invested capital and any additional unfunded commitments for future equity contributions. The Bancorp's maximum exposure to loss as a result of its involvement with the VIEs is limited to the carrying amounts of the investments, including the unfunded commitments. T he carrying amounts of these investments, which are included in other assets in the Consolidated Balance Sheets, and the liabilities related to the unfunded commitments, which are included in other liabilities in the Consolidated Balance Sheets, are included in the previous tables for all periods presented. The Bancorp has no other liquidity arrangements or obligations to purchase assets of the VIEs that would expose the Bancorp to a loss. In certain arrangements, the general partner/managing member of the VIE has guaranteed a level of projected tax credits to be received by the limited partners/investor members, thereby minimizing a portion of the Bancorp's risk. At both December 31, 2015 and 2014, the Bancorp's CDC investments included $ 1. 3 billion of investments in affordable housing tax credits recognized in other assets in the Consolidated Balance Sheets. The unfunded commitments related to these investments were $ 356 million and $ 357 million as of December 31, 2015 and 2014, respectively. The unfunded commitments as of December 31, 2015 are expected to be funded from 2016 to 2033 . The Bancorp has accounted for all of its investments in qualified affordable housing tax credits using the equity method of accounting. The following table summarizes the impact to the Consolidated Statements of Income relating to investments in qualified affordable housing investments: Affected Line Item in the For the years ended December 31 ($ in millions) Consolidated Statements of Income 2015 2014 2013 Pre-tax equity method and impairment losses (a) Other noninterest expense $ 126 118 90 Tax credits and other benefits Applicable income tax expense (205) (185) (164) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during the year s ended December 31, 2015 , 2014 and 2013 . Private Equity Investments The Bancorp , through Fifth Third Capital Holdings, a wholly- owned indirect subsidiary of 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. U nder the VIE consolidation guidance still applicable to the funds, the Bancorp has determined that it is not the primary beneficiary of the funds because it does not absorb a majority of the funds' expected losses or receive a majority of the funds' expected residual returns. Therefore, the Bancorp accounts for its investments in these limited partnerships under the equity method of accounting. The Bancorp is exposed to losses arising from negative performance of the underlying investments in the private equity funds. As a limited partner, the Bancorp's maximum exposure to loss is limited to the carrying amounts of the investments plus unfunded commitments. T he carrying amounts of these investments, which are included in other assets in the Consolidated Balance Sheets, are included in the previous tables. Also, as of December 31, 2015 and 2014 , the unfunded commitment amounts to the funds were $ 60 million and $ 78 million , respectively. The Bancorp made capital contributions of $ 30 million and $ 27 million to private equity funds during the years ended December 31, 2015 and 2014 , respectively. The Bancorp recognized $ 1 million , zero and $ 4 million of OTTI on its investments in private equity funds during the year s ended December 31, 2015 , 2014 and 2013, respectively . Refer to Note 27 for further information. 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 syndication through which the Bancorp is involved. The sponsor/administrator of the entities is responsible for servicing the underlying assets in the VIEs. Because the sponsor/administrator, not the Bancorp, holds the servicing responsibilities, which include the establishment and employment of default mitigation policies and procedures, the Bancorp does not hold the power to direct the activities that most significant ly impact the economic performance of the entity and, therefore, is not the primary beneficiary. The princip al 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 . T he Bancorp 's o utstanding loans to these VIEs are included in commercial loans in Note 5 . As of December 31, 2015 and 2014 , the Bancorp's unfunded commitments to these entities were $ 969 m illion and $ 859 m illion, 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 The Bancorp previously securitized and sold certain automobile loans with a carrying amount of approximately $ 509 million in a transaction that 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 Consolidated Balance Sheets. The maximum exposure to loss is equal to the carrying value of the servicing asset. |
Sales of Receivables and Servic
Sales of Receivables and Servicing Rights | 12 Months Ended |
Dec. 31, 2015 | |
Sales of Receivables and Servicing Rights | |
Sales of Receivables and Servicing Rights | 12. Sale s of receivables and servicing rights Residential Mortgage TDR Loan Sale In March of 2015, the Bancorp recognized a $ 37 million gain, included in other noninterest income in the Consolidated Statements of Income, on the sale of certain HFS residential mortgage loans with a carrying value of $ 568 million that were previously modified in a TDR. As part of this sale, the Bancorp provided certain standard representations and warranties. Additionally, the Bancorp did not obtain servicing responsibilities on the sales of these loans and the investors have no credit recourse to the Bancorp's other assets for failure of debtors to pay when due. Residential Mortgage Loan Sales The Ba ncorp sold fixed and adjustable- rate residential mortgag e loans during the years ended December 31, 2015, 2014 and 2013. In those sales, the Bancorp obtained servicing responsibilities and provided certain standard representations and warranties, however the investors have no recourse to the Bancorp's other assets for failure of debtors to pay when due. The Bancorp receives 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 Consolidated Statements of Income, for the years ended December 31 is as follows: ($ in millions) 2015 2014 2013 Residential mortgage loan sales (a) $ 5,078 (b) 5,467 21,529 Origination fees and gains on loan sales 171 153 453 Gross mortgage servicing fees 222 246 251 Represents the unpaid principal balance at the time of the sale . Excludes $ 568 of HFS residential mortgage loans previously modified in a TDR that were sold during the first quarter of 2015. Servicing Rights The following table presents changes in the servicing rights related to residential mortgage and automobile loans for the years ended December 31: ($ in millions) 2015 2014 Carrying amount before valuation allowance: Balance, beginning of period $ 1,392 1,440 Servicing rights that result from the transfer of residential mortgage loans 63 73 Amortization (140) (121) Other-than-temporary impairment (111) 0 Balance, end of period $ 1,204 1,392 Valuation allowance for servicing rights: Balance, beginning of period $ (534) (469) Recovery of (provision for) MSR impairment 4 (65) Other-than-temporary impairment 111 0 Balance, end of period (419) (534) Carrying amount after valuation allowance $ 785 858 Amortization expense recognized on servicing rights for the years ended December 31, 2015, 2014 and 2013 was $ 140 million, $ 1 21 million and $ 1 68 million, respectively. The Bancorp's projections of amortization expense shown below are based on existing asset balances and static key economic assumptions as of December 31, 2015 . Future amortization expense may vary from these projections . Estimated amortization expense for the years ending December 31, 2016 through 2020 is as follows: ($ in millions) Total 2016 $ 114 2017 103 2018 93 2019 85 2020 77 Temporary impa irment or impairment recovery, a ffected through a change in the MSR valuation allowance, is captured as a component of mortgage banking net revenue in the Consolidated Statements of Income. Other-than-temporary impairment recognized through a write-off of the servicing right and related valuation allowance is captured as a component of servicing rights on the Consolidated Balance Sheets . The Bancorp maintains a non-qualifying hedging strategy to manage a portion of the risk associate d 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 rights for the years ended December 31: ($ in millions) 2015 2014 Fixed-rate residential mortgage loans: Balance, beginning of period $ 823 929 Balance, end of period 757 823 Adjustable-rate residential mortgage loans: Balance, beginning of period 33 38 Balance, end of period 27 33 Fixed-rate automobile loans: Balance, beginning of period 2 4 Balance, end of period 1 2 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 Consolidated Statements of Income for the years ended December 31: ($ in millions) 2015 2014 2013 Securities gains, net - non-qualifying hedges on MSRs $ - - 13 Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (mortgage banking net revenue) 90 95 (30) Recovery of (provision for) MSR impairment (mortgage banking net revenue) 4 (65) 192 As of December 31, 2015 and 2014, 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 years ended December 31 were as follows: 2015 2014 Weighted- Weighted- Average Prepayment Weighted- Average Prepayment Weighted- Life Speed OAS Spread Average Life Speed Discount Rate Average Rate (in years) (annual) (bps) Default Rate (in years) (annual) (annual) Default Rate Residential mortgage loans: Servicing rights Fixed 6.9 11.0 % 534 N/A 6.6 11.3 % 10.0 % N/A Servicing rights Adjustable 3.4 25.2 303 N/A 3.7 22.3 11.7 N/A During the first quarter of 2015, the Bancorp adopted an OAS valuation approach for valuing its MSRs. This approach projects servicing cash flows over multiple interest rate scenarios, which are then discounted at risk-adjusted rates. 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 December 31, 2015 and 2014, the Bancorp serviced $ 59.0 billion and $ 6 5.4 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 December 31, 2015, 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 Impact of Adverse Change on Fair Value OAS Spread Impact of Adverse Change on Fair Value ($ in millions) (a) Rate Value (in years) Rate 10% 20% 50% (bps) 10% 20% Residential mortgage loans: Servicing rights Fixed $ 757 5.9 11.8 % $ (32) (61) (134) 618 $ (18) (34) Servicing rights Adjustable 27 3.0 27.0 (2) (3) (7) 703 (1) (1) 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 variation s 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 Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 13. DERIVATIVE FINANCIAL INSTRUMENTS T he Bancorp maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce certain risks related to interest rate, prepayment and foreign currency volatility. Additionally, the Bancorp holds derivative instruments for the benefit of its commercial customers and for other business purposes . The Bancorp does not enter into unhedged speculative derivative positions. The Bancorp's interest rate risk management strategy involves modifying the repricing characteristics of certain financial instruments so that changes in interest rates do not adversely affect the Bancorp's net interest margin and cash flows. Derivative instruments that the Bancorp may use as part of its interest rate risk management strategy include interest rate swaps, interest rate floors, interest rate caps, forward contracts, forward starting interest rate swaps, options 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 economically hedge s significant exposures related to these free-standing derivatives by entering into offsetting third-party contracts with approved, reputable and independent counterparties with substantially matching terms and currencies. Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. The Bancorp's exposure is limited to the replacement value of the contracts rather than the notional, principal or contract amounts. Credit risk is minimized through credit approvals, limits, counterparty collateral and monitoring procedures. The Bancorp's derivative assets include c ertain 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 December 31, 2015 and 2014 , the balance of collateral held by the Bancorp for derivative assets was $ 8 21 m illion and $ 830 m illion , respectively. The credit component negatively impacting the fair value of derivative assets associated with customer accommodation contracts as of December 31, 2015 and 2014 was $ 9 million and $ 1 6 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 December 31, 2015 and 2014 , the balance of collateral posted by the Bancorp for derivative liabilities was $ 5 04 million and $ 5 74 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 December 31, 2015 and 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 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 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 Consolidated Balance Sheets while derivative instruments with a negative fair value are reported in other liabilities in the Consolidated Balance Sheets. Cash collateral payables and receivables associated with the derivative instruments are not added to or nette d against the fair value amounts . The following tables reflect the notional amounts and fair values for all derivative instruments included in the Consolidated Balance Sheets as of: Fair Value Notional Derivative Derivative December 31, 2015 ($ in millions) Amount Assets Liabilities Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 2,705 372 2 Total fair value hedges 372 2 Cash flow hedges: Interest rate swaps related to C&I loans 5,475 39 - Total cash flow hedges 39 - Total derivatives designated as qualifying hedging instruments 411 2 Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSRs 11,657 239 9 Forward contracts related to held for sale residential mortgage loans 1,330 3 1 Stock warrant associated with Vantiv Holding, LLC 369 262 - Swap associated with the sale of Visa, Inc. Class B shares 1,292 - 61 Total free-standing derivatives - risk management and other business purposes 504 71 Free-standing derivatives - customer accommodation: Interest rate contracts for customers 29,889 242 249 Interest rate lock commitments 721 15 - Commodity contracts 2,464 294 276 Foreign exchange contracts 16,243 386 340 Total free-standing derivatives - customer accommodation 937 865 Total derivatives not designated as qualifying hedging instruments 1,441 936 Total $ 1,852 938 Fair Value Notional Derivative Derivative December 31, 2014 ($ in millions) Amount Assets Liabilities Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 2,205 399 - Total fair value hedges 399 - Cash flow hedges: Interest rate swaps related to C&I loans 3,150 36 - Total cash flow hedges 36 - Total derivatives designated as qualifying hedging instruments 435 - Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSRs 4,487 181 - Forward contracts related to held for sale residential mortgage loans 999 - 6 Stock warrant associated with Vantiv Holding, LLC 691 415 - Swap associated with the sale of Visa, Inc. Class B shares 1,092 - 49 Total free-standing derivatives - risk management and other business purposes 596 55 Free-standing derivatives - customer accommodation: Interest rate contracts for customers 29,558 272 278 Interest rate lock commitments 613 12 - Commodity contracts 3,558 348 338 Foreign exchange contracts 16,475 417 372 Total free-standing derivatives - customer accommodation 1,049 988 Total derivatives not designated as qualifying hedging instruments 1,645 1,043 Total $ 2,080 1,043 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. For all interest rate swaps as of December 31, 2015 , 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 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 Consolidated Statements of Income: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2015 2014 2013 Interest rate contracts: Change in fair value of interest rate swaps hedging long-term debt Interest on long-term debt $ (29) 120 (279) Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt 25 (126) 276 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 s hare the same risk exposure that the Bancorp desires to hedge. The Bancorp may also enter into interest rate caps and floors to limit ca sh flow variability of floating- rate assets and liabilities. As of December 31, 2015 , 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 Consolidated Statements of Income. The effective portion of the cumulative gains or losses on cash flow hedges are reported within AOCI and are reclassified from AOCI to current period earnings when the forecasted transaction affects earnings. As of December 31, 2015 , the maximum length of time over which the Bancorp is hedging its exposure to the variability in future cash flows is 48 months. Reclassified gains and losses on interest rate contracts related to commercial and industrial loans are recorded within interest income in the Consolidated Statements of Income. As of December 31, 2015 and 2014 , $ 2 2 million and $ 2 3 million , respectively, of net deferred gains, net of tax, on cash flow hedges were recorded in AOCI in the Consolidated Balance Sheets. As of December 31, 2015 , $ 25 million in net deferred gains, net of tax, recorded in AOCI 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 December 31 , 2015 . During the years ended 2015 and 2014 , there were no gains or losses reclassified from AOCI into earnings associated with the discontinuance of cash flow hedges because it was probable that the original forecasted transaction would no longer occur by the end of the originally specified time period or within the additional period of time as defined by U.S. GAAP . The following table presents the pretax net gains (losses) recorded in the Consolidated Statements of Income and the Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: For the years ended December 31 ($ in millions) 2015 2014 2013 Amount of pretax net gains (losses) recognized in OCI $ 74 60 (13) Amount of pretax net gains reclassified from OCI into net income 75 44 44 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 du e to changes in interest rates. IRLC s 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 pr imarily 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 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 27 for further discussion of significant inputs and assumptions used in the valuation of the warrant . During the year ended December 31, 2015, the Bancorp both sold and exercised part of the warrant. For more info rmation, refer to Note 19 . In conjunction with the sale of Visa, Inc. Class B shares in 2009, the Bancorp entered into a total return swap in which the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Class B shares into Class A shares. This total return swap is accounted for as a free-standing derivative. Refer to Note 27 for further discussion of significant inputs and assumptions used in the valuation of this instrument . The net gains (losses) recorded in the Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2015 2014 2013 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ 8 (18) 24 Interest rate contracts related to MSR portfolio Mortgage banking net revenue 90 95 (30) Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income 23 14 5 Equity contracts: Stock warrant associated with Vantiv Holding, LLC Other noninterest income 325 (a) 31 206 Swap associated with sale of Visa, Inc. Class B shares Other noninterest income (37) (38) (31) The Bancorp recognized a net gain of $ 89 million on both the sale and exercise of the warrant during the fourth quarter of 2015. 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 specif ic assets or liabilities on the 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 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 December 31, 2015 and 2014 , the total notional amount of the risk participation agreements was $ 1.7 b illion and $ 1.1 b illion, respectively , and the fair value was a liability of $ 3 million at December 31, 2015 and $ 2 million at December 31, 2014 , which is included in other liabilities in the Consolidated Balance Sheets . As of December 31, 2015 , the risk participation agreements had a weighted- average remaining life of 3.2 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 i n 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: At December 31 ($ in millions) 2015 2014 Pass $ 1,650 1,052 Special mention 7 59 Substandard 7 2 Total $ 1,664 1,113 The net gains (losses) recorded in the Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2015 2014 2013 Interest rate contracts: Interest rate contracts for customers (contract revenue) Corporate banking revenue $ 23 19 29 Interest rate contracts for customers (credit losses) Other noninterest expense (1) (3) (3) Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense 1 3 7 Interest rate lock commitments Mortgage banking net revenue 111 124 58 Commodity contracts: Commodity contracts for customers (contract revenue) Corporate banking revenue 5 6 7 Commodity contracts for customers (credit losses) Other noninterest expense (2) - - Commodity contracts for customers (credit portion of fair value adjustment) Other noninterest expense 6 (7) - Foreign exchange contracts: Foreign exchange contracts for customers (contract revenue) Corporate banking revenue 70 72 69 Foreign exchange contracts for customers (credit portion of fair value adjustment) Other noninterest expense - - (2) 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 Consolidated Balance Sheets on a gross basis, even when provisions allowing for setoff are in place. Collateral amounts included in the table s below consist primarily of cash and highly-rated government-backed securities. Gross Amount Gross Amounts Not Offset in the Recognized in the Consolidated Balance Sheets As of December 31, 2015 ($ in millions) Consolidated Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets Derivatives $ 1,575 (512) (627) 436 Total assets 1,575 (512) (627) 436 Liabilities Derivatives 938 (512) (173) 253 Total liabilities $ 938 (512) (173) 253 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 arrangement s . 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 Consolidated Balance Sheets were excluded from this table. Gross Amount Gross Amounts Not Offset in the Recognized in the Consolidated Balance Sheets As of December 31, 2014 ($ in millions) Consolidated Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets Derivatives $ 1,653 (440) (684) 529 Total assets 1,653 (440) (684) 529 Liabilities Derivatives 1,043 (440) (293) 310 Total liabilities $ 1,043 (440) (293) 310 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 arrangement s . 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 Consolidated Balance Sheets were excluded from this table. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets | |
Other Assets | 14. other assets The following table provides the components of other assets included in the Consolidated Balance Sheets as of December 31: ($ in millions) 2015 2014 Derivative instruments $ 1,852 2,080 Partnership investments 1,756 1,685 Accounts receivable and drafts-in-process 1,653 1,452 Bank owned life insurance 1,651 1,623 Investment in Vantiv Holding, LLC 360 394 Accrued interest and fees receivable 329 312 OREO and other repossessed personal property 155 236 Prepaid expenses 101 97 Income tax receivable 0 107 Other 142 255 Total other assets $ 7,999 8,241 The Bancorp utilizes derivative instruments as part of its overall risk management strategy to reduce certain risks related to interest rate, prepayment and foreign currency volatility. The Bancorp also holds derivatives instruments for the benefit of its commercial customers and for other business purposes. For further informatio n o n derivative instruments, refer to Note 13. 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 , which are included above in partnership investments . In addition, Fifth T hird Capital Holdings, a wholly- owned indirect subsidiary of the Bancorp, invests as a direct private equity investor and as a limited partner in private equity funds , which are included above as partnership investments . The Bancorp has determined that these partnership investments are VIEs and the Bancorp's investments r epresent variable interests. Refer to Note 11 for further information. T he Bancorp recognized $ 1 million , zero and $ 4 million of OTTI on its investments in private equity funds during the year s ended December 31, 2015 , 2014 and 2013, respectively . Refer to Note 27 for further information. The Bancorp purchases life insurance policies on the lives of certain directors, officers and employees and is the owner and beneficiary of the policies . Certain BOLI policies have a stable value agreement through either a large, well-rated bank or multi-national insurance carrier that provides limited cash surrender value protection from declines in the value of each policy's underlying investments. Refer to Note 1 for further information. In 2009, the Bancorp sold an approximate 51% interest in its processing business, Vantiv Holding, LLC . As a result of additional share sales completed by the Bancorp , its current ownership share in Vantiv Holding, LLC is approximately 18 % . The Bancorp's ownership in Vantiv Holding , LLC is currently accounted for under the equity method of accounting. Refer to Note 19 for further information. OREO represents property acquired through foreclosure or other proceedings and is carried at the lower of cost or fair value, less costs to sell . Refer to Note 1 for further information. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Short-Term Borrowings | |
Short-Term Borrowings | 15. Short-term borrowings Borrowings with original maturities of one year or less are classified as short- term and include federal funds purchased and other short-term borrowings. Federal funds purchased are excess balances in reserve accounts held at the FRB that the Bancorp purchased from other member banks on an overnight basis. Other short-term borrowings include securities sold under repurchase agreements, derivative collateral, FHLB advances and other borrowings with original maturities of one year or less . The following table summarizes short-term borrowings and weighted-average rates: 2015 2014 ($ in millions) Amount Rate Amount Rate As of December 31: Federal funds purchased $ 151 0.30 % $ 144 0.08 % Other short-term borrowings 1,507 0.11 1,556 0.08 Average for the years ended December 31: Federal funds purchased $ 920 0.13 % $ 458 0.09 % Other short-term borrowings 1,721 0.12 1,873 0.10 Maximum month-end balance for the years ended December 31: Federal funds purchased $ 200 $ 286 Other short-term borrowings 4,904 3,756 The following table presents a summary of the Bancorp's other short-term borrowings as of December 31: ($ in millions) 2015 2014 Securities sold under repurchase agreements $ 925 995 Derivative collateral 582 561 Total other short-term borrowings $ 1,507 1,556 The Bancorp's securities sold under repurchase agreements are accounted for as secured borrowings and are collateralized by securities included in available-for-sale and other securities in the Consolidated Balance Sheets. These securities are subject to changes in market value and, therefore, the Bancorp may increase or decrease the level of securities pledged as collateral based upon these movements in market value. The following table summarizes the Bancorp's securities sold under repurchase agreements by the type of collateral securing the borrowing and remaining contractual maturity as of December 31: ($ in millions) 2015 2014 Amount Remaining Contractual Maturity Amount Remaining Contractual Maturity Collateral type: Agency residential mortgage-backed securities $ 646 Overnight $ 896 Overnight U.S. Treasury and federal agencies securities 279 Overnight 99 Overnight Total securities sold under repurchase agreements $ 925 $ 995 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt | |
Long-Term Debt | 16. Long-term debt The following table is a summary of the Bancorp’s long-term borrowings at December 31: ($ in millions) Maturity Interest Rate 2015 2014 Parent Company Senior: Fixed-rate notes 2016 3.625% $ 1,000 1,000 Fixed-rate notes 2019 2.30% 500 499 Fixed-rate notes 2020 2.875% 1,099 - Fixed-rate notes 2022 3.50% 498 497 Subordinated: (a) Floating-rate notes (c) 2016 0.99% 250 250 Fixed-rate notes 2017 5.45% 520 539 Fixed-rate notes 2018 4.50% 532 544 Fixed-rate notes 2024 4.30% 748 748 Fixed-rate notes 2038 8.25% 1,327 1,317 Subsidiaries Senior: Fixed-rate notes 2016 1.15% 1,000 1,000 Fixed-rate notes 2016 0.90% 400 400 Floating-rate notes (c) 2016 0.87% 750 750 Floating-rate notes (c) 2016 0.82% 300 300 Fixed-rate notes 2017 1.35% 652 654 Fixed-rate notes 2018 2.15% 998 - Fixed-rate notes 2018 1.45% 598 597 Floating-rate notes (c) 2018 1.28% 250 - Fixed-rate notes 2019 2.375% 850 850 Fixed-rate notes 2021 2.875% 846 846 Subordinated: (a) Fixed-rate bank notes 2015 4.75% - 502 Junior subordinated: (b) Floating-rate debentures (c) 2035 1.93% - 2.20% 52 51 FHLB advances 2016 - 2041 0.05% - 6.87% 37 41 Notes associated with consolidated VIEs: Automobile loan securitizations: Fixed-rate and floating-rate notes (c) 2016 - 2022 0.43% - 1.79% 2,493 3,434 Other 2016 - 2039 Varies 144 148 Total $ 15,844 14,967 Qualifies as Tier II capital for regulatory capital purposes . Under the Basel III Final Rule transition provisions, $13 million qualifies as Tier I capital as of December 31, 2015 while the remaining amount qualifies as Tier II capital. The entire amount qualified as Tier I capital as of December 31, 2014. Refer to Note 28 for further information . These rates reflect the floating rates as of December 31, 2015. The Bancorp pays down long-term debt in accordance with contractual terms over maturity periods summarized in the above table. The aggregate annual maturities of long-term debt obligations (based on final maturit y dates) as of December 31, 2015 are presented in the following table : ($ in millions) Parent Subsidiaries Total 2016 $ 1,250 2,594 3,844 2017 520 954 1,474 2018 532 2,807 3,339 2019 500 1,221 1,721 2020 1,099 664 1,763 Thereafter 2,573 1,130 3,703 Total $ 6,474 9,370 15,844 |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Guarantees | 12 Months Ended |
Dec. 31, 2015 | |
Commitments, Contingent Liabilities and Guarantees | |
Commitments, Contingent Liabilities and Guarantees | 17. 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 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 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 December 31: ($ in millions) 2015 2014 Commitments to extend credit $ 66,884 63,827 Letters of credit 3,055 3,974 Forward contracts related to held for sale residential mortgage loans 1,330 999 Noncancelable operating lease obligations 635 697 Capital commitments for private equity investments 60 78 Purchase obligations 60 77 Capital expenditures 30 28 Capital lease obligations 27 37 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 December 31, 2015 and 2014 , the Bancorp had a reserve for unfunded commitments , including letters of credit, totaling $ 138 million and $ 135 million, respectively, included in other liabilities in the Consolidated Balance Sheets. The Bancorp monitors the credit risk associated with commitments to extend credit using the same risk rating system utilized withi n its loan and lease portfolio. Risk ratings under this risk rating system are summarized in the following table as of December 31: ($ in millions) 2015 2014 Pass $ 65,645 62,787 Special mention 647 660 Substandard 592 380 Total commitments to extend credit $ 66,884 63,827 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 December 31, 2015: ($ in millions) Less than 1 year (a) $ 1,700 1 - 5 years (a) 1,301 Over 5 years 54 Total letters of credit $ 3,055 Includes $ 2 8 and $ 1 5 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 and 5 years, respectively. Standby letters of credit accounted for 9 9 % and 9 7 % of total letters of credit at December 31, 2015 and 2014 , respectively, and are considered guarantees in accordance with U.S. GAAP. Approximately 6 5 % and 60 % of the total standby letters of credit were collateralized as of December 31, 2015 and 2014 , 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 is included in the total reserve for unfunded commitments, was immaterial a t December 31, 2015 and $ 1 million at December 31 , 2014 . 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 December 31: ($ in millions) 2015 2014 Pass $ 2,606 3,483 Special mention 130 147 Substandard 258 299 Doubtful 61 45 Total letters of credit $ 3,055 3,974 At December 31, 2015 and 2014 , 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 December 31, 2015 and 2014 , total VRDNs in which the Bancorp was the remarketing agent or were supported by a Bancorp letter of credit were $ 1. 3 billion and $ 1.7 billion , respectively, of which FTS acted as the remarketing agent to issuers on $ 1 . 1 billion and $ 1. 4 billion, resp ectively . 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, to $ 921 m illion and $ 1. 2 billion of the VRDNs remarketed by FTS, in addition to $ 187 million and $ 247 million in VRDNs remarketed by third parties at December 31, 2015 and 2014 , respectively. These letters of credit are included in the total letters of credit balance provided in the previous table . Forward contracts related to held for sale residential 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 sign ificant commitments table 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 $ 2 7 million at December 31, 2015 and $ 29 million at December 31, 2014 . A t both December 31, 2015 and 2014 , the Bancorp maintained a reserve of $ 2 million related to exposures within the reinsurance portfolio which was included in other liabilities in the Consolidated Bala nce Sheets . During 20 09 , the Bancorp suspended the practice of providing reinsurance of PMI for n ewly 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. Refer to Note 18 for additional information regarding these proceedings. Guarantees The Bancorp has performance obligations upon the occurrence of certain events under financial guarantees provided in certain contractual arrangements as discussed in the following sections. Residential mortgage loans sold with representation and warranty provisions Conforming residential mortgage loans sold to unrelated third parties are generally sold with representation and warranty provisions. A contractual liability arises only in the event of a breach of these representations and warranties and, in general, only when a loss results from the breach. The Bancorp may be required to repurchase any previously sold loan or indemnify (make whole) the investor or insurer for which the representation or warranty of the Bancorp proves to be inaccurate, incomplete or misleading. For more information on how the Bancorp establishes the residential mortgage repurchase reserve, refer to Note 1. During the fourth quarter of 2013, the Bancorp settled certain repurchase claims related to residential 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. As of December 31, 2015 and 2014 , the Bancorp maintained reserves related to loans sold with representation and warranty provisions totaling $ 2 5 million and $ 35 million , respectively , included in other liabilities i n the Consolidated Balance Sheets . The Bancorp uses the best information available when estimating its mortgage representation and warranty reserve ; however, the estimation process is inherently uncertain and imprecise and, accordingly, losses in excess of the amounts reserved as of December 31, 2015 , 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 $ 2 7 million in excess of amounts reserved. This estimate was derived by modifying the key assumptions previously discussed 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 previously discussed . During the years ended December 31, 2015 and 2014, the Bancorp paid $ 2 million and $ 11 million, respectively, in the form of make whole payments and repurchased $ 7 4 million and $ 5 9 million , respectively, in outstanding principal of loans to satisfy investor demands . Total repurchase demand requests during the years ended December 31, 2015 and 2014 were $ 75 million and $ 97 million, respectively. Total outstanding repurchase demand inventory was $ 4 million at December 31, 2015 compared to $ 7 million at December 31, 2014 . The following table summarizes activity in the reserve for representation and warranty provisions for the years ended December 31: ($ in millions) 2015 2014 Balance, beginning of period $ 35 44 Net (reductions) additions to the reserve (3) 6 Losses charged against the reserve (7) (15) Balance, end of period $ 25 35 The following tables provide a rollforward of unresolved claims by claimant type for the years ended December 31: GSE Private Label 2015 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 37 $ 6 1 $ 1 New demands 436 33 261 42 Loan paydowns/payoffs (29) (2) - - Resolved demands (428) (33) (260) (43) Balance, end of period 16 $ 4 2 $ - GSE Private Label 2014 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 264 $ 41 33 $ 5 New demands 744 95 14 2 Loan paydowns/payoffs (44) (5) (2) (1) Resolved demands (927) (125) (44) (5) Balance, end of period 37 $ 6 1 $ 1 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 $ 4 65 million and $ 5 48 million at December 31, 2015 and 2014 , respectively, and the delinquency rates were 3 . 0 % at December 31, 2015 and 4. 0 % at December 31, 2014 . T he Bancorp maintained an estimated credit loss reserve on these loan s sold with credit recourse of $ 9 million at December 31, 2015 and $ 1 1 million at December 31, 2014 recorded in other liabilities in the 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 n indirect wholly-owned subsidiary of the Bancorp, guarantees the collection of all margin account balances held by its brokerage clearing agent for the benefit of its customers. FTS is responsible for payment to its brokerage clearing agent for any loss, liability, damage, cost or expense incurred as a result of customers failing to comply with margin or margin maintenance calls on all margin accounts. The margin account balance held by the brokerage clearing agent was $ 1 0 million at December 31, 2015 and $ 1 3 million at December 31, 2014 . 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 m illion at both December 31, 2015 and 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 (the “Class A 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 or anticipated litigation (the “Covered Litigation”) as of the date of the restructuring. This modification triggered a requirement for the Bancorp to recognize a liability equal to the fair value of the indemnification liability. In conjunction with the IPO, the Bancorp received 10.1 million of Visa's Class B common shares (the “Class B Shares”) based on the Bancorp's membership percentage in Visa prior to the IPO. The Class B Shares are not transferable (other than to another member bank) until the later of the third anniversary of the IPO closing or the date which the Covered Litigation has been resolved; therefore, the Bancorp's Class B Shares were classified in other assets and accounted for at their carryover basis of $0. Visa deposited $ 3 billion of the proceeds from the IPO into a litigation escrow account, established for the purpose of funding judgments in, or settlements of, the Covered Litigation. Since then, when Visa's litigation committee determined that the escrow account was insufficient, Visa issued additional Class A Shares and deposited the proceeds from the sale of the Class A Shares into the litigation escrow account. When Visa funded the litigation escrow account, the Class B Shares were subjected to dilution through an adjustment in the conversion rate of Class B Shares into Class A Shares. In 2009, the Bancorp completed the sale of Visa, Inc. Class B Shares and entered into a total return swap in which the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Class B Shares into Class A Shares. The swap terminates on the later of the third anniversary of Visa's IPO or the date on which the Covered Litigation is settled. Refer to Note 27 for additional information on the valuation of the swap. The counterparty to the swap as a result of its ownership of the Class B Shares will be impacted by dilutive adjustments to the conversion rate of the Class B Shares into Class A Shares caused by any Covered Litigation losses in excess of the litigation escrow account. If actual judgments in, or settlements of, the Covered Litigation significantly exceed current expectations, then additional funding by Visa of the litigation escrow account and the resulting dilution of the Class B Shares could result in a scenario where the Bancorp's ultimate exposure associated with the Covered Litigation (the “Visa Litigation Exposure”) exceeds the value of the Class B Shares owned by the swap counterparty (the “Class B Value”). In the event the Bancorp concludes that it is probable that the Visa Litigation Exposure exceeds the Class B Value, the Bancorp would record a litigation reserve liability and a corresponding amount of other noninterest expense for the amount of the excess. Any such litigation reserve liability would be separate and distinct from the fair value derivative liability associated with the total return swap. As of the date of the Bancorp's sale of the Visa Class B Shares and through December 31, 2015 , 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 the 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 $ 61 million and $ 4 9 million at December 31, 2015 and 2014 , respectively. Refer to Note 13 and Note 27 for further information. A fter the Bancorp's sale of the Class B Shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further dilutive adjustments to the conversion of Class B Shares into Class A Shares, and along with other terms of the total return swap, required the Bancorp to make cash payments in varying amounts to the swap counterparty as follows : Visa Bancorp Cash Period ($ in millions) 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 Q3 2014 450 18 |
Legal and Regulatory Proceeding
Legal and Regulatory Proceedings | 12 Months Ended |
Dec. 31, 2015 | |
Legal And Regulatory Proceedings | |
Legal and Regulatory Proceedings | 18. 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 17 and has also entered into judgment and loss sharing agreements with Visa, MasterCard and certain other named defendants. In October 2012, the parties to the litigation entered into a settlement agreement. On January 14, 2014, the court entered a final order approving the class settlement. A number of merchants have filed appeals from that approval. The appellate court held a hearing on those appeals on September 28, 2015, and the matter is under consideration. In addition, on July 28, 2015, the merchants who oppose the class settlement filed a motion in the District Court to set aside the order approving the settlement because of alleged misconduct by one of the merchant class counsel in another case and a former attorney for MasterCard. Defendants opposed the motion on August 17, 2015. The court has not set a hearing on the motion. 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. Approximately 8,000 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 def endants through Class Exclusion Takedown Payments. More than 460 of the merchants who requested exclusion from the class have filed se parate federal lawsuits against Visa, MasterCard and certain other defendants alleging similar antitrust violations. These “opt-out” federal la wsuits 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 opt-out federal lawsuits, but may have obligations pursuant to indemnification arrangements and/or the judgment o r 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. The state court lawsuit has been settled. On July 18, 2015, the co urt in which all but one of the opt-out federal lawsuits have been consolidated denied defendants' motion to dismiss the complaints. Refer to Note 17 for further information. On January 15, 2016, the Bancorp agreed to pay $6 million and make certain changes to the Bancorp's profit sharing plan to settle two class action lawsuits consolidated as Dudenhoeffer v Fifth Third Bancorp et al. (Case No. 1:08-cv-538) filed i n 2008 in the United States District Court for the Southern District of Ohio . The complaints alleged that the Bancorp and certain officers violated ERISA by continuing to offer Fifth Third stock in the Bancorp's profit sharing plan when it was no longer a prudent investment. The settlement is subject to court approval . In November 2014, a shareholder of the Bancorp filed a shareholder derivative suit in the Court of Common Pleas for Hamilton County, Ohio, against current and former members of the Bancorp's Board of Directors, the Bancorp's former Chief Financial Officer, Daniel T. Poston, the Bancorp's former Chief Executive Officer, Kevin T. Kabat , and, nominally, the Bancorp. The suit alleges breach of fiduciary duty, waste of corporate assets and unjust enrichment in connection with the Bancorp's alleged violations of federal and state securities laws, among other charges, in relation to its administrative settlement with the United States Securities and Exchange Commission announced on December 4, 2013 to resolve the previously reported investigation of the Bancorp's historical accounting and reporting with respect to certain commercial loans that were sold or reclassified as held for sale by the Bancorp in the fourth quarter of 2008. The suit seeks, among other things, unspecified monetary damages, disgorgement of profits, certain corporate governance and personnel actions and compliance and disclosure changes. On January 16, 2015, a motion to dismiss the complaint was filed on behalf of all defendants, which the plaintiff opposed. On May 18, 2015, the court dismissed the complaint with prejudice and no appeal was filed. This matter has been concluded. The Bancorp and its subsidiaries are not parties to any other material litigation. However, there are other litigation matters that arise in the normal course of business. While it is impossible to ascertain the ultimate resolution or range of financial liability with respect to these contingent matters, management believes that resulting liability , if any, from these other actions would not have a material effect upon the Bancorp's consolidated financial position, results of operations or cash flows. 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 enf orcement authorities such as the Department of Justice or a United States Attorney. On September 30, 2015, the Bancorp agreed to pay approximately $ 85 million to cover losses on approximately 500 loans for which HUD had paid FHA insurance claims, and an additional $ 2 million to HUD, in connection with the Bancorp's entry into a Stipulation and Order of Settlement and Dismissal with the Department of Justice and HUD, which was approved by the U.S. District Court for the Southern District of New York on October 5, 2015, and a related Settlement Agreement with HUD. The total amount is within the amount the Bancorp had previously included in its accrual for this matter. The Bancorp has also agreed to indemnify HUD for any losses related to approximately 900 loans which have not been the subject of mortgage insurance claims. The settlement resulted in part from the Bancorp's voluntary disclosure of approximately 1,400 mortgages that it had previously certified as eligible for FHA insurance but which were later determined to be ineligible for such insurance. On September 28, 2015, the Bancorp entered into consent orders and agreed, without admitting or denying any of the findings of fact or conclusions of law (except to establish jurisdiction), to pay $ 18 million to consumers in a settlement with the Department of Justice and the CFPB related to an investigation into whether Fifth Third Bank engaged in any discriminatory practices in connection with the Bank's indirect automobile loan portfolio. This amount is within the amount included in the Bancorp's accrual for this matter . This total amount is also subject to a credit of between $ 5 million and $ 6 million for remediation the Bancorp ha d already paid. The consent orders also provide that the Bancorp will implement a new dealer compensation policy and that the Bancorp's Board of Directors will oversee its compliance with the consent orders. On September 28, 2015, the Bancorp agreed to pay an amount not less than $ 3 million in redress to consumers and a civil penalty of $ 500 ,000 to the CFPB in connection with its entry into a consent order with the CFPB related to the marketing and administration of the Bancorp's debt protection credit card “add-on” product for those enrolled in the product from January 1, 2007, through November 11, 2013. This $ 3.5 million is within the amount the Bancorp had included in its accrual for this matter. As part of this settlement, the Bancorp has also agreed, without admitting or denying any findings of fact or conclusions of law (except to establish jurisdiction), to adopt a compliance plan with respect to the advertising, marketing, promotion, offering or sale of any credit card add-on products, the performance of any such products and the management of its vendors with respect to such products and not to market or sell similar debt protection add-on products without first securing a determination of non-objection from the CFPB. The Bancorp and its subsidiaries are parties to numerous claims and lawsuits as well as threatened or potential actions or claims concerning matters arising from the conduct of its business activities. The outcome of claims or litigation and the timing of ultimate resolution are inherently difficult to predict. The following factors, among others, contribute to this lack of predictability: 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. An accrual for a potential litigation loss is established when information related to the loss contingency indicates both that a loss is probable and that the amount of loss can be reasonably estimated. Any such accrual is adjusted from time to time thereafter as appropriate to reflect changes in circumstances. The Bancorp also determines, when possible (due to the uncertainties described above), estimates of reasonably possible losses or ranges of reasonably possible losses, in excess of amounts accrued. Under U.S. GAAP, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight.” Thus, references to the upper end of the range of reasonably possible loss for cases in which the Bancorp is able to estimate a range of reasonably possible loss mean the upper end of the range of loss for cases for which the Bancorp believes the risk of loss is more than slight. For matters where the Bancorp is able to estimate such possible losses or ranges of possible losses, the Bancorp currently estimates that it is reasonably possible that it could incur losses related to legal and regulatory proceedings in an aggregate amount up to approximately $ 37 million in excess of amounts accrued , with it also being reasonably possible that no losses will be incurred in these matters. The estimates included in this amount are based on the Bancorp's analysis of currently available information, and as new information is obtained the Bancorp may change its estimates. For these matters and others where an unfavorable outcome is reasonably possible but not probable, there may be a range of possible losses in excess of the established accrual that cannot be estimated. Based on information currently available, advice of counsel, available insurance coverage and established accruals , the Bancorp believes that the eventual outcome of the actions against the Bancorp and/or its subsidiaries, including the matters described above, will not, individually or in the aggregate, have a material adverse effect on the Bancorp's consolidated financial position. However, in the event of unexpected future developments, it is possible that the ultimate resolution of those matters, if unfavorable, may be material to the Bancorp's results of operations for any particular period, depending, in part, upon the size of the loss or liability imposed and the operating results for the applicable period. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions | |
Related Party Transactions | 19. Related party transactions The Bancorp maintains written policies and procedures covering related party transactions to principal shareholders, directors and executives of the Bancorp. These procedures cover transactions such as employee-stock purchase loans, personal lines of credit, residential secured loans, overdrafts, letters of credit and increases in indebtedness. Such transactions are subject to the Bancorp's normal underwriting and approval procedures. Prior to approving a loan to a related party, Compliance Risk Manage ment must review and determine whether the transaction requires approval fro m or a post notification to the Bancorp's Board of Directors. At December 31, 2015 and 2014, certain directors, executive officers, principal holders of Bancorp common stock and their related interests were indebted, including undrawn commitments to lend, to the Bancorp's banking subsidiary . The following table summarizes the Bancorp’s lending activities with its principal shareholders, directors, executives and their related interests at December 31: ($ in millions) 2015 2014 Commitments to lend, net of participations: Directors and their affiliated companies $ 831 525 Executive officers 5 3 Total $ 836 528 Outstanding balance on loans, net of participations and undrawn commitments $ 97 63 The commitments to lend are in the form of loans and guarantees for various business and personal interests. This indebtedness was incurred in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated parties. This indebtedness does not involve more than the normal risk of repayment or present other features unfavorable to the Bancorp. Vantiv Holding, LLC On June 30, 2009, the Bancorp completed the sale of a majority interest in its p rocessing b usiness, Vantiv Holding , LLC . Advent International acquired an approximate 51% interest in Vantiv Holding , LLC for cash and a warrant . The Bancorp retained the remaining approximate 49 % interest in Vantiv Holding , LLC . During the first quarter of 2012, Vantiv , Inc. priced an IPO of its shares and contributed the net proceeds to Vantiv Holding, LLC for additional ownership interests. As a result of this offering, the Bancorp's ownership of Vantiv Holding, LLC was reduced to approximately 39%. The impact of the capital contributions to Vantiv Holding, LLC and the resulting dilution in the Bancorp's interest resulted in a gain of $ 115 million recognized by the Bancorp i n the first quarter of 2012 . The following table provides a summary of the sales transactions that impacted the Bancorp's ownership interest in Vantiv Holding, LLC after the initial IPO: Ownership Percentage Sold Gain on Sale Remaining Ownership Percentage (a) ($ in millions) Q4 2012 6 % $ 157 33 % Q2 2013 5 242 28 Q3 2013 3 85 25 Q2 2014 3 125 23 Q4 2015 5 331 18 The Bancorp's remaining investment in Vantiv Holding, LLC of $ 3 60 as of December 31, 201 5 was accounted for as an equity method investment in the Bancorp's Consolidated Financial Statements. During the fourth quarter of 2015, t he Bancorp entered into an agreement with Vantiv , Inc. under which a portion of its TRA with Vantiv , Inc. was ter minated and settled in full for a cash payment of approximately $49 million from Vantiv , Inc. Under the agreement, the Bancorp sold certain TRA cash flows it expected to receive from 2017 to 2030, totaling an estimated $140 million. Approximately half of the sold TRA cash flows related to 2025 and later. This sale did not impact the TRA payment recognized during the fourth quarter of 2015 and is not expected to impact the TRA payment to be recognized in the fourth quarter of 2016. In addition to the impact of the TRA termination discussed above, the Bancorp recognized $31 million, $23 million and $9 million in noninter est income in the Consolidated Statements of Income associated with the TRA during the years ended December 31, 2015, 2014 and 2013, respectively. The Bancorp agreed during the fourth quarter of 2015 to cancel rights to purchase approximately 4.8 million Class C units in Vantiv Holding, LLC, the wholly-owned principal operating subsidiary of Vantiv , Inc., underlying the warrant in exchange for a cash payment of $200 million. Subsequent to this cancellation, the Bancorp exercised its right to purchase approximately 7.8 million Class C units underlying the warrant at the $15.98 strike price. This exercise was settled on a net basis for approximately 5.4 million Class C units, which were then exchanged for approximately 5.4 million shares of Vantiv , Inc. Class A common s tock that were sold in the secondary offering. The Bancorp recognized a gain of $89 million on the 62% of the warrant that was settled or net exercised. Additionally, during the fourth quarter of 2015, t he Bancorp exchanged 8 million Class B units of Vantiv Holding, LLC for 8 million Class A shares in Vantiv , Inc., which were also sold in the secondary offering and on which the Bancorp recognized a pre-tax gain of $331 million. The Bancorp's remaining investment in Vantiv Holding, LLC continues to be accounted for under the equity method of accounting. As of December 31 , 2015 , the Bancorp continued to hold approximately 35 million Class B units of Vantiv Holding, LLC and a warrant to purchase approximately 7.8 million Class C non-voting units of Vantiv Holding, LLC, both of whic h may be exchanged for Class A c ommon stock of Vantiv , Inc. on a one- for - one basis or at Vantiv , Inc.'s option for cash. In addition, the Bancorp holds approximately 35 million Class B common shares of Vantiv , Inc. The Class B common shares give the Bancorp voting rights, but no economic interest in Vantiv , Inc. The voting rights attributable to the Class B common shares are limited to 18.5% of the voting power in Vantiv , Inc. at any time other than in connection with a stockholder vote with respect to a change in control in Vantiv , Inc. These securities are subject to certain terms and restrictions. The Bancorp recognized $ 63 million, $ 48 million and $ 77 million , respectively, in other noninterest income as part of its equity method investment in Vantiv Holding , LLC for t he years ended December 31, 2015 , 2014 and 2013 and received cash distributions totaling $ 11 million, $ 23 mi llion and $ 4 0 million during the year s ended December 31, 2015 , 2014 and 2013 , respectively . The Bancorp and Vantiv Holding , LLC have various agreements in place covering services relating to the operations of Vantiv Holding , LLC . The services provided by the Bancorp to Vantiv Holding , LLC were initially required to support Vantiv Holding , LLC as a standalone entity during the deconversion period. The majority of services previously provided by the Bancorp to support Vantiv Holding, Inc. as a standalone entity are no longer necessary and are now limited to certain general business resources. Vantiv Holding , LLC paid the Bancorp $ 1 million for these services for each of t he years ended December 31, 2015 , 2014 and 2013 . Other services provided to Vantiv Holding , LLC by the Bancorp, have continue d beyond the deconversion period, include interchange clearing, settlement and sponsorship . Vantiv Holding , LLC paid the Bancorp $ 4 7 millio n , $ 4 4 million and $ 34 million for these services for the year s ended December 31, 2015 , 2014 and 2013 , respectively . In addition to the previously mentioned services, the Bancorp previously entered into an agreement under which Vantiv Holding , LLC will provide processing services to the Bancorp. The total amount of fees relating to the processing services provided to the Bancorp by Vantiv Holding , LLC totaled $ 8 9 million, $ 8 3 mil lion and $ 8 8 million for t he years ended December 31, 2015 , 2014 and 2013 , respectively . These fees are reported as a component of card and processing expense in the Consolidated Statements of Income. As part of the initial sale, Vantiv Holding, LLC assumed loans totaling $ 1.25 billion owed to the Bancorp , which were refinanced in 2010 into a larger syndicated loan stru cture that included the Bancorp . The outstanding carrying value of loan s to Vantiv Holding , LLC was $ 191 and $ 20 4 million at December 31, 2015 and 2014 , respectively . Interest income relating to the loans was $ 4 million, $ 5 million and $ 7 million , respectively, for th e y ears ended December 31, 2015 , 2014 and 2013 and is included in interest and fees on loans and leases in the Consolidated Statements of Income . Vantiv Holding , LLC's unused line of credit was $ 46 million and $ 50 million as of December 31, 2015 and 2014 , respectively . SLK Global As of December 31, 2015 , the Bancorp owns 100% of Fifth Third Mauritius Holdings Limited , which owns 49% of SLK Global , and accounts for this investment under the equity method of accounting. The Bancorp's investment in SLK Global was $6 million at both December 31, 2015 and 2014 . The Bancorp recognized $3 million in other noninterest income in the Consolidated Statements of Income as part of its equity method investment in SLK Global for the years ended December 31, 2 015 and 2014 and $2 million for the year ended December 31, 2013 and received an immaterial amount of cash distributions during the years ended December 31, 2015, 2014 and 2013. The Bancorp paid SLK Global $17 million , $13 million and $16 million for their process and software services during the years ended December 31, 2015 , 2014 and 2013 , respectively. CDC Investments The Bancorp had $5 mil lion of loans outstanding to its CDC investments at both December 31, 2015 and 2014 and unfunded commitment balances of $88 million and $9 million at December 31, 2015 and 2014, respectively. The Bancorp held $23 million and $29 million of deposits for its CDC investments at December 31, 2015 and 2014, respectively. For further information on CDC investments, refer to Note 11. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | |
Income Taxes | 20. INCOME TAXES The Bancorp and its subsidiaries file a consolidated federal income tax return. The following is a summary of applicable income taxes included in the Consolidated Statements of Income for the years ended December 31: ($ in millions) 2015 2014 2013 Current income tax expense: U.S. Federal income taxes $ 662 424 494 State and local income taxes 55 34 23 Foreign income taxes 13 8 2 Total current income tax expense 730 466 519 Deferred income tax (benefit) expense: U.S. Federal income taxes (78) 71 232 State and local income taxes 6 9 23 Foreign income taxes 1 (1) (2) Total deferred income tax (benefit) expense (71) 79 253 Applicable income tax expense $ 659 545 772 The following is a reconciliation between the statutory U.S. Federal income tax rate and the Bancorp’s effective tax rate for the years ended December 31: 2015 2014 2013 Statutory tax rate 35.0 % 35.0 35.0 Increase (decrease) resulting from: State taxes, net of federal benefit 1.7 1.4 1.2 Tax-exempt income (1.7) (1.4) (1.1) Credits (7.5) (8.1) (6.0) Unrealized stock-based compensation benefits 0.0 0.0 0.3 Other, net 0.3 0.0 0.3 Effective tax rate 27.8 % 26.9 29.7 Credits in the rate reconciliation table include Low-Income Housing, New Markets, Rehabilitation Investment and Qualified Zone Academy Bond tax credits. Tax-exempt income in the rate reconciliation table includes interest on municipal bonds, interest on tax-exempt lending, income/charges on life insurance policies held by the Bancorp, and certain gains on sales of leases that are exempt from federal taxati on . The following table provides a reconciliation of the beginning and ending amounts of the Bancorp’s unrecognized tax benefits: ($ in millions) 2015 2014 2013 Unrecognized tax benefits at January 1 $ 11 7 18 Gross increases for tax positions taken during prior period 1 2 1 Gross decreases for tax positions taken during prior period - - (7) Gross increases for tax positions taken during current period 2 2 1 Settlements with taxing authorities - - (5) Lapse of applicable statute of limitations (1) - (1) Unrecognized tax benefits at December 31 (a) $ 13 11 7 Amounts represent unrecognized tax benefits that , if recognized , would affect the annual e ffective tax rate. The Bancorp's unrecognized tax benefits as of December 31, 2015, 2014, and 2013 primarily relate to state income tax exposures from taking tax positions where the Bancorp believes it is likely that, upon examination, a state will take a position contrary to the position taken by the Bancorp. While it is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of the Bancorp's uncertain tax positions could increase or decrease during the next twelve months, the Bancorp believes it is unlikely that its unrecognized tax benefits will change by a material amount during the next twelve months. Deferred income taxes are comprised of the following items at December 31: ($ in millions) 2015 2014 Deferred tax assets: Allowance for loan and lease losses $ 445 463 Deferred compensation 118 113 Reserves 61 96 Reserve for unfunded commitments 48 47 State net operating loss carryforwards 10 18 Other 194 189 Total deferred tax assets $ 876 926 Deferred tax liabilities: Lease financing $ 935 896 Investments in joint ventures and partnership interests 248 329 MSRs and related economic hedges 245 237 Other comprehensive income 106 231 State deferred taxes 79 81 Qualifying hedges and free-standing derivatives 58 105 Bank premises and equipment 53 103 Other 160 148 Total deferred tax liabilities $ 1,884 2,130 Total net deferred tax liability $ (1,008) (1,204) At December 31, 2015 and 2014, the Bancorp recorded deferred tax assets of $ 10 million and $ 18 million, respectively, related to state net operating loss carryforwards . The deferred tax assets relating to state net operating losses (primarily resulting from leasing operations) are presented net of specific valuation allowances of $ 22 million and $ 19 million at December 31, 2015 and 2014, respectively. If these carryforwards are not utilized, they will expire in varying amounts through 2035. At December 31, 2015, the Bancorp recorded a deferred tax asset of $ 5 million related to a f oreign tax credit carryforward . If not utilized, the deferred tax asset relating to the foreign tax credit carryforward will expire in 2025. The Bancorp has determined that a valuation allowance is not needed against the remaining deferred tax assets as of December 31, 2015 or 2014. The Bancorp considered all of the positive and negative evidence available to determine whether it is more likely than not that the deferred tax assets will ultimately be realized and, based upon that evidence, the Bancorp believes it is more likely than not that the deferred tax assets recorded at December 31, 2015 and 2014 will ultimately be realized. The Bancorp reached this conclusion as the Bancorp has taxable income in the carryback period and it is expected that the Bancorp's remaining deferred tax assets will be realized through the reversal of its existing taxable temporary differences and its projected future taxable income. The IRS has concluded its audit of the Bancorp's 2010 and 2011 federal income tax returns. No material issues were identified as a result of the IRS audit and there are no contested issues outstanding. The IRS is currently examining the Bancorp's 2012 and 2013 federal income tax returns. The statute of limitations for the Bancorp's federal income tax returns remains open for tax years 2010-2015. On occasion, as various state and local taxing jurisdictions examine the returns of the Bancorp and its subsidiaries, the Bancorp may agree to extend the statute of limitations for a reasonable period of time. Otherwise, the statutes of limitations for state income tax returns remain open only for tax years in accordance with each state's statutes. Any interest and penalties incurred in connection with income taxes are recorded as a component of income tax expense in the Consolidated Financial Statements. During the years ended December 31, 2015, 2014 and 2013, the Bancorp recognized an immaterial amount of interest expense/benefit in connection with income taxes. At December 31, 2015 and 2014, the Bancorp had accrued interest liabilities, net of the related tax benefits, of $ 1 million. No material liabilities were recorded for penalties related to income taxes. Retained earnings at December 31, 2015 and 2014 included $ 157 million in allocations of earnings for bad debt deductions of former thrift subsidiaries for which no income tax has been provided. Under current tax law, if certain of the Bancorp's subsidiaries use these bad debt reserves for purposes other than to absorb bad debt losses, they will be subject to federal income tax at the current corporate tax rate. |
Retirement and Benefit Plans
Retirement and Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Retirement and Benefit Plans | |
Retirement and Benefit Plans | 21. RETIREMENT AND BENEFIT PLANS The Bancorp's qualified defined benefit plan's benefits were frozen in 1998, except for grandfathered employees. The Bancorp's other retirement plans consist of non - qualified, defined benefit plans, which are frozen and funded on an as needed basis. A majority of these plans were obtained in acquisitions from prior years and are included with the qualified defined benefit plan in the following tables (“the Plan”) . The Bancorp recognizes the overfunded and underfu nded status of the Plan as an ass et and liability , respectively , in the Consolidated Balance Sheets . The Plan had an underfunded projected benefit obligation at both December 31, 2015 and 2014. The underfunded amounts recognized in other liabilities in the Consolidated Balance Sheets were $ 54 million and $ 52 million at December 31, 2015 and 2014 , respectively . The following table summarizes the Plan as of and for the years ended December 31: ($ in millions) 2015 2014 Fair value of plan assets at January 1 $ 195 200 Actual return on assets (6) 12 Contributions 4 3 Settlement (17) (11) Benefits paid (10) (9) Fair value of plan assets at December 31 $ 166 195 Projected benefit obligation at January 1 $ 247 221 Interest cost 9 10 Settlement (17) (11) Actuarial (gain) loss (9) 36 Benefits paid (10) (9) Projected benefit obligation at December 31 $ 220 247 Underfunded projected benefit obligation at December 31 $ (54) (52) Accumulated benefit obligation at December 31 (a) $ 220 247 Since the Plan's benefits were frozen , the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. T herefore, the accumulated benefit obligation was the same as the projected benefit obligation at both December 31, 2015 and 2014 . T he estimated net actuarial loss for the Plan that wil l be amortized from AOCI into net p eriodic benefit cost during 2016 is $ 10 million . The estimated net prior service cost for the Plan that will be amortized from AOCI into net periodic benefit cost during 2016 is immaterial to the Consolidated Financial Statements . The following table summarizes net periodic benefit cost and other changes in the Plan's assets and benefit obligations recognized in OCI for the years ended December 31: ($ in millions) 2015 2014 2013 Components of net periodic benefit cost: Interest cost $ 9 10 10 Expected return on assets (13) (14) (13) Amortization of net actuarial loss 10 7 11 Settlement 7 5 5 Net periodic benefit cost $ 13 8 13 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial loss (gain) $ 9 37 (38) Amortization of net actuarial loss (10) (7) (11) Settlement (7) (5) (5) Total recognized in other comprehensive income (8) 25 (54) Total recognized in net periodic benefit cost and other comprehensive income $ 5 33 (41) Fair Value Measurements of Plan Assets The following tables summarize plan assets measured at fair value on a recurring basis as of December 31: Fair Value Measurements Using (a) 2015 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Equity securities (b) $ 52 - - 52 Mutual and exchange-traded funds: Money market funds 15 - - 15 International funds - 35 - 35 Domestic funds - 31 - 31 Debt funds - 3 - 3 Alternative strategies - 11 - 11 Commodity funds 6 - - 6 Total mutual and exchange-traded funds $ 21 80 - 101 Debt securities: U.S. Treasury and federal agencies securities 2 2 - 4 Mortgage-backed securities: Agency residential mortgage-backed securities - 3 - 3 Agency commercial mortgage-backed securities - 2 - 2 Non-agency commercial mortgage-backed securities - 1 - 1 Asset-backed securities and other debt securities (c) - 3 - 3 Total debt securities $ 2 11 - 13 Total plan assets $ 75 91 - 166 For further information on fair value hierarchy levels, refer to Note 1 . Includes holdings in Bancorp common stock . Includes corporate bonds . Fair Value Measurements Using (a) 2014 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Equity securities (b) $ 56 - - 56 Mutual and exchange-traded funds: Money market funds 7 - - 7 International funds - 38 - 38 Domestic funds - 31 - 31 Debt funds - 22 - 22 Alternative strategies - 22 - 22 Total mutual and exchange-traded funds $ 7 113 - 120 Debt securities: U.S. Treasury and federal agencies securities 3 - - 3 Mortgage-backed securities: Agency residential mortgage-backed securities - 4 - 4 Agency commercial mortgage-backed securities - 7 - 7 Non-agency commercial mortgage-backed securities - 2 - 2 Asset-backed securities and other debt securities (c) - 3 - 3 Total debt securities $ 3 16 - 19 Total plan assets $ 66 129 - 195 For further information on fair value hierarchy levels, refer to Note 1 . Includes holdings in Bancorp common stock . Includes corporate bonds . The following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. Equity securities The P lan measures common stock using quoted prices which are available in an active market and classifies these investments within Level 1 of the valuation hierarchy. Mutual and exchange- traded funds All of the P lan's mutual and exchange- traded funds are publicly traded. The P lan measu res the value of these investments using the fund's quoted prices that are available in an active market and classifies these investments within Level 1 of the valuation hierarchy. Level 1 securities include money market funds and commodity funds. Where quoted prices are not available, the P lan measures the fair value of these investments based on the redemption price of units held, which is based on the current fair value of the fund's underlying assets. Unit values are determined by dividing the fund's net assets at fair value by its units outstanding at the valuation dates to obtain the investment 's net asset value. Therefore, investments such as international funds, domestic funds, debt funds and alternative strategies are classified within Level 2 of the valuation hierarchy. Debt securities Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities . If quoted market prices are not available, the n fair values are estimated using pricing models, quoted prices of securities with similar characteristics, or DCFs . Examples of such instruments, which are classified within Level 2 of the valuation hierarchy, include federal agency securities, agency residential mortgage-backed securities, agency commercial mortgage-backed securities, non-agency commercial mortgage-backed securities and asset-backed securities and other debt securities . Plan Assumptions The P lan 's assumptions are evaluated annually and are updated as necessary. The discount rate assumption reflects the yield on a portfolio of high quality fixed-income instruments that have a similar duration to the P lan's liabilities. The expected long-term rate of return assumption reflects the average return expected on the assets invested to provide for the P lan's liabilities. In determining the expected long-term rate of return, the Bancorp evaluated actuarial and economic inputs, including long-term inflation rate assumptions and broad equity and bond indices long-term return projections, as well as actual long-term historical plan performance. In 201 5 , the Bancorp updated the mortality assumption whic h resulted in a de crease of $ 3 million to the projected benefit obligation . The following table summarizes the weighted-average plan assumptions for the years ended December 31: 2015 2014 2013 For measuring benefit obligations at year end: Discount rate 4.16 % 3.82 4.72 Rate of compensation increase N/A (a) N/A (a) 4.00 Expected return on plan assets 7.00 7.25 7.50 For measuring net periodic benefit cost: Discount rate 3.82 4.72 3.83 Rate of compensation increase N/A (a) N/A (a) 4.00 Expected return on plan assets 7.00 7.25 7.50 Since the Plan's benefits were frozen , except for grandfathered employees, the rate of compensation increase is no longer applicable beginning in 2014 since minimal grandfathered employees are still accruing benefits. Lowering both the expected rate of return on the plan assets and the discount rate by 0.2 5% would have increased the 2015 pension expense by approximately $ 1 million. Based on the act uarial assumptions, the Bancorp expect s to contribute $ 3 million to the Plan in 2016 . Estimated pension benefit payments, which reflect expected future service, are $ 19 mill ion in 2016 , $ 18 million in 201 7 , $ 1 7 mill ion in 201 8 , $ 1 6 million in 201 9 and $ 16 million in 20 20 . The total estimated payments for t he years 202 1 through 202 5 is $ 79 million. Investment Policies and Strategies The Bancorp's policy for the investment of plan assets is to employ investment strategies that achieve a range of weighted-average target asset allocations relating to equity securities (including the Bancorp's common stock), fixed- income securities (including U.S. Treasury and federal agencies securities , mortgage-backed securities and asset-backed securities ) , alternative strategies (including traditional mutual funds, precious metals and commodities) and cash. The following table provides the Bancorp’s targeted and actual weighted-average asset allocations by asset category for the years ended December 31: Targeted Range (b) 2015 2014 Equity securities 69 % 62 Bancorp common stock 2 2 Total equity securities (a) 60-90 % 71 64 Fixed-income securities 5-25 16 20 Alternative strategies 3-11 7 12 Cash 0-13 6 4 Total 100 % 100 Includes mutual and exchange- traded funds . These reflect the targeted range s for the year ended December 31, 2015 . The risk tolerance for the Plan is determined by management to be “moderate to aggressive”, recognizing that higher returns involve some volatility and that periodic declines in the portfolio's value are tolerated in an effort to achieve real capital growth. There were no significant concentrations of risk associated with the investments of th e Plan at December 31, 2015 and 2014 . Permitted asset classes of the Plan include c ash and cash equivalents, fixed- income (domestic and non-U.S. bonds), equities (U.S., non-U.S., emerging markets and REITS), equipment leasing , precious metals, commod ity transactions and mortgages. The Plan utilizes derivative instruments including puts, calls, straddles or other option strategies , as approved by management. Per ERISA, the Bancorp's common stock cannot exceed 10% of the fair value of plan assets. Fifth Third Bank, as Trustee, is expected to manage plan assets in a manner consistent with the plan agreement and other regulatory, federal and state laws. The Fifth Third Bank Pension, Profit Sharing and Medical Plan Committee (the “Committee”) is the plan administrator. The Trustee is required to provide to the Committee monthly and quarterly reports covering a list of plan assets, portfolio performance, transactions and asset allocation. The Trustee is also required to keep the Committee apprised of any material changes in the Trustee's outlook and recommended investment policy. There were no fees paid by the Plan for investment management, accounting or administrative services provided by the Trustee. As of December 31, 2015 and 2014, $ 166 million and $ 195 million, respectively, of plan assets were managed by Fifth Third Bank, a subsidiary of the Bancorp. Plan assets included $ 4 million of Bancorp common stock at both December 31, 2015 and 2014. Plan assets are not expected to be returned to the Bancorp during 2016. Other Information on Retirement and Benefit Plans T he Bancorp has a qualified defined contribution savings plan that allows participants to make voluntary 401(k) contributions on a pre-tax or Roth basis, subject to statutory limitations. The Bancorp amended and restated the qualified defined contribution savings plan in its entirety, effective as of January 1, 2015. Beginning with the 2015 plan year, the Bancorp provides a higher company 401(k) match contribution. Expenses recognized for matching contributions to the Bancorp's qualified defined contribution savings plan were $ 7 1 million, $ 44 million and $ 43 million for the years ended December 31, 2015, 2014 and 2013, respectively. T he Bancorp did not make a profit sharing contribution during the year ended December 31, 2015 . The Bancorp's profit sharing plan expense was $ 19 million and $ 32 million for the years ended December 31, 2014 and 2013 , respectively . In addition, the Bancorp has a non - qualified defined contribution plan that allows certain employees to make voluntary contributions into a deferred compensation plan. Expenses recognized by the Bancorp for its non - qualified defined contribution plan were $ 3 million for the year ended December 31, 2015 and $ 2 million for both of the years ended December 31, 2014 and 2013 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | 22. Accumul ated other comprehensive income The table below presents the activity of the components of OCI and AOCI for the years ended December 31: Total Other Total Accumulated Other Comprehensive Income Comprehensive Income Pretax Tax Net Beginning Net Ending ($ in millions) Activity Effect Activity Balance Activity Balance 2015 Unrealized holding losses on available-for-sale securities arising during the year $ (349) 122 (227) Reclassification adjustment for net gains on available-for-sale securities included in net income (16) 6 (10) Net unrealized gains on available-for-sale securities (365) 128 (237) 475 (237) 238 Unrealized holding gains on cash flow hedge derivatives arising during the year 74 (26) 48 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (75) 26 (49) Net unrealized gains on cash flow hedge derivatives (1) 0 (1) 23 (1) 22 Net actuarial loss arising during the year (9) 4 (5) Reclassification of amounts to net periodic benefit costs 17 (6) 11 Defined benefit pension plans, net 8 (2) 6 (69) 6 (63) Total $ (358) 126 (232) 429 (232) 197 2014 Unrealized holding gains on available-for-sale securities arising during the year $ 580 (202) 378 Reclassification adjustment for net gains on available-for-sale securities included in net income (37) 13 (24) Net unrealized gains on available-for-sale securities 543 (189) 354 121 354 475 Unrealized holding gains on cash flow hedge derivatives arising during the year 60 (21) 39 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (44) 15 (29) Net unrealized gains on cash flow hedge derivatives 16 (6) 10 13 10 23 Net actuarial loss arising during the year (37) 12 (25) Reclassification of amounts to net periodic benefit costs 12 (4) 8 Defined benefit pension plans, net (25) 8 (17) (52) (17) (69) Total $ 534 (187) 347 82 347 429 2013 Unrealized holding losses on available-for-sale securities arising during the year $ (454) 159 (295) Reclassification adjustment for net losses on available-for-sale securities included in net income 6 (2) 4 Net unrealized gains on available-for-sale securities (448) 157 (291) 412 (291) 121 Unrealized holding losses on cash flow hedge derivatives arising during the year (13) 5 (8) Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (44) 15 (29) Net unrealized gains on cash flow hedge derivatives (57) 20 (37) 50 (37) 13 Net actuarial gain arising during the year 38 (13) 25 Reclassification of amounts to net periodic benefit costs 16 (6) 10 Defined benefit pension plans, net 54 (19) 35 (87) 35 (52) Total $ (451) 158 (293) 375 (293) 82 The table below presents reclassifications out of AOCI for the years ended December 31: Consolidated Statements of Components of AOCI: ($ in millions) Income Caption 2015 2014 2013 Net unrealized gains on available-for-sale securities: (b) Net gains (losses) included in net income Securities gains, net $ 16 37 (6) Income before income taxes 16 37 (6) Applicable income tax expense (6) (13) 2 Net income 10 24 (4) Net unrealized gains on cash flow hedge derivatives: (b) Interest rate contracts related to C&I loans Interest and fees on loans and leases 75 44 45 Interest rate contracts related to long-term debt Interest on long-term debt - - (1) Income before income taxes 75 44 44 Applicable income tax expense (26) (15) (15) Net income 49 29 29 Net periodic benefit costs: (b) Amortization of net actuarial loss Employee benefits expense (a) (10) (7) (11) Settlements Employee benefits expense (a) (7) (5) (5) Income before income taxes (17) (12) (16) Applicable income tax expense 6 4 6 Net income (11) (8) (10) Total reclassifications for the period Net income $ 48 45 15 This AOCI component is included in the computation of net periodi c benefit cost. Refer to Note 21 f or information on the computation of net periodic benefit cost. Amounts in parentheses indicate reductions to net income. |
Common, Preferred and Treasury
Common, Preferred and Treasury Stock | 12 Months Ended |
Dec. 31, 2015 | |
Common, Preferred and Treasury Stock | |
Common, Preferred and Treasury Stock | 23. Common, PREFERRED and Treasury Stock The table presents a summary of the share activity within common, preferred and treasury stock for the years ended: Common Stock Preferred Stock Treasury Stock ($ in millions, except share data) Value Shares Value Shares Value Shares December 31, 2012 $ 2,051 923,892,581 $ 398 16,450 $ (634) 41,740,524 Shares acquired for treasury - - - - (1,242) 65,516,126 Issuance of preferred shares, Series I - - 441 18,000 - - Issuance of preferred shares, Series H - - 593 24,000 - - Redemption of preferred shares, Series G - - (398) (16,450) 540 (35,529,018) Impact of stock transactions under stock compensation plans, net - - - - 38 (3,697,042) Other - - - - 3 556,246 December 31, 2013 $ 2,051 923,892,581 $ 1,034 42,000 $ (1,295) 68,586,836 Shares acquired for treasury - - - - (726) 34,799,873 Issuance of preferred shares, Series J - - 297 12,000 - - Impact of stock transactions under stock compensation plans, net - - - - 47 (3,493,671) Other - - - - 2 (47,409) December 31, 2014 $ 2,051 923,892,581 $ 1,331 54,000 $ (1,972) 99,845,629 Shares acquired for treasury - - - - (847) 42,607,855 Impact of stock transactions under stock compensation plans, net - - - - 52 (3,593,406) Other - - - - 3 (47,811) December 31, 2015 $ 2,051 923,892,581 $ 1,331 54,000 $ (2,764) 138,812,267 Preferred Stock—Series J On June 5, 201 4 , the Bancorp issued, in a registered public offering, 300,000 depositary shares, representing 12,000 shares of 4.90% fixed to floating - rate non-cumulative Series J perpetual preferred stock, for net proceeds of $ 297 million. Each preferred share has a $ 25,000 liquidation preference. The preferred stock accrues dividends, on a non-cumulative semi-annual basis, at an annual rate of 4.90% through but excluding September 30, 2019 , at which time it converts to a quarterly floating - rate divi dend of three -month LIBOR plus 3.129 %. Subject to any required regulatory approval, the Bancorp may redeem the Series J preferred shares at its option , in whole or in part, at any time on or after September 30, 2019, or any time prior following a regulatory capital ev ent . The Series J preferred shares are not convertible into Bancorp common shares or any other securities. Preferred Stock—Series I On December 9 , 2013, the Bancorp issued, in a registered public offering, 18 , 000,000 depositary shares, representing 18 , 000 shares of 6 . 625 % fixed to floating - rate non-cumulative Series I perpetual preferred stock, for net proceeds of $ 441 million. Each preferred share has a $ 25,000 liquidation preference. The preferred stock accrues dividends, on a non-cumulative quarterly basis, at an annual rate of 6.625 % through but excluding December 31 , 2023, at which time it converts to a quarterly floating - rate divi dend of three-month LIBOR plus 3 . 71 % . Subject to any required regulatory approval, the Bancorp may redeem the Series I preferred shares at its option in whole or in part, at any time on or after December 31 , 2023 and may redeem in whole but not in part, following a regulatory capital ev ent at any time prior to December 31 , 2023 . The Series I preferred shares are not convertible into Bancorp common shares or any other securities. Preferred Stock—Series H On May 1 6 , 2013, the Bancorp issued , in a registered public offering , 600,000 depositary shares, representing 24,000 shares of 5.10% fixed to floating - rate non-cumulative Series H perpetual p referred stock, for net proceeds of $ 593 million. Each preferred share has a $ 25,000 liquidation preference. The preferred stock accrues dividends, on a non-cumulative semi-annual basis, at an annual rate of 5.10% through but excluding June 30, 2023, at which time it converts to a quarterly floating - rate dividend of three-month LIBOR plus 3.033% . Subject to any required regulatory approval, the Bancorp may redeem the Series H preferred shares at its option in whole or in part, at any time on or after June 30, 2023 and may redeem in whole but not in part, following a regulatory capital event at any time prior to June 30, 2023 . The Series H preferred shares are not convertible into Bancorp common shares or any other securities. Preferred Stock—Series G In 2008, t he Bancorp issued 8.5 0 % non-cumulative Series G convertible preferred stock . The dep osita ry shares represent ed 1/250th of a share of Series G con v ertible preferred stock and had a liquidation preference of $ 25,000 per preferred share of Series G stock . The preferred stock wa s convertible at any time, at the option of the shareholder, into 2,159.8272 shares of common stock, representing a conversion price of approximately $ 11.575 per share of common stock. On June 11, 2013, pursuant to the Amended Articles of Incorporation , the Bancorp's Board of Directors authorized the conversion into common stock, no par value, of all outstanding shares of the Bancorp's Series G perpetual preferred stock . The Articles grant the Bancorp the right, at its option, to convert all outstanding shares of Series G preferred stock if the closing price of common stock exceeded 130% of the applicable conversion price for 20 trading days within any period of 30 consecutive trading days. The closing price of shares of common stock satisfied such threshold for the 30 trading days ended June 10, 2013, and the Bancorp gave the required notice of its exercise of its conversion right. On July 1, 2013, the Bancorp converted the remaining 16,442 outstanding shares of Series G preferred stock, which represented 4,110,500 depositary shares, into shares of the Bancorp 's common stock. Each share of Series G preferred stock was converted into 2,159.8272 shares of common stock, representing a total of 35,511,740 issued shares. The common shares issued in the conversion are exempt securities pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended, as the securities exchanged were exclusively with the Bancorp's existing security holders where no commission or other remuneration was paid. Upon conversion, the depositary shares were delisted from the NASDAQ Global Select Market and withdrawn from the Exchange. Treasury Stock On March 14 , 2013 , the Bancorp announced the results of its capital plan submitte d to the FRB as part of the 2013 CCAR. The FRB indicated to the Bancorp that it did not object to the potential repurchase of com mon shares in an amount up to $ 984 million, including any shares issued in a Seri es G preferred stock conversion and the repurchase of common shares in an amount equal to any after-tax gains realized by the Bancorp from the sale of Vantiv , Inc. common stock . On March 19, 2013, the Board of Directors authorized the Bancorp to repurchase up to 100 million common shares in the open market or in pr ivately negotiated transactions and to utilize any derivative or similar instrument to effect share repurchase transactions. This share repurchase authorization replaced the Board's previous authorization from August of 2012. On March 1 8 , 201 4 , the Board of Directors authorized the Bancorp to repurchase up to 100 million common shares in the open market or in privately negotiated transactions and to utilize any derivative or similar instrument to effect share repurchase transactions. This share repurchase authorization replaced the Board's previous authorization from March of 201 3. On March 26, 2014, the Bancorp announced the results of its capital plan submitted to the FRB as part of the 2014 CCAR. The FRB indicated to the Bancorp that it did not object to the potential repurchase of $ 669 million of common shares with the additional ability to repurchase common shares in an amount equal to any after-tax gains realized by the Bancorp from the sale of Vantiv , Inc. common stock for the period beginning April 1, 2014 and ending March 31, 2015. On March 11, 2015, the Bancorp announced the results of its capital plan submitted to the FRB as part of the 2015 CCAR. The FRB indicated to the Bancorp that it did not object to the potential repurchase of $ 765 million of common shares with the additional ability to repurchase common shares in an amount equal to any after-tax gains realized by the Bancorp from the sale of Vantiv , Inc. common stock for the period beginning April 1, 2015 and ending June 30, 2016. The Bancorp entered into a number of accelerated share repurchase transaction s during the years ended December 31, 201 4 and 201 5 . As part of these transaction s , the Bancorp entered into forward contracts in which the final number of shares delivered at settlement was based generally on a disco unt to the average daily volume weighted- average price of the Bancorp's common stock during the term of the se repurchase a greements. T he 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 common stock. The following table presents a summary of the Bancorp's accelerated share repurchase transactions that were entered into or settled during the years ended December 31, 2014 and 2015. Shares Repurchased on Repurchase Date Shares Received from Forward Contract Settlement Total Shares Repurchased Repurchase Date Amount ($ in millions) Settlement Date November 18, 2013 200 8,538,423 1,132,495 9,670,918 March 5, 2014 December 13, 2013 456 19,084,195 2,294,932 21,379,127 March 31, 2014 January 31, 2014 99 3,950,705 602,109 4,552,814 March 31, 2014 May 1, 2014 150 6,216,480 1,016,514 7,232,994 July 21, 2014 July 24, 2014 225 9,352,078 1,896,685 11,248,763 October 14, 2014 October 23, 2014 180 8,337,875 794,245 9,132,120 January 8, 2015 January 27, 2015 180 8,542,713 1,103,744 9,646,457 April 28, 2015 April 30, 2015 155 6,704,835 842,655 7,547,490 July 31, 2015 August 3, 2015 150 6,039,792 1,346,314 7,386,106 September 3, 2015 September 9, 2015 150 6,538,462 1,446,613 7,985,075 October 23, 2015 December 14, 2015 215 9,248,482 1,782,477 11,030,959 January 14, 2016 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation | |
Stock-Based Compensation | 24. stock-based compensation The Bancorp has histori cally emphasized employee stock ownership. The following table provides detail of the number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance under all of the Bancorp's equity compensation plans approved by shareholders as of December 31, 2015 : Plan Category (shares in thousands) Number of Shares to be Issued Upon Exercise Weighted-Average Exercise Price Per Share Shares Available for Future Issuance Equity compensation plans approved by shareholders 24,667 (a) SARs (b) N/A (a) RSAs 8,281 N/A (a) RSUs 371 N/A (a) Stock options (c) 7 $32.26 (a) Phantom stock units (d) N/A N/A PSAs (e) N/A (a) Employee stock purchase plan 6,813 (f) Total shares 8,659 31,480 Under the 2014 Incentive Compensation Plan, 3 6 million shares were authorized for issuance as SARs, RSAs , RSUs, stock options, performance share or unit awards , dividen d or dividend equivalent rights and stock awards. The number of shares to be issued upon exercise will be determined at exercise based on the difference between the gra nt price and the market price on the date of exercise and the calculation of taxes owed on the exercise . Excludes 0. 1 million outstanding options awarded under plans assumed by the Bancorp in connection with certain mergers and acquisitions. The Bancorp has not made any awards under these plans and will make no additional awards under these plans. The weighted-average exercise price of the outstanding options is $ 1 3 . 89 per share. Phantom stock units are settled in cash. The number of shares to be issued is dependent upon the Bancorp achieving certain predefined performance targets and ranges from zero shares to approximately 1 million shares. Represents remaining shares of Fifth Third common stock under the Bancorp's 1993 Stock Purchase Plan, as amended and restated, including an additional 1.5 million shares approved by shareholders on March 28, 2007 and an additional 12 million shares approved by shareholders on April 21, 2009. Stock-based awards are eligible for issuance under the Bancorp's Incentive Compensation Plan to executives, directors and key employees of the Bancorp and its subsidiaries. The Incentive Compensation Plan was appr oved by shareholders on April 15, 2014 and authoriz ed the issuance of up to 36 million shares , including 16 million shares for Full Value Awards , as equity compensation and provides for SARs , RSA s, RSUs , stock options, performance share or unit awards , dividend or dividend equivalent rights and stock awards . Full Value Awards are defined as awards with no cash outlay for the employee to obtain the full value. Based on total stock-based awards outstanding (including SARs , RSAs, RSUs, stock options and PSAs ) and shares remaining for future grants under the 2014 Incentive C ompensation Plan, the potential dilution to which the Bancorp's shareholders of common stock are exposed due to the potential that stock-based compensation will be awarded to executives, directors or key employees of the Bancorp and its subsidiaries is 10% . SARs , RSAs , RSUs, stock options and PSAs outstanding represent 7% of the Bancorp's is sued shares at December 31, 2015 . All of the Bancorp's stock-based awards are to be settled with stock. The Bancorp has historically used treasury stock to settle stock-based awards, when available. SARs, issued at fair value based on the closing price of the Bancorp's common stock on the date of grant, have up to ten year terms and vest and become exercisable either ratably or fully over a four year period of continued employment. The Bancorp does not grant discounted SARs or stock options, re-price previousl y granted SARs or stock options or grant reload stock options. RSAs and RSUs vest after four years or r atably over three or four years of continued employment . RSAs include dividend and voting rights. Stock options were previously issued at fair value based on the closing price of the Bancorp's common stock on the date of grant, ha d up to ten year terms and vested and became fully exercisab le ratably over a three or four year period of continued employment. PSAs have three year cliff vesting terms with market co nditions and/or performance conditions as defined by the plan. All of the Bancorp's executive stock - based awards contain a n annual performance hurdle of 2% return on tangible common equity. If this threshold is not met , all PSAs that would vest in the next year are forfeited and all SARs and RSAs that would vest in the next year may also be forfeited at the discretion of the Human Capital and Compensation Committee of the Board of Directors . The Bancorp met this t hreshold as of December 31, 2015 . Stock-ba sed compensation expense was $ 100 million, $ 83 million and $ 78 million for the years ended December 31, 2015 , 2014 and 2013 , r espectively, and is included in salaries, wages and incentives in the Consolidated Statements of Income. The total related income tax benefit recognized was $ 3 6 million, $ 30 million and $ 2 8 million for the years ended December 31 , 2015, 2014 and 2013 , respectively. Stock Appreciation Rights The Bancorp uses assumptions, which are evaluated and revised as necessary, in estimating the grant-date fair value of each SAR grant. The weighted-average assumptions were as follows for the years ended December 31: 2015 2014 2013 Expected life (in years) 6 6 6 Expected volatility 35 % 35 36 Expected dividend yield 2.7 2.4 3.0 Risk-free interest rate 1.6 2.0 1.0 The expected life is generally derived from historical exercise patterns and represents the amount of time that SARs granted are expected to be outstanding. The expected volatility is based on a combination of historical and implied volatilities of the Bancorp's common stock. The expected dividend yield is based on annual dividends divided by the Bancorp's stock price. Annual dividends are based on projected dividends, estimated using a n expected long-term dividend payout ratio, over the estimated life of the awards. The risk-free interest rate for periods within th e contractual life of the SARs is based on the U.S. Treasury yield curve in effect at the time of grant. The grant-date fair value of SARs is measured using the Black- Scholes option-pricing model. The weighted-average grant-date fair value of SARs granted was $ 5 . 5 2 , $ 6 . 53 and $ 4.56 per share for the years ended December 31, 2015, 2014 and 2013 , respectively. The total grant-date fair value of SARs that vested during the years ended December 31, 2015, 2014 and 2013 was $ 3 5 million , $ 34 million and $ 2 9 million , respectively. At December 31, 2015 , there was $ 45 million of stock -based compensation expense related to nonvested SARs not yet recognized. The expense is expected to be recognized over a n estimated remaining weighted -ave rage period at December 31, 2015 of 2. 4 years. 2015 2014 2013 Weighted- Weighted- Weighted- Number of SARs Average Grant Number of SARs Average Grant Number of SARs Average Grant SARs (in thousands, except per share data) Price Per Share Price Per Share Price Per Share Outstanding at January 1 45,590 $ 19.79 48,599 $ 19.98 44,120 $ 20.41 Granted 5,219 18.99 4,526 21.63 10,267 16.16 Exercised (3,242) 13.59 (4,408) 13.63 (2,904) 11.18 Forfeited or expired (3,438) 32.96 (3,127) 34.19 (2,884) 21.78 Outstanding at December 31 44,129 $ 19.14 45,590 $ 19.79 48,599 $ 19.98 Exercisable at December 31 29,721 $ 19.71 27,950 $ 21.71 26,462 $ 24.14 The following table summarizes outstanding and exercisable SARs by grant price per share at December 31, 2015: Outstanding SARs Exercisable SARs Weighted- Weighted- Average Average Weighted- Remaining Weighted- Remaining Number of Average Grant Contractual Life Number of Average Grant Contractual Life SARs (in thousands, except per share data) SARs Price Per Share (in years) SARs Price Per Share (in years) Under $10.00 2,943 $ 3.98 3.3 2,943 $ 3.98 3.3 $10.01-$20.00 30,488 15.99 6.3 19,074 15.37 5.3 $20.01-$30.00 4,047 21.64 8.2 1,053 21.66 8.1 $30.01-$40.00 6,069 38.66 0.8 6,069 38.66 0.8 Over $40.00 582 40.11 1.3 582 40.11 1.3 All SARs 44,129 $ 19.14 5.5 29,721 $ 19.71 4.2 Restricted Stock Awards The total grant-date fair value of RSAs that vested during the years ended December 31, 2015, 2014 and 2013 was $ 4 3 million, $ 32 million and $ 40 million, respectively. At December 31, 2015, there was $ 101 million of stock-based compensation expense related to nonvested RSAs not yet recognized. The expense is expected to be recognized over a n estimated remaining weighted-ave rage period at December 31, 2015 of 2. 7 years. 2015 2014 2013 Weighted-Average Weighted-Average Weighted-Average Grant-Date Grant-Date Grant-Date Fair Value Fair Value Fair Value RSAs (in thousands, except per share data) Shares Per Share Shares Per Share Shares Per Share Nonvested at January 1 7,253 $ 17.98 6,710 $ 15.11 6,379 $ 14.32 Granted 4,250 19.11 3,264 21.61 3,583 16.21 Exercised (2,580) 16.86 (2,183) 14.84 (2,720) 14.71 Forfeited (642) 18.64 (538) 16.73 (532) 14.97 Nonvested at December 31 8,281 $ 18.88 7,253 $ 17.98 6,710 $ 15.11 The following table summarizes nonvested RSAs by grant-date fair value at December 31, 2015: Nonvested RSAs Weighted-Average Remaining Contractual Life RSAs (in thousands) Shares (in years) $10.01-$15.00 690 0.3 $15.01-$20.00 5,153 1.6 $20.01-$25.00 2,438 1.4 All RSAs 8,281 1.4 Restricted Stock Units The to tal grant-date fair value of RSU s that vested during the year ended December 31, 2015 was $ 2 million. At December 31, 2015 , there was $ 4 million of stock-based compensation expense related to nonvested RSUs not yet recognized. The expense is expected to be recognized over a n estimated remaining weighted-ave rage period at December 31, 2015 of 2. 9 years. 2015 Weighted-Average Grant-Date Fair Value RSUs (in thousands, except per share data) Shares Per Share Nonvested at January 1 - $ N/A Granted 377 19.58 Released (5) 21.63 Forfeited (1) 19.46 Nonvested at December 31 371 $ 19.56 The following table summarizes nonvested RSUs by grant-date fair value at December 31, 2015: Nonvested RSUs Weighted-Average Remaining Contractual Life RSUs (in thousands) Shares (in years) $15.01-$20.00 318 1.8 $20.01-$25.00 53 - All RSUs 371 1.6 Stock O ptions The grant-date fair value of stock option s is measured using the Black- Scholes option-pricing model. There were no s tock opt ions granted during the years ended December 31, 2015, 2014 and 2013 . The total intrinsic value of stock options exercised was $ 1 million for the years ended December 31, 2015 , 2014 and 2013 , respectively . Cash received fr om stock options exercised was $ 2 million, $ 1 million and $ 2 million for the years ended December 31, 2015, 2014 and 2013 , respectively . The tax benefit realized from exercised stock options was immaterial to the Bancorp's Consolidated Financial Statements during the years ended December 31, 2015, 2014 and 2013. All stock options were vested as of December 31, 2008, therefore, no stock options vested during the years ended December 31, 2015 , 2014 or 2013 . As of December 31, 2015, the aggregate intrinsic value of both outs tanding stock optio ns and exercisable stock options was $ 1 million . 2015 2014 2013 Weighted-Average Weighted-Average Weighted-Average Number of Exercise Price Number of Exercise Price Number of Exercise Price Stock Options (in thousands, except per share data) Options Per Share Options Per Share Options Per Share Outstanding at January 1 265 $ 14.25 546 $ 20.72 3,877 $ 45.00 Exercised (126) 13.67 (115) 12.84 (190) 11.88 Forfeited or expired (20) 13.59 (166) 36.42 (3,141) 51.23 Outstanding at December 31 119 $ 14.97 265 $ 14.25 546 $ 20.72 Exercisable at December 31 119 $ 14.97 265 $ 14.25 546 $ 20.72 The following table summarizes outstanding and exercisable stock options by exercise price per share at December 31, 2015: Outstanding and Exercisable Stock Options Number of Options Weighted-Average Weighted-Average Remaining Exercise Price Contractual Life Stock Options (in thousands, except per share data) Per Share (in years) Under $10.00 1 $ 8.59 3.0 $10.01-$20.00 112 13.89 0.8 $20.01-$30.00 1 24.41 2.0 $30.01-$40.00 - - - Over $40.00 5 40.98 1.0 All stock options 119 $ 14.97 0.8 Other Stock-Ba sed C ompensation T he Bancorp's Board of Directors previously approved the use of phantom stock units as part of its compensation for executives in connection with changes made in re sponse to the TARP compensation rules. On February 22, 2011 , the Bancorp redeemed its Series F preferred stock he ld by the U.S. Treasury under the CPP. As a result of this redemption, the last payment of phantom stock occurred in April 2011 . The phantom stock units were issued under the Bancorp's 2008 Incentive Compensation Plan. The number of phantom stock units was determined each pay period by dividing the amount of salary to be paid in phantom stock units for that pay period by the reported closing price of the Bancorp's common stock on the pay date for such pay period. The phantom stock units vest ed immediately up on issuance . Phantom stock was expensed based on the number of outstanding units multiplied by the closing price of the Bancorp's stock at period end. The phantom s tock units did not include any rights to receive dividends or dividend equivalents. Phantom stock units issued on or before June 12 , 2010 were settled in cash upon the earlier to occur of June 15, 2011 or the executive's death. Units issued thereafter were settled in cash with 50% settled on June 15, 2012 and 50% settled on June 15, 2013. The amount paid on settlement of the phantom stock units was equal to the total amount of phantom stock units settled at the reported closing price of the Bancorp's common stock on the settlement date. Under the phantom stock program, no phantom stock units were granted during the year s ended December 31, 2015 , 2014 and 2013 . No phantom stock units were settled d uring both the year s ended December 31, 2015 and 2014 and 200,130 phantom stock units were settled during the year ended December 31, 2013 . PSAs are payable contingent upon the Bancorp achieving certain predefined performance targets over the three -year measurement period. Awards granted during the years ended December 31, 2015, 2014 and 2013 will be entirely settled in stock. The performance targets are based on the Bancorp's performance relative to a defined peer group. During the years ended December 31, 2015, 2014 and 2013 , 458 , 355 , 322,567 and 348,595 PSAs, respectively, were granted by the Bancorp. These awards were granted at a weighted-average grant-date fair value of $ 1 9.48 , $ 1 5.61 and $ 1 6.15 per unit during the years ended December 31, 2015, 2014 and 2013, respectively. The Bancorp sponsors a n employee stock purchase plan that allows qualifying employees to purchase shares of the Bancorp's common stock with a 15 % match. During the years ended December 31, 2015, 2014 and 2013 , there were 617,829 , 599,101 and 690,039 shares, respectively, purchased by participants and the Bancorp recognized stock-based compensation expense of $ 1 million in each of the respective year s . |
Other Noninterest Income and Ot
Other Noninterest Income and Other Noninterest Expense | 12 Months Ended |
Dec. 31, 2015 | |
Other Noninterest Income | |
Other Noninterest Income and Other Noninterest Expense | 25 . OTHER NONINTEREST INCOME AND OTHER NONINTEREST EXPENSE The following table presents the major components of other noninterest income and other noninterest expense for the years ended December 31: ($ in millions) 2015 2014 2013 Other noninterest income: Gain on sale of Vantiv, Inc. shares $ 331 125 327 Valuation adjustments on the warrant associated with sale of Vantiv Holding, LLC 236 31 206 Gain on sale and exercise of the warrant associated with Vantiv Holding, LLC 89 - - Operating lease income 89 84 75 Income from the TRA associated with Vantiv, Inc. 80 23 9 Equity method income from interest in Vantiv Holding, LLC 63 48 77 BOLI income 48 44 52 Cardholder fees 43 45 47 Gain on loan sales 38 - 3 Private equity investment income 28 27 24 Consumer loan and lease fees 23 25 27 Banking center income 21 30 34 Insurance income 14 13 25 Net losses on disposition and impairment of bank premises and equipment (101) (19) (6) Loss on swap associated with the sale of Visa, Inc. Class B shares (37) (38) (31) Other, net 14 12 10 Total other noninterest income $ 979 450 879 Other noninterest expense: Impairment on affordable housing investments $ 145 135 108 Loan and lease 118 119 158 Marketing 110 98 114 FDIC insurance and other taxes 99 89 127 Operating lease 74 67 57 Professional services fees 70 72 76 Losses and adjustments 55 188 221 Travel 54 52 54 Postal and courier 45 47 48 Data processing 45 41 42 Recruitment and education 33 28 26 Donations 29 18 24 Insurance 17 16 17 Supplies 16 15 16 Provision for (benefit from) the reserve for unfunded commitments 4 (27) (17) Other, net 191 181 193 Total other noninterest expense $ 1,105 1,139 1,264 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share | |
Earnings Per Share | 26. earnings per share The following table provides the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share for the years ended December 31: 2015 2014 2013 Average Per Share Average Per Share Average Per Share ($ in millions, except per share data) Income Shares Amount Income Shares Amount Income Shares Amount Earnings per Share: Net income attributable to Bancorp $ 1,712 $ 1,481 $ 1,836 Dividends on preferred stock 75 67 37 Net income available to common shareholders 1,637 1,414 1,799 Less: Income allocated to participating securities 15 12 14 Net income allocated to common shareholders $ 1,622 799 $ 2.03 $ 1,402 833 $ 1.68 $ 1,785 869 $ 2.05 Earnings per Diluted Share: Net income available to common shareholders $ 1,637 $ 1,414 $ 1,799 Effect of dilutive securities: Stock-based awards - 9 - 10 - 8 Series G convertible preferred stock - - - - 18 18 Net income available to common shareholders 1,637 1,414 1,817 plus assumed conversions Less: Income allocated to participating securities 15 12 14 Net income allocated to common shareholders plus assumed conversions $ 1,622 808 $ 2.01 $ 1,402 843 $ 1.66 $ 1,803 895 $ 2.02 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 years ended December 31, 2015 , 2014 and 2013 excludes 1 6 million , 13 million and 24 million, respectively, of SAR s and an immaterial amount for both the years ended December 31, 2015 and 2014 and 1 million for the year ended December 31, 2013, of stock options because their inclusion would have been anti-dilutive . The diluted earnings per share computation for the year ended December 31 , 2015 excludes the impact of the forward contract related to the December 14 , 2015 accelerated share repurchase transaction . B ased up on the average daily volume weighted - average price of the Bancorp's common stock during the fourth quarter of 2015 , the counterparty to the transaction would have been required to deliver additional shares for the settlement of the forward contract as of December 31 , 2015 , and thus the impact of the forward contract related to the accelerated share repurchase transaction would have been anti-dilutive to earnings per share. The diluted earnings per share computation for the year ended December 31, 201 4 excludes the impact of the forward contract related to the October 23 , 201 4 accelerated share repurchase transaction . B ased upon the average daily volume weighted - average price of the Bancorp's common stock during the fourth quarter of 201 4 , the counterparty to the transaction would have been required to deliver additional shares for the settlement of the forward co ntract as of December 31, 201 4 , and thus the impact of the forward contract related to the accelerated share repurchase transaction would have been anti-dilutive to earnings per share. The diluted earnings per share computation for the year ended December 31, 201 3 excludes the impact of the forward contracts related to the November 18 , 201 3 and December 1 3 , 201 3 accelerated share repurchase transactions . B ase d upon the average daily volume weighted - average price of the Bancorp's common stock during the fourth quarter of 201 3 , the counterparty to the transactions would have been required to deliver additional shares for the settlement of the forward contracts as of December 31, 201 3 , and thus the impact of the forward contracts related to the two accelerated share repurchase transactions would have been anti-dilutive to earnings per share. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements | |
Fair Value Measurements | 27 . 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. For more information regarding the fair value hierarchy and how the Bancorp measures fair value, refer to Note 1 . 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 December 31, 2015 ($ in millions) Level 1 (c) Level 2 (c) Level 3 Total Fair Value Assets: Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 100 1,087 - 1,187 Obligations of states and political subdivisions securities - 52 - 52 Mortgage-backed securities: Agency residential mortgage-backed securities - 15,081 - 15,081 Agency commercial mortgage-backed securities - 7,862 - 7,862 Non-agency commercial mortgage-backed securities - 2,804 - 2,804 Asset-backed securities and other debt securities - 1,355 - 1,355 Equity securities (a) 98 1 - 99 Available-for-sale and other securities (a) 198 28,242 - 28,440 Trading securities: U.S. Treasury and federal agencies securities - 19 - 19 Obligations of states and political subdivisions securities - 9 - 9 Mortgage-backed securities: Agency residential mortgage-backed securities - 6 - 6 Asset-backed securities and other debt securities - 19 - 19 Equity securities 333 - - 333 Trading securities 333 53 - 386 Residential mortgage loans held for sale - 519 - 519 Residential mortgage loans (b) - - 167 167 Derivative assets: Interest rate contracts 3 892 15 910 Foreign exchange contracts - 386 - 386 Equity contracts - - 262 262 Commodity contracts 54 240 - 294 Derivative assets (d) 57 1,518 277 1,852 Total assets $ 588 30,332 444 31,364 Liabilities: Derivative liabilities: Interest rate contracts $ 1 257 3 261 Foreign exchange contracts - 340 - 340 Equity contracts - - 61 61 Commodity contracts 37 239 - 276 Derivative liabilities (e) 38 836 64 938 Short positions (e) 22 7 - 29 Total liabilities $ 60 843 64 967 Excludes FHLB, FRB and DTCC restricted stock totaling $ 248 , $ 355 and $1 , respectively, at December 31, 2015 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment . During the year ended December 31, 2015, no assets or liabilities were transferred between Level 1 and Level 2 . Included in other assets in the Consolidated Balance Sheets. Included in other liabilities in the Consolidated Balance Sheets Fair Value Measurements Using December 31, 2014 ($ in millions) Level 1 (c) Level 2 (c) Level 3 Total Fair Value Assets: Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 25 1,607 - 1,632 Obligations of states and political subdivisions securities - 192 - 192 Mortgage-backed securities: Agency residential mortgage-backed securities - 12,404 - 12,404 Agency commercial mortgage-backed securities - 4,565 - 4,565 Non-agency commercial mortgage-backed securities - 1,550 - 1,550 Asset-backed securities and other debt securities - 1,362 - 1,362 Equity securities (a) 84 19 - 103 Available-for-sale and other securities (a) 109 21,699 - 21,808 Trading securities: U.S. Treasury and federal agencies securities - 14 - 14 Obligations of states and political subdivisions securities - 8 - 8 Mortgage-backed securities: Agency residential mortgage-backed securities - 9 - 9 Asset-backed securities and other debt securities - 13 - 13 Equity securities 316 - - 316 Trading securities 316 44 - 360 Residential mortgage loans held for sale - 561 - 561 Residential mortgage loans (b) - - 108 108 Derivative assets: Interest rate contracts - 888 12 900 Foreign exchange contracts - 417 - 417 Equity contracts - - 415 415 Commodity contracts 68 280 - 348 Derivative assets (d) 68 1,585 427 2,080 Total assets $ 493 23,889 535 24,917 Liabilities: Derivative liabilities: Interest rate contracts $ 6 276 2 284 Foreign exchange contracts - 372 - 372 Equity contracts - - 49 49 Commodity contracts 58 280 - 338 Derivative liabilities (e) 64 928 51 1,043 Short positions (e) 16 5 - 21 Total liabilities $ 80 933 51 1,064 Excludes FHLB and FRB restricted stock totaling $ 248 and $ 352 , respectively, at December 31, 2014 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment . During the year ended December 31, 2014, no assets or liabilities were transferred between Level 1 and Level 2. Included in other assets in the Consolidated Balance Sheets. Included in other liabilities in the Consolidated Balance Sheets The following is a description of the valuation methodologies used for significant instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. Available-for-sale and other 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 U.S. Treasury securities 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 DCF s . Examples of such instruments, which are classified within Level 2 of the valuation hierarchy, include federal agencies securities , obligations of states and political subdivisions securities , agency residential mortgage-backed securities, agency and non-agency commer c ial mortgage-backed securities and asset-backed securities and other debt securities . These securities are generally valued using a market approach based on observable prices of securities with similar characteristics. Residential mortgage loans held for sale For residential mortgage loans held for sale for which the fair value election has been made , fair value is estimated based upon mortgage-backed securities prices and spreads to those prices or, for certain ARM loans, DCF models that may incorporate the anticipated portfolio composition, credit spreads of asset-backed securities with similar collateral and market conditions. The anticipated portfolio composition includes the effect of interest rate spreads and discount rates due to loan characteristics such as the state in which the loan was originated, the loan amount and the ARM margin. Residential mortgage loans held for sale th at 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 for which the fair value election has been made, and that are reclassified from held for sale to held for investment, the fair value estimation is based on mortgage-backed securities prices, interest rate risk and an internally developed credit component. Therefore, these loans are classified within Level 3 of the valuation hierarchy. An adverse change in the loss rate or severity assumption would result in a decrease in fair value of the related loan. The Secondary Marketing d epartment, which reports to the Bancorp's Head of the Consumer Bank , in conjunction with the Consumer Credit Risk d epartment, which reports to the Bancorp's Chief Risk Officer, are responsible for determining the valuation methodology for residential mortgage loans held for inves tment. The Secondary Marketing d epartment 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 DCF or other models that incorporate current market interest rates, credit spreads assigned to the derivative counterparties and other market parameters and, therefore, are classified within Level 2 of the valuation hierarchy. Such derivatives include basic and structured interest rate , foreign exchange and commodity swaps and options. Derivatives that are valued based upon models with significant unobservable market parameters are classified within Level 3 of the valuation hierarchy. At December 31, 2015 and 2014 , derivatives classified as Le vel 3, which are valued using model s 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 V isa, Inc. Class B shares. For further information on the warrant, refer to Note 19 . Level 3 derivatives also include IRLCs , which utilize internally generated loan closing rate assumptions as a significant unobservable input in the valuation process. As of December 31, 2015, t he warrant allow s the Bancor p to purchase approximately 7.8 million incremental nonvoting units in Vantiv Holding, LLC at an exercise price of $ 15.98 per unit and requires settlement under certain defined conditions involving change of control. The fair va lue of the warrant is calculated in conjunction with a third- party valuation provider by applying Black- Scholes option-pricing 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 exp ected term and expected volatility. For the warrant , an increas e in the expected term (years) and the expected volatility assumptions would result in an increase in the fair value; conversely , a decrease in these assumptions would result in a decrease in the fair value. The Accounting and Treasury d epartments, both of which report to the Bancorp's Chief Financial Officer, determined the valuat ion methodology for the warrant . The Accounting and Treasury departments 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 DCF model based on unobservable inputs consisting of management's estimate of the probability of certain litigation scenarios, the timing of the resolution of the Covered Litigation and Visa litigation loss estimate s 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; conversely , a decrease in the loss estimate or an acceleration of the resolution of the Covered Litigation would result in a decrease in fair valu e. The Accounting and Treasury d epartments determined the valuation methodology for the total return swap. The Accounting and Treasury departments 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 IRLCs at December 31, 2015 was $ 1 5 million. I mmediate decreases in current interest rates of 25 bp s and 50 bp s would result in increases in the fair value of the IRLC s of approximately $ 6 million and $ 11 million, respectively. Immediate increases of current interest rates of 25 bp s and 50 bp s would result in decreases in the fair value of the IRLC s of approximately $ 7 million and $ 1 4 million, respectively. The decrease in the fair value of IRLC s due to immediate 10% and 20% adverse changes in the assumed loan closing rates would be approximately $ 2 million and $ 3 million, re spectively, and the increase in the 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 assumpti ons to the change in fair value may not be linear. The Consumer Line of Business Finance department, which reports to the Bancorp's Chief Financial Officer, and the aforementioned Secondary Marketing department are responsible for determining the valuation methodology for IRLCs. Secondary Marketi ng, 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 Trading Mortgage Derivatives, Derivatives, Total For the year ended December 31, 2015 ($ in millions) Securities Loans Net (a) Net (a) Fair Value Balance, beginning of period $ - 108 10 366 484 Total gains or losses (realized/unrealized): Included in earnings - - 111 288 399 Purchases - - (2) - (2) Sale and exercise of warrant - - - (477) (477) Settlements - (28) (107) 24 (111) Transfers into Level 3 (b) - 87 - - 87 Balance, end of period $ - 167 12 201 380 The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2015 (c) $ - - 17 66 83 Net interest rate derivatives include derivative assets and liabilities of $ 15 and $ 3 , respectively, as of December 31, 2015 . Net equity derivatives include derivative assets and liabilities of $ 262 and $ 61 , respectively, as of December 31, 2015 . Includes residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Trading Mortgage Derivatives, Derivatives, Total For the year ended December 31, 2014 ($ in millions) Securities Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 1 92 8 336 437 Total gains or losses (realized/unrealized): Included in earnings - 4 125 (7) 122 Purchases - - (1) - (1) Sales (1) - - - (1) Settlements - (17) (122) 37 (102) Transfers into Level 3 (b) - 29 - - 29 Balance, end of period $ - 108 10 366 484 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2014 (c) $ - 4 13 (7) 10 Net interest rate derivatives include derivative assets and liabilities of $ 12 and $ 2 , respect ively as of December 31, 2014 . Net equity derivatives include derivative assets and liabilities of $ 415 and $ 4 9 , respectively, as of December 31, 2014 . Includes residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Trading Mortgage Derivatives, Derivatives, Total For the year ended December 31, 2013 ($ in millions) Securities Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 1 76 57 144 278 Total gains or losses (realized/unrealized): Included in earnings - (1) 59 175 233 Purchases - - (2) - (2) Settlements - (17) (106) 17 (106) Transfers into Level 3 (b) - 34 - - 34 Balance, end of period $ 1 92 8 336 437 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2013 (c) $ - (1) 11 175 185 Net interest rate derivatives include derivative assets and liabilities of $ 12 and $ 4 , respectively, as of December 31 , 2013 . Net equity derivatives include derivative assets and liabilities of $ 384 and $ 48 , respectively, as of December 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 Consolidated Statements of Income during the years ended December 31, 2015, 2014 and 2013 as follows: ($ in millions) 2015 2014 2013 Mortgage banking net revenue $ 110 127 57 Corporate banking revenue 1 2 1 Other noninterest income 288 (7) 175 Total gains $ 399 122 233 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 December 31, 2015, 2014 and 2013 were recorded in the Consolidated Statements of Income as follows: ($ in millions) 2015 2014 2013 Mortgage banking net revenue $ 16 16 10 Corporate banking revenue 1 1 - Other noninterest income 66 (7) 175 Total gains $ 83 10 185 The following tables present information as of December 31, 2015 and 2014 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 December 31, 2015 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Residential mortgage loans $ 167 Loss rate model Interest rate risk factor (9.2) - 16.5% 3.1% Credit risk factor 0 - 80.5% 1.3% IRLCs, net 15 Discounted cash flow Loan closing rates 5.8 - 94.0% 76.3% Stock warrant associated with Vantiv Holding, LLC 262 Black-Scholes option- Expected term (years) 2.0 - 13.5 5.9 pricing model Expected volatility (a) 22.6 - 31.2% 25.9% Expected dividend rate - - Swap associated with the sale of Visa, Inc. (61) Discounted cash flow Timing of the resolution 12/31/2016 - NM Class B shares of the Covered Litigation 3/31/2021 Based on historical and implied volatilities of Vantiv , Inc. and comparable companies assuming similar expected terms . As of December 31, 2014 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Residential mortgage loans $ 108 Loss rate model Interest rate risk factor (7.2) - 17.7% 5.0% Credit risk factor 0 - 46.6% 1.8% IRLCs, net 12 Discounted cash flow Loan closing rates 8.8 - 86.7% 65.2% Stock warrant associated with Vantiv Holding, LLC 415 Black-Scholes option- Expected term (years) 2.0 - 14.5 6.0 pricing model Expected volatility (a) 22.9 - 32.2% 26.5% Expected dividend rate - - Swap associated with the sale of Visa, Inc. (49) Discounted cash flow Timing of the resolution 12/31/2015 - NM Class B shares of the Covered Litigation 6/30/2020 Based on historical and implied volatilities of Vantiv , Inc. and comparable companies assuming similar expected terms . Assets and Liabilities Measured at F air Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of December 31, 2015 and 2014, and for which a nonrecurring fair value adjustment was recorded during the years ended December 31, 2015 and 2014, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period. Fair Value Measurements Using Total (Losses) Gains As of December 31, 2015 ($ in millions) Level 1 Level 2 Level 3 Total For the year ended December 31, 2015 Commercial loans held for sale $ - - 13 13 3 Residential mortgage loans held for sale - - 68 68 (2) Automobile loans held for sale - - 2 2 - Credit cards held for sale - - 4 4 (2) Commercial and industrial loans - - 344 344 (137) Commercial mortgage loans - - 103 103 (41) Commercial construction loans - - 6 6 (5) Residential mortgage loans - - 55 55 (1) MSRs - - 784 784 4 OREO - - 58 58 (24) Bank premises and equipment - - 83 83 (101) Operating lease equipment - - 42 42 (33) Private equity investment funds - - 13 13 (1) Total $ - - 1,575 1,575 (340) Fair Value Measurements Using Total Losses As of December 31, 2014 ($ in millions) Level 1 Level 2 Level 3 Total For the year ended December 31, 2014 Commercial loans held for sale $ - - 33 33 (12) Residential mortgage loans held for sale - - 554 554 (87) Commercial and industrial loans - - 456 456 (382) Commercial mortgage loans - - 110 110 (36) Commercial construction loans - - 23 23 (1) MSRs - - 856 856 (65) OREO - - 90 90 (26) Bank premises and equipment - - 22 22 (20) Total $ - - 2,144 2,144 (629) The following tables present information as of December 31, 2015 and 2014 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets measured on a nonrecurring basis: As of December 31, 2015 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 13 Discounted cash flow Discount spread NM 4.4% Residential mortgage loans held for sale 68 Loss rate model Interest rate risk factor (7.5) - 0.1% (1.6%) Credit risk factor NM 0.1% Automobile loans held for sale 2 Discounted cash flow Discount spread NM 3.1% Credit cards held for sale 4 Comparable transactions Estimated sales proceeds from NM NM comparable transactions Commercial and industrial loans 344 Appraised value Collateral value NM NM Commercial mortgage loans 103 Appraised value Collateral value NM NM Commercial construction loans 6 Appraised value Collateral value NM NM Residential mortgage loans 55 Appraised value Appraised value NM NM MSRs 784 Discounted cash flow Prepayment speed 1.0 - 100% (Fixed) 11.8% (Adjustable) 27.0% OAS spread (bps) 364-1,515 (Fixed) 618 (Adjustable) 703 OREO 58 Appraised value Appraised value NM NM Bank premises and equipment 83 Appraised value Appraised value NM NM Operating lease equipment 42 Appraised value Appraised value NM NM Private equity investment funds 13 Liquidity discount applied to fund's net asset value Liquidity discount NM 18.0% As of December 31, 2014 ($ in millions) Significant Unobservable Ranges of Financial Instrument Fair Value Valuation Technique Inputs Inputs Weighted-Average Commercial loans held for sale $ 33 Appraised value Appraised value NM NM Cost to sell NM 10.0% Residential mortgage loans held for sale 554 Comparable transactions Estimated sales proceeds from NM 15.0% comparable transactions Commercial and industrial loans 456 Appraised value Collateral value NM NM Commercial mortgage loans 110 Appraised value Collateral value NM NM Commercial construction loans 23 Appraised value Collateral value NM NM MSRs 856 Discounted cash flow Prepayment speed 0 - 100% (Fixed) 12.0% (Adjustable) 26.2% Discount rates 9.6 - 13.2% (Fixed) 9.9% (Adjustable) 11.8% OREO 90 Appraised value Appraised value NM NM Bank premises and equipment 22 Appraised value Appraised value NM NM Commercial loans held for sale During the years ended December 31, 2015 and 2014, t he Bancorp transferred $ 37 million and $ 28 million, respectively, of commercial loans from the portfolio to loans held for sale that upon transfer were measured at the lower of cost or fair value. These loans had fair value adjustments during the year s ended December 31, 2015 and 2014 totaling $ 1 million and $ 10 million , respectively, and were generally based on either appraisals of the underlying collateral or 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 and were, therefore, classified within Level 3 of the valuation hierarchy. Additionally, during the years ended December 31, 2015 and 2014 there were fair value adjustments on existing loans held for sale of $ 1 million and $ 2 million , respectively. The fair value adjustments were also based on appraisals of the underlying collateral . The Bancorp recognized $ 5 million in gains on the sale of certain commercial lo ans held for sale during the year ended December 31, 2015 . The Accounting department determines the procedures for the valuation of commercial loans held for sale using appraised value which may include a comparison to recently executed transactions of similar type loans. A monthly review of the portfolio is performed for reasonableness. Qua rterly, appraisals approaching one year old are updated and the Real Estate Valuation group, which reports to the Bancorp's Chief Risk Officer, in conjunction with the Commercial Line o f Business review the third- party appraisals for reasonableness. Additionally, the Commercial Line of Business Finance department, which reports to the Bancorp's Chief Financial Officer, in conjunction with the Accounting department review s all loan appraisal values, carry values and vintages. The Treasury department, which reports to the Bancorp's Chief Financial Officer, is responsible for the estimate of fair value adjustments when a discounted future cash flow valuation technique is employed. Residential mortgage loans held for sale During the year ended December 31, 2015 , the Bancorp transferred $ 233 million of residential mortgage loans from the portfolio to loans held for sale that upon transfer were measured at the lower of cost or fair value using significant unobservable inputs. Fair values were estimated based on mortgage-backed securities prices, interest rate risk and an internally developed credit component. These loans had $ 2 million of fair value adjustments during the year ended December 31, 2015 . The Secondary Marketing department, which reports to the Bancorp's Head of the Consumer Bank , in conjunction with the Consumer Credit Risk department, which reports to the Bancorp's Chief Risk 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. During the year ended December 31, 2014 the Bancorp transferred $ 720 million of restructured residential mortgage loans from the portfolio to loans held for sale that upon transfer were measured at the lower of cost or fair value using significant unobservable inputs. These loa ns had fair value adjustments during the year ended December 31, 2014 totaling $ 87 million. The fair value adjustments were based on estimated third-party valuations utilizing recent sales data from similar transactions. Broker opinion statements were also obtained as additional evidence to support the third- party valuations. The Treasury d epartment worked with the third-party advisor to estimate the fair value adjustments. The discounts taken were intended to represent the perspective of a market participant, considering among other things, required investor returns which include liquidity discounts reflected in similar bulk transactions. Automobile loans held for sale During the year ended December 31, 2015 , the Bancorp transferred $ 5 million of automobile loans from the portfolio to loans held for sale that upon transfer were measured at the lower of cost or fair value using s ignificant unobservable inputs. 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. These loans had an immaterial amount of fair value adjustments during the year ended December 31, 2015 . The Treasury department, which reports to the Bancorp's Chief Financial Officer, is responsible for the estimate of fair value adjustments. Credit cards held for sale During the year ended December 31, 2015 , the Bancorp transferred $ 102 million of credit cards from the portfolio to loans held for sale that upon transfer were measured at the lower of cost or fair value using significant unobservable inputs. Fair values were estimated based on recent sales data from similar transactions. These loans had fair value adjustments of $ 2 million during the year ended December 31, 2015 . The Consumer Credit Risk department, which reports to the Bancorp's Chief Risk Officer, in c onjunction with the Accounting d epartment, which reports to the Bancorp's Chief Financial Officer, are responsible for the estimate of fair value adjustments. Commercial loans held for investment During the year s ended December 31, 2015 and 2014, the Bancorp recorded nonrecurring impairment adjustments to certain commercial and industrial loans, commercial mortgage loans 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. The fair values and recognized impairment losses are reflected in the previous table s . Commercial Credit Risk, which reports to the Bancorp's Chief Risk Officer, is responsible for preparing and reviewing the fair value estimates for commercial loans held for investment. Residential mortgage loans held for investment During the year ended December 31, 2015 , the Bancorp transferred approximately $ 55 million of restructured residential mortgage loans from held for sale to the portfolio as the Bancorp no longer had the intent to sell the loans. Upon |
Certain Regulatory Requirements
Certain Regulatory Requirements and Capital Ratios | 12 Months Ended |
Dec. 31, 2015 | |
Certain Regulatory Requirements and Capital Ratios | |
Certain Regulatory Requirements and Capital Ratios | 28. Certain regulatory requirements and capital ratios The principal source of income and funds for the Bancorp (parent company) are dividends from its subsidiaries. The dividends paid by the Bancorp's banking subsidiary are subject to regulations and limitations prescribed by the appropriate state and federal supervisory authorities . The Bancorp's nonbank subsidiaries are also limited by certain federal and state statutory provisions and regulations covering the amount of dividends that may be paid in any given year. The Bancorp's banking subsidiary must maintain cash reserve balances when total reservable deposit liabilities are greater than the regulatory exemption. These reserve requirements may be satisfied with vault cash and balances on deposit with the FRB. In 2015 an d 2014 , the Bancorp's banking subsidiary was required to maintain average cash reserve b alances of $ 1 . 8 b illion and $ 1. 7 b illion, respectively. The Board of Governors of the Federal Reserve System issued capital adequacy guidelines pursuant to which it assesses the adequacy of capital in examining and supervising a BHC and in analyzing applications to it under the BHCA of 1956, as amended. These guidelines include quantitative measures that assign risk weightings to assets and off-balance sheet items, as well as define and set minimum regulatory capital requirements . The Basel III Final Rule was effective for the Bancorp on January 1, 2015, subject to phase-in periods for certain of its components and other provisions. It revised the quantitative measures used to define risk weightings to assets and off-balance sheet items and also defined the regulatory capital components and set minimum regulatory capital requirements. The minimum capital ratios established under the Basel III Final Rule are Common equity Tier 1 capital of at least 4.5% (CET1 ratio), Tier I capital (core capital ) of at least 6% of risk-weighted assets (Tier I risk-based capital ratio), T otal regulatory capital (Tier I plus Tier II capital) of at least 8% of risk-weight ed assets (Total risk-based capital ratio) and Tier I capital of at least 4% of adjusted quarterly average assets (Tier I leverage ratio). Failure to meet the minimum capital requirements can initiate certain actions by regulators that could have a direct material effect on the Consolidated Financial Statements of the Bancorp. The Basel III Final Rule provided for certain banks, including the Bancorp, to opt out of including AOCI in regulatory capital and also retained the treatment of residential mortgage exposures consistent with the current Basel I capital rules. The Bancorp made a one-time permanent election to not include AOCI in regulatory capital in the March 31, 2015 FFIEC 031 and FR Y-9C filings. The Basel III Final Rule phases out the inclusion of certain TruPS as a component of Tier I capital. Under these provisions, these TruPS would qualify as a component of Tier II capital. At December 31, 2015 , the Bancorp's Tier I capital included $ 13 million of TruPS representing approximately 1 bp of risk-weighted assets. Tier II capital consists principally of term subordinated debt and, subject to limitations, allowances for credit losses. The Bancorp's a ssets and credit eq uivalent amounts of off-balance sheet items are assigned to one o f several broad risk categories according to the Standardized Approach for risk-weighting assets as defined in the Basel III Final Rule. The aggregate dollar value of the amount of each category is multiplied by the associated risk weighting. The resulting weighted values from each of the risk categories in sum is the total risk-weighted assets. Quarterly average assets for this purpose do not include goodwill and any other intangible assets and other investments that the FRB determines should be deducted from Tier I capital. The Board of Governors of the Federal Reserve System issued capital adequacy guidelines for banking subsidiaries substantially similar to those adopted for BHCs , as described previously. In addition, the U.S. banking agencies have issued substantially similar regulations to implement the system of prompt corrective action established by Section 38 of the FDIA . Under the regulations, a bank generally shall be deemed to be well-capitalized if it has a CET1 ratio of 6.5% or more, a Tier I risk-based capital ratio of 8% or more, a Total risk-based capital ratio of 10% or more, a Tier I leverage ratio of 5% or more and is not subject to any written capital order or directive. If an institution becomes undercapitalized, it would become subject to significant additional oversight, regulations and requirements as mandated by the FDIA . The Bancorp and its banking subsidiary , Fifth Third Bank , had a CET1 capital ratio above the well-capitalized level at December 31, 2015 and Tier I risk-based capital , Total risk-based capital and Tier I leverage ratios above the well-capital ized levels at December 31, 2015 and 2014 . To continue to qualify for financial holding company status pursuant to the Gramm-Leach-Bliley Act of 1999 , the Bancorp's banking subsidiary must, among other things, maintain “well-capitalized” capital ratios. The following table presents capital and risk-based capital and leverage ratios for the Bancorp and its banking subsidiary at December 31: 2015 2014 Basel III Transitional (a) Basel I (b) ($ in millions) Amount Ratio Amount Ratio CET1 capital (to risk-weighted assets): Fifth Third Bancorp $ 11,917 9.82 % N/A N/A Fifth Third Bank 14,216 11.92 N/A N/A Tier I risk-based capital (to risk-weighted assets): Fifth Third Bancorp 13,260 10.93 $ 12,764 10.83 % Fifth Third Bank 14,216 11.92 13,760 11.85 Total risk-based capital (to risk-weighted assets): Fifth Third Bancorp 17,134 14.13 16,895 14.33 Fifth Third Bank 15,642 13.12 15,213 13.10 Tier I leverage (to average assets): Fifth Third Bancorp 13,260 9.54 12,764 9.66 Fifth Third Bank 14,216 10.43 13,760 10.58 Under the U.S. banking agencies' Basel III Final Rule, assets and credit equivalent amounts of off-balance sheet exposures are calculated according to the standardized approach for risk-weighted assets. The resulting weighted values are added together resulting in the total risk-weighted assets . These capital amounts and ratios were calculated under the Supervisory Agencies general risk-based capital rules (Basel I) which were in effect prior to January 1, 2015 . |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2015 | |
Parent Company Financial Statements | |
Parent Company Financial Statements | 29. Parent Company financial statements Condensed Statements of Income (Parent Company Only) For the years ended December 31 ($ in millions) 2015 2014 2013 Income Dividends from subsidiaries: Consolidated nonbank subsidiaries (a) $ 1,040 1,094 859 Interest on loans to subsidiaries 15 14 14 Total income 1,055 1,108 873 Expenses Interest 178 163 178 Other 22 17 36 Total expenses 200 180 214 Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries 855 928 659 Applicable income tax benefit 69 62 74 Income Before Change in Undistributed Earnings of Subsidiaries 924 990 733 Change in undistributed earnings 788 491 1,103 Net Income $ 1,712 1,481 1,836 Other Comprehensive Income 0 0 0 Comprehensive Income Attributable to Bancorp $ 1,712 1,481 1,836 The Bancorp's indirect ba nking subsidiary paid dividends to the Bancorp's direct non bank subsidiary holding company of $ 1.0 b illion , $1.1 b illion and $859 m illion for the years e nded December 31, 2015 , 2014 and 2013, respectively. Condensed Balance Sheets (Parent Company Only) As of December 31 ($ in millions) 2015 2014 Assets Cash $ 128 - Short-term investments 3,728 3,189 Loans to subsidiaries: Nonbank subsidiaries 982 984 Total loans to subsidiaries 982 984 Investment in subsidiaries Nonbank subsidiaries 17,831 17,186 Total investment in subsidiaries 17,831 17,186 Goodwill 80 80 Other assets 432 451 Total Assets $ 23,181 21,890 Liabilities Other short-term borrowings $ 404 426 Accrued expenses and other liabilities 433 405 Long-term debt (external) 6,474 5,394 Total Liabilities $ 7,311 6,225 Shareholders' Equity Common stock $ 2,051 2,051 Preferred stock 1,331 1,331 Capital surplus 2,666 2,646 Retained earnings 12,358 11,141 Accumulated other comprehensive income 197 429 Treasury stock (2,764) (1,972) Noncontrolling interests 31 39 Total Equity 15,870 15,665 Total Liabilities and Equity $ 23,181 21,890 Condensed Statements of Cash Flows (Parent Company Only) For the years ended December 31 ($ in millions) 2015 2014 2013 Operating Activities Net income $ 1,712 1,481 1,836 Adjustments to reconcile net income to net cash provided by operating activities: Benefit from deferred income taxes (4) (1) (1) Net change in undistributed earnings (788) (491) (1,103) Net change in: Other assets (19) 8 13 Accrued expenses and other liabilities 32 (40) (28) Net Cash Provided by Operating Activities 933 957 717 Investing Activities Net change in: Short-term investments (539) (684) 976 Loans to subsidiaries 2 (10) 47 Net Cash (Used in) Provided by Investing Activities (537) (694) 1,023 Financing Activities Net change in other short-term borrowings (22) 115 (255) Proceeds from issuance of long-term debt 1,099 499 750 Repayment of long-term debt 0 0 (1,500) Dividends paid on common shares (422) (423) (393) Dividends paid on preferred shares (75) (67) (37) Issuance of preferred shares 0 297 1,034 Repurchase of treasury shares and related forward contract (850) (654) (1,320) Other, net 2 (30) (19) Net Cash Used in Financing Activities (268) (263) (1,740) Increase in Cash 128 0 0 Cash at Beginning of Period 0 0 0 Cash at End of Period $ 128 0 0 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2015 | |
Business Segments | |
Business Segments | 30. 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 and businesses change. The Bancorp manages interest rate risk centrally at the corporate level by employing a n 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 prod ucts were re set January 1, 201 5 to reflect the current market rates and updated market assumptions. These rates were generally lower than those in place during 2014 , thus net interest income for deposit - providing businesses was negatively impacted during 201 5 . The business segments are charged provision expense based on the actua l net charge-offs experienced by the loans and leases owned by each segment. Provision expense attributable to loan and lease growth and changes in ALLL factors are captured in General Corporate and Other. The financial results of the business segments include allocations for shared serv ices and headquarters expenses. 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 years ended December 31, 201 4 and 201 3 were adjusted to reflect the transfer of certain customers and Bancorp employees from Commercial Banking to Branch Banking, effective January 1, 2015 . In addi tion, the balances for the years ended December 31, 2014 and 2013 were adjusted 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 an d small businesses through 1, 254 full-service b anking c enters. Branch Banking offers depository and loan products, such as checking and savings accounts, home equity loans and lines of credit, credit cards and loans for automobiles and other personal financing needs, as well as products designed to meet the specific needs of small businesses, including cash management services. Consumer Lending includes the Bancorp's residential mortgage, home equity, automobile and other indirect lending activities. Direct lending activities include the origination, retent ion and servicing of residential mortgage 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 correspondent lenders 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. 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 business segment for the years ended December 31 are: General Commercial Branch Consumer Investment Corporate 2015 ($ in millions) Banking Banking Lending Advisors and Other Eliminations Total Net interest income $ 1,625 1,555 249 128 (24) - 3,533 Provision for loan and lease losses 239 159 45 3 (50) - 396 Net interest income after provision for loan and lease losses 1,386 1,396 204 125 26 - 3,137 Total noninterest income 853 (c) 652 (b) 407 418 822 (149) (a) 3,003 Total noninterest expense 1,402 1,567 436 455 64 (149) 3,775 Income before income taxes 837 481 175 88 784 - 2,365 Applicable income tax expense 98 170 63 30 298 - 659 Net income 739 311 112 58 486 - 1,706 Less: Net income attributable to noncontrolling interests - - - - (6) - (6) Net income attributable to Bancorp 739 311 112 58 492 - 1,712 Dividends on preferred stock - - - - 75 - 75 Net income available to common shareholders $ 739 311 112 58 417 - 1,637 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 58,166 53,587 22,656 9,938 (3,265) - 141,082 Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Consolidated Statements of Income . Includes an impairment charge of $ 10 9 for branches and land. For more information refe r to Note 7 and Note 27. Includes an impairment charge of $ 36 for operating lease equipment. For more information refer to Note 8 and Note 27. General Commercial Branch Consumer Investment Corporate 2014 ($ in millions) Banking Banking Lending Advisors and Other Eliminations Total Net interest income $ 1,627 1,573 258 121 - - 3,579 Provision for loan and lease losses 235 181 156 3 (260) - 315 Net interest income after provision for loan and lease losses 1,392 1,392 102 118 260 - 3,264 Total noninterest income 880 726 (b) 350 410 253 (146) (a) 2,473 Total noninterest expense 1,317 1,554 554 445 (15) (146) 3,709 Income (loss) before income taxes 955 564 (102) 83 528 - 2,028 Applicable income tax expense (benefit) 155 199 (36) 29 198 - 545 Net income (loss) 800 365 (66) 54 330 - 1,483 Less: Net income attributable to noncontrolling interests - - - - 2 - 2 Net income (loss) attributable to Bancorp 800 365 (66) 54 328 - 1,481 Dividends on preferred stock - - - - 67 - 67 Net income (loss) available to common shareholders $ 800 365 (66) 54 261 - 1,414 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 56,306 51,462 22,567 10,443 (2,072) - 138,706 Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Consolidated Statements of Income. Includes an impairment charge of $ 20 for branches and land . For more information refer to Note 7 and Note 27 . General Commercial Branch Consumer Investment Corporate 2013 ($ in millions) Banking Banking Lending Advisors and Other Eliminations Total Net interest income $ 1,569 1,380 312 154 146 - 3,561 Provision for loan and lease losses 195 211 93 2 (272) - 229 Net interest income after provision for loan and lease losses 1,374 1,169 219 152 418 - 3,332 Total noninterest income 811 745 (b) 755 406 654 (144) (a) 3,227 Total noninterest expense 1,230 1,576 685 453 161 (144) 3,961 Income before income taxes 955 338 289 105 911 - 2,598 Applicable income tax expense 157 119 102 37 357 - 772 Net income 798 219 187 68 554 - 1,826 Less: Net income attributable to noncontrolling interests - - - - (10) - (10) Net income attributable to Bancorp 798 219 187 68 564 - 1,836 Dividends on preferred stock - - - - 37 - 37 Net income available to common shareholders $ 798 219 187 68 527 - 1,799 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 54,495 47,788 22,624 10,711 (5,175) - 130,443 Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Consolidated Statements of Income. Includes an impairment charge of $ 6 for branches and lan d. For more information refer to Note 7 and Note 27 . |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Event | |
Subsequent Events [Text Block] | 31. SUBSEQUENT EVENT On January 29, 2016 , the Bancorp closed the previously announced sale of its retail operations, including retail accounts, certain private banking deposits and related loan relationships in the St. Lou is MSA to Great Southern Bank. The sale included loans, premises and equipment and deposits with aggregate carrying amounts of approximately $ 158 milli on, $ 18 million and $ 228 million, respectively. The Bancorp recorded a gain on the sale of approximately $ 8 million that will be recognized in the Bancorp's first quarter 2016 Quarterly Report on Form 10-Q . |
Summary of Significant Accoun40
Summary of Significant Accounting and Reporting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting and Reporting Policies | |
Nature of Operations | Nature of Operations Fifth Third Bancorp, an Ohio corporation, conducts its principal lending, deposit gathering, transaction processing and service advisory activities through its banking and non-banking subsidiaries from banking centers located throughout the Midwestern and Southeastern regions of the United States. |
Basis of Presentation | Basis of Presentation The 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 of accounting and not consolidated. The investments in those entities in which the Bancorp does not have the ability to exercise significant influence are generally carried at the lower of cost or fair value. Intercompany transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates 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. |
Cash and Due from Banks | Cash and Due From Banks Cash and due from banks consist of currency and coin, cash items in the process of collection and due from banks. Currency and coin includes both U.S. and foreign currency owned and held at Fifth Third offices and that is in-transit to the FRB. Cash items in the process of collection include checks and drafts that are drawn on another depository institution or the FRB that are payable immediately upon presentation in the U.S. Balances due from banks include noninterest - bearing balances that are funds on deposit at other depository institutions or the FRB. |
Securities | Securities Securities are classified as held-to-maturity, available-for-sale or trading on the date of purchase. Only those securities which management has the intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. Securities are classified as available-for-sale when, in management's judgment, they may be sold in response to, or in anticipation of, changes in market conditions. Securities are classified as trading when bought and held principally for the purpose of selling them in the near term. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of related deferred income taxes, included in OCI . Trading securities are reported at fair value with unrealized gains and losses included in noninterest income. The fair value of a security is determined based on quoted market prices. If quoted market prices are not available, fair value is determined based on quoted prices of similar instruments or DCF models that incorporate market inputs and assumptions including discount rates, prepayment speeds and loss rates. Realized securities gains or losses are reported within noninterest income in the Consolidated Statements of Income. The cost of securities sold is based on the specific identification method. Available-for-sale and held-to-maturity securities with unrealized losses are reviewed quarterly for possible OTTI. For debt securities, if the Bancorp intends to sell the debt security or will more likely than not be required to sell the debt security before recovery of the entire amortized cost basis, then an OTTI has occurred. However, even if the Bancorp does not intend to sell the debt security and will not likely be required to sell the debt security before recovery of its entire amortized cost basis, the Bancorp must evaluate expected cash flows to be received and determine if a credit loss has occurred. In the event of a credit loss, the credit component of the impairment is recognized within noninterest income and the non-credit component is recognized through OCI . For equity securities, the Bancorp's management evaluates the securities in an unrealized loss position in the available-for-sale portfolio for OTTI on the basis of the duration of the decline in value of the security and severity of that decline as well as the Bancorp's intent and ability to hold these securities for a period of time sufficient to allow for any anticipated recovery in the market value. If it is determined that the impairment on an equity security is other - than - temporary, an impairment loss equal to the difference between the amortized cost of the security and its fair value is recogn ized within noninterest income . |
Basis of Presentation for Portfolio Loans and Leases | Basis of Accounting Portfolio loans and leases are generally reported at the principal amount outstanding, net of unearned income, deferred loan fees and costs and any direct principal charge-offs. Direct loan origination fees and costs are deferred and the net amount is amortized over the estimated life of the related loans as a yield adjustment. Interest income is recognized based on the principal balance outstanding computed using the effective interest method. Loans acquired by the Bancorp through a purchase business combination are recorded at fair value as of the acquisition date. The Bancorp does not carry over the acquired company's ALLL, nor does the Bancorp add to its existing ALLL as part of purchase accounting. Purchased loans are evaluated for evidence of credit deterioration at acquisition and recorded at their initial fair value. For loans acquired with no evidence of credit deterioration, the fair value discount or premium is amortized over the contractual life of the loan as an adjustment to yield. For loans acquired with evidence of credit deterioration, the Bancorp determines at the acquisition date the excess of the loan's contractually required payments over all cash flows expected to be collected as an amount that should not be accreted into interest income ( nonaccretable difference). The remaining amount representing the difference in the expected cash flows of acquired loans and the initial investment in the acquired loans is accreted into interest income over the remaining life of the loan or pool of loans ( accretable yield). Subsequent to the acquisition date, increases in expected cash flows over those expected at the acquisition date are recognized prospectively as interest income over the remaining life of the loan. The present value of any decreases in expected cash flows resulting directly from a change in the contractual interest rate are recognized prospectively as a reduction of the accretable yield. The present value of any decreases in expected cash flows after the acquisition date as a result of credit deterioration is recognized by recording an ALLL or a direct charge-off. Subsequent to the purchase date, the methods utilized to estimate the required ALLL are similar to originated loans. Loans carried at fair value, residential mortgage loans held for sale and loans under revolving credit agreements are excluded from the scope of this guidance on loans acquired with deteriorated credit quality. The Bancorp's lease portfolio consists of both direct financing and leveraged leases. Direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased property, less unearned income. Interest income on direct financing leases is recognized over the term of the lease to achieve a constant periodic rate of return on the outstanding investment. Leveraged leases are carried at the aggregate of lease payments (less nonrecourse debt payments) plus estimated residual value of the leased property, less unearned income. Interest income on leveraged leases is recognized over the term of the lease to achieve a constant rate of return on the outstanding investment in the lease, net of the related deferred income tax liability, in the years in which the net investment is positive. |
Nonaccrual Loans | Nonaccrual Loans and Leases When a loan is placed on nonaccrual status, the accrual of interest, amortization of loan premium, accretion of loan discount and amortization/accretion of deferred net loan fees are discontinued and all previously accrued and unpaid interest is charged against income. Commercial loans are placed on nonaccrual status when there is a clear indication that the borrower's cash flows may not be sufficient to meet payments as they become due. Such loans are also placed on nonaccrual status when the principal or interest is past due 90 days or more, unless the loan is both well - secured and in the process of collection. The Bancorp classifies residential mortgage loans that have principal and interest payments that have become past due 150 days as nonaccrual unless the loan is both well - secured and in the process of collection. Residential mortgage loans may stay on nonperforming status for an extended time as the foreclosure process typically lasts longer than 180 days. Home equity loans and lines of credit are reported on nonaccrual status if principal or interest has been in default for 90 days or more unless the loan is both well - secured and in the process of collection. Home equity loans and lines of credit that have been in default for 60 days or more are also reported on nonaccrual status if the senior lien has been in default 120 days or more, unless the loan is both well secured and in the process of collection. Residential mortgage, home equity, automobile and other consumer loans and leases that have been modified in a TDR and subsequently become past due 90 days are placed on nonaccrual status unless the loan is both well - secured and in the process of collection. Commercial and credit card loans that have been modified in a TDR are classified as nonaccrual unless such loans have sustained repayment performance of six months or more and are reasonably assured of repayment in accordance with the restructured terms. Well - secured loans are collateralized by perfected security interests in real and/or personal property for which the Bancorp estimates proceeds from the sale would be sufficient to recover the outstanding principal and accrued interest balance of the loan and pay all costs to sell the collateral. The Bancorp considers a loan in the process of collection if collection efforts or legal action is proceeding and the Bancorp expects to collect funds sufficient to bring the loan current or recover the entire outstanding principal and accrued interest balance. Nonaccrual commercial loans a nd nonaccrual credit card loans are generally accounted for on the cost recovery method. The Bancorp believes the cost recovery method is appropriate for nonaccrual commercial loans and nonaccrual credit card loans because the assessment of collectability of the remaining recorded investment of these loans involves a high degree of subjectivity and uncertainty due to the nature or absence of underlying collateral. Under the cost recovery method, any payments received are applied to reduce principal. Once the entire recorded investment is collected, additional payments received are treated as recoveries of amounts previously charged-off until recovered in full, and any subsequent payments are treated as interest income. Nonaccrual residential mortgage loans and other nonaccrual consumer loans are generally accounted for on the cash basis method. The Bancorp believes the cash basis method is appropriate for nonaccrual residential mortgage and other nonaccrual consumer loans because such loans have generally been written down to estimated collateral values and the collectability of the remaining investment involves only an assessment of the fair value of the underlying collateral, which can be measured more objectively with a lesser degree of uncertainty than assessments of typical commercial loan collateral. Under the cash basis method, interest income is recognized upon cash receipt to the extent to which it would have been accrued on the loan's remaining balance at the contractual rate. Nonaccrual loans may be returned to accrual status when all delinquent interest and principal payments become current in accordance with the loan agreement and are reasonably assured of repayment in accordance with the contractual terms of the loan agreement, or when the loan is both well-secured and in the process of collection. Commercial loans on nonaccrual status, including those modified in a TDR , as well as criticized commercial loans with aggregate borrower relationships exceeding $ 1 million, are subject to an individual review to identify charge-offs. The Bancorp does not have an established delinquency threshold for partially or fully charging off commercial loans. Residential mortgage loans, home equity loans and lines of credit and credit card loans that have principal and interest payments that have become past due 180 days are assessed for a charge-off to the ALLL, unless such loans are both well-secured and in the process of collection. Home equity loans and lines of credit are also assessed for charge-off to the ALLL when such loans or lines of credit have become past due 120 days if the senior lien is also 120 days past due, unless such loans are both well-secured and in the process of collection. Automobile and other consumer loans and leases that have principal and interest payments that have become past due 120 days are assessed for a charge-off to the ALLL, unless such loans are both well-secured and in the process of collection. |
Restructured Loans | Restructured Loans and Leases A loan is accounted for as a TDR if the Bancorp, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that it would not otherwise consider. A TDR typically involves a modification of terms such as a reduction of the stated interest rate or remaining principal amount of the loan, a reduction of accrued interest or an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan with similar risk. In 2012, the OCC, a national bank regulatory agency, issued interpretive guidance that requires non-reaffirmed loans included in Chapter 7 bankruptcy filings to be accounted for as nonperforming TDRs and collateral dependent loans regardless of their payment history and capacity to pay in the future. The Bancorp's banking subsidiary is a state chartered bank which therefore is not subject to guidance of the OCC. The Bancorp does not consider the bankruptcy court's discharge of the borrower's debt a concession when the discharged debt is not reaffirmed and as such , these loans are classified as TDRs only if one or more of the previously mentioned concessions are granted. The Bancorp measures the impairment loss of a TDR based on the difference between the original loan's carrying amount and the present value of expected future cash flows discounted at the original, effective yield of the loan. Residential mortgage loans, home equity loans, automobile loans and other consumer loans modified as part of a TDR are maintained on accrual status, provided there is reasonable assurance of repayment and of performance according to the modified terms based upon a current, well-documented credit evaluation. Commercial loans and credit card loans modified as part of a TDR are maintained on accrual status provided there is a sustained payment history of six months or more prior to the modification in accordance with the modified terms and all remaining contractual payments under the modified terms are reasonably assured of collection. TDRs of commercial loans and credit cards that do not have a sustained pa yment history of six months or more in accordance with their modified terms remain on nonaccrual status until a six month payment history is sustained. In certain cases, commercial TDRs on nonaccrual status may be accounted for using the cash basis method for income recognition, provided that full repayment of principal under the modified terms of the loan is reasonably assured. |
Impaired Loans | Impaired Loans and Leases A loan is considered to be impaired when, based on current information and events, it is probable that the Bancorp will be unable to collect all amounts due (including both principal and interest) according to the contractual terms of the loan agreement. Impaired loans generally consist of nonaccrual loans and leases, loans modified in a TDR and loans over $ 1 million that are currently on accrual status and not yet modified in a TDR, but for which the Bancorp has determined that it is probable that it will grant a payment concession in the near term due to the borrower's financial difficulties. For loans modified in a TDR, the contractual terms of the loan agreement refer to the terms specified in the original loan agreement. A loan restructured in a TDR is no longer considered impaired in years after the restructuring if the restructuring agreement specifies a rate equal to or greater than the rate the Bancorp was willing to accept at the time of the restructuring for a new loan with comparable risk and the loan is not impaired based on the terms specified by the restructuring agreement. Refer to the ALLL section for discussion regarding the Bancorp's methodology for identifying impaired loans and determination of the need for a loss accrual. |
Loans Held for Sale | Loans Held for Sale Loans held for sale prima rily represent conforming fixed- rate residential mortgage loans originated or acquired with the intent to sell in the secondary market and jumbo residential mortgage loans, commercial loans , other residential mortgage loans and other consumer loans that management has the intent to sell. Loans held for sale may be carried at the lower of cost or fair value, or carried at fair value where the Bancorp has elected the fair value option of accounting under U.S. GAAP. The Bancorp has elected to measure certain residential mortgage loans originated as held for sale under the fair value option. For loans in which the Bancorp has not elected the fair value option, the lower of cost or fair value is determined at the individual loan level. The fair value of residential mortgage loans held for sale for which the fair value election has been made 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 effects 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. These fair value marks are recorded as a component of noninterest income in mortgage banking net revenue. The Bancorp generally has commitments to sell residential mortgage loans held for sale in the secondary market. Gains or losses on sales are recognized in mortgage banking net revenue. 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, thereafter, reported within the Bancorp's residential mortgage class of portfolio loans and leases. In such cases, the residential mortgage loans will continue to be measured at fair value, which is based on mortgage-backed securities prices, interest rate risk and an internally developed credit component. Loans held for sale are placed on nonaccrual status consistent with the Bancorp's nonaccrual policy for portfolio loans and leases. |
Other Real Estate Owned | Other Real Estate Owned OREO, which is included in other assets, represents property acquired through foreclosure or other proceedings and is carried at the lower of cost or fair value, less costs to sell. All OREO property is periodically evaluated for impairment and decreases in carrying value are recognized as reductions in other noninterest income in the Consolidated Statements of Income. For government- guaranteed mortgage loans, upon foreclosure, a separate other receivable is recognized if certain conditions are met for the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. This receivable is also included in other assets, separate from OREO, in the Consolidated Balance Sheets . |
Allowance for Loans and Leases | ALLL The Bancorp disaggregates its portfolio loans and leases into portfolio segments for purposes of determining the ALLL. The Bancorp's portfolio segments include commercial, residential mortgage and consumer. The Bancorp further disaggregates its portfolio segments into classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Classes within the commercial portfolio segment include commercial and industrial, commercial mortgage owner-oc cupied, commercial mortgage nonowner - occupied, commercial construction and commercial leasing. The residential mortgage portfolio segment is also considered a class. Classes within the consumer portfolio segment include home equity, automobile, credit card and other consumer loans and leases. For an analysis of the Bancorp's ALLL by portfolio segment and credit q uality information by class, refer to Note 6 . The Bancorp maintains the ALLL to absorb probable loan and lease losses inherent in its portfolio segments. The ALLL is maintained at a level the Bancorp considers to be adequate and is based on ongoing quarterly assessments and evaluations of the collectability and historical loss experience of loans and leases. Credit losses are charged and recoveries are credited to the ALLL. Provisions for loan and lease losses are based on the Bancorp's review of the historical credit loss experience and such factors that, in management's judgment, deserve consideration under existing economic conditions in estimating probable credit losses. The Bancorp's strategy for credit risk management includes a combination of conservative exposure limits significantly below legal lending limits and conservative underwriting, documentation and collections standards. The strategy also emphasizes diversification on a geographic, industry and customer level, regular credit examinations and quarterly management reviews of large credit exposures and loans experiencing deterioration of credit quality. The Bancorp's methodology for determining the ALLL is based on historical loss rates, current credit grades, specific allocation on loans modified in a TDR and impaired commercial credits above specified thresholds and other qualitative adjustments. Allowances on individual commercial loans, TDRs and historical loss rates are reviewed quarterly and adjusted as necessary based on changing borrower and/or collateral conditions and actual collection and charge-off experience. An unallocated allowance is maintained to recognize the imprecision in estimating and measuring losses when evaluating allowances for individual loans or pools of loans. Larger commercial loans included within aggregate borrower relationship balances exceeding $ 1 million that exhibit probable or observed credit weaknesses, as well as loans that have been modified in a TDR, are 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. Other factors may include the industry and geographic region of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower and the Bancorp's evaluation of the borrower's management. When individual loans are impaired, allowances are determined based on management's estimate of the borrower's ability to repay the loan given the availability of collateral and other sources of cash flow, as well as an evaluation of legal options available to the Bancorp. Allowances for impaired loans are measured based on the present value of expected future cash flows discounted at the loan's effective interest rate, fair value of the underlying collateral or readily observable secondary market values. The Bancorp evaluates the collectability of both principal and interest when assessing the need for a loss accrual. Historical credit loss rates are applied to commercial loans that are not impaired or are impaired, but smaller than the established threshold of $ 1 million and thus not subject to specific allowance allocations. The loss rates are derived from a migration analysis, which tracks the historical net charge-off experience sustained on loans according to their internal risk grade. The risk grading system utilized for allowance analysis purposes encompasses ten categories. Homogenous loans and leases in the residential mortgage and consumer portfolio segments are not individually risk graded. Rather, standard credit scoring systems and delinquency monitoring are used to assess credit risks and allowances are established based on the expected net charge-offs. Loss rates are based on the trailing twelve month net charge-off history by loan category. Historical loss rates may be adjusted for certain prescriptive and qualitative factors that, in management's judgment, are necessary to reflect losses inherent in the portfolio. Factors that management considers in the analysis include the effects of the national and local economies; trends in the nature and volume of delinquencies, charge-offs and nonaccrual loans; changes in loan mix; credit score migration comparisons; asset quality trends; risk management and loan administration; changes in the internal lending policies and credit standards; collection practices; and examination results from bank regulatory agencies and the Bancorp's internal credit reviewers. The Bancorp's primary market areas for lending are the Midwestern and So utheastern regions of the United States. When evaluating the adequacy of allowances, consideration is given to these regional geographic concentrations and the closely associated effect changing economic conditions have on the Bancorp's customers. In the current year, the Bancorp has not substantively changed any material aspect to its overall approach to determining its ALLL for any of its portfolio segments. There have been no material changes in criteria or estimation techniques as compared to prior periods that impacted the determination of the current period ALLL for any of the Bancorp's portfolio segments. |
Reserve for Unfunded Commitments | Reserve for Unfunded Commitments The reserve for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities and is included in other liabilities in the Consolidated Balance Sheets. The determination of the adequacy of the reserve is based upon an evaluation of the unfunded credit facilities, including an assessment of historical commitment utilization experience, credit risk grading and historical loss rates based on credit grade migration. This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of the Bancorp's ALLL, as previously discussed. Net adjustments to the reserve for unfunded commitments are included in other noninterest expense in the Consolidated Statements of Income. |
Loan Sales and Securitizations | Loan Sales and Securitizations The Bancorp periodically sells loans through either securitizations or individual loan sales in accordance with its investment policies. The sold loans are removed from the balance sheet and a net ga in or loss is recognized in the Consolidated Financial Statements at the time of sale. The Bancorp typically isolates the loans through the use of a VIE and thus is required to assess whether the entity holding the sold or securitized loans is a VIE and whether the Bancorp is the primary beneficiary and therefore consolidator of that VIE. If the Bancorp holds the power to direct activities most significant to the economic performance of the VIE and has the obligation to absorb losses or right to receive benefits that could potentially be significant to the VIE, then the Bancorp will generally be deemed the primary beneficiary of the VIE. 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 accounti ng standards as appropriate. Refer to Note 11 for further information on consolidated and non-consolidated VIEs. The Bancorp's loan sales and securitizations are generally structured with servicing retained. As a result, servicing rights resulting from residential mortgage loan sales are initially recorded at fair value and subsequently amortized in proportion to and over the period of estimated net servicing revenues and are reported as a component of mortgage banking net r evenue in the Consolidated Statements of Income. Servicing rights are assessed for impairment monthly, based on fair value, with temporary impairment recognized through a valuation allowance and other-than-temporary impairment recognized through a write-off of the servicing asset and related valuation allowance. Key economic assumptions used in measuring any potential impairment of the servicing rights include the prepayment speeds of the underlying loans, the weighted-average life, the discount rate and the weighted-average coupon, as applicable. The primary risk of material changes to the value of the servicing rights resides in the potential volatility in the economic assumptions used, particularly the prepayment speeds. The Bancorp monitors risk and adjusts its valuation allowance as necessary to adequately reserve for impairment in the servicing portfolio. For purposes of measuring impairment, the mortgage servicing rights are stratified into classes based on the financial asset type (fixed- rate vs. adjustable- rate) and interest rates. Fees received for servicing loans owned by investors are based on a percentage of the outstanding monthly principal balance of such loans and are included in noninterest income in the Consolidated Statements of Income as loan payments are received. Costs of servicing loans are charged to expense as incurred. |
Reserve For Representation And Warranty Provisions | Reserve for 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 other noninterest income at the time of sale. Updates to the reserve are recorded in other noninterest expense. |
Legal Contingencies | Legal Contingencies The Bancorp and its subsidiaries are part ies 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 diffi cult to predict and significant judgment may be required in the determination of both the probability of loss and whether the amount of the loss is reasonably estimable. The Bancorp's estimates are subjective and are based on the status of legal and regulatory proceedings, the merit of the Bancorp's defenses and consultation with internal and external legal counsel. An accrual for a potential litigation loss is established when information related to the loss contingency indicates both that a loss is probable and that the amount of loss can be reasonably estimated. This accrual is included in o ther l iabilities in the Consolidated Balance Sheets and is adjusted from time to time as appropriate to reflect changes in circumstances. Legal expenses are recorded in other noninterest expense in the Consolidated Statements of Income. |
Bank Premises and Equipment | Bank Premises and Equipment and Other Long-Lived Assets Bank premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method based on estimated useful lives of the assets for book purposes, while accelerated depreciation is used for income tax purposes. Amortization of leasehold improvements is computed using the straight-line method over the lives of the related leases or useful lives of the related assets, whichever is shorter. Whenever events or changes in circumstances dictate, the Bancorp tests its long-lived assets for impairment by determining whether the sum of the estimated undiscounted future cash flows attributable to a long-lived asset or asset group is less than the carrying amount of the long-lived asset or asset group through a probability-weighted approach. In the event the carrying amount of the long-lived asset or asset group is not recoverable, an impairment loss is measured as the amount by which the carrying amount of the long-lived asset or asset group exceeds its fair value. Maintenance, repairs and minor improvements are charged to noninterest expense in the Consolidated Statements of Income as incurred. |
Derivative Financial Instruments | Derivative Financial Instruments The Bancorp accounts for its derivatives as either assets or liabilities measured at fair value through adjustments to AOCI and/or current earnings, as appropriate. On the date the Bancorp enters into a derivative contract, the Bancorp designates the derivative instrument as either a fair value hedge, cash flow hedge or as a free-standing derivative instrument. For a fair value hedge, changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability attributable to the hedged risk are recorded in current period net income. For a cash flow hedge, changes in the fair value of the derivative instrument, to the extent that it is effective, are recorded in AOCI and subsequently reclassified to net income in the same period(s) that the hedged transaction impacts net income. For free-standing derivative instruments, changes in fair values are reported in current period net income. Prior to entering into a hedge transaction, the Bancorp formally documents the relationship between the hedging instrument and the hedged item , as well as the risk management objective and strategy for undertaking the hedge transaction . This process includes linking the derivative instrument designated as a fair value or cash flow hedge to a specific asset or liability on the balance sheet or to specific forecasted transactions and the risk being hedged , along with a formal assessment at both inception of the hedge and on an ongoing basis as to the effectiveness of the derivative instrument in offsetting changes in fair values or cash flows of the hedged item. If it is determined that the derivative instrument is not highly effective as a hedge, hedge accounting is discontinued. |
Income Taxes | Income Taxes The Bancorp estimates income tax expense based on amounts expected to be owed to the various tax jurisdictions in which the Bancorp conducts business. On a quarterly basis, management assesses the reasonableness of its effective tax rate based upon its current estimate of the amount and components of net income, tax credits and the applicable statutory tax rates expected for the full year. The estimated income tax expense is recorded in the Consolidated Statements of Income. Deferred income tax assets and liabilities are determined using the balance sheet method and the net deferred tax asset or liability by taxing jurisdiction is reported in other assets or accrued taxes, interest and expenses in the Consolidated Balance Sheets. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities and reflects enacted changes in tax rates and laws. Deferred tax assets are recognized to the extent they exist and are subject to a valuation allowance based on management's judgment that realization is more likely than not. This analysis is performed on a quarterly basis and includes an evaluation of all positive and negative evidence, such as the limitation on the use of any net operating losses, to determine whether realization is more likely than not. Accrued taxes represent the net estimated amount due to taxing jurisdictions and are reported in accrued taxes, interest and expenses in the Consolidated Balance Sheets. The Bancorp evaluates and assesses the relative risks and appropriate tax treatment of transactions and filing positions after considering statutes, regulations, judicial precedent and other information and maintains tax accruals consistent with its evaluation of these relative risks and merits. Changes to the estimate of accrued taxes occur periodically due to changes in tax rates, interpretations of tax laws, the status of examinations being conducted by taxing authorities and changes to statutory, judicial and regulatory guidance that impact the relative risks of tax positions. These changes, when they occur, can affect deferred taxes and accrued taxes as well as the current period's income tax expense and can be significant to the operating results of the Bancorp. Any interest and penalties incurred in connection with income taxes are recorded as a component of income tax expense in the Consolidated Financial Statements. For additional information on income taxes, refer to Note 20 . |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Earnings per diluted share is computed by dividing adjusted net income available to common shareholders by the weighted-average number of shares of common stock and common stock equivalents outstanding during the period. Dilutive common stock equivalents represent the assumed conversion of dilutive convertible preferred stock, the exercise of dilutive stock-based awards and warrants and the dilutive effect of the settlement of outstanding forward contracts. The Bancorp calculates earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share separately for common stock and participating securities according to dividends declared and participation rights in undistributed earnings. For purposes of calculating earnings per share under the two-class method, restricted shares that contain nonforfeitable rights to dividends are considered participating securities until vested. While the dividends declared per share on such restricted shares are the same as dividends declared per common share outstanding, the dividends recognized on such restricted shares may be less because dividends paid on restricted shares that are expected to be forfeited are reclassified to compensation expense during the period when forfeiture is expected. |
Goodwill | Goodwill Business combinations entered into by the Bancorp typically include the acquisition of goodwill. Goodwill is required to be tested for impairment at the Bancorp's reporting unit level on an annual basis, which for the Bancorp is September 30, and more frequently if events or circumstances indicate that there may be impairment. The Bancorp has determined that its segments qualify as reporting units under U.S. GAAP. Impairment exists when a reporting unit's carrying amount of goodwill exceeds its implied fair value. In testing goodwill for impairment, U.S. GAAP permits the Bancorp to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In this qualitative assessment, the Bancorp evaluates events and circumstances which may include, but are not limited to, the general economic environment, banking industry and market conditions, the overall financial performance of the Bancorp, the performance of the Bancorp's common stock, the key financial performance metrics o f the Bancorp's reporting units and events affecting the reporting units. If, after assessing the totality of events and circumstances, the Bancorp determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test would be unnecessary. However, if the Bancorp concludes otherwise or elects to bypass the qualitative assessment , it would then be required to perform the first step (Step 1) of the goodwill impairment test, and continue to the second step (Step 2), if necessary. Step 1 of the goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, Step 2 of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The fair value of a reporting unit is the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. As none of the Bancorp's reporting units are publicly traded, individual reporting unit fair value determinations cannot be directly correlated to the Bancorp's stock price. To determine the fair value of a reporting unit, the Bancorp employs an income-based approach, utilizing the reporting unit's forecasted cash flows (including a terminal value approach to estimate cash flows beyond the final year of the forecast) and the reporting unit's estimated cost of equity as the discount rate. Additionally, the Bancorp determines its market capitalization based on the average of the closing price of the Bancorp's stock during the month including the measurement date, incorporating an additional control premium, and compares this market-based fair value measurement to the aggregate fair value of the Bancorp's reporting units in order to corroborate the results of the income approach. When required to perform Step 2, the Bancorp compares the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. If the carrying amount exceeds the implied fair value, an impairment loss equal to that excess amount is recognized. A recognized impairment loss cannot exceed the carrying amount of that goodwill and cannot be reversed in future periods even if the fair value of the reporting unit subsequently recovers. During Step 2, the Bancorp determines the implied fair value of goodwill for a reporting unit by assigning the fair value of the reporting unit to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. The excess of the fair value of the reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. This assignment process is only performed for purposes of testing goodwill for impairment. The Bancorp does not adjust the carrying values of recognized assets or liabilities (other than goodwill, if appropriate), nor does it recognize previously unrecognized intangible assets in the Consolidated Financial Statements as a result of this assignment process. Refer to Note 9 for further information regarding the Bancorp's goodwill. |
Fair Value of Financial Instruments | 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. Valuation techniques the Bancorp uses to measure fair value include the market approach, income approach and cost approach. The market approach uses prices or relevant information generated by market transactions involving identical or comparable assets or liabilities. The income approach involves discounting future amounts to a single present amount and is based on current market expectations about those future amounts. The cost approach is based on the amount that currently would be required to replace the service capacity of the asset. U.S. GAAP 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. The three levels within the fair value hierarchy are described as follows: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Bancorp has the ability to access at the measurement date. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 – Unobservable inputs for the asset or liability for which there is little, if any, market activity at the measurement date. Unobservable inputs reflect the Bancorp's own assumptions about what market participants would use to price the asset or liability. The inputs are developed based on the best information available in the circumstances, which might include the Bancorp's own financial data such as internally developed pricing models and DCF methodologies, as well as instruments for which the fair value determination requires significant management judgment. The Bancorp's fair value measurements involve various valuation techniques and models, which involve inputs that are observable, when available. Valuation techniques and parameters used for measuring assets and liabilities are reviewed and validated by the Bancorp on a quarterly basis. Additionally, the Bancorp monitors the fair values of significant assets and liabilities using a variety of methods including the evaluation of pricing runs and exception reports based on certain analytical criteria, comparison to previous trades and overall review and ass essments for reasonableness. Refer to Note 27 for further information on fair value measurements. |
Stock-Based Compensation | Stock-Based Compensation The Bancorp recognizes compensation expense for the grant-date fair value of stock-based awards that are expected to vest over the requisite service period. All awards, both those with cliff vesting and graded vesting, are expensed on a straight-line basis. Awards to employees that meet eligible retirement status are expensed immediately. As compensation expense is recognized, a deferred tax asset is recorded that represents an estimate of the future tax deduction from exercise or release of restrictions. At the time awards are exercised, cancelled, expire or restrictions are released, the Bancorp may be required to recognize an adjustment to income tax expense for the difference between the previously estimated tax deduction and the actual tax deduction realized. For further information on the Bancorp's sto ck-based compensation plans, refer to Note 24 . |
Pension Plans | Pension Plans The Bancorp uses an expected long-term rate of return applied to the fair market value of assets as of the beginning of the year and the expected cash flow during the year for calculating the expected investment return on all pension plan assets. Amortization of the net gain or loss resulting from experience different from that assumed and from changes in assumptions (excluding asset gains and losses not yet reflected in market-related value) is included as a component of net periodic benefit cost. If, as of the beginning of the year, that net gain or loss exceeds 10% of the greater of the projected benefit obligation and the market-related value of plan assets, the amortization is that excess divided by the average remaining service period of participating employees expected to receive benefits under the plan. The Bancorp uses a third-party actuary to compute the remaining service period of participating employees. This period reflects expected turnover, pre-retirement mortality and other applicable employee demographics. |
Other | Other Securities and other property held by Fifth Third Investment Advisors, a division of the Bancorp's banking subsidiary, in a fiduciary or agency capacity are not included in the Consolidated Balance Sheets because such items are not assets of the subsidiaries. Investment advisory revenue in the Consolidated Statements of Income is recognized on the accrual basis. Investment advisory service revenues are recognized monthly based on a fee charged per transaction processed and/or a fee charged on the market value of average account balances associated with individual contracts. The Bancorp recognizes revenue from its card and processing services on an accrual basis as such services are performed, recording revenues net of certain costs (primarily interchange fees charged by credit card associations) not controlled by the Bancorp. The Bancorp purchases life insurance policies on the lives of certain directors, officers and employees and is the owner and beneficiary of the policies. The Bancorp invests in these policies, known as BOLI, to provide an efficient form of funding for long-term retirement and other employee benefits costs. The Bancorp records these BOLI policies within other assets in the Consolidated Balance Sheets at each policy's respective cash surrender value, with changes recorded in other noninterest income in the Consolidated Statements of Income. Other intangible assets consist of core deposit intangibles, customer lists, non-compete agreements and cardholder relationships. Other intangible assets are amortized on either a straight-line or an accelerated basis over their estimated useful lives. The Bancorp reviews other intangible assets for impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Securities sold under repurchase agreements are accounted for as secured borrowings and included in other short-term borrowings in the Consolidated Balance Sheets at the amounts at which the securities were sold plus accrued interest. Acquisitions of treasury stock are carried at cost. Reissuance of shares in treasury for acquisitions, exercises of stock-based awards or other corporate purposes is recorded based on the specific identification method. Advertising costs are generally expensed as incurred. |
Supplemental Cash Flow Inform41
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow | |
Noncash Investing and Financing Activities | 2 . SUPPLEMENTAL CASH FLOW INFORMATION Cash payments related to interest and income taxes in addition to non-cash investing and financing activities are presented in the following table for the years ended December 31: ($ in millions) 2015 2014 2013 Cash Payments: Interest $ 475 429 406 Income taxes 400 550 535 Non-cash Investing and Financing Activities: Portfolio loans to loans held for sale 487 855 641 Loans held for sale to portfolio loans 288 31 44 Portfolio loans to OREO 105 145 204 Loans held for sale to OREO - 2 4 Capital lease obligation 4 15 - |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investment 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 investment securities portfolios as of December 31: 2015 2014 Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair ($ in millions) Cost Gains Losses Value Cost Gains Losses Value Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 1,155 32 - 1,187 1,545 87 - 1,632 Obligations of states and political subdivisions securities 50 2 - 52 185 7 - 192 Mortgage-backed securities: Agency residential mortgage-backed securities (a) 14,811 283 (13) 15,081 11,968 437 (1) 12,404 Agency commercial mortgage-backed securities 7,795 100 (33) 7,862 4,465 101 (1) 4,565 Non-agency commercial mortgage-backed securities 2,801 35 (32) 2,804 1,489 61 - 1,550 Asset-backed securities and other debt securities 1,363 13 (21) 1,355 1,324 40 (2) 1,362 Equity securities (b) 703 2 (2) 703 701 3 (1) 703 Total available-for-sale and other securities $ 28,678 467 (101) 29,044 21,677 736 (5) 22,408 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 68 - - 68 186 - - 186 Asset-backed securities and other debt securities 2 - - 2 1 - - 1 Total held-to-maturity securities $ 70 - - 70 187 - - 187 Includes interest-only mortgage- backed securities of $ 50 and $ 175 as of December 31, 2015 and 2014, respectively, recorded at fair value with fair value changes recorded in securities gains, net , i n the Consolidated Statements of Income . Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 355 , and $ 1 , respectively, at December 31, 2015 and $ 248 , $ 352 and $0 , respectively, at December 31, 2014, that are carried at cost, and certain mutual fund and equity security holdings. |
Realized Gains and Losses Recognized in Income from Securities | The following table presents realized gains and losses that were recognized in income from available-for-sale securities for the years ended December 31: ($ in millions) 2015 2014 2013 Realized gains $ 97 70 77 Realized losses (76) (9) (102) OTTI (5) (24) (74) Net realized gains (losses) (a) $ 16 37 (99) Excludes net losses on interest-only mortgage-backed securities of $ 4 and $ 1 7 for the years ended December 31, 2015 and 2014, respectively, and net gains on interest-only mortgage-backed securities of $ 129 for the year ended December 31 , 2013 . Trading securities were $386 million as of December 31, 2015, compared to $360 million at December 31, 2014. The following table presents total gains and losses that were recognized in income from trading securities for the years ended December 31: ($ in millions) 2015 2014 2013 Realized gains (a) $ 6 8 5 Realized losses (b) (10) (7) (8) Net unrealized (losses) gains (c) (3) (3) 3 Total trading securities losses $ (7) (2) - Includes realized gains of $ 6 , $ 4 and $ 4 for the years ended December 31, 2015 , 2014 and 2013 , respectively, recorded in corporate banking revenue and investment advisory revenue in the Consolidated Statements of Income . Includes realized losses of $ 10 , $ 7 and $ 8 for the years ended December 31, 2015 , 2014 and 2013 , respectively, recorded in corporate banking revenue and investment advisory revenue in the Consolidated Statements of Income . Includes an immaterial amount of net unrealized gains for the years ended December 31, 2015 , 2014 and 2013 recorded in corporate banking revenue and investment advisory revenue in the Consolidated Statements of Income. |
Amortized Cost and Fair Value of Available-for-Sale and Other and Held-to-Maturity Securities | The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale and other and held-to-maturity investment securities as of December 31, 2015 are shown in the following table: Available-for-Sale and Other Held-to-Maturity ($ in millions) Amortized Cost Fair Value Amortized Cost Fair Value Debt securities: (a) Less than 1 year $ 695 707 43 43 1-5 years 7,277 7,441 12 12 5-10 years 18,191 18,372 13 13 Over 10 years 1,812 1,821 2 2 Equity securities 703 703 - - Total $ 28,678 29,044 70 70 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 December 31: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized ($ in millions) Fair Value Losses Fair Value Losses Fair Value Losses 2015 Agency residential mortgage-backed securities $ 2,903 (13) - - 2,903 (13) Agency commercial mortgage-backed securities 3,111 (33) - - 3,111 (33) Non-agency commercial mortgage-backed securities 1,610 (32) - - 1,610 (32) Asset-backed securities and other debt securities 623 (11) 226 (10) 849 (21) Equity securities 1 (1) 37 (1) 38 (2) Total $ 8,248 (90) 263 (11) 8,511 (101) 2014 Agency residential mortgage-backed securities $ 73 (1) - - 73 (1) Agency commercial mortgage-backed securities 355 (1) - - 355 (1) Asset-backed securities and other debt securities 286 (1) 74 (1) 360 (2) Equity securities - - 30 (1) 30 (1) Total $ 714 (3) 104 (2) 818 (5) |
Loans and Leases (Tables)
Loans and Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Leases Receivable | |
Loans and Leases Classified by Primary Purpose | The following table provides a summary of commercial loans and leases classified by primary purpose and consumer loans and leases classified based upon product or collateral as of December 31: ($ in millions) 2015 2014 Loans and leases held for sale: Commercial and industrial loans $ 20 36 Commercial mortgage loans 34 11 Commercial construction loans 0 2 Commercial leases 0 1 Residential mortgage loans 708 1,193 Home equity 35 0 Automobile loans 4 0 Credit card 101 0 Other consumer loans and leases 1 18 Total loans and leases held for sale $ 903 1,261 Portfolio loans and leases: Commercial and industrial loans $ 42,131 40,765 Commercial mortgage loans 6,957 7,399 Commercial construction loans 3,214 2,069 Commercial leases 3,854 3,720 Total commercial loans and leases 56,156 53,953 Residential mortgage loans 13,716 12,389 Home equity 8,301 8,886 Automobile loans 11,493 12,037 Credit card 2,259 2,401 Other consumer loans and leases 657 418 Total consumer loans and leases 36,426 36,131 Total portfolio loans and leases $ 92,582 90,084 |
Total Loans And Leases Owned By The Bancorp | The following table presents a summary of the total loans and leases owned by the Bancorp and net charge-offs as of and for the years ended December 31: 90 Days Past Due Net Balance and Still Accruing Charge-Offs ($ in millions) 2015 2014 2015 2014 2015 2014 Commercial and industrial loans $ 42,151 40,801 7 - 229 222 Commercial mortgage loans 6,991 7,410 - - 27 26 Commercial construction loans 3,214 2,071 - - 3 12 Commercial leases 3,854 3,721 - - 2 1 Residential mortgage loans 14,424 13,582 40 56 17 126 Home equity 8,336 8,886 - - 39 59 Automobile loans 11,497 12,037 10 8 28 27 Credit card 2,360 2,401 18 23 82 82 Other consumer loans and leases 658 436 - - 19 20 Total loans and leases $ 93,485 91,345 75 87 446 575 Less: Loans and leases held for sale $ 903 1,261 Total portfolio loans and leases $ 92,582 90,084 |
Investment in Lease Financing | The following table provides the components of the commercial lease financing portfolio as of December 31: ($ in millions) 2015 2014 Rentals receivable, net of principal and interest on nonrecourse debt $ 3,550 3,589 Estimated residual value of leased assets 906 779 Initial direct cost, net of amortization 22 17 Gross investment in lease financing 4,478 4,385 Unearned income (624) (665) Net investment in commercial lease financing (a) $ 3,854 3,720 The accumulated allowance for uncollectible minimum lease payments was $ 4 7 and $ 45 at December 31, 2015 and 2014 , respectively. |
Credit Quality and the Allowa44
Credit Quality and the Allowance for Loan and Lease Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 years ended December 31: Residential 2015 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 875 104 237 106 1,322 Losses charged-off (298) (28) (216) - (542) Recoveries of losses previously charged-off 37 11 48 - 96 Provision for loan and lease losses 226 13 148 9 396 Balance, end of period $ 840 100 217 115 1,272 Residential 2014 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 1,058 189 225 110 1,582 Losses charged-off (299) (139) (241) - (679) Recoveries of losses previously charged-off 38 13 53 - 104 Provision for loan and lease losses 78 41 200 (4) 315 Balance, end of period $ 875 104 237 106 1,322 Residential 2013 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 1,236 229 278 111 1,854 Losses charged-off (284) (70) (283) - (637) Recoveries of losses previously charged-off 64 10 62 - 136 Provision for loan and lease losses 42 20 168 (1) 229 Balance, end of period $ 1,058 189 225 110 1,582 |
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 December 31, 2015 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 119 a (c) 67 49 - 235 Collectively evaluated for impairment 721 33 168 - 922 Unallocated - - - 115 115 Total ALLL $ 840 100 217 115 1,272 Portfolio loans and leases: (b) Individually evaluated for impairment $ 815 a (c) 630 424 - 1,869 Collectively evaluated for impairment 55,341 12,917 22,286 - 90,544 Loans acquired with deteriorated credit quality - 2 - - 2 Total portfolio loans and leases $ 56,156 13,549 22,710 - 92,415 Includes $ 5 related to leverage d leases at December 31, 2015 . Excludes $ 167 of residential mortga ge loans measured at fair value and includes $ 8 01 of leverage d leases, net of unearned income , at December 31, 2015 . Includes five restructured l oans at December 31, 2015 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 $ 27 and an ALLL of $ 15 . Residential As of December 31, 2014 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 179 a (c) 65 61 - 305 Collectively evaluated for impairment 696 39 176 - 911 Unallocated - - - 106 106 Total ALLL $ 875 104 237 106 1,322 Portfolio loans and leases: (b) Individually evaluated for impairment $ 1,260 a (c) 518 483 - 2,261 Collectively evaluated for impairment 52,693 11,761 23,259 - 87,713 Loans acquired with deteriorated credit quality - 2 - - 2 Total portfolio loans and leases $ 53,953 12,281 23,742 - 89,976 Includes $ 6 related to leverage d leases at December 31 , 2014 . Excludes $ 108 of residential mortga ge loans measured at fair value and includes $ 8 74 of leverage d leases, net of unearned income , at December 31, 2014 . Includes five restructured loans at December 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 ALLL of $ 1 0 . |
Loan and leases balances by credit quality indicator | The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class: Special As of December 31, 2015 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 38,756 1,633 1,742 - 42,131 Commercial mortgage owner-occupied loans 3,344 124 191 - 3,659 Commercial mortgage nonowner-occupied loans 3,105 63 130 - 3,298 Commercial construction loans 3,201 4 9 - 3,214 Commercial leases 3,724 93 37 - 3,854 Total commercial loans and leases $ 52,130 1,917 2,109 - 56,156 Special As of December 31, 2014 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 38,013 1,352 1,400 - 40,765 Commercial mortgage owner-occupied loans 3,430 137 267 - 3,834 Commercial mortgage nonowner-occupied loans 3,198 76 284 7 3,565 Commercial construction loans 1,966 65 38 - 2,069 Commercial leases 3,678 9 33 - 3,720 Total commercial loans and leases $ 50,285 1,639 2,022 7 53,953 The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class, disaggregated into performing versus nonperforming status as of December 31: 2015 2014 ($ in millions) Performing Nonperforming Performing Nonperforming Residential mortgage loans (a) $ 13,498 51 12,204 77 Home equity 8,222 79 8,793 93 Automobile loans 11,491 2 12,036 1 Credit card 2,226 33 2,360 41 Other consumer loans and leases 657 - 418 - Total residential mortgage and consumer loans and leases (a) $ 36,094 165 35,811 212 Excludes $ 167 and $ 108 of loans measured at fair value at December 31, 2015 and 2014 , respectivel y . |
Summary by Age and Class of the Recorded Investment in Delinquencies Included in the Bancorp's Portfolio of Loans and Leases | The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases, by age and class: Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of December 31, 2015 ($ in millions) Leases (c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 41,996 55 80 135 42,131 7 Commercial mortgage owner-occupied loans 3,610 15 34 49 3,659 - Commercial mortgage nonowner-occupied loans 3,262 9 27 36 3,298 - Commercial construction loans 3,214 - - - 3,214 - Commercial leases 3,850 3 1 4 3,854 - Residential mortgage loans (a)(b) 13,420 37 92 129 13,549 40 Consumer loans and leases: Home equity 8,158 82 61 143 8,301 - Automobile loans 11,407 75 11 86 11,493 10 Credit card 2,207 29 23 52 2,259 18 Other consumer loans and leases 656 1 - 1 657 - Total portfolio loans and leases (a) $ 91,780 306 329 635 92,415 75 Excludes $ 167 of residential mortgage loans measured at fair value at December 31, 2015 . Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whos e repayments are insured by the FHA or guaranteed by the VA . As of December 31, 2015 , $ 102 of these lo an s were 30-89 days past due and $ 3 35 were 90 days or more past due. The Bancorp recognized $ 8 of losses during the year ended December 31, 2015 due to claim denials and curtailments associated with these insured or guaranteed loans . Includes accrual and nonaccrual loans and leases. Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of December 31, 2014 ($ in millions) Leases (c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 40,651 29 85 114 40,765 - Commercial mortgage owner-occupied loans 3,774 7 53 60 3,834 - Commercial mortgage nonowner-occupied loans 3,537 11 17 28 3,565 - Commercial construction loans 2,069 - - - 2,069 - Commercial leases 3,717 3 - 3 3,720 - Residential mortgage loans (a)(b) 12,109 38 134 172 12,281 56 Consumer loans and leases: Home equity 8,710 100 76 176 8,886 - Automobile loans 11,953 74 10 84 12,037 8 Credit card 2,335 34 32 66 2,401 23 Other consumer loans and leases 417 1 - 1 418 - Total portfolio loans and leases (a) $ 89,272 297 407 704 89,976 87 Excludes $ 108 of residential mortgage loans measured at fair value at December 31, 2014 . Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA . As of December 31, 2014 , $ 99 of these loans were 30-89 days past due and $ 37 3 were 90 days or more past due. The Bancorp recognized $ 14 of losses during the year ended December 31, 2014 due to claim denials and curtailments associated with these insured or guaranteed 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 portfolio loans and leases, by class, that were subject to individual review, which includes all portfolio loans and leases restructured in a TDR as of December 31: Unpaid Principal Recorded 2015 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 412 346 84 Commercial mortgage owner-occupied loans (b) 28 21 5 Commercial mortgage nonowner-occupied loans 75 64 12 Commercial construction loans 4 4 2 Commercial leases 3 3 1 Restructured residential mortgage loans 450 444 67 Restructured consumer loans and leases: Home equity 226 225 32 Automobile loans 17 16 2 Credit card 61 61 15 Total impaired portfolio loans and leases with a related ALLL $ 1,276 1,184 220 With no related ALLL: Commercial loans and leases: Commercial and industrial loans $ 228 182 - Commercial mortgage owner-occupied loans 54 51 - Commercial mortgage nonowner-occupied loans 126 111 - Commercial construction loans 9 5 - Commercial leases 1 1 - Restructured residential mortgage loans 210 186 - Restructured consumer loans and leases: Home equity 122 119 - Automobile loans 3 3 - Total impaired portfolio loans and leases with no related ALLL 753 658 - Total impaired portfolio loans and leases $ 2,029 1,842 a (a) 220 Includes $ 491 , $ 607 and $ 37 2 , respectively, of commercial , resid ential mortgage and consumer portfolio TDR s on accrual statu s and $ 203 , $ 23 and $ 52 , respectively , of commercial, reside ntial mortgage and consumer portfolio TDR s on nonaccrual status at December 31, 2015 . Excludes five restructured l oans at December 31 , 2015 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 $ 27 , a recorded investment of $ 27 and an ALLL of $ 15 . Unpaid Principal Recorded 2014 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 598 486 149 Commercial mortgage owner-occupied loans (b) 54 46 14 Commercial mortgage nonowner-occupied loans 69 57 4 Commercial construction loans 18 15 - Commercial leases 3 3 2 Restructured residential mortgage loans 388 383 65 Restructured consumer loans and leases: Home equity 203 201 42 Automobile loans 19 19 3 Credit card 78 78 16 Total impaired portfolio loans and leases with a related ALLL $ 1,430 1,288 295 With no related ALLL: Commercial loans and leases: Commercial and industrial loans $ 311 276 - Commercial mortgage owner-occupied loans 72 68 - Commercial mortgage nonowner-occupied loans 251 231 - Commercial construction loans 48 48 - Commercial leases 2 2 - Restructured residential mortgage loans 155 135 - Restructured consumer loans and leases: Home equity 183 180 - Automobile loans 5 5 - Total impaired portfolio loans and leases with no related ALLL 1,027 945 - Total impaired portfolio loans and leases $ 2,457 2,233 a (a) 295 Includes $ 869 , $ 485 and $ 4 20 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 2 14 , $ 33 and $ 63 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2014 . Excludes five restructured loans at December 31, 2014 as sociated 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 ALLL of $ 1 0 . The following table summarizes the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class, for the years ended December 31: 2015 2014 2013 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income ($ in millions) Investment Recognized Investment Recognized Investment Recognized Commercial loans and leases: Commercial and industrial loans $ 663 21 786 25 517 16 Commercial mortgage owner-occupied loans (a) 92 2 149 4 146 4 Commercial mortgage nonowner-occupied loans 224 7 268 8 321 8 Commercial construction loans 41 1 92 2 108 4 Commercial leases 5 - 13 - 11 - Restructured residential mortgage loans 586 23 1,273 54 1,311 53 Restructured consumer loans and leases: Home equity 361 13 394 20 429 23 Automobile loans 22 1 24 1 29 1 Credit card 68 6 62 5 68 4 Other consumer loans and leases - - - - 2 - Total average impaired portfolio loans and leases $ 2,062 74 3,061 119 2,942 113 Excludes five restructured loans 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 average recorded investment of $ 27 for the year ended December 31, 2015 and $ 28 f or both of the years ended December 31, 2014 and 2013 . A n immaterial amount of interest income was recognized during the years ended December 31, 2015 , 2014 and 2013 . |
Summary of the Bancorp's Nonperforming Loans and Leases by Class | 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 presents the Bancorp’s nonperforming loans and leases, by class, and OREO and other repossessed property as of December 31: ($ in millions) 2015 2014 Commercial loans and leases: Commercial and industrial loans $ 259 228 Commercial mortgage owner-occupied loans (a) 46 78 Commercial mortgage nonowner-occupied loans 35 57 Commercial leases 1 4 Total nonaccrual portfolio commercial loans and leases 341 367 Residential mortgage loans 51 77 Consumer loans and leases: Home equity 79 93 Automobile loans 2 1 Credit card 33 41 Total nonaccrual portfolio consumer loans and leases 114 135 Total nonaccrual portfolio loans and leases (b)(c) $ 506 579 OREO and other repossessed property (d) 141 165 Total nonperforming portfolio assets (b)(c)(d) $ 647 744 Excludes $ 20 and $ 21 of restructured nonaccrual loans at December 31, 2015 and 2014 , respectively, associated with a consolidated VIE in which the Bancorp has no continuing credit risk due the risk being assumed by a third party. Excludes $ 12 and $ 39 of nonaccrual loans held for sale at December 31 , 2015 and 2014 , respectively . Includes $ 6 and $ 9 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at December 31, 2015 and 2014 , respectively , and $ 2 and $ 4 of restructured nonaccrual government insured commercial loans at December 31, 2015 and 2014, respectively . Excludes $ 14 and $ 7 1 of OREO related to government insured loans at December 31, 2015 and 2014, respectively . The Bancorp has historically excluded government guaranteed loans classified in OREO from its nonperforming asset disclosures. Upon the prospective adoption on January 1, 2015 of ASU 2014-14 “Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure”, government guaranteed loans meeting certain criteria were reclassified to other receivables rather than OREO upon foreclosure. At December 31, 2015 , the Bancorp had $ 4 4 of government guaranteed loans classified as other receivables. Refer to Note 1 for further information on the adoption of this amended guidance. |
Summary of Loans Modified in a TDR | The following tables provide a summary of loans by class modified in a TDR by the Bancorp during the years ended December 31: Recorded investment Increase Number of loans in loans modified (Decrease) Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon 2015 ($ in millions) (a) during the year (b) during the year modification modification Commercial loans and leases: Commercial and industrial loans 77 $ 146 7 3 Commercial mortgage owner-occupied loans 18 16 (2) - Commercial mortgage nonowner-occupied loans 12 7 (1) - Residential mortgage loans 1,089 155 8 - Consumer loans and leases: Home equity 267 16 (1) - Automobile loans 440 7 1 - Credit card 12,569 62 11 7 Total portfolio loans and leases 14,472 $ 409 23 10 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Recorded investment Increase Number of loans in loans modified (Decrease) Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon 2014 ($ in millions) (a) during the year (b) during the year modification modification Commercial loans and leases: Commercial and industrial loans 128 $ 230 12 6 Commercial mortgage owner-occupied loans 32 54 (1) - Commercial mortgage nonowner-occupied loans 28 30 (3) 2 Residential mortgage loans 1,093 160 8 - Consumer loans and leases: Home equity 284 12 - - Automobile loans 608 10 1 - Credit card 8,929 52 10 - Total portfolio loans and leases 11,102 $ 548 27 8 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Recorded investment Increase Number of loans in loans modified (Decrease) Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon 2013 ($ in millions) (a) during the year (b) during the year modification modification Commercial loans and leases: Commercial and industrial loans 146 $ 604 39 44 Commercial mortgage owner-occupied loans (c) 65 19 (2) - Commercial mortgage nonowner-occupied loans 59 72 (7) - Commercial construction loans 4 34 (2) - Commercial leases 1 2 (5) - Residential mortgage loans 1,620 249 28 - Consumer loans and leases: Home equity 695 37 (1) - Automobile loans 499 14 1 - Credit card 8,202 50 7 - Total portfolio loans and leases 11,291 $ 1,081 58 44 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Excludes five loans m odified in a TDR during the year ended December 31, 2013 associated with a consolidated VIE in which the Bancorp h as no continuing credit risk due to the risk being assumed by a third party. The TDR had a recorded investment of $ 2 9 at modification , the ALL L increased $ 7 upon modification and a charge-off of $ 2 was recognized upon modification . |
Summary of Subsequent Defaults | The following tables provide a summary of TDRs that subsequently defaulted during the years ended December 31, 2015, 2014 and 2013 that was within twelve months of the restructuring date: Number of Recorded December 31, 2015 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 7 $ 11 Commercial mortgage owner-occupied loans 3 1 Residential mortgage loans 156 21 Consumer loans and leases: Home equity 15 1 Automobile loans 8 - Credit card 1,935 8 Total portfolio loans and leases 2,124 $ 42 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality . Number of Recorded December 31, 2014 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 11 $ 36 Commercial mortgage owner-occupied loans 3 4 Commercial mortgage nonowner-occupied loans 2 1 Residential mortgage loans 235 32 Consumer loans and leases: Home equity 30 2 Automobile loans 6 - Credit card 2,059 12 Total portfolio loans and leases 2,346 $ 87 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality . Number of Recorded December 31, 2013 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 6 $ 11 Commercial mortgage owner-occupied loans 7 1 Residential mortgage loans 375 58 Consumer loans and leases: Home equity 65 4 Automobile loans 4 - Credit card 1,768 11 Total portfolio loans and leases 2,225 $ 85 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality . |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Bank Premises and Equipment | |
Bank Premises and Equipment | The following table provides a summary of bank premises and equipment as of December 31: ($ in millions) Estimated Useful Life 2015 2014 Land and improvements (a) $ 685 793 Buildings 2 - 30 yrs. 1,755 1,807 Equipment 2 - 30 yrs. 1,696 1,682 Leasehold improvements 5 - 30 yrs. 403 416 Construction in progress 85 98 Bank premises and equipment held for sale: Land and improvements 55 23 Buildings 20 3 Equipment 3 - Leasehold improvements 3 - Accumulated depreciation and amortization (2,466) (2,357) Total bank premises and equipment $ 2,239 2,465 At December 31, 2015 and 2014, land and improvements included $ 102 and $ 165 , respectively, associated with parcels of undeveloped land intended for future branch expansion. |
Assets and Liabilities Held For Sale | The following table summarizes the assets and liabilities classified as held for sale as a result of the Branch Consolidation and Sales Plan as of: ($ in millions) December 31, 2015 (d) Assets: Loans held for sale: Commercial and industrial loans $ 20 Commercial mortgage loans 22 Residential mortgage loans 188 Home equity 35 Automobile loans 4 Total loans held for sale (a) $ 269 Bank premises and equipment held for sale (included in the preceding table): Land and improvements (b) 25 Buildings (b) 14 Equipment (b) 3 Leasehold improvements (b) 3 Total bank premises and equipment held for sale (included in the preceding table) $ 45 Total assets held for sale $ 314 Liabilities: Deposits held for sale: Noninterest-bearing deposits $ 117 Interest-bearing deposits 511 Total deposits held for sale (c) $ 628 Total liabilities held for sale $ 628 Included in loans held for sale in the Consolidated Balance Sheets. Included in bank premises and equipment in the Consolidated Balance Sheets. Included in non interest-bearing deposits and interest-bearing deposits in the Consolidated Balance Sheets. Included in the Branch Banking, Consumer Lending and Investment Advisors business segments. |
Annual Future Minimum Payments under Capital Leases and Noncancelable Operating Leases | The following table provides the annual future minimum payments under noncancelable operating leases and capital leases for the years ending December 31: ($ in millions) Noncancelable Operating Leases Capital Leases 2016 $ 91 7 2017 84 6 2018 82 6 2019 74 5 2020 62 1 Thereafter 242 2 Total minimum lease payments $ 635 27 Less: Amounts representing interest - 3 Present value of net minimum lease payments - 24 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill | |
Changes in the Net Carrying Amount of Goodwill by Reporting Segment | Changes in the net carrying amount of goodwill, by reporting unit, for the years ended December 31, 2015 and 2014 were as follows: Commercial Branch Consumer Investment ($ in millions) Banking Banking Lending Advisors Total Net carrying value as of December 31, 2013 $ 613 1,655 - 148 2,416 Acquisition activity - - - - - Net carrying value as of December 31, 2014 $ 613 1,655 - 148 2,416 Acquisition activity - - - - - Net carrying value as of December 31, 2015 $ 613 1,655 - 148 2,416 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 December 31, 2015 Core deposit intangibles $ 34 (26) 8 Other 33 (29) 4 Total intangible assets $ 67 (55) 12 As of December 31, 2014 Core deposit intangibles $ 122 (112) 10 Other 45 (40) 5 Total intangible assets $ 167 (152) 15 |
Estimated Amortization Expense | The Bancorp's projections of amortization expense shown below are based on existing asset balances as of December 31, 2015. Future amortization expense may vary from these projections. Estimated amortization expense for the years ending December 31, 2016 through 2020 is as follows: ($ in millions) Total 2016 $ 2 2017 2 2018 2 2019 1 2020 1 Estimated amortization expense for the years ending December 31, 2016 through 2020 is as follows: ($ in millions) Total 2016 $ 114 2017 103 2018 93 2019 85 2020 77 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities | |
Consolidation of Variable Interest Entities Disclosure | Consolidated VIEs The following tables provide a summary of the classifications of consolidated VIE assets, liabilities and noncontrolling interests included in the Consolidated Balance Sheets as of: Automobile Loan CDC December 31, 2015 ($ in millions) Securitizations Investments Total Assets: Cash and due from banks $ 151 1 152 Commercial mortgage loans - 47 47 Automobile loans 2,490 - 2,490 ALLL (11) (17) (28) Other assets 20 - 20 Total assets $ 2,650 31 2,681 Liabilities: Other liabilities $ 3 - 3 Long-term debt 2,493 - 2,493 Total liabilities $ 2,496 - 2,496 Noncontrolling interests $ - 31 31 Automobile Loan CDC December 31, 2014 ($ in millions) Securitizations Investments Total Assets: Cash and due from banks $ 178 1 179 Commercial mortgage loans - 47 47 Automobile loans 3,331 - 3,331 ALLL (11) (11) (22) Other assets 23 2 25 Total assets $ 3,521 39 3,560 Liabilities: Other liabilities $ 5 - 5 Long-term debt 3,434 - 3,434 Total liabilities $ 3,439 - 3,439 Noncontrolling interests $ - 39 39 |
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 Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities as of: Total Total Maximum December 31, 2015 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,455 367 1,455 Private equity investments 211 - 271 Loans provided to VIEs 1,630 - 2,599 Automobile loan securitization 1 - 1 Total Total Maximum December 31, 2014 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,432 364 1,432 Private equity investments 189 - 267 Loans provided to VIEs 1,900 - 2,759 Automobile loan securitization 2 - 2 |
Investments in Qualified Affordable Housing Tax Credits | The Bancorp has accounted for all of its investments in qualified affordable housing tax credits using the equity method of accounting. The following table summarizes the impact to the Consolidated Statements of Income relating to investments in qualified affordable housing investments: Affected Line Item in the For the years ended December 31 ($ in millions) Consolidated Statements of Income 2015 2014 2013 Pre-tax equity method and impairment losses (a) Other noninterest expense $ 126 118 90 Tax credits and other benefits Applicable income tax expense (205) (185) (164) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during the year s ended December 31, 2015 , 2014 and 2013 . |
Sales of Receivables and Serv49
Sales of Receivables and Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 Consolidated Statements of Income, for the years ended December 31 is as follows: ($ in millions) 2015 2014 2013 Residential mortgage loan sales (a) $ 5,078 (b) 5,467 21,529 Origination fees and gains on loan sales 171 153 453 Gross mortgage servicing fees 222 246 251 Represents the unpaid principal balance at the time of the sale . Excludes $ 568 of HFS residential mortgage loans previously modified in a TDR that were sold during the first quarter of 2015. |
Changes in the Servicing Assets | The following table presents changes in the servicing rights related to residential mortgage and automobile loans for the years ended December 31: ($ in millions) 2015 2014 Carrying amount before valuation allowance: Balance, beginning of period $ 1,392 1,440 Servicing rights that result from the transfer of residential mortgage loans 63 73 Amortization (140) (121) Other-than-temporary impairment (111) 0 Balance, end of period $ 1,204 1,392 Valuation allowance for servicing rights: Balance, beginning of period $ (534) (469) Recovery of (provision for) MSR impairment 4 (65) Other-than-temporary impairment 111 0 Balance, end of period (419) (534) Carrying amount after valuation allowance $ 785 858 |
Estimated Amortization Expense on Servicing Rights | The Bancorp's projections of amortization expense shown below are based on existing asset balances as of December 31, 2015. Future amortization expense may vary from these projections. Estimated amortization expense for the years ending December 31, 2016 through 2020 is as follows: ($ in millions) Total 2016 $ 2 2017 2 2018 2 2019 1 2020 1 Estimated amortization expense for the years ending December 31, 2016 through 2020 is as follows: ($ in millions) Total 2016 $ 114 2017 103 2018 93 2019 85 2020 77 |
Fair Value of the Servicing Assets | The following table displays the beginning and ending fair value of the servicing rights for the years ended December 31: ($ in millions) 2015 2014 Fixed-rate residential mortgage loans: Balance, beginning of period $ 823 929 Balance, end of period 757 823 Adjustable-rate residential mortgage loans: Balance, beginning of period 33 38 Balance, end of period 27 33 Fixed-rate automobile loans: Balance, beginning of period 2 4 Balance, end of period 1 2 |
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 Consolidated Statements of Income for the years ended December 31: ($ in millions) 2015 2014 2013 Securities gains, net - non-qualifying hedges on MSRs $ - - 13 Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (mortgage banking net revenue) 90 95 (30) Recovery of (provision for) MSR impairment (mortgage banking net revenue) 4 (65) 192 |
Servicing Assets and Residual Interests Economic Assumptions | As of December 31, 2015 and 2014, 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 years ended December 31 were as follows: 2015 2014 Weighted- Weighted- Average Prepayment Weighted- Average Prepayment Weighted- Life Speed OAS Spread Average Life Speed Discount Rate Average Rate (in years) (annual) (bps) Default Rate (in years) (annual) (annual) Default Rate Residential mortgage loans: Servicing rights Fixed 6.9 11.0 % 534 N/A 6.6 11.3 % 10.0 % N/A Servicing rights Adjustable 3.4 25.2 303 N/A 3.7 22.3 11.7 N/A |
Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions | At December 31, 2015, 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 Impact of Adverse Change on Fair Value OAS Spread Impact of Adverse Change on Fair Value ($ in millions) (a) Rate Value (in years) Rate 10% 20% 50% (bps) 10% 20% Residential mortgage loans: Servicing rights Fixed $ 757 5.9 11.8 % $ (32) (61) (134) 618 $ (18) (34) Servicing rights Adjustable 27 3.0 27.0 (2) (3) (7) 703 (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 Instrume50
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 Consolidated Balance Sheets as of: Fair Value Notional Derivative Derivative December 31, 2015 ($ in millions) Amount Assets Liabilities Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 2,705 372 2 Total fair value hedges 372 2 Cash flow hedges: Interest rate swaps related to C&I loans 5,475 39 - Total cash flow hedges 39 - Total derivatives designated as qualifying hedging instruments 411 2 Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSRs 11,657 239 9 Forward contracts related to held for sale residential mortgage loans 1,330 3 1 Stock warrant associated with Vantiv Holding, LLC 369 262 - Swap associated with the sale of Visa, Inc. Class B shares 1,292 - 61 Total free-standing derivatives - risk management and other business purposes 504 71 Free-standing derivatives - customer accommodation: Interest rate contracts for customers 29,889 242 249 Interest rate lock commitments 721 15 - Commodity contracts 2,464 294 276 Foreign exchange contracts 16,243 386 340 Total free-standing derivatives - customer accommodation 937 865 Total derivatives not designated as qualifying hedging instruments 1,441 936 Total $ 1,852 938 Fair Value Notional Derivative Derivative December 31, 2014 ($ in millions) Amount Assets Liabilities Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 2,205 399 - Total fair value hedges 399 - Cash flow hedges: Interest rate swaps related to C&I loans 3,150 36 - Total cash flow hedges 36 - Total derivatives designated as qualifying hedging instruments 435 - Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSRs 4,487 181 - Forward contracts related to held for sale residential mortgage loans 999 - 6 Stock warrant associated with Vantiv Holding, LLC 691 415 - Swap associated with the sale of Visa, Inc. Class B shares 1,092 - 49 Total free-standing derivatives - risk management and other business purposes 596 55 Free-standing derivatives - customer accommodation: Interest rate contracts for customers 29,558 272 278 Interest rate lock commitments 613 12 - Commodity contracts 3,558 348 338 Foreign exchange contracts 16,475 417 372 Total free-standing derivatives - customer accommodation 1,049 988 Total derivatives not designated as qualifying hedging instruments 1,645 1,043 Total $ 2,080 1,043 |
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 Consolidated Statements of Income: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2015 2014 2013 Interest rate contracts: Change in fair value of interest rate swaps hedging long-term debt Interest on long-term debt $ (29) 120 (279) Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt 25 (126) 276 |
Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges | The following table presents the pretax net gains (losses) recorded in the Consolidated Statements of Income and the Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: For the years ended December 31 ($ in millions) 2015 2014 2013 Amount of pretax net gains (losses) recognized in OCI $ 74 60 (13) Amount of pretax net gains reclassified from OCI into net income 75 44 44 |
Schedule of Price Risk Derivatives | The net gains (losses) recorded in the Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2015 2014 2013 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ 8 (18) 24 Interest rate contracts related to MSR portfolio Mortgage banking net revenue 90 95 (30) Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income 23 14 5 Equity contracts: Stock warrant associated with Vantiv Holding, LLC Other noninterest income 325 (a) 31 206 Swap associated with sale of Visa, Inc. Class B shares Other noninterest income (37) (38) (31) The Bancorp recognized a net gain of $ 89 million on both the sale and exercise of the warrant during the fourth quarter of 2015. |
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: At December 31 ($ in millions) 2015 2014 Pass $ 1,650 1,052 Special mention 7 59 Substandard 7 2 Total $ 1,664 1,113 |
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 Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2015 2014 2013 Interest rate contracts: Interest rate contracts for customers (contract revenue) Corporate banking revenue $ 23 19 29 Interest rate contracts for customers (credit losses) Other noninterest expense (1) (3) (3) Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense 1 3 7 Interest rate lock commitments Mortgage banking net revenue 111 124 58 Commodity contracts: Commodity contracts for customers (contract revenue) Corporate banking revenue 5 6 7 Commodity contracts for customers (credit losses) Other noninterest expense (2) - - Commodity contracts for customers (credit portion of fair value adjustment) Other noninterest expense 6 (7) - Foreign exchange contracts: Foreign exchange contracts for customers (contract revenue) Corporate banking revenue 70 72 69 Foreign exchange contracts for customers (credit portion of fair value adjustment) Other noninterest expense - - (2) |
Offsetting Derivative Financial Instruments | Gross Amount Gross Amounts Not Offset in the Recognized in the Consolidated Balance Sheets As of December 31, 2015 ($ in millions) Consolidated Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets Derivatives $ 1,575 (512) (627) 436 Total assets 1,575 (512) (627) 436 Liabilities Derivatives 938 (512) (173) 253 Total liabilities $ 938 (512) (173) 253 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 arrangement s . 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 Consolidated Balance Sheets were excluded from this table. Gross Amount Gross Amounts Not Offset in the Recognized in the Consolidated Balance Sheets As of December 31, 2014 ($ in millions) Consolidated Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets Derivatives $ 1,653 (440) (684) 529 Total assets 1,653 (440) (684) 529 Liabilities Derivatives 1,043 (440) (293) 310 Total liabilities $ 1,043 (440) (293) 310 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 arrangement s . 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 Consolidated Balance Sheets were excluded from this table. |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets | |
Other Assets Disclosure | The following table provides the components of other assets included in the Consolidated Balance Sheets as of December 31: ($ in millions) 2015 2014 Derivative instruments $ 1,852 2,080 Partnership investments 1,756 1,685 Accounts receivable and drafts-in-process 1,653 1,452 Bank owned life insurance 1,651 1,623 Investment in Vantiv Holding, LLC 360 394 Accrued interest and fees receivable 329 312 OREO and other repossessed personal property 155 236 Prepaid expenses 101 97 Income tax receivable 0 107 Other 142 255 Total other assets $ 7,999 8,241 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Short-Term Borrowings | |
Summary of Short-Term Borrowings and Weighted-Average Rates | The following table summarizes short-term borrowings and weighted-average rates: 2015 2014 ($ in millions) Amount Rate Amount Rate As of December 31: Federal funds purchased $ 151 0.30 % $ 144 0.08 % Other short-term borrowings 1,507 0.11 1,556 0.08 Average for the years ended December 31: Federal funds purchased $ 920 0.13 % $ 458 0.09 % Other short-term borrowings 1,721 0.12 1,873 0.10 Maximum month-end balance for the years ended December 31: Federal funds purchased $ 200 $ 286 Other short-term borrowings 4,904 3,756 |
Summary of Other Short-Term Borrowings | The following table presents a summary of the Bancorp's other short-term borrowings as of December 31: ($ in millions) 2015 2014 Securities sold under repurchase agreements $ 925 995 Derivative collateral 582 561 Total other short-term borrowings $ 1,507 1,556 |
Schedule of Underlying Assets of Repurchase Agreements When Amount of Repurchase Agreements Exceeds 10 Percent of Assets | The following table summarizes the Bancorp's securities sold under repurchase agreements by the type of collateral securing the borrowing and remaining contractual maturity as of December 31: ($ in millions) 2015 2014 Amount Remaining Contractual Maturity Amount Remaining Contractual Maturity Collateral type: Agency residential mortgage-backed securities $ 646 Overnight $ 896 Overnight U.S. Treasury and federal agencies securities 279 Overnight 99 Overnight Total securities sold under repurchase agreements $ 925 $ 995 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt | |
Summary of the Bancorp's Long-Term Borrowings | The following table is a summary of the Bancorp’s long-term borrowings at December 31: ($ in millions) Maturity Interest Rate 2015 2014 Parent Company Senior: Fixed-rate notes 2016 3.625% $ 1,000 1,000 Fixed-rate notes 2019 2.30% 500 499 Fixed-rate notes 2020 2.875% 1,099 - Fixed-rate notes 2022 3.50% 498 497 Subordinated: (a) Floating-rate notes (c) 2016 0.99% 250 250 Fixed-rate notes 2017 5.45% 520 539 Fixed-rate notes 2018 4.50% 532 544 Fixed-rate notes 2024 4.30% 748 748 Fixed-rate notes 2038 8.25% 1,327 1,317 Subsidiaries Senior: Fixed-rate notes 2016 1.15% 1,000 1,000 Fixed-rate notes 2016 0.90% 400 400 Floating-rate notes (c) 2016 0.87% 750 750 Floating-rate notes (c) 2016 0.82% 300 300 Fixed-rate notes 2017 1.35% 652 654 Fixed-rate notes 2018 2.15% 998 - Fixed-rate notes 2018 1.45% 598 597 Floating-rate notes (c) 2018 1.28% 250 - Fixed-rate notes 2019 2.375% 850 850 Fixed-rate notes 2021 2.875% 846 846 Subordinated: (a) Fixed-rate bank notes 2015 4.75% - 502 Junior subordinated: (b) Floating-rate debentures (c) 2035 1.93% - 2.20% 52 51 FHLB advances 2016 - 2041 0.05% - 6.87% 37 41 Notes associated with consolidated VIEs: Automobile loan securitizations: Fixed-rate and floating-rate notes (c) 2016 - 2022 0.43% - 1.79% 2,493 3,434 Other 2016 - 2039 Varies 144 148 Total $ 15,844 14,967 Qualifies as Tier II capital for regulatory capital purposes . Under the Basel III Final Rule transition provisions, $13 million qualifies as Tier I capital as of December 31, 2015 while the remaining amount qualifies as Tier II capital. The entire amount qualified as Tier I capital as of December 31, 2014. Refer to Note 28 for further information . These rates reflect the floating rates as of December 31, 2015. |
Schedule Of Long Term Debt Maturities | The Bancorp pays down long-term debt in accordance with contractual terms over maturity periods summarized in the above table. The aggregate annual maturities of long-term debt obligations (based on final maturit y dates) as of December 31, 2015 are presented in the following table ($ in millions) Parent Subsidiaries Total 2016 $ 1,250 2,594 3,844 2017 520 954 1,474 2018 532 2,807 3,339 2019 500 1,221 1,721 2020 1,099 664 1,763 Thereafter 2,573 1,130 3,703 Total $ 6,474 9,370 15,844 |
Commitments, Contingent Liabi54
Commitments, Contingent Liabilities and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments, Contingent Liabilities and Guarantees | |
Summary of Significant Commitments | The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of December 31: ($ in millions) 2015 2014 Commitments to extend credit $ 66,884 63,827 Letters of credit 3,055 3,974 Forward contracts related to held for sale residential mortgage loans 1,330 999 Noncancelable operating lease obligations 635 697 Capital commitments for private equity investments 60 78 Purchase obligations 60 77 Capital expenditures 30 28 Capital lease obligations 27 37 |
Credit Risk Associated With Commitments | Risk ratings under this risk rating system are summarized in the following table as of December 31: ($ in millions) 2015 2014 Pass $ 65,645 62,787 Special mention 647 660 Substandard 592 380 Total commitments to extend credit $ 66,884 63,827 |
Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party | 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 December 31, 2015: ($ in millions) Less than 1 year (a) $ 1,700 1 - 5 years (a) 1,301 Over 5 years 54 Total letters of credit $ 3,055 Includes $ 2 8 and $ 1 5 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 and 5 years, respectively. |
Credit Risk associated with Letters of Credit | Risk ratings under this risk rating system are summarized in the following table as of December 31: ($ in millions) 2015 2014 Pass $ 2,606 3,483 Special mention 130 147 Substandard 258 299 Doubtful 61 45 Total letters of credit $ 3,055 3,974 |
Activity in Reserve for Representation and Warranty Provisions | The following table summarizes activity in the reserve for representation and warranty provisions for the years ended December 31: ($ in millions) 2015 2014 Balance, beginning of period $ 35 44 Net (reductions) additions to the reserve (3) 6 Losses charged against the reserve (7) (15) Balance, end of period $ 25 35 |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | The following tables provide a rollforward of unresolved claims by claimant type for the years ended December 31: GSE Private Label 2015 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 37 $ 6 1 $ 1 New demands 436 33 261 42 Loan paydowns/payoffs (29) (2) - - Resolved demands (428) (33) (260) (43) Balance, end of period 16 $ 4 2 $ - GSE Private Label 2014 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 264 $ 41 33 $ 5 New demands 744 95 14 2 Loan paydowns/payoffs (44) (5) (2) (1) Resolved demands (927) (125) (44) (5) Balance, end of period 37 $ 6 1 $ 1 |
Visa Funding and Bancorp Cash Payments | Visa Bancorp Cash Period ($ in millions) 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 Q3 2014 450 18 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions | |
Summary of the Bancorp's Activities with its Principal Shareholders, Directors and Executives | The following table summarizes the Bancorp’s lending activities with its principal shareholders, directors, executives and their related interests at December 31: ($ in millions) 2015 2014 Commitments to lend, net of participations: Directors and their affiliated companies $ 831 525 Executive officers 5 3 Total $ 836 528 Outstanding balance on loans, net of participations and undrawn commitments $ 97 63 |
Summary Vantiv Holding, LLC Sales Transactions | The following table provides a summary of the sales transactions that impacted the Bancorp's ownership interest in Vantiv Holding, LLC after the initial IPO: Ownership Percentage Sold Gain on Sale Remaining Ownership Percentage (a) ($ in millions) Q4 2012 6 % $ 157 33 % Q2 2013 5 242 28 Q3 2013 3 85 25 Q2 2014 3 125 23 Q4 2015 5 331 18 The Bancorp's remaining investment in Vantiv Holding, LLC of $ 3 60 as of December 31, 201 5 was accounted for as an equity method investment in the Bancorp's Consolidated Financial Statements. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | |
Applicable Income Taxes Included in the Consolidated Statements Of Income | The Bancorp and its subsidiaries file a consolidated federal income tax return. The following is a summary of applicable income taxes included in the Consolidated Statements of Income for the years ended December 31: ($ in millions) 2015 2014 2013 Current income tax expense: U.S. Federal income taxes $ 662 424 494 State and local income taxes 55 34 23 Foreign income taxes 13 8 2 Total current income tax expense 730 466 519 Deferred income tax (benefit) expense: U.S. Federal income taxes (78) 71 232 State and local income taxes 6 9 23 Foreign income taxes 1 (1) (2) Total deferred income tax (benefit) expense (71) 79 253 Applicable income tax expense $ 659 545 772 |
Reconciliation Between the Statutory U.S. Income Tax Rate and the Bancorp's Effective Tax Rate | The following is a reconciliation between the statutory U.S. Federal income tax rate and the Bancorp’s effective tax rate for the years ended December 31: 2015 2014 2013 Statutory tax rate 35.0 % 35.0 35.0 Increase (decrease) resulting from: State taxes, net of federal benefit 1.7 1.4 1.2 Tax-exempt income (1.7) (1.4) (1.1) Credits (7.5) (8.1) (6.0) Unrealized stock-based compensation benefits 0.0 0.0 0.3 Other, net 0.3 0.0 0.3 Effective tax rate 27.8 % 26.9 29.7 |
Reconciliation of the Beginning and Ending Amounts of the Bancorp's Unrecognized Tax Benefits | The following table provides a reconciliation of the beginning and ending amounts of the Bancorp’s unrecognized tax benefits: ($ in millions) 2015 2014 2013 Unrecognized tax benefits at January 1 $ 11 7 18 Gross increases for tax positions taken during prior period 1 2 1 Gross decreases for tax positions taken during prior period - - (7) Gross increases for tax positions taken during current period 2 2 1 Settlements with taxing authorities - - (5) Lapse of applicable statute of limitations (1) - (1) Unrecognized tax benefits at December 31 (a) $ 13 11 7 Amounts represent unrecognized tax benefits that , if recognized , would affect the annual e ffective tax rate. |
Deferred Income Taxes Included in Other Assets in the Consolidated Balance Sheets | Deferred income taxes are comprised of the following items at December 31: ($ in millions) 2015 2014 Deferred tax assets: Allowance for loan and lease losses $ 445 463 Deferred compensation 118 113 Reserves 61 96 Reserve for unfunded commitments 48 47 State net operating loss carryforwards 10 18 Other 194 189 Total deferred tax assets $ 876 926 Deferred tax liabilities: Lease financing $ 935 896 Investments in joint ventures and partnership interests 248 329 MSRs and related economic hedges 245 237 Other comprehensive income 106 231 State deferred taxes 79 81 Qualifying hedges and free-standing derivatives 58 105 Bank premises and equipment 53 103 Other 160 148 Total deferred tax liabilities $ 1,884 2,130 Total net deferred tax liability $ (1,008) (1,204) |
Retirement and Benefit Plans (T
Retirement and Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Retirement and Benefit Plans | |
Defined Benefit Retirement Plans with an Underfunded Status | The following table summarizes the Plan as of and for the years ended December 31: ($ in millions) 2015 2014 Fair value of plan assets at January 1 $ 195 200 Actual return on assets (6) 12 Contributions 4 3 Settlement (17) (11) Benefits paid (10) (9) Fair value of plan assets at December 31 $ 166 195 Projected benefit obligation at January 1 $ 247 221 Interest cost 9 10 Settlement (17) (11) Actuarial (gain) loss (9) 36 Benefits paid (10) (9) Projected benefit obligation at December 31 $ 220 247 Underfunded projected benefit obligation at December 31 $ (54) (52) Accumulated benefit obligation at December 31 (a) $ 220 247 Since the Plan's benefits were frozen , the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. T herefore, the accumulated benefit obligation was the same as the projected benefit obligation at both December 31, 2015 and 2014 . |
Net Periodic Benefit Cost and Other Changes In Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | The following table summarizes net periodic benefit cost and other changes in the Plan's assets and benefit obligations recognized in OCI for the years ended December 31: ($ in millions) 2015 2014 2013 Components of net periodic benefit cost: Interest cost $ 9 10 10 Expected return on assets (13) (14) (13) Amortization of net actuarial loss 10 7 11 Settlement 7 5 5 Net periodic benefit cost $ 13 8 13 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial loss (gain) $ 9 37 (38) Amortization of net actuarial loss (10) (7) (11) Settlement (7) (5) (5) Total recognized in other comprehensive income (8) 25 (54) Total recognized in net periodic benefit cost and other comprehensive income $ 5 33 (41) |
Plan Assets Measured at Fair Value on a Recurring Basis | The following tables summarize plan assets measured at fair value on a recurring basis as of December 31: Fair Value Measurements Using (a) 2015 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Equity securities (b) $ 52 - - 52 Mutual and exchange-traded funds: Money market funds 15 - - 15 International funds - 35 - 35 Domestic funds - 31 - 31 Debt funds - 3 - 3 Alternative strategies - 11 - 11 Commodity funds 6 - - 6 Total mutual and exchange-traded funds $ 21 80 - 101 Debt securities: U.S. Treasury and federal agencies securities 2 2 - 4 Mortgage-backed securities: Agency residential mortgage-backed securities - 3 - 3 Agency commercial mortgage-backed securities - 2 - 2 Non-agency commercial mortgage-backed securities - 1 - 1 Asset-backed securities and other debt securities (c) - 3 - 3 Total debt securities $ 2 11 - 13 Total plan assets $ 75 91 - 166 For further information on fair value hierarchy levels, refer to Note 1 . Includes holdings in Bancorp common stock . Includes corporate bonds . Fair Value Measurements Using (a) 2014 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Equity securities (b) $ 56 - - 56 Mutual and exchange-traded funds: Money market funds 7 - - 7 International funds - 38 - 38 Domestic funds - 31 - 31 Debt funds - 22 - 22 Alternative strategies - 22 - 22 Total mutual and exchange-traded funds $ 7 113 - 120 Debt securities: U.S. Treasury and federal agencies securities 3 - - 3 Mortgage-backed securities: Agency residential mortgage-backed securities - 4 - 4 Agency commercial mortgage-backed securities - 7 - 7 Non-agency commercial mortgage-backed securities - 2 - 2 Asset-backed securities and other debt securities (c) - 3 - 3 Total debt securities $ 3 16 - 19 Total plan assets $ 66 129 - 195 For further information on fair value hierarchy levels, refer to Note 1 . Includes holdings in Bancorp common stock . Includes corporate bonds . |
Plan Assumptions | The following table summarizes the weighted-average plan assumptions for the years ended December 31: 2015 2014 2013 For measuring benefit obligations at year end: Discount rate 4.16 % 3.82 4.72 Rate of compensation increase N/A (a) N/A (a) 4.00 Expected return on plan assets 7.00 7.25 7.50 For measuring net periodic benefit cost: Discount rate 3.82 4.72 3.83 Rate of compensation increase N/A (a) N/A (a) 4.00 Expected return on plan assets 7.00 7.25 7.50 Since the Plan's benefits were frozen , except for grandfathered employees, the rate of compensation increase is no longer applicable beginning in 2014 since minimal grandfathered employees are still accruing benefits. |
Weighted Average Allocation of Plan Assets | The following table provides the Bancorp’s targeted and actual weighted-average asset allocations by asset category for the years ended December 31: Targeted Range (b) 2015 2014 Equity securities 69 % 62 Bancorp common stock 2 2 Total equity securities (a) 60-90 % 71 64 Fixed-income securities 5-25 16 20 Alternative strategies 3-11 7 12 Cash 0-13 6 4 Total 100 % 100 Includes mutual and exchange- traded funds . These reflect the targeted range s for the year ended December 31, 2015 . |
Accumulated Other Comprehensi58
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income | |
Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income | The table below presents the activity of the components of OCI and AOCI for the years ended December 31: Total Other Total Accumulated Other Comprehensive Income Comprehensive Income Pretax Tax Net Beginning Net Ending ($ in millions) Activity Effect Activity Balance Activity Balance 2015 Unrealized holding losses on available-for-sale securities arising during the year $ (349) 122 (227) Reclassification adjustment for net gains on available-for-sale securities included in net income (16) 6 (10) Net unrealized gains on available-for-sale securities (365) 128 (237) 475 (237) 238 Unrealized holding gains on cash flow hedge derivatives arising during the year 74 (26) 48 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (75) 26 (49) Net unrealized gains on cash flow hedge derivatives (1) 0 (1) 23 (1) 22 Net actuarial loss arising during the year (9) 4 (5) Reclassification of amounts to net periodic benefit costs 17 (6) 11 Defined benefit pension plans, net 8 (2) 6 (69) 6 (63) Total $ (358) 126 (232) 429 (232) 197 2014 Unrealized holding gains on available-for-sale securities arising during the year $ 580 (202) 378 Reclassification adjustment for net gains on available-for-sale securities included in net income (37) 13 (24) Net unrealized gains on available-for-sale securities 543 (189) 354 121 354 475 Unrealized holding gains on cash flow hedge derivatives arising during the year 60 (21) 39 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (44) 15 (29) Net unrealized gains on cash flow hedge derivatives 16 (6) 10 13 10 23 Net actuarial loss arising during the year (37) 12 (25) Reclassification of amounts to net periodic benefit costs 12 (4) 8 Defined benefit pension plans, net (25) 8 (17) (52) (17) (69) Total $ 534 (187) 347 82 347 429 2013 Unrealized holding losses on available-for-sale securities arising during the year $ (454) 159 (295) Reclassification adjustment for net losses on available-for-sale securities included in net income 6 (2) 4 Net unrealized gains on available-for-sale securities (448) 157 (291) 412 (291) 121 Unrealized holding losses on cash flow hedge derivatives arising during the year (13) 5 (8) Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (44) 15 (29) Net unrealized gains on cash flow hedge derivatives (57) 20 (37) 50 (37) 13 Net actuarial gain arising during the year 38 (13) 25 Reclassification of amounts to net periodic benefit costs 16 (6) 10 Defined benefit pension plans, net 54 (19) 35 (87) 35 (52) Total $ (451) 158 (293) 375 (293) 82 |
Reclassification Out of Accumulated Other Comprehensive Income to Net Income | The table below presents reclassifications out of AOCI for the years ended December 31: Consolidated Statements of Components of AOCI: ($ in millions) Income Caption 2015 2014 2013 Net unrealized gains on available-for-sale securities: (b) Net gains (losses) included in net income Securities gains, net $ 16 37 (6) Income before income taxes 16 37 (6) Applicable income tax expense (6) (13) 2 Net income 10 24 (4) Net unrealized gains on cash flow hedge derivatives: (b) Interest rate contracts related to C&I loans Interest and fees on loans and leases 75 44 45 Interest rate contracts related to long-term debt Interest on long-term debt - - (1) Income before income taxes 75 44 44 Applicable income tax expense (26) (15) (15) Net income 49 29 29 Net periodic benefit costs: (b) Amortization of net actuarial loss Employee benefits expense (a) (10) (7) (11) Settlements Employee benefits expense (a) (7) (5) (5) Income before income taxes (17) (12) (16) Applicable income tax expense 6 4 6 Net income (11) (8) (10) Total reclassifications for the period Net income $ 48 45 15 This AOCI component is included in the computation of net periodi c benefit cost. Refer to Note 21 f or information on the computation of net periodic benefit cost. Amounts in parentheses indicate reductions to net income. |
Common, Preferred and Treasur59
Common, Preferred and Treasury Stock (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Common, Preferred and Treasury Stock | |
Share Activity Within Common, Preferred and Treasury Stock | The table presents a summary of the share activity within common, preferred and treasury stock for the years ended: Common Stock Preferred Stock Treasury Stock ($ in millions, except share data) Value Shares Value Shares Value Shares December 31, 2012 $ 2,051 923,892,581 $ 398 16,450 $ (634) 41,740,524 Shares acquired for treasury - - - - (1,242) 65,516,126 Issuance of preferred shares, Series I - - 441 18,000 - - Issuance of preferred shares, Series H - - 593 24,000 - - Redemption of preferred shares, Series G - - (398) (16,450) 540 (35,529,018) Impact of stock transactions under stock compensation plans, net - - - - 38 (3,697,042) Other - - - - 3 556,246 December 31, 2013 $ 2,051 923,892,581 $ 1,034 42,000 $ (1,295) 68,586,836 Shares acquired for treasury - - - - (726) 34,799,873 Issuance of preferred shares, Series J - - 297 12,000 - - Impact of stock transactions under stock compensation plans, net - - - - 47 (3,493,671) Other - - - - 2 (47,409) December 31, 2014 $ 2,051 923,892,581 $ 1,331 54,000 $ (1,972) 99,845,629 Shares acquired for treasury - - - - (847) 42,607,855 Impact of stock transactions under stock compensation plans, net - - - - 52 (3,593,406) Other - - - - 3 (47,811) December 31, 2015 $ 2,051 923,892,581 $ 1,331 54,000 $ (2,764) 138,812,267 |
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 years ended December 31, 2014 and 2015. Shares Repurchased on Repurchase Date Shares Received from Forward Contract Settlement Total Shares Repurchased Repurchase Date Amount ($ in millions) Settlement Date November 18, 2013 200 8,538,423 1,132,495 9,670,918 March 5, 2014 December 13, 2013 456 19,084,195 2,294,932 21,379,127 March 31, 2014 January 31, 2014 99 3,950,705 602,109 4,552,814 March 31, 2014 May 1, 2014 150 6,216,480 1,016,514 7,232,994 July 21, 2014 July 24, 2014 225 9,352,078 1,896,685 11,248,763 October 14, 2014 October 23, 2014 180 8,337,875 794,245 9,132,120 January 8, 2015 January 27, 2015 180 8,542,713 1,103,744 9,646,457 April 28, 2015 April 30, 2015 155 6,704,835 842,655 7,547,490 July 31, 2015 August 3, 2015 150 6,039,792 1,346,314 7,386,106 September 3, 2015 September 9, 2015 150 6,538,462 1,446,613 7,985,075 October 23, 2015 December 14, 2015 215 9,248,482 1,782,477 11,030,959 January 14, 2016 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation | |
Number of Shares to be issued upon Exercise of Outstanding Stock-Based Awards and Remaining Shares Available for Future Issuance under all Equity Compensation Plans | The following table provides detail of the number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance under all of the Bancorp's equity compensation plans approved by shareholders as of December 31, 2015 : Plan Category (shares in thousands) Number of Shares to be Issued Upon Exercise Weighted-Average Exercise Price Per Share Shares Available for Future Issuance Equity compensation plans approved by shareholders 24,667 (a) SARs (b) N/A (a) RSAs 8,281 N/A (a) RSUs 371 N/A (a) Stock options (c) 7 $32.26 (a) Phantom stock units (d) N/A N/A PSAs (e) N/A (a) Employee stock purchase plan 6,813 (f) Total shares 8,659 31,480 Under the 2014 Incentive Compensation Plan, 3 6 million shares were authorized for issuance as SARs, RSAs , RSUs, stock options, performance share or unit awards , dividen d or dividend equivalent rights and stock awards. The number of shares to be issued upon exercise will be determined at exercise based on the difference between the gra nt price and the market price on the date of exercise and the calculation of taxes owed on the exercise . Excludes 0. 1 million outstanding options awarded under plans assumed by the Bancorp in connection with certain mergers and acquisitions. The Bancorp has not made any awards under these plans and will make no additional awards under these plans. The weighted-average exercise price of the outstanding options is $ 1 3 . 89 per share. Phantom stock units are settled in cash. The number of shares to be issued is dependent upon the Bancorp achieving certain predefined performance targets and ranges from zero shares to approximately 1 million shares. Represents remaining shares of Fifth Third common stock under the Bancorp's 1993 Stock Purchase Plan, as amended and restated, including an additional 1.5 million shares approved by shareholders on March 28, 2007 and an additional 12 million shares approved by shareholders on April 21, 2009. |
Schedule of Share-based Payment Award, Stock Appreciation Rights, Valuation Assumptions | The weighted-average assumptions were as follows for the years ended December 31: 2015 2014 2013 Expected life (in years) 6 6 6 Expected volatility 35 % 35 36 Expected dividend yield 2.7 2.4 3.0 Risk-free interest rate 1.6 2.0 1.0 |
Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity | 2015 2014 2013 Weighted- Weighted- Weighted- Number of SARs Average Grant Number of SARs Average Grant Number of SARs Average Grant SARs (in thousands, except per share data) Price Per Share Price Per Share Price Per Share Outstanding at January 1 45,590 $ 19.79 48,599 $ 19.98 44,120 $ 20.41 Granted 5,219 18.99 4,526 21.63 10,267 16.16 Exercised (3,242) 13.59 (4,408) 13.63 (2,904) 11.18 Forfeited or expired (3,438) 32.96 (3,127) 34.19 (2,884) 21.78 Outstanding at December 31 44,129 $ 19.14 45,590 $ 19.79 48,599 $ 19.98 Exercisable at December 31 29,721 $ 19.71 27,950 $ 21.71 26,462 $ 24.14 |
Outstanding and Exercisable SARs by Grant Price | The following table summarizes outstanding and exercisable SARs by grant price per share at December 31, 2015: Outstanding SARs Exercisable SARs Weighted- Weighted- Average Average Weighted- Remaining Weighted- Remaining Number of Average Grant Contractual Life Number of Average Grant Contractual Life SARs (in thousands, except per share data) SARs Price Per Share (in years) SARs Price Per Share (in years) Under $10.00 2,943 $ 3.98 3.3 2,943 $ 3.98 3.3 $10.01-$20.00 30,488 15.99 6.3 19,074 15.37 5.3 $20.01-$30.00 4,047 21.64 8.2 1,053 21.66 8.1 $30.01-$40.00 6,069 38.66 0.8 6,069 38.66 0.8 Over $40.00 582 40.11 1.3 582 40.11 1.3 All SARs 44,129 $ 19.14 5.5 29,721 $ 19.71 4.2 |
Schedule of Share-Based Compensation, RSAs | 2015 2014 2013 Weighted-Average Weighted-Average Weighted-Average Grant-Date Grant-Date Grant-Date Fair Value Fair Value Fair Value RSAs (in thousands, except per share data) Shares Per Share Shares Per Share Shares Per Share Nonvested at January 1 7,253 $ 17.98 6,710 $ 15.11 6,379 $ 14.32 Granted 4,250 19.11 3,264 21.61 3,583 16.21 Exercised (2,580) 16.86 (2,183) 14.84 (2,720) 14.71 Forfeited (642) 18.64 (538) 16.73 (532) 14.97 Nonvested at December 31 8,281 $ 18.88 7,253 $ 17.98 6,710 $ 15.11 |
Unvested RSAs by Grant-Date Fair Value | The following table summarizes nonvested RSAs by grant-date fair value at December 31, 2015: Nonvested RSAs Weighted-Average Remaining Contractual Life RSAs (in thousands) Shares (in years) $10.01-$15.00 690 0.3 $15.01-$20.00 5,153 1.6 $20.01-$25.00 2,438 1.4 All RSAs 8,281 1.4 |
Schedule of Share-Based Compensation, RSUS | 2015 Weighted-Average Grant-Date Fair Value RSUs (in thousands, except per share data) Shares Per Share Nonvested at January 1 - $ N/A Granted 377 19.58 Released (5) 21.63 Forfeited (1) 19.46 Nonvested at December 31 371 $ 19.56 |
Unvested RSUs by Grant-Date Fair Value | The following table summarizes nonvested RSUs by grant-date fair value at December 31, 2015: Nonvested RSUs Weighted-Average Remaining Contractual Life RSUs (in thousands) Shares (in years) $15.01-$20.00 318 1.8 $20.01-$25.00 53 - All RSUs 371 1.6 |
Schedule of Share-based Compensation, Stock Options, Activity | 2015 2014 2013 Weighted-Average Weighted-Average Weighted-Average Number of Exercise Price Number of Exercise Price Number of Exercise Price Stock Options (in thousands, except per share data) Options Per Share Options Per Share Options Per Share Outstanding at January 1 265 $ 14.25 546 $ 20.72 3,877 $ 45.00 Exercised (126) 13.67 (115) 12.84 (190) 11.88 Forfeited or expired (20) 13.59 (166) 36.42 (3,141) 51.23 Outstanding at December 31 119 $ 14.97 265 $ 14.25 546 $ 20.72 Exercisable at December 31 119 $ 14.97 265 $ 14.25 546 $ 20.72 |
Outstanding and Exercisable Stock Options by Exercise Price | The following table summarizes outstanding and exercisable stock options by exercise price per share at December 31, 2015: Outstanding and Exercisable Stock Options Number of Options Weighted-Average Weighted-Average Remaining Exercise Price Contractual Life Stock Options (in thousands, except per share data) Per Share (in years) Under $10.00 1 $ 8.59 3.0 $10.01-$20.00 112 13.89 0.8 $20.01-$30.00 1 24.41 2.0 $30.01-$40.00 - - - Over $40.00 5 40.98 1.0 All stock options 119 $ 14.97 0.8 |
Other Noninterest Income and 61
Other Noninterest Income and Other Noninterest Expense (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Noninterest Income | |
Other Noninterest Income and Other Noninterest Expense | The following table presents the major components of other noninterest income and other noninterest expense for the years ended December 31: ($ in millions) 2015 2014 2013 Other noninterest income: Gain on sale of Vantiv, Inc. shares $ 331 125 327 Valuation adjustments on the warrant associated with sale of Vantiv Holding, LLC 236 31 206 Gain on sale and exercise of the warrant associated with Vantiv Holding, LLC 89 - - Operating lease income 89 84 75 Income from the TRA associated with Vantiv, Inc. 80 23 9 Equity method income from interest in Vantiv Holding, LLC 63 48 77 BOLI income 48 44 52 Cardholder fees 43 45 47 Gain on loan sales 38 - 3 Private equity investment income 28 27 24 Consumer loan and lease fees 23 25 27 Banking center income 21 30 34 Insurance income 14 13 25 Net losses on disposition and impairment of bank premises and equipment (101) (19) (6) Loss on swap associated with the sale of Visa, Inc. Class B shares (37) (38) (31) Other, net 14 12 10 Total other noninterest income $ 979 450 879 Other noninterest expense: Impairment on affordable housing investments $ 145 135 108 Loan and lease 118 119 158 Marketing 110 98 114 FDIC insurance and other taxes 99 89 127 Operating lease 74 67 57 Professional services fees 70 72 76 Losses and adjustments 55 188 221 Travel 54 52 54 Postal and courier 45 47 48 Data processing 45 41 42 Recruitment and education 33 28 26 Donations 29 18 24 Insurance 17 16 17 Supplies 16 15 16 Provision for (benefit from) the reserve for unfunded commitments 4 (27) (17) Other, net 191 181 193 Total other noninterest expense $ 1,105 1,139 1,264 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share | |
Schedule Of Earnings Per Share Basic And Diluted [Table Text Block] | The following table provides the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share for the years ended December 31: 2015 2014 2013 Average Per Share Average Per Share Average Per Share ($ in millions, except per share data) Income Shares Amount Income Shares Amount Income Shares Amount Earnings per Share: Net income attributable to Bancorp $ 1,712 $ 1,481 $ 1,836 Dividends on preferred stock 75 67 37 Net income available to common shareholders 1,637 1,414 1,799 Less: Income allocated to participating securities 15 12 14 Net income allocated to common shareholders $ 1,622 799 $ 2.03 $ 1,402 833 $ 1.68 $ 1,785 869 $ 2.05 Earnings per Diluted Share: Net income available to common shareholders $ 1,637 $ 1,414 $ 1,799 Effect of dilutive securities: Stock-based awards - 9 - 10 - 8 Series G convertible preferred stock - - - - 18 18 Net income available to common shareholders 1,637 1,414 1,817 plus assumed conversions Less: Income allocated to participating securities 15 12 14 Net income allocated to common shareholders plus assumed conversions $ 1,622 808 $ 2.01 $ 1,402 843 $ 1.66 $ 1,803 895 $ 2.02 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 December 31, 2015 ($ in millions) Level 1 (c) Level 2 (c) Level 3 Total Fair Value Assets: Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 100 1,087 - 1,187 Obligations of states and political subdivisions securities - 52 - 52 Mortgage-backed securities: Agency residential mortgage-backed securities - 15,081 - 15,081 Agency commercial mortgage-backed securities - 7,862 - 7,862 Non-agency commercial mortgage-backed securities - 2,804 - 2,804 Asset-backed securities and other debt securities - 1,355 - 1,355 Equity securities (a) 98 1 - 99 Available-for-sale and other securities (a) 198 28,242 - 28,440 Trading securities: U.S. Treasury and federal agencies securities - 19 - 19 Obligations of states and political subdivisions securities - 9 - 9 Mortgage-backed securities: Agency residential mortgage-backed securities - 6 - 6 Asset-backed securities and other debt securities - 19 - 19 Equity securities 333 - - 333 Trading securities 333 53 - 386 Residential mortgage loans held for sale - 519 - 519 Residential mortgage loans (b) - - 167 167 Derivative assets: Interest rate contracts 3 892 15 910 Foreign exchange contracts - 386 - 386 Equity contracts - - 262 262 Commodity contracts 54 240 - 294 Derivative assets (d) 57 1,518 277 1,852 Total assets $ 588 30,332 444 31,364 Liabilities: Derivative liabilities: Interest rate contracts $ 1 257 3 261 Foreign exchange contracts - 340 - 340 Equity contracts - - 61 61 Commodity contracts 37 239 - 276 Derivative liabilities (e) 38 836 64 938 Short positions (e) 22 7 - 29 Total liabilities $ 60 843 64 967 Excludes FHLB, FRB and DTCC restricted stock totaling $ 248 , $ 355 and $1 , respectively, at December 31, 2015 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment . During the year ended December 31, 2015, no assets or liabilities were transferred between Level 1 and Level 2 . Included in other assets in the Consolidated Balance Sheets. Included in other liabilities in the Consolidated Balance Sheets Fair Value Measurements Using December 31, 2014 ($ in millions) Level 1 (c) Level 2 (c) Level 3 Total Fair Value Assets: Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 25 1,607 - 1,632 Obligations of states and political subdivisions securities - 192 - 192 Mortgage-backed securities: Agency residential mortgage-backed securities - 12,404 - 12,404 Agency commercial mortgage-backed securities - 4,565 - 4,565 Non-agency commercial mortgage-backed securities - 1,550 - 1,550 Asset-backed securities and other debt securities - 1,362 - 1,362 Equity securities (a) 84 19 - 103 Available-for-sale and other securities (a) 109 21,699 - 21,808 Trading securities: U.S. Treasury and federal agencies securities - 14 - 14 Obligations of states and political subdivisions securities - 8 - 8 Mortgage-backed securities: Agency residential mortgage-backed securities - 9 - 9 Asset-backed securities and other debt securities - 13 - 13 Equity securities 316 - - 316 Trading securities 316 44 - 360 Residential mortgage loans held for sale - 561 - 561 Residential mortgage loans (b) - - 108 108 Derivative assets: Interest rate contracts - 888 12 900 Foreign exchange contracts - 417 - 417 Equity contracts - - 415 415 Commodity contracts 68 280 - 348 Derivative assets (d) 68 1,585 427 2,080 Total assets $ 493 23,889 535 24,917 Liabilities: Derivative liabilities: Interest rate contracts $ 6 276 2 284 Foreign exchange contracts - 372 - 372 Equity contracts - - 49 49 Commodity contracts 58 280 - 338 Derivative liabilities (e) 64 928 51 1,043 Short positions (e) 16 5 - 21 Total liabilities $ 80 933 51 1,064 Excludes FHLB and FRB restricted stock totaling $ 248 and $ 352 , respectively, at December 31, 2014 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment . During the year ended December 31, 2014, no assets or liabilities were transferred between Level 1 and Level 2. Included in other assets in the Consolidated Balance Sheets. Included in other liabilities in the Consolidated Balance Sheets |
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 Trading Mortgage Derivatives, Derivatives, Total For the year ended December 31, 2015 ($ in millions) Securities Loans Net (a) Net (a) Fair Value Balance, beginning of period $ - 108 10 366 484 Total gains or losses (realized/unrealized): Included in earnings - - 111 288 399 Purchases - - (2) - (2) Sale and exercise of warrant - - - (477) (477) Settlements - (28) (107) 24 (111) Transfers into Level 3 (b) - 87 - - 87 Balance, end of period $ - 167 12 201 380 The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2015 (c) $ - - 17 66 83 Net interest rate derivatives include derivative assets and liabilities of $ 15 and $ 3 , respectively, as of December 31, 2015 . Net equity derivatives include derivative assets and liabilities of $ 262 and $ 61 , respectively, as of December 31, 2015 . Includes residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Trading Mortgage Derivatives, Derivatives, Total For the year ended December 31, 2014 ($ in millions) Securities Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 1 92 8 336 437 Total gains or losses (realized/unrealized): Included in earnings - 4 125 (7) 122 Purchases - - (1) - (1) Sales (1) - - - (1) Settlements - (17) (122) 37 (102) Transfers into Level 3 (b) - 29 - - 29 Balance, end of period $ - 108 10 366 484 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2014 (c) $ - 4 13 (7) 10 Net interest rate derivatives include derivative assets and liabilities of $ 12 and $ 2 , respect ively as of December 31, 2014 . Net equity derivatives include derivative assets and liabilities of $ 415 and $ 4 9 , respectively, as of December 31, 2014 . Includes residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Trading Mortgage Derivatives, Derivatives, Total For the year ended December 31, 2013 ($ in millions) Securities Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 1 76 57 144 278 Total gains or losses (realized/unrealized): Included in earnings - (1) 59 175 233 Purchases - - (2) - (2) Settlements - (17) (106) 17 (106) Transfers into Level 3 (b) - 34 - - 34 Balance, end of period $ 1 92 8 336 437 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2013 (c) $ - (1) 11 175 185 Net interest rate derivatives include derivative assets and liabilities of $ 12 and $ 4 , respectively, as of December 31 , 2013 . Net equity derivatives include derivative assets and liabilities of $ 384 and $ 48 , respectively, as of December 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 Consolidated Statements of Income during the years ended December 31, 2015, 2014 and 2013 as follows: ($ in millions) 2015 2014 2013 Mortgage banking net revenue $ 110 127 57 Corporate banking revenue 1 2 1 Other noninterest income 288 (7) 175 Total gains $ 399 122 233 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 December 31, 2015, 2014 and 2013 were recorded in the Consolidated Statements of Income as follows: ($ in millions) 2015 2014 2013 Mortgage banking net revenue $ 16 16 10 Corporate banking revenue 1 1 - Other noninterest income 66 (7) 175 Total gains $ 83 10 185 |
Quantitative information about significant unobservable level 3 fair value measurement inputs | The following tables present information as of December 31, 2015 and 2014 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 December 31, 2015 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Residential mortgage loans $ 167 Loss rate model Interest rate risk factor (9.2) - 16.5% 3.1% Credit risk factor 0 - 80.5% 1.3% IRLCs, net 15 Discounted cash flow Loan closing rates 5.8 - 94.0% 76.3% Stock warrant associated with Vantiv Holding, LLC 262 Black-Scholes option- Expected term (years) 2.0 - 13.5 5.9 pricing model Expected volatility (a) 22.6 - 31.2% 25.9% Expected dividend rate - - Swap associated with the sale of Visa, Inc. (61) Discounted cash flow Timing of the resolution 12/31/2016 - NM Class B shares of the Covered Litigation 3/31/2021 Based on historical and implied volatilities of Vantiv , Inc. and comparable companies assuming similar expected terms . As of December 31, 2014 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Residential mortgage loans $ 108 Loss rate model Interest rate risk factor (7.2) - 17.7% 5.0% Credit risk factor 0 - 46.6% 1.8% IRLCs, net 12 Discounted cash flow Loan closing rates 8.8 - 86.7% 65.2% Stock warrant associated with Vantiv Holding, LLC 415 Black-Scholes option- Expected term (years) 2.0 - 14.5 6.0 pricing model Expected volatility (a) 22.9 - 32.2% 26.5% Expected dividend rate - - Swap associated with the sale of Visa, Inc. (49) Discounted cash flow Timing of the resolution 12/31/2015 - NM Class B shares of the Covered Litigation 6/30/2020 Based on historical and implied volatilities of Vantiv , Inc. and comparable companies assuming similar expected terms . The following tables present information as of December 31, 2015 and 2014 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets measured on a nonrecurring basis: As of December 31, 2015 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 13 Discounted cash flow Discount spread NM 4.4% Residential mortgage loans held for sale 68 Loss rate model Interest rate risk factor (7.5) - 0.1% (1.6%) Credit risk factor NM 0.1% Automobile loans held for sale 2 Discounted cash flow Discount spread NM 3.1% Credit cards held for sale 4 Comparable transactions Estimated sales proceeds from NM NM comparable transactions Commercial and industrial loans 344 Appraised value Collateral value NM NM Commercial mortgage loans 103 Appraised value Collateral value NM NM Commercial construction loans 6 Appraised value Collateral value NM NM Residential mortgage loans 55 Appraised value Appraised value NM NM MSRs 784 Discounted cash flow Prepayment speed 1.0 - 100% (Fixed) 11.8% (Adjustable) 27.0% OAS spread (bps) 364-1,515 (Fixed) 618 (Adjustable) 703 OREO 58 Appraised value Appraised value NM NM Bank premises and equipment 83 Appraised value Appraised value NM NM Operating lease equipment 42 Appraised value Appraised value NM NM Private equity investment funds 13 Liquidity discount applied to fund's net asset value Liquidity discount NM 18.0% As of December 31, 2014 ($ in millions) Significant Unobservable Ranges of Financial Instrument Fair Value Valuation Technique Inputs Inputs Weighted-Average Commercial loans held for sale $ 33 Appraised value Appraised value NM NM Cost to sell NM 10.0% Residential mortgage loans held for sale 554 Comparable transactions Estimated sales proceeds from NM 15.0% comparable transactions Commercial and industrial loans 456 Appraised value Collateral value NM NM Commercial mortgage loans 110 Appraised value Collateral value NM NM Commercial construction loans 23 Appraised value Collateral value NM NM MSRs 856 Discounted cash flow Prepayment speed 0 - 100% (Fixed) 12.0% (Adjustable) 26.2% Discount rates 9.6 - 13.2% (Fixed) 9.9% (Adjustable) 11.8% OREO 90 Appraised value Appraised value NM NM Bank premises and equipment 22 Appraised value Appraised value NM NM |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of December 31, 2015 and 2014, and for which a nonrecurring fair value adjustment was recorded during the years ended December 31, 2015 and 2014, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period. Fair Value Measurements Using Total (Losses) Gains As of December 31, 2015 ($ in millions) Level 1 Level 2 Level 3 Total For the year ended December 31, 2015 Commercial loans held for sale $ - - 13 13 3 Residential mortgage loans held for sale - - 68 68 (2) Automobile loans held for sale - - 2 2 - Credit cards held for sale - - 4 4 (2) Commercial and industrial loans - - 344 344 (137) Commercial mortgage loans - - 103 103 (41) Commercial construction loans - - 6 6 (5) Residential mortgage loans - - 55 55 (1) MSRs - - 784 784 4 OREO - - 58 58 (24) Bank premises and equipment - - 83 83 (101) Operating lease equipment - - 42 42 (33) Private equity investment funds - - 13 13 (1) Total $ - - 1,575 1,575 (340) Fair Value Measurements Using Total Losses As of December 31, 2014 ($ in millions) Level 1 Level 2 Level 3 Total For the year ended December 31, 2014 Commercial loans held for sale $ - - 33 33 (12) Residential mortgage loans held for sale - - 554 554 (87) Commercial and industrial loans - - 456 456 (382) Commercial mortgage loans - - 110 110 (36) Commercial construction loans - - 23 23 (1) MSRs - - 856 856 (65) OREO - - 90 90 (26) Bank premises and equipment - - 22 22 (20) Total $ - - 2,144 2,144 (629) |
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 December 31, 2015 Residential mortgage loans measured at fair value $ 686 669 17 Past due loans of 90 days or more 2 2 - Nonaccrual loans 2 2 - December 31, 2014 Residential mortgage loans measured at fair value $ 669 643 26 Past due loans of 90 days or more 2 2 - Nonaccrual loans 3 3 - |
Carrying Amounts and Estimated Fair Values for Certain Financial Instruments | The following tables summarize the carrying amounts and estimated fair values for certain financial instruments, excluding financial instruments measured at fair value on a recurring basis: Net Carrying Fair Value Measurements Using Total As of December 31, 2015 ($ in millions) Amount Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and due from banks $ 2,540 2,540 - - 2,540 Other securities 604 - 604 - 604 Held-to-maturity securities 70 - - 70 70 Other short-term investments 2,671 2,671 - - 2,671 Loans held for sale 384 - - 384 384 Portfolio loans and leases: Commercial and industrial loans 41,479 - - 41,802 41,802 Commercial mortgage loans 6,840 - - 6,656 6,656 Commercial construction loans 3,190 - - 2,918 2,918 Commercial leases 3,807 - - 3,533 3,533 Residential mortgage loans 13,449 - - 14,061 14,061 Home equity 8,234 - - 8,948 8,948 Automobile loans 11,453 - - 11,170 11,170 Credit card 2,160 - - 2,551 2,551 Other consumer loans and leases 646 - - 643 643 Unallocated allowance for loan and lease losses (115) - - - - Total portfolio loans and leases, net 91,143 - - 92,282 92,282 Financial liabilities: Deposits 103,205 - 103,219 - 103,219 Federal funds purchased 151 151 - - 151 Other short-term borrowings 1,507 - 1,507 - 1,507 Long-term debt 15,844 15,637 625 - 16,262 Net Carrying Fair Value Measurements Using Total As of December 31, 2014 ($ in millions) Amount Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and due from banks $ 3,091 3,091 - - 3,091 Other securities 600 - 600 - 600 Held-to-maturity securities 187 - - 187 187 Other short-term investments 7,914 7,914 - - 7,914 Loans held for sale 700 - - 700 700 Portfolio loans and leases: Commercial and industrial loans 40,092 - - 40,781 40,781 Commercial mortgage loans 7,259 - - 6,878 6,878 Commercial construction loans 2,052 - - 1,735 1,735 Commercial leases 3,675 - - 3,426 3,426 Residential mortgage loans 12,177 - - 12,249 12,249 Home equity 8,799 - - 9,224 9,224 Automobile loans 12,004 - - 11,748 11,748 Credit card 2,297 - - 2,586 2,586 Other consumer loans and leases 405 - - 414 414 Unallocated allowance for loan and lease losses (106) - - - - Total portfolio loans and leases, net 88,654 - - 89,041 89,041 Financial liabilities: Deposits 101,712 - 101,715 - 101,715 Federal funds purchased 144 144 - - 144 Other short-term borrowings 1,556 - 1,561 - 1,561 Long-term debt 14,967 14,993 655 - 15,648 |
Certain Regulatory Requiremen64
Certain Regulatory Requirements and Capital Ratios (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Certain Regulatory Requirements and Capital Ratios | |
Capital and Risk-Based Capital and Leverage Ratios for the Bancorp and its Significant Subsidiary Banks | The following table presents capital and risk-based capital and leverage ratios for the Bancorp and its banking subsidiary at December 31: 2015 2014 Basel III Transitional (a) Basel I (b) ($ in millions) Amount Ratio Amount Ratio CET1 capital (to risk-weighted assets): Fifth Third Bancorp $ 11,917 9.82 % N/A N/A Fifth Third Bank 14,216 11.92 N/A N/A Tier I risk-based capital (to risk-weighted assets): Fifth Third Bancorp 13,260 10.93 $ 12,764 10.83 % Fifth Third Bank 14,216 11.92 13,760 11.85 Total risk-based capital (to risk-weighted assets): Fifth Third Bancorp 17,134 14.13 16,895 14.33 Fifth Third Bank 15,642 13.12 15,213 13.10 Tier I leverage (to average assets): Fifth Third Bancorp 13,260 9.54 12,764 9.66 Fifth Third Bank 14,216 10.43 13,760 10.58 Under the U.S. banking agencies' Basel III Final Rule, assets and credit equivalent amounts of off-balance sheet exposures are calculated according to the standardized approach for risk-weighted assets. The resulting weighted values are added together resulting in the total risk-weighted assets . These capital amounts and ratios were calculated under the Supervisory Agencies general risk-based capital rules (Basel I) which were in effect prior to January 1, 2015 . |
Parent Company Financial Stat65
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Parent Company Financial Statements | |
Condensed Statements of Income (Parent Company Only) | Condensed Statements of Income (Parent Company Only) For the years ended December 31 ($ in millions) 2015 2014 2013 Income Dividends from subsidiaries: Consolidated nonbank subsidiaries (a) $ 1,040 1,094 859 Interest on loans to subsidiaries 15 14 14 Total income 1,055 1,108 873 Expenses Interest 178 163 178 Other 22 17 36 Total expenses 200 180 214 Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries 855 928 659 Applicable income tax benefit 69 62 74 Income Before Change in Undistributed Earnings of Subsidiaries 924 990 733 Change in undistributed earnings 788 491 1,103 Net Income $ 1,712 1,481 1,836 Other Comprehensive Income 0 0 0 Comprehensive Income Attributable to Bancorp $ 1,712 1,481 1,836 The Bancorp's indirect ba nking subsidiary paid dividends to the Bancorp's direct non bank subsidiary holding company of $ 1.0 b illion , $1.1 b illion and $859 m illion for the years e nded December 31, 2015 , 2014 and 2013, respectively. |
Condensed Balance Sheets (Parent Company Only) | Condensed Balance Sheets (Parent Company Only) As of December 31 ($ in millions) 2015 2014 Assets Cash $ 128 - Short-term investments 3,728 3,189 Loans to subsidiaries: Nonbank subsidiaries 982 984 Total loans to subsidiaries 982 984 Investment in subsidiaries Nonbank subsidiaries 17,831 17,186 Total investment in subsidiaries 17,831 17,186 Goodwill 80 80 Other assets 432 451 Total Assets $ 23,181 21,890 Liabilities Other short-term borrowings $ 404 426 Accrued expenses and other liabilities 433 405 Long-term debt (external) 6,474 5,394 Total Liabilities $ 7,311 6,225 Shareholders' Equity Common stock $ 2,051 2,051 Preferred stock 1,331 1,331 Capital surplus 2,666 2,646 Retained earnings 12,358 11,141 Accumulated other comprehensive income 197 429 Treasury stock (2,764) (1,972) Noncontrolling interests 31 39 Total Equity 15,870 15,665 Total Liabilities and Equity $ 23,181 21,890 |
Condensed Statements of Cash Flows (Parent Company Only) | Condensed Statements of Cash Flows (Parent Company Only) For the years ended December 31 ($ in millions) 2015 2014 2013 Operating Activities Net income $ 1,712 1,481 1,836 Adjustments to reconcile net income to net cash provided by operating activities: Benefit from deferred income taxes (4) (1) (1) Net change in undistributed earnings (788) (491) (1,103) Net change in: Other assets (19) 8 13 Accrued expenses and other liabilities 32 (40) (28) Net Cash Provided by Operating Activities 933 957 717 Investing Activities Net change in: Short-term investments (539) (684) 976 Loans to subsidiaries 2 (10) 47 Net Cash (Used in) Provided by Investing Activities (537) (694) 1,023 Financing Activities Net change in other short-term borrowings (22) 115 (255) Proceeds from issuance of long-term debt 1,099 499 750 Repayment of long-term debt 0 0 (1,500) Dividends paid on common shares (422) (423) (393) Dividends paid on preferred shares (75) (67) (37) Issuance of preferred shares 0 297 1,034 Repurchase of treasury shares and related forward contract (850) (654) (1,320) Other, net 2 (30) (19) Net Cash Used in Financing Activities (268) (263) (1,740) Increase in Cash 128 0 0 Cash at Beginning of Period 0 0 0 Cash at End of Period $ 128 0 0 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Segments | |
Results of Operations and Average Assets by Segment | Results of operations and assets by business segment for the years ended December 31 are: General Commercial Branch Consumer Investment Corporate 2015 ($ in millions) Banking Banking Lending Advisors and Other Eliminations Total Net interest income $ 1,625 1,555 249 128 (24) - 3,533 Provision for loan and lease losses 239 159 45 3 (50) - 396 Net interest income after provision for loan and lease losses 1,386 1,396 204 125 26 - 3,137 Total noninterest income 853 (c) 652 (b) 407 418 822 (149) (a) 3,003 Total noninterest expense 1,402 1,567 436 455 64 (149) 3,775 Income before income taxes 837 481 175 88 784 - 2,365 Applicable income tax expense 98 170 63 30 298 - 659 Net income 739 311 112 58 486 - 1,706 Less: Net income attributable to noncontrolling interests - - - - (6) - (6) Net income attributable to Bancorp 739 311 112 58 492 - 1,712 Dividends on preferred stock - - - - 75 - 75 Net income available to common shareholders $ 739 311 112 58 417 - 1,637 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 58,166 53,587 22,656 9,938 (3,265) - 141,082 Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Consolidated Statements of Income . Includes an impairment charge of $ 10 9 for branches and land. For more information refe r to Note 7 and Note 27. Includes an impairment charge of $ 36 for operating lease equipment. For more information refer to Note 8 and Note 27. General Commercial Branch Consumer Investment Corporate 2014 ($ in millions) Banking Banking Lending Advisors and Other Eliminations Total Net interest income $ 1,627 1,573 258 121 - - 3,579 Provision for loan and lease losses 235 181 156 3 (260) - 315 Net interest income after provision for loan and lease losses 1,392 1,392 102 118 260 - 3,264 Total noninterest income 880 726 (b) 350 410 253 (146) (a) 2,473 Total noninterest expense 1,317 1,554 554 445 (15) (146) 3,709 Income (loss) before income taxes 955 564 (102) 83 528 - 2,028 Applicable income tax expense (benefit) 155 199 (36) 29 198 - 545 Net income (loss) 800 365 (66) 54 330 - 1,483 Less: Net income attributable to noncontrolling interests - - - - 2 - 2 Net income (loss) attributable to Bancorp 800 365 (66) 54 328 - 1,481 Dividends on preferred stock - - - - 67 - 67 Net income (loss) available to common shareholders $ 800 365 (66) 54 261 - 1,414 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 56,306 51,462 22,567 10,443 (2,072) - 138,706 Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Consolidated Statements of Income. Includes an impairment charge of $ 20 for branches and land . For more information refer to Note 7 and Note 27 . General Commercial Branch Consumer Investment Corporate 2013 ($ in millions) Banking Banking Lending Advisors and Other Eliminations Total Net interest income $ 1,569 1,380 312 154 146 - 3,561 Provision for loan and lease losses 195 211 93 2 (272) - 229 Net interest income after provision for loan and lease losses 1,374 1,169 219 152 418 - 3,332 Total noninterest income 811 745 (b) 755 406 654 (144) (a) 3,227 Total noninterest expense 1,230 1,576 685 453 161 (144) 3,961 Income before income taxes 955 338 289 105 911 - 2,598 Applicable income tax expense 157 119 102 37 357 - 772 Net income 798 219 187 68 554 - 1,826 Less: Net income attributable to noncontrolling interests - - - - (10) - (10) Net income attributable to Bancorp 798 219 187 68 564 - 1,836 Dividends on preferred stock - - - - 37 - 37 Net income available to common shareholders $ 798 219 187 68 527 - 1,799 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 54,495 47,788 22,624 10,711 (5,175) - 130,443 Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Consolidated Statements of Income. Includes an impairment charge of $ 6 for branches and lan d. For more information refer to Note 7 and Note 27 . |
Summary of Significant Accoun67
Summary of Significant Accounting and Reporting Policies - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Significant Accounting Policies [Line Items] | ||
Established threshold nonaccrual commercial loans | $ 1 | |
Established threshold impaired loans on accrual status | 1 | |
Larger commercial loans, subject to impairment review | 1 | |
Established threshold commercial loans not subject to specific allowance calculations | 1 | |
Unamortized debt issuance expense | $ 34 | $ 36 |
Noncash Investing and Financing
Noncash Investing and Financing Activities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest paid | |||
Interest | $ 475 | $ 429 | $ 406 |
Cash Payments: | |||
Income taxes | 400 | 550 | 535 |
Noncash Investing and Financing Activities: | |||
Portfolio loans to loans held for sale | 487 | 855 | 641 |
Loans held for sale to portfolio loans | 288 | 31 | 44 |
Portfolio loans to OREO | 105 | 145 | 204 |
Loans held for sale to OREO | 2 | $ 4 | |
Capital lease obligation | $ 4 | $ 15 |
Restrictions on Cash, Dividends
Restrictions on Cash, Dividends and Other Capital Actions- Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Banking Subsidiary Reserve Requirement | $ 1,900 | $ 1,800 | ||
Dividend Received From Nonbank Companies And Related Subsidiaries | $ 1,000 | 1,100 | ||
BHC stress test threshold | $ 50,000 | |||
Minimum CET1 Capital Ratio | 5.00% | |||
Shares acquired for treasury | $ 850 | 654 | $ 1,320 | |
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 297 | 1,034 | ||
January 22, 2015 ASR | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Shares acquired for treasury | 180 | |||
April 27, 2015 ASR | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Shares acquired for treasury | 155 | |||
July 30, 2015 ASR | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Shares acquired for treasury | 150 | |||
September 4, 2015 ASR | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Shares acquired for treasury | 150 | |||
December 9, 2015 ASR | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Shares acquired for treasury | $ 215 | |||
CCAR authorization | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Common stock dividends restrictions | The potential increase in the quarterly common stock dividend to $0.14 per share in 2016 | |||
Stock Repurchase Authorization Amount | $ 765 | |||
Preferred stock Series H | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 593 |
Available-for-Sale and Held-to-
Available-for-Sale and Held-to-Maturity Securities (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Investment Holdings [Line Items] | |||
Available-for-sale and other securities, fair value | [1] | $ 29,044 | $ 22,408 |
Available-for-sale and other securities, unrealized losses | (101) | (5) | |
Available-for-sale and other securities, unrealized gains | 467 | 736 | |
Available-for-sale and other securities, Amortized Cost | 28,678 | 21,677 | |
Held-to-maturity securities, fair value | 70 | 187 | |
Held-to-maturity securities, amortized cost | [2] | 70 | 187 |
U.S. Treasury and federal agencies | |||
Investment Holdings [Line Items] | |||
Available-for-sale and other securities, fair value | 1,187 | 1,632 | |
Available-for-sale and other securities, unrealized gains | 32 | 87 | |
Available-for-sale and other securities, Amortized Cost | 1,155 | 1,545 | |
Obligations of states and political subdivisions | |||
Investment Holdings [Line Items] | |||
Available-for-sale and other securities, fair value | 52 | 192 | |
Available-for-sale and other securities, unrealized gains | 2 | 7 | |
Available-for-sale and other securities, Amortized Cost | 50 | 185 | |
Held-to-maturity securities, fair value | 68 | 186 | |
Held-to-maturity securities, amortized cost | 68 | 186 | |
Agency mortgage-backed securities | Residential mortgage backed securities | |||
Investment Holdings [Line Items] | |||
Available-for-sale and other securities, fair value | [3] | 15,081 | 12,404 |
Available-for-sale and other securities, unrealized losses | [3] | (13) | (1) |
Available-for-sale and other securities, unrealized gains | [3] | 283 | 437 |
Available-for-sale and other securities, Amortized Cost | [3] | 14,811 | 11,968 |
Agency mortgage-backed securities | Commercial mortgage backed securities | |||
Investment Holdings [Line Items] | |||
Available-for-sale and other securities, fair value | 7,862 | 4,565 | |
Available-for-sale and other securities, unrealized losses | (33) | (1) | |
Available-for-sale and other securities, unrealized gains | 100 | 101 | |
Available-for-sale and other securities, Amortized Cost | 7,795 | 4,465 | |
Non-agency mortgage-backed securities | Commercial mortgage backed securities | |||
Investment Holdings [Line Items] | |||
Available-for-sale and other securities, fair value | 2,804 | 1,550 | |
Available-for-sale and other securities, unrealized losses | (32) | ||
Available-for-sale and other securities, unrealized gains | 35 | 61 | |
Available-for-sale and other securities, Amortized Cost | 2,801 | 1,489 | |
Asset-backed securities and other debt securities | |||
Investment Holdings [Line Items] | |||
Available-for-sale and other securities, fair value | 1,355 | 1,362 | |
Available-for-sale and other securities, unrealized losses | (21) | (2) | |
Available-for-sale and other securities, unrealized gains | 13 | 40 | |
Available-for-sale and other securities, Amortized Cost | 1,363 | 1,324 | |
Held-to-maturity securities, fair value | 2 | 1 | |
Held-to-maturity securities, amortized cost | 2 | 1 | |
Equity securities | |||
Investment Holdings [Line Items] | |||
Available-for-sale and other securities, fair value | [4] | 703 | 703 |
Available-for-sale and other securities, unrealized losses | [4] | (2) | (1) |
Available-for-sale and other securities, unrealized gains | [4] | 2 | 3 |
Available-for-sale and other securities, Amortized Cost | [4] | $ 703 | $ 701 |
[1] | Amortized cost of $28,678 and $21,677 at December 31, 2015 and 2014, respectively. | ||
[2] | Fair value of $70 and $187 at December 31, 2015 and 2014, respectively. | ||
[3] | Includes interest-only mortgage-backed securities of $50 and $175 as of December 31, 2015 and 2014, respectively, recorded at fair value with fair value changes recorded in securities gains, net, in the Consolidated Statements of Income. | ||
[4] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $355, and $1, respectively, at December 31, 2015 and $248, $352 and $0, respectively, at December 31, 2014, that are carried at cost, and certain mutual fund and equity security holdings. |
Available-for-Sale and Held-t71
Available-for-Sale and Held-to-Maturity Securities (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Investment Holdings [Line Items] | |||
FHLB, restricted stock holdings | $ 248 | $ 248 | |
Federal Reserve Bank, restricted stock holdings | 355 | 352 | |
Available-for-sale and other securities | [1] | 29,044 | 22,408 |
DTCC, restricted stock holdings | 1 | ||
Interest-Only Mortgage Backed Securities | |||
Investment Holdings [Line Items] | |||
Available-for-sale and other securities | $ 50 | $ 175 | |
[1] | Amortized cost of $28,678 and $21,677 at December 31, 2015 and 2014, respectively. |
Realized Gains and Losses Recog
Realized Gains and Losses Recognized in Income from Available-for-Sale Securities (Detail) - Available-for-sale Securities - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Investments, Unrealized Loss Position [Line Items] | ||||
Realized gains | $ 97 | $ 70 | $ 77 | |
Realized losses | (76) | (9) | (102) | |
OTTI | (5) | (24) | (74) | |
Net realized gains (losses) | [1] | $ 16 | $ 37 | $ (99) |
[1] | Excludes net losses on interest-only mortgage-backed securities of $4 and $17 for the years ended December 31, 2015 and 2014, respectively, and net gains on interest-only mortgage-backed securities of $129 for the year ended December 31, 2013. |
Realized Gains and Losses Rec73
Realized Gains and Losses Recognized in Income from Available-for-Sale Securities (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest-Only Mortgage Backed Securities | |||
Investment Holdings [Line Items] | |||
Net (losses) gains on interest-only mortgage-backed securities | $ (4) | $ (17) | $ 129 |
Gains and Losses Recognized in
Gains and Losses Recognized in Income from Trading Securities (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Investments Debt And Equity Securities [Table] | ||||
Realized gains | [1] | $ 6 | $ 8 | $ 5 |
Realized losses | [2] | (10) | (7) | (8) |
Net unrealized gains (losses) | [3] | (3) | (3) | $ 3 |
Total trading securities gain (losses) | $ (7) | $ (2) | ||
[1] | Includes realized gains of $6, $4 and $4 for the years ended December 31, 2015, 2014 and 2013, respectively, recorded in corporate banking revenue and investment advisory revenue in the Consolidated Statements of Income. | |||
[2] | Includes realized losses of $10, $7 and $8 for the years ended December 31, 2015, 2014 and 2013, respectively, recorded in corporate banking revenue and investment advisory revenue in the Consolidated Statements of Income. | |||
[3] | Includes an immaterial amount of net unrealized gains for the years ended December 31, 2015, 2014 and 2013 recorded in corporate banking revenue and investment advisory revenue in the Consolidated Statements of Income. |
Gains and Losses Recognized i75
Gains and Losses Recognized in Income from Trading Securities (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Realized gains | [1] | $ 6 | $ 8 | $ 5 |
Realized losses | [2] | 10 | 7 | 8 |
Net unrealized gains (losses) | [3] | (3) | (3) | 3 |
Corporate Banking Revenue and Investment Advisory Revenue | ||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Realized gains | 6 | 4 | 4 | |
Realized losses | $ (10) | $ (7) | $ (8) | |
[1] | Includes realized gains of $6, $4 and $4 for the years ended December 31, 2015, 2014 and 2013, respectively, recorded in corporate banking revenue and investment advisory revenue in the Consolidated Statements of Income. | |||
[2] | Includes realized losses of $10, $7 and $8 for the years ended December 31, 2015, 2014 and 2013, respectively, recorded in corporate banking revenue and investment advisory revenue in the Consolidated Statements of Income. | |||
[3] | Includes an immaterial amount of net unrealized gains for the years ended December 31, 2015, 2014 and 2013 recorded in corporate banking revenue and investment advisory revenue in the Consolidated Statements of Income. |
Securities - Additional Informa
Securities - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment Holdings [Line Items] | |||
Trading securities | $ 386 | $ 360 | |
Securities with a fair value, pledged as collateral | 11,000 | 14,200 | |
Available-for-sale Securities | |||
Investment Holdings [Line Items] | |||
OTTI | $ (5) | $ (24) | $ (74) |
Amortized Cost and Fair Value o
Amortized Cost and Fair Value of Available-for-Sale and Held-to-Maturity Securities (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Available-for-sale and other debt securities: | |||
Less than 1 year | [1] | $ 695 | |
1-5 years | [1] | 7,277 | |
5-10 years | [1] | 18,191 | |
Over 10 years | [1] | 1,812 | |
Equity securities | 703 | ||
Available-for-sale and other securities, Amortized Cost | 28,678 | $ 21,677 | |
Available-for-sale and other debt securities: | |||
Less than 1 year | [1] | 707 | |
1-5 years | [1] | 7,441 | |
5-10 years | [1] | 18,372 | |
Over 10 years | [1] | 1,821 | |
Equity securities | 703 | ||
Available-for-sale and other securities, fair value | [2] | 29,044 | 22,408 |
Held-to-maturity debt securities: | |||
Less than 1 year | [1] | 43 | |
1-5 years | [1] | 12 | |
5-10 years | [1] | 13 | |
Over 10 years | [1] | 2 | |
Held-to-maturity securities, amortized cost | [3] | 70 | 187 |
Held-to-maturity debt securities: | |||
Less than 1 year | [1] | 43 | |
1-5 years | [1] | 12 | |
5-10 years | [1] | 13 | |
Over 10 years | [1] | 2 | |
Held-to-maturity securities, fair value | $ 70 | $ 187 | |
[1] | Actual maturities may differ from contractual maturities when there exists a right to call or prepay obligations with or without call or prepayment penalties. | ||
[2] | Amortized cost of $28,678 and $21,677 at December 31, 2015 and 2014, respectively. | ||
[3] | Fair value of $70 and $187 at December 31, 2015 and 2014, respectively. |
Fair Value and Gross Unrealized
Fair Value and Gross Unrealized Losses on Available-for-Sale Securities (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Unrealized Loss Position [Line Items] | |||
Less than 12 months Fair Value | $ 8,248 | $ 714 | |
Less than 12 months Unrealized Losses | (90) | (3) | |
12 months or more Fair Value | 263 | 104 | |
12 months or more Unrealized Losses | (11) | (2) | |
Total Fair Value | 8,511 | 818 | |
Total Unrealized Losses | (101) | (5) | |
Agency mortgage-backed securities | Residential mortgage backed securities | |||
Investments, Unrealized Loss Position [Line Items] | |||
Less than 12 months Fair Value | 2,903 | 73 | |
Less than 12 months Unrealized Losses | (13) | (1) | |
Total Fair Value | 2,903 | 73 | |
Total Unrealized Losses | [1] | (13) | (1) |
Agency mortgage-backed securities | Commercial mortgage backed securities | |||
Investments, Unrealized Loss Position [Line Items] | |||
Less than 12 months Fair Value | 3,111 | 355 | |
Less than 12 months Unrealized Losses | (33) | (1) | |
Total Fair Value | 3,111 | 355 | |
Total Unrealized Losses | (33) | (1) | |
Non-agency mortgage-backed securities | Commercial mortgage backed securities | |||
Investments, Unrealized Loss Position [Line Items] | |||
Less than 12 months Fair Value | 1,610 | ||
Less than 12 months Unrealized Losses | (32) | ||
Total Fair Value | 1,610 | ||
Total Unrealized Losses | (32) | ||
Asset-backed securities and other debt securities | |||
Investments, Unrealized Loss Position [Line Items] | |||
Less than 12 months Fair Value | 623 | 286 | |
Less than 12 months Unrealized Losses | (11) | (1) | |
12 months or more Fair Value | 226 | 74 | |
12 months or more Unrealized Losses | (10) | (1) | |
Total Fair Value | 849 | 360 | |
Total Unrealized Losses | (21) | (2) | |
Equity securities | |||
Investments, Unrealized Loss Position [Line Items] | |||
Less than 12 months Fair Value | 1 | ||
Less than 12 months Unrealized Losses | (1) | ||
12 months or more Fair Value | 37 | 30 | |
12 months or more Unrealized Losses | (1) | (1) | |
Total Fair Value | 38 | 30 | |
Total Unrealized Losses | [2] | $ (2) | $ (1) |
[1] | Includes interest-only mortgage-backed securities of $50 and $175 as of December 31, 2015 and 2014, respectively, recorded at fair value with fair value changes recorded in securities gains, net, in the Consolidated Statements of Income. | ||
[2] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $355, and $1, respectively, at December 31, 2015 and $248, $352 and $0, respectively, at December 31, 2014, that are carried at cost, and certain mutual fund and equity security holdings. |
Loans and Leases Classified by
Loans and Leases Classified by Primary Purpose (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Loans and leases held for sale: | |||
Loans and leases held for sale | [1] | $ 903 | $ 1,261 |
Portfolio loans and leases: | |||
Commercial and industrial loans | 42,131 | 40,765 | |
Commercial mortgage loans | 6,957 | 7,399 | |
Commercial construction loans | 3,214 | 2,069 | |
Commercial leases | 3,854 | 3,720 | |
Total commercial loans and leases | 56,156 | 53,953 | |
Residential mortgage loans | 13,716 | 12,389 | |
Home equity | 8,301 | 8,886 | |
Automobile loans | 11,493 | 12,037 | |
Credit card | 2,259 | 2,401 | |
Other consumer loans and leases | 657 | 418 | |
Total consumer loans and leases | 36,426 | 36,131 | |
Portfolio loans and leases | [2],[3] | 92,582 | 90,084 |
Commercial Portfolio Segment | Commercial and Industrial Loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 20 | 36 | |
Commercial Portfolio Segment | Commercial mortgage loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 34 | 11 | |
Commercial Portfolio Segment | Commercial construction loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 2 | ||
Commercial Portfolio Segment | Commercial leases | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 1 | ||
Residential Portfolio Segment | Residential mortgage loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 708 | 1,193 | |
Consumer Portfolio Segment | Home equity | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 35 | ||
Consumer Portfolio Segment | Automobile Loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 4 | ||
Consumer Portfolio Segment | Credit Card | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 101 | ||
Consumer Portfolio Segment | Other consumer loans and leases | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | $ 1 | $ 18 | |
[1] | Includes $519 and $561 of residential mortgage loans held for sale measured at fair value at December 31, 2015 and 2014, respectively. | ||
[2] | Includes $152 and $179 of cash and due from banks, $2,537 and $3,378 of portfolio loans and leases, $(28) and $(22) of ALLL, $20 and $25 of other assets, $3 and $5 of other liabilities and $2,493 and $3,434 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2015 and 2014, respectively. For further information, refer to Note 11. | ||
[3] | Includes $167 and $108 of residential mortgage loans measured at fair value at December 31, 2015 and 2014, respectively. |
Loans and Leases - Additional I
Loans and Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Accounts Notes Loans And Financing Receivable [Table][Abstract] | |||
Unamortized premiums and discounts, deferred loan fees and costs, and fair value adjustments | $ 220 | $ 169 | |
Unearned Income | 624 | 665 | |
Loans pledged at the FHLB | 11,900 | 11,100 | |
Loans pledged at the FRB | 33,700 | 33,900 | |
Direct Financing Leases | 3,100 | 2,800 | |
Leveraged leases | 801 | 874 | |
Leveraged leases, pre-tax income (loss) | 27 | 25 | $ 25 |
Leveraged leases, tax expense (benefit) | 1 | 9 | $ 9 |
Minimum future lease payments receivable - 2016 | 715 | ||
Minimum future lease payments receivable - 2017 | 632 | ||
Minimum future lease payments receivable - 2018 | 532 | ||
Minimum future lease payments receivable - 2019 | 449 | ||
Minimum future lease payments receivable - 2020 | 333 | ||
Residual value write-downs related to commercial leases | $ 8 | $ 4 |
Total Loans And Leases Managed
Total Loans And Leases Managed By The Bancorp (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||
Balance | $ 92,582 | $ 90,084 |
Net Credit Losses | 446 | 575 |
Commercial and Industrial Loans | Commercial Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||
Balance | 42,151 | 40,801 |
Balance of Loans 90 days or More Past Due | 7 | |
Net Credit Losses | 229 | 222 |
Commercial Mortgage Loans | Commercial Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||
Balance | 6,991 | 7,410 |
Net Credit Losses | 27 | 26 |
Commercial Construction Loans | Commercial Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||
Balance | 3,214 | 2,071 |
Net Credit Losses | 3 | 12 |
Commercial Leases | Commercial Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||
Balance | 3,854 | 3,721 |
Net Credit Losses | 2 | 1 |
Residential Mortgage | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||
Balance | 14,424 | 13,582 |
Balance of Loans 90 days or More Past Due | 40 | 56 |
Net Credit Losses | 17 | 126 |
Home Equity | Consumer Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||
Balance | 8,336 | 8,886 |
Net Credit Losses | 39 | 59 |
Automobile Loans | Consumer Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||
Balance | 11,497 | 12,037 |
Balance of Loans 90 days or More Past Due | 10 | 8 |
Net Credit Losses | 28 | 27 |
Credit Card | Consumer Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||
Balance | 2,360 | 2,401 |
Balance of Loans 90 days or More Past Due | 18 | 23 |
Net Credit Losses | 82 | 82 |
Other Consumer Loans and Leases | Consumer Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||
Balance | 658 | 436 |
Net Credit Losses | 19 | 20 |
Loans Held-for-Sale | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||
Balance | 903 | 1,261 |
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 [Line Items] | ||
Balance | 93,485 | 91,345 |
Balance of Loans 90 days or More Past Due | $ 75 | $ 87 |
Investment in Lease Financing (
Investment in Lease Financing (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable | |||
Rental receivable, net of principal and interest on nonrecourse debt | $ 3,550 | $ 3,589 | |
Estimated residual value of leased assets | 906 | 779 | |
Initial direct cost, net of amortization | 22 | 17 | |
Gross investment in lease financing | 4,478 | 4,385 | |
Unearned income | (624) | (665) | |
Net investment in lease financing | [1] | $ 3,854 | $ 3,720 |
[1] | The accumulated allowance for uncollectible minimum lease payments was $47 and $45 at December 31, 2015 and 2014, respectively. |
Investment in Lease Financing83
Investment in Lease Financing (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accumulated allowance for uncollectible minimum lease payments | $ 1,272 | [1] | $ 1,322 | [1] | $ 1,582 | $ 1,854 |
Leases | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accumulated allowance for uncollectible minimum lease payments | $ 47 | $ 45 | ||||
[1] | Includes $152 and $179 of cash and due from banks, $2,537 and $3,378 of portfolio loans and leases, $(28) and $(22) of ALLL, $20 and $25 of other assets, $3 and $5 of other liabilities and $2,493 and $3,434 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2015 and 2014, respectively. For further information, refer to Note 11. |
Summary of Transactions in the
Summary of Transactions in the ALLL by Portfolio Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | $ 1,322 | [1] | $ 1,582 | $ 1,854 | |
Losses charged off | (542) | (679) | (637) | ||
Recoveries of losses previously charged off | 96 | 104 | 136 | ||
Provision for loan and lease losses | 396 | 315 | 229 | ||
Ending Balance | 1,272 | [1] | 1,322 | [1] | 1,582 |
Commercial Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 875 | [2] | 1,058 | 1,236 | |
Losses charged off | (298) | (299) | (284) | ||
Recoveries of losses previously charged off | 37 | 38 | 64 | ||
Provision for loan and lease losses | 226 | 78 | 42 | ||
Ending Balance | 840 | 875 | [2] | 1,058 | |
Residential Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 104 | [2] | 189 | 229 | |
Losses charged off | (28) | (139) | (70) | ||
Recoveries of losses previously charged off | 11 | 13 | 10 | ||
Provision for loan and lease losses | 13 | 41 | 20 | ||
Ending Balance | 100 | 104 | [2] | 189 | |
Consumer Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 237 | [2] | 225 | 278 | |
Losses charged off | (216) | (241) | (283) | ||
Recoveries of losses previously charged off | 48 | 53 | 62 | ||
Provision for loan and lease losses | 148 | 200 | 168 | ||
Ending Balance | 217 | 237 | [2] | 225 | |
Unallocated | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 106 | [2] | 110 | 111 | |
Provision for loan and lease losses | 9 | (4) | (1) | ||
Ending Balance | $ 115 | $ 106 | [2] | $ 110 | |
[1] | Includes $152 and $179 of cash and due from banks, $2,537 and $3,378 of portfolio loans and leases, $(28) and $(22) of ALLL, $20 and $25 of other assets, $3 and $5 of other liabilities and $2,493 and $3,434 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2015 and 2014, respectively. For further information, refer to Note 11. | ||||
[2] | Includes $6 related to leveraged leases at December 31, 2014. |
Summary of the ALLL and Related
Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | $ 235 | [1] | $ 305 | [2] | ||
Collectively evaluated for impairment | 922 | [1] | 911 | [2] | ||
Unallocated | 115 | [1] | 106 | [2] | ||
Total allowance for loan and lease losses | 1,272 | [3] | 1,322 | [3] | $ 1,582 | $ 1,854 |
Individually evaluated for impairment | 1,869 | [4] | 2,261 | [5] | ||
Collectively evaluated for impairment | 90,544 | [4] | 87,713 | [5] | ||
Loans acquired with deteriorated credit quality | 2 | [4] | 2 | [5] | ||
Total loans and leases | 92,415 | [6] | 89,976 | [7] | ||
Commercial Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 119 | [1],[8] | 179 | [2],[9] | ||
Collectively evaluated for impairment | 721 | [1] | 696 | [2] | ||
Total allowance for loan and lease losses | 840 | 875 | [2] | 1,058 | 1,236 | |
Individually evaluated for impairment | 815 | [4],[8] | 1,260 | [5],[9] | ||
Collectively evaluated for impairment | 55,341 | [4] | 52,693 | [5] | ||
Total loans and leases | 56,156 | [4] | 53,953 | [5] | ||
Residential Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 67 | [1] | 65 | [2] | ||
Collectively evaluated for impairment | 33 | [1] | 39 | [2] | ||
Total allowance for loan and lease losses | 100 | 104 | [2] | 189 | 229 | |
Individually evaluated for impairment | 630 | [4] | 518 | [5] | ||
Collectively evaluated for impairment | 12,917 | [4] | 11,761 | [5] | ||
Loans acquired with deteriorated credit quality | 2 | [4] | 2 | [5] | ||
Total loans and leases | 13,549 | [4] | 12,281 | [5] | ||
Consumer Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 49 | [1] | 61 | [2] | ||
Collectively evaluated for impairment | 168 | [1] | 176 | [2] | ||
Total allowance for loan and lease losses | 217 | 237 | [2] | 225 | 278 | |
Individually evaluated for impairment | 424 | [4] | 483 | [5] | ||
Collectively evaluated for impairment | 22,286 | [4] | 23,259 | [5] | ||
Total loans and leases | 22,710 | [4] | 23,742 | [5] | ||
Unallocated | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Unallocated | 115 | [1] | 106 | [2] | ||
Total allowance for loan and lease losses | $ 115 | $ 106 | [2] | $ 110 | $ 111 | |
[1] | Includes $5 related to leveraged leases at December 31, 2015. | |||||
[2] | Includes $6 related to leveraged leases at December 31, 2014. | |||||
[3] | Includes $152 and $179 of cash and due from banks, $2,537 and $3,378 of portfolio loans and leases, $(28) and $(22) of ALLL, $20 and $25 of other assets, $3 and $5 of other liabilities and $2,493 and $3,434 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2015 and 2014, respectively. For further information, refer to Note 11. | |||||
[4] | Excludes $167 of residential mortgage loans measured at fair value and includes $801 of leveraged leases, net of unearned income, at December 31, 2015. | |||||
[5] | Excludes $108 of residential mortgage loans measured at fair value and includes $874 of leveraged leases, net of unearned income, at December 31, 2014. | |||||
[6] | Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015. | |||||
[7] | Excludes $108 of residential mortgage loans measured at fair value at December 31, 2014. | |||||
[8] | Includes five restructured loans at December 31, 2015 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 $27 and an ALLL of $15. | |||||
[9] | Includes five restructured loans at December 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 ALLL of $10. |
Summary of the ALLL and Relat86
Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment (Parenthetical) (Detail) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2015USD ($)number | Dec. 31, 2014USD ($)number | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Allowance for loan and lease losses | $ 1,272 | [1] | $ 1,322 | [1] | $ 1,582 | $ 1,854 | |
Portfolio loans and leases at fair value | 167 | 108 | |||||
Notes Receivable Net | $ 92,415 | [2] | $ 89,976 | [3] | |||
Number of Contracts | [4],[5] | 14,472 | 11,102 | 11,291 | |||
Recorded Investment | $ 1,842 | [6] | $ 2,233 | [7] | |||
Consolidated Variable Interest Entity | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Allowance for loan and lease losses | 28 | 22 | |||||
Commercial | Consolidated Variable Interest Entity | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Allowance for loan and lease losses | $ 15 | $ 10 | |||||
Number of Contracts | number | 5 | 5 | |||||
Recorded Investment | $ 27 | $ 28 | |||||
Leveraged Leases | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Allowance for loan and lease losses | 5 | 6 | |||||
Notes Receivable Net | 801 | 874 | |||||
Residential Portfolio Segment | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Portfolio loans and leases at fair value | $ 167 | $ 108 | |||||
[1] | Includes $152 and $179 of cash and due from banks, $2,537 and $3,378 of portfolio loans and leases, $(28) and $(22) of ALLL, $20 and $25 of other assets, $3 and $5 of other liabilities and $2,493 and $3,434 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2015 and 2014, respectively. For further information, refer to Note 11. | ||||||
[2] | Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015. | ||||||
[3] | Excludes $108 of residential mortgage loans measured at fair value at December 31, 2014. | ||||||
[4] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. | ||||||
[5] | Represents number of loans post-modification and excludes loans previously modified in a TDR. | ||||||
[6] | Includes $491, $607 and $372, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $203, $23 and $52, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2015. | ||||||
[7] | Includes $869, $485 and $420, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $214, $33 and $63, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2014. |
Summary of the Credit Risk Prof
Summary of the Credit Risk Profile of the Bancorp's Commercial Portfolio Segment by Class (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | ||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | $ 92,415 | [1] | $ 89,976 | [2] |
Commercial Portfolio Segment | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 56,156 | 53,953 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 42,131 | 40,765 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 3,659 | 3,834 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 3,298 | 3,565 | ||
Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 3,214 | 2,069 | ||
Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 3,854 | 3,720 | ||
Pass | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 52,130 | 50,285 | ||
Pass | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 38,756 | 38,013 | ||
Pass | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 3,344 | 3,430 | ||
Pass | Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 3,105 | 3,198 | ||
Pass | Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 3,201 | 1,966 | ||
Pass | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 3,724 | 3,678 | ||
Special Mention | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 1,917 | 1,639 | ||
Special Mention | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 1,633 | 1,352 | ||
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 124 | 137 | ||
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 63 | 76 | ||
Special Mention | Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 4 | 65 | ||
Special Mention | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 93 | 9 | ||
Risk Level, Substandard | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 2,109 | 2,022 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 1,742 | 1,400 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 191 | 267 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 130 | 284 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 9 | 38 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | $ 37 | 33 | ||
Risk Level, Doubtful | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 7 | |||
Risk Level, Doubtful | Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | $ 7 | |||
[1] | Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015. | |||
[2] | Excludes $108 of residential mortgage loans measured at fair value at December 31, 2014. |
Summary of the Credit Risk Pr88
Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |||
Total loans and leases | $ 92,415 | [1] | $ 89,976 | [2] | |
Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 8,301 | 8,886 | |||
Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 11,493 | 12,037 | |||
Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | 2,259 | 2,401 | |||
Other Consumer Loans and Leases | Consumer Portfolio Segment | |||||
Total loans and leases | 657 | 418 | |||
Performing Financing Receivable | |||||
Total loans and leases | [3] | 36,094 | 35,811 | ||
Performing Financing Receivable | Residential Mortgage | Residential Portfolio Segment | |||||
Total loans and leases | [3] | 13,498 | 12,204 | ||
Performing Financing Receivable | Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 8,222 | 8,793 | |||
Performing Financing Receivable | Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 11,491 | 12,036 | |||
Performing Financing Receivable | Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | 2,226 | 2,360 | |||
Performing Financing Receivable | Other Consumer Loans and Leases | Consumer Portfolio Segment | |||||
Total loans and leases | 657 | 418 | |||
Nonperforming Financing Receivable | |||||
Total loans and leases | [3] | 165 | 212 | ||
Nonperforming Financing Receivable | Residential Mortgage | Residential Portfolio Segment | |||||
Total loans and leases | [3] | 51 | 77 | ||
Nonperforming Financing Receivable | Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 79 | 93 | |||
Nonperforming Financing Receivable | Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 2 | 1 | |||
Nonperforming Financing Receivable | Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | $ 33 | $ 41 | |||
[1] | Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015. | ||||
[2] | Excludes $108 of residential mortgage loans measured at fair value at December 31, 2014. | ||||
[3] | Excludes $167 and $108 of loans measured at fair value at December 31, 2015 and 2014, respectively |
Summary of the Credit Risk Pr89
Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Portfolio loans and leases at fair value | $ 167 | $ 108 |
Residential Mortgage | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Portfolio loans and leases at fair value | $ 167 | $ 108 |
Summarizes the Bancorp's Record
Summarizes the Bancorp's Recorded Investment in Portfolio Loans and Leases by Age and Class (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | $ 91,780 | [1],[2] | $ 89,272 | [3],[4] | |
Total Past Due | 635 | [1] | 704 | [3] | |
Total loans and leases | 92,415 | [1] | 89,976 | [3] | |
90-Days past Due and Still Accruing | 75 | [1] | 87 | [3] | |
30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 306 | [1],[2] | 297 | [3],[4] | |
90 Days and Greater Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 329 | [1],[2] | 407 | [3],[4] | |
Commercial Portfolio Segment | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans and leases | 56,156 | 53,953 | |||
Commercial Portfolio Segment | Commercial and Industrial Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 41,996 | [2] | 40,651 | [4] | |
Total Past Due | 135 | 114 | |||
Total loans and leases | 42,131 | 40,765 | |||
90-Days past Due and Still Accruing | 7 | ||||
Commercial Portfolio Segment | Commercial and Industrial Loans | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 55 | [2] | 29 | [4] | |
Commercial Portfolio Segment | Commercial and Industrial Loans | 90 Days and Greater Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 80 | [2] | 85 | [4] | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 3,610 | [2] | 3,774 | [4] | |
Total Past Due | 49 | 60 | |||
Total loans and leases | 3,659 | 3,834 | |||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 15 | [2] | 7 | [4] | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | 90 Days and Greater Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 34 | [2] | 53 | [4] | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 3,262 | [2] | 3,537 | [4] | |
Total Past Due | 36 | 28 | |||
Total loans and leases | 3,298 | 3,565 | |||
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 9 | [2] | 11 | [4] | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | 90 Days and Greater Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 27 | [2] | 17 | [4] | |
Commercial Portfolio Segment | Commercial Construction Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 3,214 | [2] | 2,069 | [4] | |
Total loans and leases | 3,214 | 2,069 | |||
Commercial Portfolio Segment | Commercial Leases | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 3,850 | [2] | 3,717 | [4] | |
Total Past Due | 4 | 3 | |||
Total loans and leases | 3,854 | 3,720 | |||
Commercial Portfolio Segment | Commercial Leases | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 3 | [2] | 3 | [4] | |
Commercial Portfolio Segment | Commercial Leases | 90 Days and Greater Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | [2] | 1 | |||
Residential Mortgage | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 13,420 | [1],[2],[5] | 12,109 | [3],[4],[6] | |
Total Past Due | 129 | [1],[5] | 172 | [3],[6] | |
Total loans and leases | 13,549 | [1],[5] | 12,281 | [3],[6] | |
90-Days past Due and Still Accruing | 40 | [1],[5] | 56 | [3],[6] | |
Residential Mortgage | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 37 | [1],[2],[5] | 38 | [3],[4],[6] | |
Residential Mortgage | 90 Days and Greater Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 92 | [1],[2],[5] | 134 | [3],[4],[6] | |
Consumer Portfolio Segment | Home Equity | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 8,158 | [2] | 8,710 | [4] | |
Total Past Due | 143 | 176 | |||
Total loans and leases | 8,301 | 8,886 | |||
Consumer Portfolio Segment | Home Equity | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 82 | [2] | 100 | [4] | |
Consumer Portfolio Segment | Home Equity | 90 Days and Greater Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 61 | [2] | 76 | [4] | |
Consumer Portfolio Segment | Automobile Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 11,407 | [2] | 11,953 | [4] | |
Total Past Due | 86 | 84 | |||
Total loans and leases | 11,493 | 12,037 | |||
90-Days past Due and Still Accruing | 10 | 8 | |||
Consumer Portfolio Segment | Automobile Loans | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 75 | [2] | 74 | [4] | |
Consumer Portfolio Segment | Automobile Loans | 90 Days and Greater Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 11 | [2] | 10 | [4] | |
Consumer Portfolio Segment | Credit Card | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 2,207 | [2] | 2,335 | [4] | |
Total Past Due | 52 | 66 | |||
Total loans and leases | 2,259 | 2,401 | |||
90-Days past Due and Still Accruing | 18 | 23 | |||
Consumer Portfolio Segment | Credit Card | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 29 | [2] | 34 | [4] | |
Consumer Portfolio Segment | Credit Card | 90 Days and Greater Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 23 | [2] | 32 | [4] | |
Consumer Portfolio Segment | Other Consumer Loans and Leases | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 656 | [2] | 417 | [4] | |
Total Past Due | 1 | 1 | |||
Total loans and leases | 657 | 418 | |||
Consumer Portfolio Segment | Other Consumer Loans and Leases | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | $ 1 | [2] | $ 1 | [4] | |
[1] | Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015. | ||||
[2] | Includes accrual and nonaccrual loans and leases. | ||||
[3] | Excludes $108 of residential mortgage loans measured at fair value at December 31, 2014. | ||||
[4] | Includes accrual and nonaccrual loans and leases. | ||||
[5] | Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2015, $102 of these loans were 30-89 days past due and $335 were 90 days or more past due. The Bancorp recognized $8 of losses during the year ended December 31, 2015 due to claim denials and curtailments associated with these insured or guaranteed loans. | ||||
[6] | Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2014, $99 of these loans were 30-89 days past due and $373 were 90 days or more past due. The Bancorp recognized $14 of losses during the year ended December 31, 2014 due to claim denials and curtailments associated with these insured or guaranteed loans. |
Summarizes the Bancorp's Reco91
Summarizes the Bancorp's Recorded Investment in Portfolio Loans and Leases by Age and Class (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Portfolio loans and leases at fair value | $ 167 | $ 108 | ||
Total Past Due | 635 | [1] | 704 | [2] |
30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 306 | [1],[3] | 297 | [2],[4] |
90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 329 | [1],[3] | 407 | [2],[4] |
Residential Mortgage | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Portfolio loans and leases at fair value | 167 | 108 | ||
Residential Mortgage Loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Portfolio loans and leases at fair value | 167 | 108 | ||
Residential Mortgage Loans | Federal Housing Administration Loan | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Losses Due To Claim Denials And Curtailments | 8 | 14 | ||
Residential Mortgage Loans | Federal Housing Administration Loan | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 102 | 99 | ||
Residential Mortgage Loans | Federal Housing Administration Loan | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | $ 335 | $ 373 | ||
[1] | Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015. | |||
[2] | Excludes $108 of residential mortgage loans measured at fair value at December 31, 2014. | |||
[3] | Includes accrual and nonaccrual loans and leases. | |||
[4] | Includes accrual and nonaccrual loans and leases. |
Summarizes the Bancorp's Reco92
Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | ||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | $ 1,276 | $ 1,430 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 753 | 1,027 | ||
Unpaid Principal Balance | 2,029 | 2,457 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 1,184 | 1,288 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 658 | 945 | ||
Recorded Investment | 1,842 | [1] | 2,233 | [2] |
Allowance | 220 | 295 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 412 | 598 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 228 | 311 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 346 | 486 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 182 | 276 | ||
Allowance | 84 | 149 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 28 | [3] | 54 | [4] |
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 54 | 72 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 21 | [3] | 46 | [4] |
Impaired Financing Receivable With No Related Allowance Recorded Investment | 51 | 68 | ||
Allowance | 5 | [3] | 14 | [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 | 75 | 69 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 126 | 251 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 64 | 57 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 111 | 231 | ||
Allowance | 12 | 4 | ||
Commercial Portfolio Segment | Commercial Construction Loans | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 4 | 18 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 9 | 48 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 4 | 15 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 5 | 48 | ||
Allowance | 2 | |||
Commercial Portfolio Segment | Commercial Leases | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 3 | 3 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 1 | 2 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 3 | 3 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 1 | 2 | ||
Allowance | 1 | 2 | ||
Residential Portfolio Segment | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 450 | 388 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 210 | 155 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 444 | 383 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 186 | 135 | ||
Allowance | 67 | 65 | ||
Consumer Portfolio Segment | Home Equity | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 226 | 203 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 122 | 183 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 225 | 201 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 119 | 180 | ||
Allowance | 32 | 42 | ||
Consumer Portfolio Segment | Automobile Loans | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 17 | 19 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 3 | 5 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 16 | 19 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 3 | 5 | ||
Allowance | 2 | 3 | ||
Consumer Portfolio Segment | Credit Card | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 61 | 78 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 61 | 78 | ||
Allowance | $ 15 | $ 16 | ||
[1] | Includes $491, $607 and $372, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $203, $23 and $52, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2015. | |||
[2] | Includes $869, $485 and $420, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $214, $33 and $63, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2014. | |||
[3] | Excludes five restructured loans at December 31, 2015 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 $27, a recorded investment of $27 and an ALLL of $15. | |||
[4] | Excludes five restructured loans at December 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 ALLL of $10. |
Summarizes the Bancorp's Reco93
Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class (Parenthetical) (Detail) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013 | |||||
Financing Receivable, Impaired [Line Items] | |||||||
Unpaid Principal Balance | $ 2,029 | $ 2,457 | |||||
Recorded Investment | 1,842 | [1] | 2,233 | [2] | |||
Allowance | $ 220 | $ 295 | |||||
Number of Contracts | [3],[4] | 14,472 | 11,102 | 11,291 | |||
Commercial Portfolio Segment | Commercial and Industrial Loans | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Allowance | $ 84 | $ 149 | |||||
Number of Contracts | [3],[4] | 77 | 128 | 146 | |||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Allowance | $ 5 | [5] | $ 14 | [6] | |||
Number of Contracts | [3],[4] | 18 | 32 | 65 | [7] | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | Variable Interest Entity, Primary Beneficiary | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Unpaid Principal Balance | $ 27 | $ 28 | |||||
Recorded Investment | 27 | 28 | |||||
Allowance | 15 | 10 | |||||
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Allowance | $ 12 | $ 4 | |||||
Number of Contracts | [3],[4] | 12 | 28 | 59 | |||
Commercial Portfolio Segment | Troubled Debt Restructuring On Accrual Status [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Unpaid Principal Balance | $ 491 | $ 869 | |||||
Commercial Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Unpaid Principal Balance | 203 | 214 | |||||
Residential Portfolio Segment | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Allowance | $ 67 | $ 65 | |||||
Number of Contracts | [3],[4] | 1,089 | 1,093 | 1,620 | |||
Residential Portfolio Segment | Troubled Debt Restructuring On Accrual Status [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Unpaid Principal Balance | $ 607 | $ 485 | |||||
Residential Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Unpaid Principal Balance | 23 | 33 | |||||
Consumer Portfolio Segment | Troubled Debt Restructuring On Accrual Status [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Unpaid Principal Balance | 372 | 420 | |||||
Consumer Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Unpaid Principal Balance | $ 52 | $ 63 | |||||
[1] | Includes $491, $607 and $372, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $203, $23 and $52, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2015. | ||||||
[2] | Includes $869, $485 and $420, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $214, $33 and $63, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2014. | ||||||
[3] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. | ||||||
[4] | Represents number of loans post-modification and excludes loans previously modified in a TDR. | ||||||
[5] | Excludes five restructured loans at December 31, 2015 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 $27, a recorded investment of $27 and an ALLL of $15. | ||||||
[6] | Excludes five restructured loans at December 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 ALLL of $10. | ||||||
[7] | Excludes five loans modified in a TDR during the year ended 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. The TDR had a recorded investment of $29 at modification, the ALLL increased $7 upon modification and a charge-off of $2 was recognized upon modification. |
Summary of Average Impaired Loa
Summary of Average Impaired Loans and Leases and Interest Income by Class (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | $ 2,062 | $ 3,061 | $ 2,942 | |
Interest Income Recognized | 74 | 119 | 113 | |
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 663 | 786 | 517 | |
Interest Income Recognized | 21 | 25 | 16 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | [1] | 92 | 149 | 146 |
Interest Income Recognized | [1] | 2 | 4 | 4 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 224 | 268 | 321 | |
Interest Income Recognized | 7 | 8 | 8 | |
Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 41 | 92 | 108 | |
Interest Income Recognized | 1 | 2 | 4 | |
Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 5 | 13 | 11 | |
Residential Portfolio Segment | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 586 | 1,273 | 1,311 | |
Interest Income Recognized | 23 | 54 | 53 | |
Consumer Portfolio Segment | Home Equity | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 361 | 394 | 429 | |
Interest Income Recognized | 13 | 20 | 23 | |
Consumer Portfolio Segment | Automobile Loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 22 | 24 | 29 | |
Interest Income Recognized | 1 | 1 | 1 | |
Consumer Portfolio Segment | Credit Card | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 68 | 62 | 68 | |
Interest Income Recognized | $ 6 | $ 5 | 4 | |
Consumer Portfolio Segment | Other Consumer Loans and Leases | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | $ 2 | |||
[1] | Excludes five restructured loans 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 average recorded investment of $27 for the year ended December 31, 2015 and $28 for both of the years ended December 31, 2014 and 2013. An immaterial amount of interest income was recognized during the years ended December 31, 2015, 2014 and 2013. |
Summary of the Average Impaired
Summary of the Average Impaired Loans and Leases and Interest Income by Class (Parenthetical) (Detail) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | $ 2,062 | $ 3,061 | $ 2,942 | ||
Number of Contracts | [1],[2] | 14,472 | 11,102 | 11,291 | |
Commercial Portfolio Segment | Commercial Mortgage Loans Owner Occupied [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | [3] | $ 92 | $ 149 | $ 146 | |
Number of Contracts | [1],[2] | 18 | 32 | 65 | [4] |
Commercial Portfolio Segment | Commercial Mortgage Loans Owner Occupied [Member] | Variable Interest Entity, Primary Beneficiary | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | $ 27 | $ 28 | $ 28 | ||
[1] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. | ||||
[2] | Represents number of loans post-modification and excludes loans previously modified in a TDR. | ||||
[3] | Excludes five restructured loans 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 average recorded investment of $27 for the year ended December 31, 2015 and $28 for both of the years ended December 31, 2014 and 2013. An immaterial amount of interest income was recognized during the years ended December 31, 2015, 2014 and 2013. | ||||
[4] | Excludes five loans modified in a TDR during the year ended 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. The TDR had a recorded investment of $29 at modification, the ALLL increased $7 upon modification and a charge-off of $2 was recognized upon modification. |
Summary of the Bancorp's Nonper
Summary of the Bancorp's Nonperforming Loans and Leases by Class (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Modifications [Line Items] | |||
Nonperforming Portfolio Loans and Leases | [1],[2] | $ 506 | $ 579 |
Other Real Estate, Foreclosed Assets, and Repossessed Assets | 155 | 236 | |
Nonperforming Portfolio Assets | [1],[2],[3] | 647 | 744 |
Excludes OREO Related to Government Insured Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Other Real Estate, Foreclosed Assets, and Repossessed Assets | [3] | 141 | 165 |
Commercial Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
Nonperforming Portfolio Loans and Leases | 341 | 367 | |
Commercial Portfolio Segment | Commercial and Industrial Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Nonperforming Portfolio Loans and Leases | 259 | 228 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | |||
Financing Receivable, Modifications [Line Items] | |||
Nonperforming Portfolio Loans and Leases | [4] | 46 | 78 |
Commercial Portfolio Segment | Commercial Mortgage Loans Non Owner Occupied [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Nonperforming Portfolio Loans and Leases | 35 | 57 | |
Commercial Portfolio Segment | Commercial Leases | |||
Financing Receivable, Modifications [Line Items] | |||
Nonperforming Portfolio Loans and Leases | 1 | 4 | |
Residential Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
Nonperforming Portfolio Loans and Leases | 51 | 77 | |
Consumer Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
Nonperforming Portfolio Loans and Leases | 114 | 135 | |
Consumer Portfolio Segment | Home Equity | |||
Financing Receivable, Modifications [Line Items] | |||
Nonperforming Portfolio Loans and Leases | 79 | 93 | |
Consumer Portfolio Segment | Automobile Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Nonperforming Portfolio Loans and Leases | 2 | 1 | |
Consumer Portfolio Segment | Credit Card | |||
Financing Receivable, Modifications [Line Items] | |||
Nonperforming Portfolio Loans and Leases | $ 33 | $ 41 | |
[1] | Excludes $12 and $39 of nonaccrual loans held for sale at December 31, 2015 and 2014, respectively. | ||
[2] | Includes $6 and $9 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at December 31, 2015 and 2014, respectively, and $2 and $4 of restructured nonaccrual government insured commercial loans at December 31, 2015 and 2014, respectively. | ||
[3] | Excludes $14 and $71 of OREO related to government insured loans at December 31, 2015 and 2014, respectively. The Bancorp has historically excluded government guaranteed loans classified in OREO from its nonperforming asset disclosures. Upon the prospective adoption on January 1, 2015 of ASU 2014-14 “Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure”, government guaranteed loans meeting certain criteria were reclassified to other receivables rather than OREO upon foreclosure. At December 31, 2015, the Bancorp had $44 of government guaranteed loans classified as other receivables. Refer to Note 1 for further information on the adoption of this amended guidance. | ||
[4] | Excludes $20 and $21 of restructured nonaccrual loans at December 31, 2015 and 2014, respectively, associated with a consolidated VIE in which the Bancorp has no continuing credit risk due the risk being assumed by a third party. |
Summary of the Bancorp's Nonp97
Summary of the Bancorp's Nonperforming Loans and Leases by Class (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Modifications [Line Items] | |||
Loans and leases held for sale | [1] | $ 903 | $ 1,261 |
OREO and other repossessed personal property | 155 | 236 | |
Portfolio loans and leases | [2],[3] | 92,582 | 90,084 |
Variable Interest Entity, Primary Beneficiary | |||
Financing Receivable, Modifications [Line Items] | |||
Portfolio loans and leases | 2,537 | 3,378 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | Variable Interest Entity, Primary Beneficiary | |||
Financing Receivable, Modifications [Line Items] | |||
Restructured nonaccrual loans and leases | 20 | 21 | |
Government Insured | |||
Financing Receivable, Modifications [Line Items] | |||
OREO and other repossessed personal property | 14 | 71 | |
Other Receivables | 44 | ||
Nonperforming Financing Receivable | |||
Financing Receivable, Modifications [Line Items] | |||
Loans and leases held for sale | 12 | 39 | |
Nonperforming Financing Receivable | Government Insured | Commercial Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
Restructured nonaccrual loans and leases | 2 | 4 | |
Nonperforming Financing Receivable | Government Insured | Commercial Portfolio Segment | Small Business Administration [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Portfolio loans and leases | $ 6 | $ 9 | |
[1] | Includes $519 and $561 of residential mortgage loans held for sale measured at fair value at December 31, 2015 and 2014, respectively. | ||
[2] | Includes $152 and $179 of cash and due from banks, $2,537 and $3,378 of portfolio loans and leases, $(28) and $(22) of ALLL, $20 and $25 of other assets, $3 and $5 of other liabilities and $2,493 and $3,434 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2015 and 2014, respectively. For further information, refer to Note 11. | ||
[3] | Includes $167 and $108 of residential mortgage loans measured at fair value at December 31, 2015 and 2014, respectively. |
Credit Quality Additional Infor
Credit Quality Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Troubled Debt Restructuring | ||
Line of credit commitments for modified troubled debt restructurings | $ 39 | $ 63 |
Letter of credit commitments for modified troubled debt restructurings | 23 | $ 26 |
Mortgage Loans In Process Of Foreclosure Amount | $ 303 |
Summary of Loans Modified in a
Summary of Loans Modified in a TDR (Detail) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |||
Financing Receivable, Modifications [Line Items] | |||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 14,472 | 11,102 | 11,291 | |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 409 | $ 548 | $ 1,081 | |
Increase (Decrease) to ALLL Upon Modification | [1] | 23 | 27 | 58 | |
Charge-offs Recognized Upon Modification | [1] | $ 10 | $ 8 | $ 44 | |
Commercial Portfolio Segment | Commercial and Industrial Loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 77 | 128 | 146 | |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 146 | $ 230 | $ 604 | |
Increase (Decrease) to ALLL Upon Modification | [1] | 7 | 12 | 39 | |
Charge-offs Recognized Upon Modification | [1] | $ 3 | $ 6 | $ 44 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 18 | 32 | 65 | [3] |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 16 | $ 54 | $ 19 | [3] |
Increase (Decrease) to ALLL Upon Modification | [1] | $ (2) | $ (1) | $ (2) | [3] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 12 | 28 | 59 | |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 7 | $ 30 | $ 72 | |
Increase (Decrease) to ALLL Upon Modification | [1] | $ (1) | (3) | $ (7) | |
Charge-offs Recognized Upon Modification | [1] | $ 2 | |||
Commercial Portfolio Segment | Commercial Construction Loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 4 | |||
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 34 | |||
Increase (Decrease) to ALLL Upon Modification | [1] | $ (2) | |||
Commercial Portfolio Segment | Commercial Leases | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 1 | |||
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 2 | |||
Increase (Decrease) to ALLL Upon Modification | [1] | $ (5) | |||
Residential Portfolio Segment | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 1,089 | 1,093 | 1,620 | |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 155 | $ 160 | $ 249 | |
Increase (Decrease) to ALLL Upon Modification | [1] | $ 8 | $ 8 | $ 28 | |
Consumer Portfolio Segment | Home Equity | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 267 | 284 | 695 | |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 16 | $ 12 | $ 37 | |
Increase (Decrease) to ALLL Upon Modification | [1] | $ (1) | $ (1) | ||
Consumer Portfolio Segment | Automobile Loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 440 | 608 | 499 | |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 7 | $ 10 | $ 14 | |
Increase (Decrease) to ALLL Upon Modification | [1] | $ 1 | $ 1 | $ 1 | |
Consumer Portfolio Segment | Credit Card | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 12,569 | 8,929 | 8,202 | |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 62 | $ 52 | $ 50 | |
Increase (Decrease) to ALLL Upon Modification | [1] | 11 | $ 10 | $ 7 | |
Charge-offs Recognized Upon Modification | [1] | $ 7 | |||
[1] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. | ||||
[2] | Represents number of loans post-modification and excludes loans previously modified in a TDR. | ||||
[3] | Excludes five loans modified in a TDR during the year ended 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. The TDR had a recorded investment of $29 at modification, the ALLL increased $7 upon modification and a charge-off of $2 was recognized upon modification. |
Summary of Loans Modified in100
Summary of Loans Modified in a TDR (Parenthetical) (Detail) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Number of Contracts | [1],[2] | 14,472 | 11,102 | 11,291 | |
Financing Receivable Modifications Post Modification Recorded Investment1 | [1] | $ 409 | $ 548 | $ 1,081 | |
Allowance for Loan and Lease Losses, Adjustments, Net | [1] | 23 | 27 | 58 | |
Allowance for Loan and Lease Losses, Write-offs | [1] | $ 10 | $ 8 | $ 44 | |
Commercial Portfolio Segment | Commercial Mortgage Loans Owner Occupied [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Number of Contracts | [1],[2] | 18 | 32 | 65 | [3] |
Financing Receivable Modifications Post Modification Recorded Investment1 | [1] | $ 16 | $ 54 | $ 19 | [3] |
Allowance for Loan and Lease Losses, Adjustments, Net | [1] | $ (2) | $ (1) | (2) | [3] |
Commercial Portfolio Segment | Commercial Mortgage Loans Owner Occupied [Member] | Variable Interest Entity, Primary Beneficiary | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable Modifications Post Modification Recorded Investment1 | 29 | ||||
Allowance for Loan and Lease Losses, Adjustments, Net | 7 | ||||
Allowance for Loan and Lease Losses, Write-offs | $ (2) | ||||
[1] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. | ||||
[2] | Represents number of loans post-modification and excludes loans previously modified in a TDR. | ||||
[3] | Excludes five loans modified in a TDR during the year ended 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. The TDR had a recorded investment of $29 at modification, the ALLL increased $7 upon modification and a charge-off of $2 was recognized upon modification. |
Summary of Subsequent Defaults
Summary of Subsequent Defaults (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | ||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | [1] | 2,124 | 2,346 | 2,225 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 42 | $ 87 | $ 85 |
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | [1] | 7 | 11 | 6 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 11 | $ 36 | $ 11 |
Commercial Portfolio Segment | Commercial Mortgage Loans Owner Occupied [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | [1] | 3 | 3 | 7 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 1 | $ 4 | $ 1 |
Commercial Portfolio Segment | Commercial Mortgage Loans Non Owner Occupied [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | [1] | 2 | ||
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 1 | ||
Residential Portfolio Segment | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | [1] | 156 | 235 | 375 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 21 | $ 32 | $ 58 |
Consumer Portfolio Segment | Home Equity | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | [1] | 15 | 30 | 65 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 1 | $ 2 | $ 4 |
Consumer Portfolio Segment | Automobile Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | [1] | 8 | 6 | 4 |
Consumer Portfolio Segment | Credit Card | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | [1] | 1,935 | 2,059 | 1,768 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 8 | $ 12 | $ 11 |
[1] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. |
Bank Premises and Equipment (De
Bank Premises and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Property, Plant and Equipment [Line Items] | |||
Land and improvements | [1] | $ 685 | $ 793 |
Buildings | 1,755 | 1,807 | |
Equipment | 1,696 | 1,682 | |
Leasehold improvements | 403 | 416 | |
Construction in progress | 85 | 98 | |
Land and improvements held for sale | 55 | 23 | |
Buildings held for sale | 20 | 3 | |
Equipment held for sale | 3 | ||
Leasehold improvements held for sale | 3 | ||
Accumulated depreciation and amortization | (2,466) | (2,357) | |
Total bank premises and equipment | [2] | $ 2,239 | $ 2,465 |
Building | Upper Limit | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 30 years | ||
Building | Lower limit | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 2 years | ||
Equipment | Upper Limit | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 30 years | ||
Equipment | Lower limit | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 2 years | ||
Leasehold Improvements | Upper Limit | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 30 years | ||
Leasehold Improvements | Lower limit | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
[1] | At December 31, 2015 and 2014, land and improvements included $102 and $165, respectively, associated with parcels of undeveloped land intended for future branch expansion. | ||
[2] | Includes $81 and $26 of bank premises and equipment held for sale at December 31, 2015 and 2014, respectively. For further information refer to Note 7. |
Bank Premises and Equipment (Pa
Bank Premises and Equipment (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Land and improvements | [1] | $ 685 | $ 793 |
Branches and undeveloped parcels of land | |||
Property, Plant and Equipment [Line Items] | |||
Land and improvements | $ 102 | $ 165 | |
[1] | At December 31, 2015 and 2014, land and improvements included $102 and $165, respectively, associated with parcels of undeveloped land intended for future branch expansion. |
Bank Premises and Equipment - A
Bank Premises and Equipment - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 256 | $ 254 | $ 245 |
Rental income from leased premises | $ 18 | 17 | 16 |
Disposal group classified as held for sale | |||
Property, Plant and Equipment [Line Items] | |||
Operating Branch Locations | 107 | ||
Parcels Of Undeveloped Land | 32 | ||
Branch Banking | |||
Property, Plant and Equipment [Line Items] | |||
Bank Premises Impairment | $ 109 | 20 | 6 |
Cancelable And Noncancelable Lease Obligations | |||
Property, Plant and Equipment [Line Items] | |||
Occupancy Costs | $ 110 | $ 100 | $ 98 |
Assets and Liabilities Classifi
Assets and Liabilities Classified as HFS (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Loans and leases held for sale: | |||
Loans and leases held for sale | [1] | $ 903 | $ 1,261 |
Long Lived Assets Held For Sale | |||
Land and improvements held for sale | 55 | 23 | |
Buildings held for sale | 20 | 3 | |
Equipment held for sale | 3 | ||
Leasehold improvements held for sale | 3 | ||
Deposits Held For Sale | |||
Deposits held for sale | 628 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 20 | 36 | |
Commercial Portfolio Segment | Commercial mortgage loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 34 | 11 | |
Commercial Portfolio Segment | Commercial construction loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 2 | ||
Commercial Portfolio Segment | Commercial leases | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 1 | ||
Residential Portfolio Segment | Residential mortgage loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 708 | 1,193 | |
Consumer Portfolio Segment | Home equity | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 35 | ||
Consumer Portfolio Segment | Automobile Loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 4 | ||
Consumer Portfolio Segment | Other consumer loans and leases | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 1 | $ 18 | |
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | |||
Long Lived Assets Held For Sale | |||
Total Assets Held For Sale | [2] | 314 | |
Deposits Held For Sale | |||
Total Liabilities Held For Sale | [2] | 628 | |
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Loans Held For Sale | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | [2],[3] | 269 | |
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Loans Held For Sale | Commercial Portfolio Segment | Commercial and Industrial Loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | [2] | 20 | |
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Loans Held For Sale | Commercial Portfolio Segment | Commercial mortgage loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | [2] | 22 | |
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Loans Held For Sale | Residential Portfolio Segment | Residential mortgage loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | [2] | 188 | |
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Loans Held For Sale | Consumer Portfolio Segment | Home equity | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | [2] | 35 | |
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Loans Held For Sale | Consumer Portfolio Segment | Automobile Loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | [2] | 4 | |
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Bank Premises And Equipment | |||
Long Lived Assets Held For Sale | |||
Land and improvements held for sale | [2],[4] | 25 | |
Buildings held for sale | [2],[4] | 14 | |
Equipment held for sale | [2],[4] | 3 | |
Leasehold improvements held for sale | [2],[4] | 3 | |
Total bank premises and equipment held for sale | [2] | 45 | |
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Interest Bearing and Noninterest Bearing Deposits | |||
Deposits Held For Sale | |||
Noninterest Bearing Deposits Held For Sale | [2] | 117 | |
Interest Bearing Deposits Held For Sale | [2] | 511 | |
Deposits held for sale | [2],[5] | $ 628 | |
[1] | Includes $519 and $561 of residential mortgage loans held for sale measured at fair value at December 31, 2015 and 2014, respectively. | ||
[2] | Included in the Branch Banking, Consumer Lending and Investment Advisors business segments. | ||
[3] | Included in loans held for sale in the Consolidated Balance Sheets. | ||
[4] | Included in bank premises and equipment in the Consolidated Balance Sheets. | ||
[5] | Included in noninterest-bearing deposits and interest-bearing deposits in the Consolidated Balance Sheets. |
Annual Future Minimum Payments
Annual Future Minimum Payments under Capital Leases and Noncancelable Operating Leases (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Noncancelable Operating Leases | |
Property, Plant and Equipment [Line Items] | |
2,016 | $ 91 |
2,017 | 84 |
2,018 | 82 |
2,019 | 74 |
2,020 | 62 |
Thereafter | 242 |
Total minimum lease payments | 635 |
Capital Leases | |
Property, Plant and Equipment [Line Items] | |
2,016 | 7 |
2,017 | 6 |
2,018 | 6 |
2,019 | 5 |
2,020 | 1 |
Thereafter | 2 |
Total minimum lease payments | 27 |
Amounts representing interest | 3 |
Present value of net minimum lease payments | $ 24 |
Operating Lease Equipment - Add
Operating Lease Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | |
Operating lease equipment | Commercial Banking [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Other Asset Impairment Charges | $ 2 | $ 4 | $ 30 |
Changes in the Net Carrying Amo
Changes in the Net Carrying Amount of Goodwill by Reporting Segment (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
GoodwillRollForward | ||
Net carrying value, beginning of period: | $ 2,416 | $ 2,416 |
Net carrying value, end of period: | 2,416 | 2,416 |
Commercial Banking | ||
GoodwillRollForward | ||
Net carrying value, beginning of period: | 613 | 613 |
Net carrying value, end of period: | 613 | 613 |
Branch Banking | ||
GoodwillRollForward | ||
Net carrying value, beginning of period: | 1,655 | 1,655 |
Net carrying value, end of period: | 1,655 | 1,655 |
Investment Advisors | ||
GoodwillRollForward | ||
Net carrying value, beginning of period: | 148 | 148 |
Net carrying value, end of period: | $ 148 | $ 148 |
Goodwill Additional Information
Goodwill Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2008USD ($) | |
Goodwill [Line Items] | |
Goodwill, Impairment Loss | $ 965 |
Commercial Banking | |
Goodwill [Line Items] | |
Goodwill, Impairment Loss | 750 |
Consumer Lending | |
Goodwill [Line Items] | |
Goodwill, Impairment Loss | $ 215 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Intangible Assets By Major Class [Abstract] | |||
Estimated weighted-average life (in years) | 4 years 3 months 18 days | ||
Amortization of Intangible Assets | $ 2 | $ 4 | $ 8 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 67 | $ 167 |
Accumulated Amortization | (55) | (152) |
Net Carrying Amount | 12 | 15 |
Core Deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 34 | 122 |
Accumulated Amortization | (26) | (112) |
Net Carrying Amount | 8 | 10 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 33 | 45 |
Accumulated Amortization | (29) | (40) |
Net Carrying Amount | $ 4 | $ 5 |
Estimated Amortization Expense
Estimated Amortization Expense Other Intangible Assets (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2,016 | $ 114 |
2,017 | 103 |
2,018 | 93 |
2,019 | 85 |
2,020 | 77 |
Other Intangible Assets | |
Finite-Lived Intangible Assets [Line Items] | |
2,016 | 2 |
2,017 | 2 |
2,018 | 2 |
2,019 | 1 |
2,020 | $ 1 |
Classifications of Consolidated
Classifications of Consolidated VIE Assets, Liabilities and Noncontrolling Interest Included in the Bancorp's Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Assets | |||||||
Cash and due from banks | $ 2,540 | [1] | $ 3,091 | [1] | $ 3,178 | $ 2,441 | |
Commercial mortgage loans | 6,957 | 7,399 | |||||
Automobile loans | 11,493 | 12,037 | |||||
ALLL | (1,272) | [1] | (1,322) | [1] | $ (1,582) | $ (1,854) | |
Other assets | [1] | 7,999 | 8,241 | ||||
Liabilities | |||||||
Other liabilities | [1] | 2,341 | 2,642 | ||||
Long-term debt | [1] | 15,844 | 14,967 | ||||
Noncontrolling interests | 31 | 39 | |||||
Variable Interest Entity, Primary Beneficiary | |||||||
Assets | |||||||
Cash and due from banks | 152 | 179 | |||||
Commercial mortgage loans | 47 | 47 | |||||
Automobile loans | 2,490 | 3,331 | |||||
ALLL | (28) | (22) | |||||
Other assets | 20 | 25 | |||||
Total Assets | 2,681 | 3,560 | |||||
Liabilities | |||||||
Other liabilities | 3 | 5 | |||||
Long-term debt | 2,493 | 3,434 | |||||
Total liabilities | 2,496 | 3,439 | |||||
Noncontrolling interests | 31 | 39 | |||||
Variable Interest Entity, Primary Beneficiary | Automobile Loan Securitizations | |||||||
Assets | |||||||
Cash and due from banks | 151 | 178 | |||||
Automobile loans | 2,490 | 3,331 | |||||
ALLL | (11) | (11) | |||||
Other assets | 20 | 23 | |||||
Total Assets | 2,650 | 3,521 | |||||
Liabilities | |||||||
Other liabilities | 3 | 5 | |||||
Long-term debt | 2,493 | 3,434 | |||||
Total liabilities | 2,496 | 3,439 | |||||
Variable Interest Entity, Primary Beneficiary | Fifth Third Community Development Corporation Investments | |||||||
Assets | |||||||
Cash and due from banks | 1 | 1 | |||||
Commercial mortgage loans | 47 | 47 | |||||
ALLL | (17) | (11) | |||||
Other assets | 2 | ||||||
Total Assets | 31 | 39 | |||||
Liabilities | |||||||
Noncontrolling interests | $ 31 | $ 39 | |||||
[1] | Includes $152 and $179 of cash and due from banks, $2,537 and $3,378 of portfolio loans and leases, $(28) and $(22) of ALLL, $20 and $25 of other assets, $3 and $5 of other liabilities and $2,493 and $3,434 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2015 and 2014, respectively. For further information, refer to Note 11. |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Variable Interest Entity | ||||
Private Equity Fund Impairment | $ 1 | $ 4 | ||
Variable Interest Entity, Primary Beneficiary | Automobile Loan Securitizations | ||||
Variable Interest Entity | ||||
Carry Value Of Loans Leases Or Lines Of Credit Securitized | 750 | $ 3,800 | ||
Variable Interest Entity, Primary Beneficiary | Fifth Third Community Development Corporation Investments [Member] | ||||
Variable Interest Entity | ||||
Maximum Exposure | 27 | 24 | ||
Variable Interest Entity, Not Primary Beneficiary | Loans Provided to VIEs | ||||
Variable Interest Entity | ||||
Unfunded commitment amounts | 969 | 859 | ||
Variable Interest Entity, Not Primary Beneficiary | Automobile Loan Securitizations | ||||
Variable Interest Entity | ||||
Carry Value Of Loans Leases Or Lines Of Credit Securitized | $ 509 | |||
Maximum Exposure | 1 | 2 | ||
Bancorp's Investment in Affordable Housing Tax Credits | 1 | 2 | ||
Variable Interest Entity, Not Primary Beneficiary | Fifth Third Community Development Corporation Investments [Member] | ||||
Variable Interest Entity | ||||
Maximum Exposure | 1,455 | 1,432 | ||
Bancorp's Investment in Affordable Housing Tax Credits | 1,455 | 1,432 | ||
Variable Interest Entity, Not Primary Beneficiary | Fifth Third Community Development Corporation Investments [Member] | Qualified Affordable Housing Tax Credits | ||||
Variable Interest Entity | ||||
Unfunded commitments | $ 356 | 357 | ||
Unfunded commitments expected funding date | 2,033 | |||
Bancorp's Investment in Affordable Housing Tax Credits | $ 1,300 | 1,300 | ||
Variable Interest Entity, Not Primary Beneficiary | Private equity investment funds | ||||
Variable Interest Entity | ||||
Maximum Exposure | 271 | 267 | ||
Unfunded commitment amounts | 60 | 78 | ||
Capital Contribution To Private Equity Funds | 30 | 27 | ||
Private Equity Fund Impairment | 1 | $ 4 | ||
Bancorp's Investment in Affordable Housing Tax Credits | $ 211 | $ 189 |
Assets and Liabilities Related
Assets and Liabilities Related to Non-consolidated VIEs and Maximum Exposure to Losses (Detail) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fifth Third Community Development Corporation Investments | ||
Variable Interest Entity | ||
Total Assets | $ 1,455 | $ 1,432 |
Total liabilities | 367 | 364 |
Maximum Exposure | 1,455 | 1,432 |
Private equity investment funds | ||
Variable Interest Entity | ||
Total Assets | 211 | 189 |
Maximum Exposure | 271 | 267 |
Loans Provided to VIEs | ||
Variable Interest Entity | ||
Total Assets | 1,630 | 1,900 |
Maximum Exposure | 2,599 | 2,759 |
Automobile Loan Securitizations | ||
Variable Interest Entity | ||
Total Assets | 1 | 2 |
Maximum Exposure | $ 1 | $ 2 |
Investments in Qualified Afford
Investments in Qualified Affordable Housing Tax Credits (Detail) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Other Noninterest Expense | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Pre-tax investment and impairment losses | [1] | $ 126 | $ 118 | $ 90 |
Applicable income tax expense | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Tax credits and other benefits | $ (205) | $ (185) | $ (164) | |
[1] | The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during the years ended December 31, 2015, 2014 and 2013. |
Activity Related to Mortgage Ba
Activity Related to Mortgage Banking Net Revenue (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale | |||||
Residential mortgage loan sales | [2] | $ 5,078 | [1] | $ 5,467 | $ 21,529 |
Origination fees and gains on loan sales | 171 | 153 | 453 | ||
Gross mortgage servicing fees | $ 222 | $ 246 | $ 251 | ||
[1] | Excludes $568 of HFS residential mortgage loans previously modified in a TDR that were sold during the first quarter of 2015. | ||||
[2] | Represents the unpaid principal balance at the time of the sale. |
Activity Related to Mortgage118
Activity Related to Mortgage Banking Net Revenue (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015 | Dec. 31, 2015 | [1] | Dec. 31, 2014 | Dec. 31, 2013 | ||
Mortgage Loans On Real Estate [Line Items] | ||||||
Residential mortgage loan sales | [2] | $ 5,078 | $ 5,467 | $ 21,529 | ||
Residential Portfolio Segment | Troubled Debt Restructuring | ||||||
Mortgage Loans On Real Estate [Line Items] | ||||||
Residential mortgage loan sales | $ 568 | |||||
[1] | Excludes $568 of HFS residential mortgage loans previously modified in a TDR that were sold during the first quarter of 2015. | |||||
[2] | Represents the unpaid principal balance at the time of the sale. |
Changes in the Servicing Rights
Changes in the Servicing Rights (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Servicing Rights at Fair Value | |||
Carrying amount before valuation allowance as of the beginning of the period | $ 1,392 | $ 1,440 | |
Servicing rights that result from the transfer of residential mortgage loans | 63 | 73 | |
Amortization | (140) | (121) | $ (168) |
Other-than-temporary impairment | 111 | ||
Carrying amount before valuation allowance as of the end of the period | 1,204 | 1,392 | 1,440 |
Valuation allowance for servicing rights: | |||
Beginning balance | (534) | (469) | |
(Provision for) recovery of MSR impairment | 4 | (65) | |
Other-than-temporary impairment | 111 | ||
Ending balance | (419) | (534) | $ (469) |
Carrying amount as of the end of the period | $ 785 | $ 858 |
Estimated Amortization Expen120
Estimated Amortization Expense Mortgage Servicing Rights (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2,016 | $ 114 |
2,017 | 103 |
2,018 | 93 |
2,019 | 85 |
2,020 | $ 77 |
Fair Value of the Servicing Rig
Fair Value of the Servicing Rights (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fixed Rate Residential Mortgage Loans | ||
Servicing Rights at Fair Value | ||
Fair value at beginning of period | $ 823 | $ 929 |
Fair value at end of period | 757 | 823 |
Adjustable Rate Residential Mortgage Loans | ||
Servicing Rights at Fair Value | ||
Fair value at beginning of period | 33 | 38 |
Fair value at end of period | 27 | 33 |
Fixed Rate Automobile Loans | ||
Servicing Rights at Fair Value | ||
Fair value at beginning of period | 2 | 4 |
Fair value at end of period | $ 1 | $ 2 |
Activity Related to the MSR Por
Activity Related to the MSR Portfolio (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Servicing Assets at Fair Value [Line Items] | |||
Securities gains, net - non-qualifying hedges on MSRs | $ 13 | ||
Recovery of (provision for) MSR impairment (Mortgage banking net revenue) | $ 4 | $ (65) | 192 |
Interest Rate Contract | Servicing Rights | Mortgage Banking Revenue | |||
Servicing Assets at Fair Value [Line Items] | |||
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (Mortgage banking net revenue) | $ 90 | $ 95 | $ (30) |
Servicing Rights and Residual I
Servicing Rights and Residual Interests Economic Assumptions (Detail) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fixed Rate Residential Mortgage | ||
Assumption For Fair Value As Of Balance Sheet Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items] | ||
Weighted- Average Life (in years) | 6 years 10 months 24 days | 6 years 7 months 6 days |
Prepayment Speed (annual) | 11.00% | 11.30% |
Discount Rate (annual) | 10.00% | |
OAS spread (bps) | 534 | |
Adjustable Rate Residential Mortgage | ||
Assumption For Fair Value As Of Balance Sheet Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items] | ||
Weighted- Average Life (in years) | 3 years 4 months 24 days | 3 years 8 months 12 days |
Prepayment Speed (annual) | 25.20% | 22.30% |
Discount Rate (annual) | 11.70% | |
OAS spread (bps) | 303 |
Sales of Receivables and Ser124
Sales of Receivables and Servicing Rights - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Servicing Rights at Fair Value | ||||||
Residential mortgage loan sales | [2] | $ 5,078 | [1] | $ 5,467 | $ 21,529 | |
Sevicing of residential mortgage loans for other investors | 59,000 | 65,400 | ||||
Amortization | $ (140) | $ (121) | $ (168) | |||
Residential Mortgage Loans | Troubled Debt Restructuring | ||||||
Servicing Rights at Fair Value | ||||||
Gain on sale of HFS loans | $ 37 | |||||
Residential mortgage loan sales | $ 568 | |||||
[1] | Excludes $568 of HFS residential mortgage loans previously modified in a TDR that were sold during the first quarter of 2015. | |||||
[2] | Represents the unpaid principal balance at the time of the sale. |
Sensitivity of the Current Fair
Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($) | [1] | |
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 [Line Items] | ||
Fair Value | $ 757 | |
Weighted- Average Life (in years) | 5 years 10 months 24 days | |
Prepayment Speed (annual) | 11.80% | |
Impact of Adverse Change on Fair Value 10% | $ (32) | |
Impact of Adverse Change on Fair Value 20% | (61) | |
Impact of Adverse Change on Fair Value 50% | $ (134) | |
OAS spread (bps) | 618 | |
Impact of Adverse Change on Fair Value 10% | $ (18) | |
Impact of Adverse Change on Fair Value 20% | (34) | |
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 [Line Items] | ||
Fair Value | $ 27 | |
Weighted- Average Life (in years) | 3 years | |
Prepayment Speed (annual) | 27.00% | |
Impact of Adverse Change on Fair Value 10% | $ (2) | |
Impact of Adverse Change on Fair Value 20% | (3) | |
Impact of Adverse Change on Fair Value 50% | $ (7) | |
OAS spread (bps) | 703 | |
Impact of Adverse Change on Fair Value 10% | $ (1) | |
Impact of Adverse Change on Fair Value 20% | $ (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 Instrum126
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2009 | |
Derivative [Line Items] | |||
Valuation adjustments related to the credit risk associated with counterparties of customer accommodation derivative contracts | $ 9 | $ 16 | |
Maximum Length Of Time Hedged In Interest Rate Cash Flow Hedge | 4 years | ||
Notional amount of the risk participations agreements | $ 1,664 | 1,113 | |
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | ||
Credit Risk | |||
Derivative [Line Items] | |||
Credit Risk Derivatives Average Life | 3 years 2 months 12 days | ||
Interest Rate Contract | |||
Derivative [Line Items] | |||
Fair value of risk participation agreements | $ 3 | 2 | |
Interest Rate Contract | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Deferred gains, net of tax, on cash flow hedges were recorded in accumulated other comprehensive income | 22 | 23 | |
Net deferred gains, net of tax, recorded in accumulated other comprehensive income are expected to be reclassified into earnings | 25 | ||
Total collateral | |||
Derivative [Line Items] | |||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 821 | 830 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 504 | $ 574 |
Notional Amounts and Fair Value
Notional Amounts and Fair Values for All Derivative Instruments Included in the Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Fair value - Derivative Assets | $ 1,852 | $ 2,080 |
Fair value - Derivative Liabilities | 938 | 1,043 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Fair value - Derivative Assets | 411 | 435 |
Fair value - Derivative Liabilities | 2 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Fair value - Derivative Assets | 372 | 399 |
Fair value - Derivative Liabilities | 2 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Fair Value Hedging | Interest Rate Swap | Long-Term Debt | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 2,705 | 2,205 |
Fair value - Derivative Assets | 372 | 399 |
Fair value - Derivative Liabilities | 2 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Fair value - Derivative Assets | 39 | 36 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | Interest Rate Swap | Commercial and Industrial Loans | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 5,475 | 3,150 |
Fair value - Derivative Assets | 39 | 36 |
Nondesignated | ||
Derivatives, Fair Value [Line Items] | ||
Fair value - Derivative Assets | 1,441 | 1,645 |
Fair value - Derivative Liabilities | 936 | 1,043 |
Nondesignated | Risk Management and Other Business Purposes | ||
Derivatives, Fair Value [Line Items] | ||
Fair value - Derivative Assets | 504 | 596 |
Fair value - Derivative Liabilities | 71 | 55 |
Nondesignated | Risk Management and Other Business Purposes | Interest Rate Contract | Servicing Rights | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 11,657 | 4,487 |
Fair value - Derivative Assets | 239 | 181 |
Fair value - Derivative Liabilities | 9 | |
Nondesignated | Risk Management and Other Business Purposes | Forward Contracts | Assets Held For Sale | Residential Mortgage | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 1,330 | 999 |
Fair value - Derivative Assets | 3 | |
Fair value - Derivative Liabilities | 1 | 6 |
Nondesignated | Risk Management and Other Business Purposes | Warrant | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 369 | 691 |
Fair value - Derivative Assets | 262 | 415 |
Nondesignated | Risk Management and Other Business Purposes | Swap | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 1,292 | 1,092 |
Fair value - Derivative Liabilities | 61 | 49 |
Nondesignated | Customer Accommodation | ||
Derivatives, Fair Value [Line Items] | ||
Fair value - Derivative Assets | 937 | 1,049 |
Fair value - Derivative Liabilities | 865 | 988 |
Nondesignated | Customer Accommodation | Interest Rate Contract | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 29,889 | 29,558 |
Fair value - Derivative Assets | 242 | 272 |
Fair value - Derivative Liabilities | 249 | 278 |
Nondesignated | Customer Accommodation | Interest Rate Lock Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 721 | 613 |
Fair value - Derivative Assets | 15 | 12 |
Nondesignated | Customer Accommodation | Commodity Contract | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 2,464 | 3,558 |
Fair value - Derivative Assets | 294 | 348 |
Fair value - Derivative Liabilities | 276 | 338 |
Nondesignated | Customer Accommodation | Foreign Exchange Contract | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 16,243 | 16,475 |
Fair value - Derivative Assets | 386 | 417 |
Fair value - Derivative Liabilities | $ 340 | $ 372 |
Change in the Fair Value for In
Change in the Fair Value for Interest Rate Contracts and the Related Hedged Items (Detail) - Fair Value Hedging - Interest Rate Contract - Interest Expense, Long-Term Debt - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivatives, Fair Value [Line Items] | |||
Change in fair value of interest rate swaps hedging long-term debt | $ (29) | $ 120 | $ (279) |
Change in fair value of hedged long-term debt | $ 25 | $ (126) | $ 276 |
Net Gains (Losses) Relating to
Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges (Detail) - Cash Flow Hedging - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of pretax net (losses) gains recognized in OCI | $ 74 | $ 60 | $ (13) |
Interest Income (Expense) Net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of pretax net gains reclassified from OCI into net income | $ 75 | $ 44 | $ 44 |
Net Gains (Losses) Recorded in
Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used for Risk Management and Other Business Purposes (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Interest Rate Contract | Forward Contracts | Loans Held-for-Sale | Mortgage Banking Revenue | Residential Mortgage | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recorded in earnings | $ 8 | $ (18) | $ 24 | |
Interest Rate Contract | Servicing Rights | Mortgage Banking Revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recorded in earnings | 90 | 95 | (30) | |
Foreign Exchange Contract | Forward Contracts | Other Noninterest Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recorded in earnings | 23 | 14 | 5 | |
Equity Contract | Warrant | Other Noninterest Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recorded in earnings | 325 | [1] | 31 | 206 |
Equity Contract | Swap | Other Noninterest Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recorded in earnings | $ (37) | $ (38) | $ (31) | |
[1] | The Bancorp recognized a net gain of $89 million on both the sale and exercise of the warrant during the fourth quarter of 2015. |
Net Gains (Losses) Recorded 131
Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used for Risk Management and Other Business Purposes (Parenthetical) (Detail) $ in Millions | 3 Months Ended |
Dec. 31, 2015USD ($) | |
Common Class A Member | Vantiv Holding, LLC | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Proceeds From Warrant Exercises | $ 89 |
Risk Ratings of the Notional Am
Risk Ratings of the Notional Amount of Risk Participation Agreements (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Notional amount of the risk participations agreements | $ 1,664 | $ 1,113 |
Pass | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of the risk participations agreements | 1,650 | 1,052 |
Risk Level, Special Mention | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of the risk participations agreements | 7 | 59 |
Risk Level, Substandard | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of the risk participations agreements | $ 7 | $ 2 |
Net Gains (Losses) Recorded 133
Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used For Customer Accommodation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Rate Contract | Customer Contracts | Corporate Banking Revenue | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains (losses) recorded in earnings | $ 23 | $ 19 | $ 29 |
Interest Rate Contract | Customer Contracts | Other Noninterest Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains (losses) recorded in earnings | (1) | (3) | (3) |
Interest Rate Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other Noninterest Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains (losses) recorded in earnings | 1 | 3 | 7 |
Interest Rate Contract | Interest Rate Lock Commitments | Mortgage Banking Revenue | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains (losses) recorded in earnings | 111 | 124 | 58 |
Commodity Contract | Customer Contracts | Corporate Banking Revenue | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains (losses) recorded in earnings | 5 | 6 | 7 |
Commodity Contract | Customer Contracts | Other Noninterest Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains (losses) recorded in earnings | (2) | ||
Commodity Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other Noninterest Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains (losses) recorded in earnings | 6 | (7) | |
Foreign Exchange Contract | Customer Contracts | Corporate Banking Revenue | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains (losses) recorded in earnings | $ 70 | $ 72 | 69 |
Foreign Exchange Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other Noninterest Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains (losses) recorded in earnings | $ (2) |
Offsetting Derivative Financial
Offsetting Derivative Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | ||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Derivative Assets, Fair Value, Gross Amount Recognized in the Consolidated Balance Sheets | $ 1,852 | $ 2,080 | ||
Derivative Assets, Collateral, Gross Amount Not Offset in the Consolidated Balance Sheets | (582) | (561) | ||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Derivative Liabilities, Fair Value, Gross Amount Recognized in the Consolidated Balance Sheets | 938 | 1,043 | ||
Assets | ||||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Derivative Assets, Fair Value, Gross Amount Recognized in the Consolidated Balance Sheets | 1,575 | [1] | 1,653 | [2] |
Derivative Assets, Fair Value, Gross Amount Not Offset in the Consolidated Balance Sheets | (512) | (440) | ||
Derivative Assets, Collateral, Gross Amount Not Offset in the Consolidated Balance Sheets | (627) | [3] | (684) | [4] |
Derivative Assets, Net Amount | 436 | 529 | ||
Liabilities | ||||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Derivative Liabilities, Fair Value, Gross Amount Recognized in the Consolidated Balance Sheets | 938 | [1] | 1,043 | [2] |
Derivative Liabilities, Fair Value, Gross Amount Not Offset in the Consolidated Balance Sheets | (512) | (440) | ||
Derivative Liabilities, Collateral, Gross Amount Not Offset in the Consolidated Balance Sheets | (173) | [3] | (293) | [4] |
Derivative Liabilities, Net Amount | 253 | 310 | ||
Derivative | Assets | ||||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Derivative Assets, Fair Value, Gross Amount Recognized in the Consolidated Balance Sheets | 1,575 | [1] | 1,653 | [2] |
Derivative Assets, Fair Value, Gross Amount Not Offset in the Consolidated Balance Sheets | (512) | (440) | ||
Derivative Assets, Collateral, Gross Amount Not Offset in the Consolidated Balance Sheets | (627) | [3] | (684) | [4] |
Derivative Assets, Net Amount | 436 | 529 | ||
Derivative | Liabilities | ||||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Derivative Liabilities, Fair Value, Gross Amount Recognized in the Consolidated Balance Sheets | 938 | [1] | 1,043 | [2] |
Derivative Liabilities, Fair Value, Gross Amount Not Offset in the Consolidated Balance Sheets | (512) | (440) | ||
Derivative Liabilities, Collateral, Gross Amount Not Offset in the Consolidated Balance Sheets | (173) | [3] | (293) | [4] |
Derivative Liabilities, Net Amount | $ 253 | $ 310 | ||
[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 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. | |||
[3] | 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 Consolidated Balance Sheets were excluded from this table. | |||
[4] | 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 Consolidated Balance Sheets were excluded from this table. |
Components of Other Assets Incl
Components of Other Assets Included in the Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Prepaid Expense and Other Assets [Abstract] | |||
Derivative instruments | $ 1,852 | $ 2,080 | |
Partnership investments | 1,756 | 1,685 | |
Bank owned life insurance | 1,651 | 1,623 | |
Accounts receivable and drafts-in-process | 1,653 | 1,452 | |
Investment in Vantiv Holding, LLC | 360 | 394 | |
Accrued interest receivable | 329 | 312 | |
OREO and other repossessed personal property | 155 | 236 | |
Income tax receivable | 107 | ||
Prepaid expenses | 101 | 97 | |
Other | 142 | 255 | |
Total | [1] | $ 7,999 | $ 8,241 |
[1] | Includes $152 and $179 of cash and due from banks, $2,537 and $3,378 of portfolio loans and leases, $(28) and $(22) of ALLL, $20 and $25 of other assets, $3 and $5 of other liabilities and $2,493 and $3,434 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2015 and 2014, respectively. For further information, refer to Note 11. |
Other Assets - Additional Infor
Other Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Dec. 31, 2013 | Jun. 30, 2014 | [1] | Sep. 30, 2013 | [1] | Jun. 30, 2013 | [1] | Dec. 31, 2012 | [1] | Mar. 31, 2012 | Jun. 30, 2009 | ||
Other assets | |||||||||||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | ||||||||||||
Private Equity Fund Impairment | $ 1 | $ 4 | |||||||||||
Vantiv Holding, LLC | |||||||||||||
Other assets | |||||||||||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | ||||||||||||
Percentage of ownership under the equity method of accounting | 18.00% | [1] | 23.00% | 25.00% | 28.00% | 33.00% | 39.00% | 49.00% | |||||
[1] | The Bancorp’s remaining investment in Vantiv Holding, LLC of $360 as of December 31, 2015 was accounted for as an equity method investment in the Bancorp’s Consolidated Financial Statements. |
Summary of Short-Term Borrowing
Summary of Short-Term Borrowings and Weighted-Average Rates (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Short Term Debt [Line Items] | ||
Federal funds purchased | $ 151 | $ 144 |
Other short-term borrowings | 1,507 | 1,556 |
Federal Funds Purchased | ||
Short Term Debt [Line Items] | ||
Federal funds purchased | 151 | 144 |
Short-term borrowings, average | 920 | 458 |
Short-term borrowings, maximum month-end balance | $ 200 | $ 286 |
Short-term borrowngs, rate | 0.30% | 0.08% |
Short-term borrowings, average rate | 0.13% | 0.09% |
Other Short Term Borrowings | ||
Short Term Debt [Line Items] | ||
Other short-term borrowings | $ 1,507 | $ 1,556 |
Short-term borrowings, average | 1,721 | 1,873 |
Short-term borrowings, maximum month-end balance | $ 4,904 | $ 3,756 |
Short-term borrowngs, rate | 0.11% | 0.08% |
Short-term borrowings, average rate | 0.12% | 0.10% |
Components of Other Short-Term
Components of Other Short-Term Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Short Term Debt [Table] [Abstract] | ||
Securities sold under repurchase agreements | $ 925 | $ 995 |
Derivative collateral | 582 | 561 |
Total other short-term borrowings | $ 1,507 | $ 1,556 |
Securities Sold Under Repurchas
Securities Sold Under Repurchase Agreements By Collateral Type (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Short Term Debt [Line Items] | ||
Securities sold under repurchase agreements | $ 925 | $ 995 |
Overnight maturity | U.S. Treasury and federal agencies | ||
Short Term Debt [Line Items] | ||
Securities sold under repurchase agreements | 279 | 99 |
Overnight maturity | Agency mortgage-backed securities | Residential mortgage backed securities | ||
Short Term Debt [Line Items] | ||
Securities sold under repurchase agreements | $ 646 | $ 896 |
Summary of the Bancorp's Long-T
Summary of the Bancorp's Long-Term Borrowings (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | |||
Long-term debt | [1] | $ 15,844 | $ 14,967 |
Variable Interest Entity, Primary Beneficiary | |||
Debt Instrument [Line Items] | |||
Long-term debt | 2,493 | 3,434 | |
Parent Company Only | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 6,474 | ||
Parent Company Only | Senior Debt Obligations | Fixed Rate 3.625 Percent Notes Due 2016 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | Jan. 25, 2011 | ||
Maturity date(s) End | Jan. 25, 2016 | ||
Interest rate | 3.625% | ||
Long-term debt | $ 1,000 | 1,000 | |
Parent Company Only | Senior Debt Obligations | Fixed Rate 2.30 Percent Notes Due 2019 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | Feb. 28, 2014 | ||
Maturity date(s) End | Mar. 1, 2019 | ||
Interest rate | 2.30% | ||
Long-term debt | $ 500 | 499 | |
Parent Company Only | Senior Debt Obligations | Fixed Rate 3.50 Percent Due 2022 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | Mar. 7, 2012 | ||
Maturity date(s) End | Mar. 15, 2022 | ||
Interest rate | 3.50% | ||
Long-term debt | $ 498 | 497 | |
Parent Company Only | Senior Debt Obligations | Fixed Rate 2.875 Percent Due 2020 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | Jul. 29, 2015 | ||
Maturity date(s) End | Jul. 27, 2020 | ||
Interest rate | 2.88% | ||
Long-term debt | $ 1,099 | ||
Parent Company Only | Subordinated debt | Fixed Rate 5.45 Percent Notes Due 2017 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | [2] | Dec. 20, 2006 | |
Maturity date(s) End | [2] | Jan. 15, 2017 | |
Interest rate | [2] | 5.45% | |
Long-term debt | [2] | $ 520 | 539 |
Parent Company Only | Subordinated debt | Fixed Rate 4.50 Percent Notes Due 2018 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | [2] | May 23, 2003 | |
Maturity date(s) End | [2] | Jun. 1, 2018 | |
Interest rate | [2] | 4.50% | |
Long-term debt | [2] | $ 532 | 544 |
Parent Company Only | Subordinated debt | Fixed Rate 4.30 Notes Due 2024 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | [2] | Nov. 18, 2013 | |
Maturity date(s) End | [2] | Jan. 16, 2024 | |
Interest rate | [2] | 4.30% | |
Long-term debt | [2] | $ 748 | 748 |
Parent Company Only | Subordinated debt | Fixed Rate 8.25 Percent Notes Due 2038 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | [2] | Mar. 4, 2008 | |
Maturity date(s) End | [2] | Mar. 1, 2038 | |
Interest rate | [2] | 8.25% | |
Long-term debt | [2] | $ 1,327 | 1,317 |
Parent Company Only | Subordinated debt | Floating Rate 0.99 Percent Notes Due 2016 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | [2],[3] | Dec. 13, 2006 | |
Maturity date(s) End | [2],[3] | Dec. 20, 2016 | |
Variable interest rate | [2],[3] | 0.99% | |
Long-term debt | [2],[3] | $ 250 | 250 |
Subsidiaries | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 9,370 | ||
Subsidiaries | Debt Other Variable Percent Due 2016 Through 2039 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | Jan. 1, 2016 | ||
Maturity date(s) End | Dec. 31, 2039 | ||
Long-term debt | $ 144 | 148 | |
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Automobile Loans | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | Jan. 1, 2016 | ||
Maturity date(s) End | Dec. 31, 2022 | ||
Long-term debt | [3] | $ 2,493 | 3,434 |
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Automobile Loans | Lower limit | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.43% | ||
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.15 Percent Notes Due 2016 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | Nov. 18, 2013 | ||
Maturity date(s) End | Nov. 18, 2016 | ||
Interest rate | 1.15% | ||
Long-term debt | $ 1,000 | 1,000 | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 0.90 Percent Notes Due 2016 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | Feb. 28, 2013 | ||
Maturity date(s) End | Feb. 26, 2016 | ||
Interest rate | 0.90% | ||
Long-term debt | $ 400 | 400 | |
Subsidiaries | Senior Debt Obligations | Fixed rate 1.35 percent notes due 2017 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | Apr. 25, 2014 | ||
Maturity date(s) End | Jun. 1, 2017 | ||
Interest rate | 1.35% | ||
Long-term debt | $ 652 | 654 | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.45 Percent Notes Due 2018 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | Feb. 28, 2013 | ||
Maturity date(s) End | Feb. 28, 2018 | ||
Interest rate | 1.45% | ||
Long-term debt | $ 598 | 597 | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.375 Percent Notes Due 2019 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | Apr. 25, 2014 | ||
Maturity date(s) End | Apr. 25, 2019 | ||
Interest rate | 2.375% | ||
Long-term debt | $ 850 | 850 | |
Subsidiaries | Senior Debt Obligations | Fixed rate 2.875 percent notes due 2021 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | Sep. 5, 2014 | ||
Maturity date(s) End | Oct. 1, 2021 | ||
Interest rate | 2.875% | ||
Long-term debt | $ 846 | 846 | |
Subsidiaries | Senior Debt Obligations | Floating Rate 0.87 Percent Notes Due 2016 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | [3] | Nov. 18, 2013 | |
Maturity date(s) End | [3] | Nov. 18, 2016 | |
Variable interest rate | [3] | 0.87% | |
Long-term debt | [3] | $ 750 | 750 |
Subsidiaries | Senior Debt Obligations | Floating Rate 0.82 Percent Notes Due 2016 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | [3] | Feb. 28, 2013 | |
Maturity date(s) End | [3] | Feb. 26, 2016 | |
Variable interest rate | [3] | 0.82% | |
Long-term debt | [3] | $ 300 | 300 |
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.15 Percent Notes Due 2018 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | Aug. 17, 2015 | ||
Maturity date(s) End | Aug. 20, 2018 | ||
Interest rate | 2.15% | ||
Long-term debt | $ 998 | ||
Subsidiaries | Senior Debt Obligations | Floating Rate 1.28 Percent Notes Due 2018 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | [3] | Aug. 17, 2015 | |
Maturity date(s) End | [3] | Aug. 20, 2018 | |
Variable interest rate | [3] | 1.28% | |
Long-term debt | [3] | $ 250 | |
Subsidiaries | Subordinated debt | Fixed Rate 4.75 Percent Bank Notes Due 2015 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | [2] | Jan. 31, 2005 | |
Maturity date(s) End | [2] | Feb. 1, 2015 | |
Interest rate | [2] | 4.75% | |
Long-term debt | [2] | 502 | |
Subsidiaries | Junior subordinated debt | Floating Rate 1.66% - 1.93% Debentures Due 2035 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | [3],[4] | Jun. 28, 2005 | |
Maturity date(s) End | [3],[4] | Dec. 15, 2035 | |
Long-term debt | [3],[4] | $ 52 | 51 |
Subsidiaries | Junior subordinated debt | Floating Rate 1.66% - 1.93% Debentures Due 2035 | Lower limit | |||
Debt Instrument [Line Items] | |||
Variable interest rate | [3],[4] | 1.93% | |
Subsidiaries | Junior subordinated debt | Floating Rate 1.66% - 1.93% Debentures Due 2035 | Upper Limit | |||
Debt Instrument [Line Items] | |||
Variable interest rate | 2.20% | ||
Subsidiaries | Federal Home Loan Bank Advances 0.05 To 6.87 Percent Due 2015 Through 2041 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 37 | $ 41 | |
Subsidiaries | Federal Home Loan Bank Advances 0.05 To 6.87 Percent Due 2015 Through 2041 | FHLB Rate 0.05 To 6.87 Percent Debentures Due 2014 And 2041 | |||
Debt Instrument [Line Items] | |||
Maturity date(s) Start | Jan. 1, 2016 | ||
Maturity date(s) End | Dec. 31, 2041 | ||
Subsidiaries | Federal Home Loan Bank Advances 0.05 To 6.87 Percent Due 2015 Through 2041 | FHLB Rate 0.05 To 6.87 Percent Debentures Due 2014 And 2041 | Lower limit | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.05% | ||
Subsidiaries | Federal Home Loan Bank Advances 0.05 To 6.87 Percent Due 2015 Through 2041 | FHLB Rate 0.05 To 6.87 Percent Debentures Due 2014 And 2041 | Upper Limit | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.87% | ||
[1] | Includes $152 and $179 of cash and due from banks, $2,537 and $3,378 of portfolio loans and leases, $(28) and $(22) of ALLL, $20 and $25 of other assets, $3 and $5 of other liabilities and $2,493 and $3,434 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2015 and 2014, respectively. For further information, refer to Note 11. | ||
[2] | Qualifies as Tier II capital for regulatory capital purposes. | ||
[3] | These rates reflect the floating rates as of December 31, 2015. | ||
[4] | Under the Basel III Final Rule transition provisions, $13 million qualifies as Tier I capital as of December 31, 2015 while the remaining amount qualifies as Tier II capital. The entire amount qualified as Tier I capital as of December 31, 2014. Refer to Note 28 for further information |
Schedule of Aggregate Maturitie
Schedule of Aggregate Maturities of Long-Term Debt Obligations (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Contractually obligated payments for long-term debt due in 2016 | $ 3,844 | ||
Contractually obligated payments for long-term debt due in 2017 | 1,474 | ||
Contractually obligated payments for long-term debt due in 2018 | 3,339 | ||
Contractually obligated payments for long-term debt due in 2019 | 1,721 | ||
Contractually obligated payments for long-term debt due in 2020 | 1,763 | ||
Thereafter | 3,703 | ||
Total | [1] | 15,844 | $ 14,967 |
Parent Company Only | |||
Debt Instrument [Line Items] | |||
Contractually obligated payments for long-term debt due in 2016 | 1,250 | ||
Contractually obligated payments for long-term debt due in 2017 | 520 | ||
Contractually obligated payments for long-term debt due in 2018 | 532 | ||
Contractually obligated payments for long-term debt due in 2019 | 500 | ||
Contractually obligated payments for long-term debt due in 2020 | 1,099 | ||
Thereafter | 2,573 | ||
Total | 6,474 | ||
Subsidiaries | |||
Debt Instrument [Line Items] | |||
Contractually obligated payments for long-term debt due in 2016 | 2,594 | ||
Contractually obligated payments for long-term debt due in 2017 | 954 | ||
Contractually obligated payments for long-term debt due in 2018 | 2,807 | ||
Contractually obligated payments for long-term debt due in 2019 | 1,221 | ||
Contractually obligated payments for long-term debt due in 2020 | 664 | ||
Thereafter | 1,130 | ||
Total | $ 9,370 | ||
[1] | Includes $152 and $179 of cash and due from banks, $2,537 and $3,378 of portfolio loans and leases, $(28) and $(22) of ALLL, $20 and $25 of other assets, $3 and $5 of other liabilities and $2,493 and $3,434 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2015 and 2014, respectively. For further information, refer to Note 11. |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Debt Instrument [Line Items] | ||||||
Long-term debt | [1] | $ 15,844 | $ 14,967 | |||
Debt, outstanding principal balance | 15,500 | 14,600 | ||||
Debt, discounts and premiums | 24 | 25 | ||||
Additions for mark-to-market adjustments on hedged debt | 382 | 407 | ||||
Parent Company Only | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 6,474 | |||||
Parent Company Only | Senior Debt Obligations | Fixed Rate 3.625 Percent Notes Due 2016 | ||||||
Debt Instrument [Line Items] | ||||||
Issue of senior notes to third party investors | $ 1,000 | |||||
Parent Company Only | Senior Debt Obligations | Fixed Rate 2.30 Percent Notes Due 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 500 | 499 | ||||
Issue of senior notes to third party investors | 500 | |||||
Debt Instrument Maturity Date Range Start | Feb. 28, 2014 | |||||
Debt Instrument Maturity Date Range End | Mar. 1, 2019 | |||||
Parent Company Only | Senior Debt Obligations | Fixed Rate 3.50 Percent Notes Due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Issue of senior notes to third party investors | $ 500 | |||||
Parent Company Only | Subordinated debt | Floating Rate 0.67 Percent Notes Due 2016 | Three Month LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis points | 42 | |||||
Parent Company Only | Subordinated debt | Fixed Rate 5.45 Percent Notes Due 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | [2] | $ 520 | 539 | |||
Debt Instrument Maturity Date Range Start | [2] | Dec. 20, 2006 | ||||
Debt Instrument Maturity Date Range End | [2] | Jan. 15, 2017 | ||||
Interest rate paid | 0.78% | |||||
Parent Company Only | Subordinated debt | Fixed Rate 5.45 Percent Notes Due 2017 | Three Month LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis points | 42 | |||||
Parent Company Only | Subordinated debt | Fixed Rate 4.50 Percent Notes Due 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | [2] | $ 532 | 544 | |||
Debt Instrument Maturity Date Range Start | [2] | May 23, 2003 | ||||
Debt Instrument Maturity Date Range End | [2] | Jun. 1, 2018 | ||||
Interest rate paid | 0.66% | |||||
Parent Company Only | Subordinated debt | Fixed Rate 4.50 Percent Notes Due 2018 | Three Month LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis points | 25 | |||||
Parent Company Only | Subordinated debt | Fixed Rate 4.30 Notes Due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | [2] | $ 748 | 748 | |||
Issue of senior notes to third party investors | 750 | |||||
Debt Instrument Maturity Date Range Start | [2] | Nov. 18, 2013 | ||||
Debt Instrument Maturity Date Range End | [2] | Jan. 16, 2024 | ||||
Parent Company Only | Subordinated debt | Fixed Rate 8.25 Percent Notes Due 2038 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | [2] | $ 1,327 | 1,317 | |||
Issue of senior notes to third party investors | $ 1,000 | |||||
Debt Instrument Maturity Date Range Start | [2] | Mar. 4, 2008 | ||||
Debt Instrument Maturity Date Range End | [2] | Mar. 1, 2038 | ||||
Amount of debt converted to floating rate | $ 705 | |||||
Interest rate paid | 3.46% | |||||
Subsidiaries | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 9,370 | |||||
Debt, available for future issuance | 18,400 | |||||
Global Bank Note Program | 25,000 | 20,000 | ||||
Subsidiaries | Federal Home Loan Bank Advances 0.05 To 6.87 Percent Due 2015 Through 2041 | ||||||
Debt Instrument [Line Items] | ||||||
Residential mortgage loans and securities serving as FHLB collateral | 17,300 | |||||
FHLB advance | 37 | |||||
FHLB advances maturing 2016 | 2 | |||||
FHLB advances maturing 2017 | 1 | |||||
FHLB advances maturing 2018 | 4 | |||||
FHLB advances maturing 2019 | 9 | |||||
FHLB advances maturing 2020 | 4 | |||||
FHLB advances maturing thereafter | 17 | |||||
Subsidiaries | Senior Debt Obligations | ||||||
Debt Instrument [Line Items] | ||||||
Issue of senior notes to third party investors | 1,500 | |||||
Subsidiaries | Senior Debt Obligations | First Charter Capital Trust I | ||||||
Debt Instrument [Line Items] | ||||||
Issue of senior notes to third party investors | $ 1,300 | |||||
Subsidiaries | Senior Debt Obligations | First Charter Capital Trust II | ||||||
Debt Instrument [Line Items] | ||||||
Issue of senior notes to third party investors | 1,800 | |||||
Subsidiaries | Senior Debt Obligations | Floating Rate 0.67 Percent Notes Due 2016 | ||||||
Debt Instrument [Line Items] | ||||||
Issue of senior notes to third party investors | 300 | |||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.15 Percent Notes Due 2016 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 1,000 | 1,000 | ||||
Issue of senior notes to third party investors | 1,000 | |||||
Debt Instrument Maturity Date Range Start | Nov. 18, 2013 | |||||
Debt Instrument Maturity Date Range End | Nov. 18, 2016 | |||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 0.90 Percent Notes Due 2016 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 400 | 400 | ||||
Issue of senior notes to third party investors | 400 | |||||
Debt Instrument Maturity Date Range Start | Feb. 28, 2013 | |||||
Debt Instrument Maturity Date Range End | Feb. 26, 2016 | |||||
Subsidiaries | Senior Debt Obligations | Floating Rate 0.74 Percent Notes Due 2016 | ||||||
Debt Instrument [Line Items] | ||||||
Issue of senior notes to third party investors | 750 | |||||
Subsidiaries | Senior Debt Obligations | Floating Rate 0.74 Percent Notes Due 2016 | Three Month LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis points | 51 41 | |||||
Subsidiaries | Senior Debt Obligations | Fixed rate 1.35 percent notes due 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 652 | 654 | ||||
Issue of senior notes to third party investors | 650 | |||||
Debt Instrument Maturity Date Range Start | Apr. 25, 2014 | |||||
Debt Instrument Maturity Date Range End | Jun. 1, 2017 | |||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.45 Percent Notes Due 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 598 | 597 | ||||
Issue of senior notes to third party investors | $ 600 | |||||
Debt Instrument Maturity Date Range Start | Feb. 28, 2013 | |||||
Debt Instrument Maturity Date Range End | Feb. 28, 2018 | |||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.375 Percent Notes Due 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 850 | 850 | ||||
Issue of senior notes to third party investors | 850 | |||||
Debt Instrument Maturity Date Range Start | Apr. 25, 2014 | |||||
Debt Instrument Maturity Date Range End | Apr. 25, 2019 | |||||
Subsidiaries | Senior Debt Obligations | Fixed rate 2.875 percent notes due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 846 | 846 | ||||
Issue of senior notes to third party investors | 850 | |||||
Debt Instrument Maturity Date Range Start | Sep. 5, 2014 | |||||
Debt Instrument Maturity Date Range End | Oct. 1, 2021 | |||||
Subsidiaries | Subordinated debt | Fixed Rate 4.75 Percent Bank Notes Due 2015 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | [2] | $ 502 | ||||
Debt Instrument Maturity Date Range Start | [2] | Jan. 31, 2005 | ||||
Debt Instrument Maturity Date Range End | [2] | Feb. 1, 2015 | ||||
Subsidiaries | Junior subordinated debt | Floating Rate 224 Percent Bank Notes Due 2035 | Three Month LIBOR | First Charter Capital Trust I | ||||||
Debt Instrument [Line Items] | ||||||
Basis points | 169 | |||||
Subsidiaries | Junior subordinated debt | Floating Rate 224 Percent Bank Notes Due 2035 | Three Month LIBOR | First Charter Capital Trust II | ||||||
Debt Instrument [Line Items] | ||||||
Basis points | 142 | |||||
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Automobile Loans | ||||||
Debt Instrument [Line Items] | ||||||
Debt, outstanding principal balance | $ 2,500 | |||||
[1] | Includes $152 and $179 of cash and due from banks, $2,537 and $3,378 of portfolio loans and leases, $(28) and $(22) of ALLL, $20 and $25 of other assets, $3 and $5 of other liabilities and $2,493 and $3,434 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2015 and 2014, respectively. For further information, refer to Note 11. | |||||
[2] | Qualifies as Tier II capital for regulatory capital purposes. |
Summary of Significant Commitme
Summary of Significant Commitments (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments to Extend Credit | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | $ 66,884 | $ 63,827 |
Letters of Credit | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | 3,055 | 3,974 |
Forward Contracts Related to Held for Sale Residential Mortgage Loans | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | 1,330 | 999 |
Noncancelable Operating Lease Obligations | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | 635 | 697 |
Capital Commitments for Private Equity Investments | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | 60 | 78 |
Purchase Obligations | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | 60 | 77 |
Capital Expenditures | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | 30 | 28 |
Capital Lease Obligations | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | $ 27 | $ 37 |
Risk Rating Under the Risk Rati
Risk Rating Under the Risk Rating System (Detail) - Commitments to Extend Credit - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | ||
Commitments | $ 66,884 | $ 63,827 |
Pass | ||
Line of Credit Facility [Line Items] | ||
Commitments | 65,645 | 62,787 |
Special Mention | ||
Line of Credit Facility [Line Items] | ||
Commitments | 647 | 660 |
Substandard | ||
Line of Credit Facility [Line Items] | ||
Commitments | $ 592 | $ 380 |
Commitments, Contingent Liab145
Commitments, Contingent Liabilities and Guarantees - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2012 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2010 | Jun. 30, 2010 | Dec. 31, 2009 | |||
Loss Contingencies [Line Items] | |||||||||||||
Letters of Credit | $ 3,055 | $ 3,974 | |||||||||||
Total Variable Rate Demand Notes | 1,300 | 1,700 | |||||||||||
Margin account balance held by the brokerage clearing agent | 10 | 13 | |||||||||||
Repurchase Claim Settlement | $ 25 | ||||||||||||
Amount in excess of amounts reserved | 37 | ||||||||||||
Credit loss reserve | 1,272 | [1] | 1,322 | [1] | 1,582 | $ 1,854 | |||||||
Residential Mortgage | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Amount in excess of amounts reserved | 27 | ||||||||||||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | 25 | 35 | $ 44 | ||||||||||
Outstanding balances on residential mortgage loans sold with credit recourse | $ 465 | $ 548 | |||||||||||
Delinquency Rates | 3.00% | 4.00% | |||||||||||
Credit loss reserve | $ 9 | $ 11 | |||||||||||
Make Whole Payments | 2 | 11 | |||||||||||
Repurchased Outstanding Principal | 74 | 59 | |||||||||||
Repurchase Demand Request | 75 | 97 | |||||||||||
Outstanding Repurchase Demand Inventory | 4 | 7 | |||||||||||
Secured Debt | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Fully and unconditionally guaranteed certain long-term borrowing obligations issued by wholly-owned issuing trust entities | $ 62 | 62 | |||||||||||
Standby Letters of Credit | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Reserve for unfunded commitments | $ 1 | ||||||||||||
Standby letters of credit as a percentage of total letters of credit | 99.00% | 97.00% | |||||||||||
Standby Letters of Credit | Secured Debt | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Standby letters of credit as a percentage of total letters of credit | 65.00% | 60.00% | |||||||||||
Variable Rate Demand Note | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Fifth Third Securities, Inc. (FTS) acted as the remarketing agent to issuers of VRDNs | $ 1,100 | $ 1,400 | |||||||||||
Letters of Credit | 187 | 247 | |||||||||||
Letters Credit Issued Related Variable Rate Demand Notes | 921 | 1,200 | |||||||||||
Other Liabilities | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Reserve for unfunded commitments | 138 | 135 | |||||||||||
Other Liabilities | Residential Mortgage | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | 25 | 35 | |||||||||||
Private Mortgage Reinsurance | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Total outstanding reinsurance coverage | 27 | 29 | |||||||||||
Approximate reserve related to exposures within the reinsurance portfolio | $ 2 | 2 | |||||||||||
Private Mortgage Reinsurance | Lower limit | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Reinsurance coverage ranges of the total PMI coverage | 5.00% | ||||||||||||
Private Mortgage Reinsurance | Upper Limit | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Reinsurance coverage ranges of the total PMI coverage | 10.00% | ||||||||||||
Visa Litigation | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Recorded share of litigation formally settled by Visa and for probable future litigation settlements | $ 61 | $ 49 | |||||||||||
Visa deposited into the litigation escrow account | $ 3 | ||||||||||||
Visa | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Visa IPO, shares of Visa's Class B common stock received | 10.1 | ||||||||||||
Visa deposited into the litigation escrow account | $ 450 | $ 150 | $ 1,565 | $ 400 | $ 800 | $ 500 | |||||||
[1] | Includes $152 and $179 of cash and due from banks, $2,537 and $3,378 of portfolio loans and leases, $(28) and $(22) of ALLL, $20 and $25 of other assets, $3 and $5 of other liabilities and $2,493 and $3,434 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2015 and 2014, respectively. For further information, refer to Note 11. |
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) - Letters of Credit $ in Millions | Dec. 31, 2015USD ($) | |
Line of Credit Facility [Line Items] | ||
Commitments | $ 3,055 | |
Less Than One Year From The Balance Sheet Date | ||
Line of Credit Facility [Line Items] | ||
Commitments | 1,700 | [1] |
More Than One And Within Five Years From Balance Sheet Date [Member] | ||
Line of Credit Facility [Line Items] | ||
Commitments | 1,301 | [1] |
More Than Five Years From Balance Sheet Date And Thereafter1 [Member] | ||
Line of Credit Facility [Line Items] | ||
Commitments | $ 54 | |
[1] | Includes $28 and $15 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 and 5 years, respectively. |
Standby and Commercial Lette147
Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party (Parenthetical) (Detail) - Letters of Credit $ in Millions | Dec. 31, 2015USD ($) | |
Line of Credit Facility [Line Items] | ||
Commitments | $ 3,055 | |
One Year From Balance Sheet Date | Commercial | Commercial customers to facilitate trade payments in U.S. dollars and foreign currencies | ||
Line of Credit Facility [Line Items] | ||
Commitments | 28 | |
More than One and within Five Years from Balance Sheet Date | ||
Line of Credit Facility [Line Items] | ||
Commitments | 1,301 | [1] |
More than One and within Five Years from Balance Sheet Date | Commercial | Commercial customers to facilitate trade payments in U.S. dollars and foreign currencies | ||
Line of Credit Facility [Line Items] | ||
Commitments | $ 15 | |
[1] | Includes $28 and $15 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 and 5 years, respectively. |
Letters of Credit (Detail)
Letters of Credit (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Line Of Credit | $ 3,055 | $ 3,974 |
Pass | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Line Of Credit | 2,606 | 3,483 |
Special Mention | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Line Of Credit | 130 | 147 |
Substandard | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Line Of Credit | 258 | 299 |
Doubtful | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Line Of Credit | $ 61 | $ 45 |
Activity in Reserve for Represe
Activity in Reserve for Representation and Warranty Provisions (Detail) - Residential Mortgage - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Balance, beginning of period | $ 35 | $ 44 |
Net additions to the reserve | (3) | 6 |
Losses charged against the reserve | (7) | (15) |
Balance, end of period | $ 25 | $ 35 |
Unresolved Claims by Claimant (
Unresolved Claims by Claimant (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2008 | |
Loss Contingencies Units | |||
Resolved claims | 2 | ||
GSE | |||
Loss Contingencies Dollars | |||
Balance, beginning of period | $ 6 | $ 41 | |
New demands | 33 | 95 | |
Loan paydowns/payoffs | (2) | (5) | |
Resolved claims | (33) | (125) | |
Balance, end of period | $ 4 | $ 6 | |
Loss Contingencies Units | |||
Balance, beginning of period | 37 | 264 | |
New demands | 436 | 744 | |
Loan paydowns/payoffs | (29) | (44) | |
Resolved claims | (428) | (927) | |
Balance, end of period | 16 | 37 | |
Private Label | |||
Loss Contingencies Dollars | |||
Balance, beginning of period | $ 1 | $ 5 | |
New demands | 42 | 2 | |
Loan paydowns/payoffs | (1) | ||
Resolved claims | $ (43) | (5) | |
Balance, end of period | $ 1 | ||
Loss Contingencies Units | |||
Balance, beginning of period | 1 | 33 | |
New demands | 261 | 14 | |
Loan paydowns/payoffs | (2) | ||
Resolved claims | (260) | (44) | |
Balance, end of period | 2 | 1 |
Visa Funding and Bancorp Cash P
Visa Funding and Bancorp Cash Payments (Detail) - USD ($) $ in Millions | 3 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2010 | Jun. 30, 2010 | |
Visa Funding | ||||||
Loss Contingencies [Line Items] | ||||||
Visa deposited into the litigation escrow account | $ 450 | $ 150 | $ 1,565 | $ 400 | $ 800 | $ 500 |
Bancorp Cash Payment | ||||||
Loss Contingencies [Line Items] | ||||||
Reduction of liability in cash to the swap counterparty | $ 18 | $ 6 | $ 75 | $ 19 | $ 35 | $ 20 |
Legal and Regulatory Proceed152
Legal and Regulatory Proceedings - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2008 | Mar. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Loss Contingencies [Line Items] | ||||
Number of alleging violations of ERISA that were dismissed | 2 | |||
Percentage of funds returned to defendants | 25.00% | |||
Class Settlement Escrow | $ 46,000 | |||
Non Class Action Escrow | $ 4,000 | |||
Amount in excess of amounts reserved | $ 37,000 | |||
Federal Lawsuits | ||||
Loss Contingencies [Line Items] | ||||
Number of merchants | 460 | |||
State Lawsuits | ||||
Loss Contingencies [Line Items] | ||||
Number of merchants | 1 | |||
Merchants requesting exclusion from class settlement | ||||
Loss Contingencies [Line Items] | ||||
Number of merchants | 8,000 | |||
Amount Owed to Consumers | Bancorp's debt protection credit card "add-on" product for those enrolled in product from January 1, 2007 through November 11, 2013 | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency | $ 3,000 | |||
Total amount owed to the CFPB and consumers | Bancorp's debt protection credit card "add-on" product for those enrolled in product from January 1, 2007 through November 11, 2013 | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency | 3,500 | |||
Consumer Financial Protection Bureau And Department Of Justice | Bancorp's debt protection credit card "add-on" product for those enrolled in product from January 1, 2007 through November 11, 2013 | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency | 500 | |||
Consumer Financial Protection Bureau And Department Of Justice | Bancorp's Indirect Automobile Loan Portfolio | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency | 18,000 | |||
Consumer Financial Protection Bureau And Department Of Justice | Bancorp's Indirect Automobile Loan Portfolio | Upper Limit | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency Redemption | 6,000 | |||
Consumer Financial Protection Bureau And Department Of Justice | Bancorp's Indirect Automobile Loan Portfolio | Lower limit | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency Redemption | $ 5,000 | |||
Department Of Housing And Urban Development | ||||
Loss Contingencies [Line Items] | ||||
Number Of Loans Bancorp Agreed To Pay Hud For Any Losses | 900 | |||
Number Of Loans Bancorp Voluntarily Disclosed As Eligible For FHA Insurance which were later determined to be ineligible for such insurance | 1,400 | |||
Department Of Housing And Urban Development | Amount owed to HUD to cover losses on paid FHA insurance claims | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency | $ 85,000 | |||
Number Of Loans With Expected Losses | 500 | |||
Department Of Housing And Urban Development | Amount owed to HUD for stipulation and order of settlement and dismissal with DOJ and HUD | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency | $ 2,000 |
Summary of the Bancorp's Activi
Summary of the Bancorp's Activities with its Principal Shareholders, Directors and Executives (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
Outstanding balance on loans, net of participations and undrawn commitments | $ 97 | $ 63 |
Commitments to Extend Credit | ||
Related Party Transaction [Line Items] | ||
Commitments to Extend Credit | 66,884 | 63,827 |
Commitments to Extend Credit | Due to related party | ||
Related Party Transaction [Line Items] | ||
Commitments to Extend Credit | 836 | 528 |
Commitments to Extend Credit | Director | Due to related party | ||
Related Party Transaction [Line Items] | ||
Commitments to Extend Credit | 831 | 525 |
Commitments to Extend Credit | Executive Officer | Due to related party | ||
Related Party Transaction [Line Items] | ||
Commitments to Extend Credit | $ 5 | $ 3 |
Summary of Vantiv Holding, LLC
Summary of Vantiv Holding, LLC Sales Transactions (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2015 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2009 | |||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Gain on sale of Vantiv, Inc. shares | $ 331 | $ 125 | $ 327 | |||||||||||||
Vantiv Holding, LLC | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Percentage Of Vantiv Holding, LLC Sold | 5.00% | 3.00% | 3.00% | 5.00% | 6.00% | 5.00% | ||||||||||
Gain on sale of Vantiv, Inc. shares | $ 331 | $ 125 | $ 85 | $ 242 | $ 157 | $ 115 | $ 331 | |||||||||
Equity Method Investment, Ownership Percentage | 18.00% | [1] | 23.00% | [1] | 25.00% | [1] | 28.00% | [1] | 33.00% | [1] | 39.00% | 18.00% | [1] | 49.00% | ||
[1] | The Bancorp’s remaining investment in Vantiv Holding, LLC of $360 as of December 31, 2015 was accounted for as an equity method investment in the Bancorp’s Consolidated Financial Statements. |
Summary of Vantiv Holding, L155
Summary of Vantiv Holding, LLC Sales Transactions (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Equity Method Investment Summarized Financia lInformation [Abstract] | ||
Vantiv Holding, LLC Carrying Value | $ 360 | $ 394 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2015 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | Jun. 30, 2009 | |||||||
Related Party Transactions | |||||||||||||||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | ||||||||||||||||
Gain on sale of Vantiv, Inc. shares | $ 331 | $ 125 | $ 327 | ||||||||||||||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 4 | 5 | 7 | ||||||||||||||
Loans to related parties | $ 97 | 97 | 63 | ||||||||||||||
Letters of Credit | 3,055 | 3,055 | 3,974 | ||||||||||||||
Taxable Receivable Agreement Payment | 31 | 23 | 9 | ||||||||||||||
Equity investments, carrying value | $ 360 | $ 360 | 394 | ||||||||||||||
Vantiv Holding, LLC | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | ||||||||||||||||
Equity Method Investment, Ownership Percentage | 18.00% | [1] | 23.00% | [1] | 25.00% | [1] | 28.00% | [1] | 33.00% | [1] | 39.00% | 18.00% | [1] | 49.00% | |||
Gain on sale of Vantiv, Inc. shares | $ 331 | $ 125 | $ 85 | $ 242 | $ 157 | $ 115 | $ 331 | ||||||||||
Dividend on Equity method investment in Vantiv Holding, LLC | 11 | 23 | 40 | ||||||||||||||
Service fee paid to Vantiv Holding, LLC | 89 | 83 | 88 | ||||||||||||||
Outstanding balance of loans owed to the Bancorp from Vantiv Holding, LLC | $ 1,250 | ||||||||||||||||
Loans to related parties | 191 | 191 | 204 | ||||||||||||||
Interest income relating to the Vantiv Holding, LLC loans | 4 | 5 | 7 | ||||||||||||||
Letters of Credit | $ 46 | $ 46 | 50 | ||||||||||||||
Cancellation Of Rights To Purchase Class C Units Under Warrant | 4,800,000 | 4,800,000 | |||||||||||||||
Cash Payment For Cancellation Of Warrant | $ 200 | $ 200 | |||||||||||||||
Investment Warrants Exercise Price | $ 15.98 | ||||||||||||||||
Class B Units Exchanged For Class A Units | 8,000,000 | 8,000,000 | |||||||||||||||
Vantiv Holding, LLC | Other Noninterest Income | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | $ 63 | 48 | 77 | ||||||||||||||
Vantiv Holding, LLC | During Deconversion Period | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Revenue From Related Parties | 1 | 1 | 1 | ||||||||||||||
Vantiv Holding, LLC | Beyond Deconversion Period | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Revenue From Related Parties | $ 47 | 44 | 34 | ||||||||||||||
Vantiv Holding, LLC | Class B Units | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Balance held at close of period in number of shares | 35,000,000 | 35,000,000 | |||||||||||||||
Vantiv Holding, LLC | Class C Units | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Shares Exercised Underlying Warrant | 7,800,000 | 7,800,000 | |||||||||||||||
Warrant Exercised Total Shares Settled | 5,400,000 | 5,400,000 | |||||||||||||||
Aggregate amount of each class of warrants or rights outstanding | 7,800,000 | 7,800,000 | |||||||||||||||
Vantiv Holding, LLC | Class A Units | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Proceeds From Warrant Exercises | $ 89 | ||||||||||||||||
Vantiv, Inc. | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Voting Power In Vantiv | 18.50% | 18.50% | |||||||||||||||
Gain On Tax Receivable Agreement Termination And Settlement | $ 49 | $ 49 | |||||||||||||||
Amount Of Cash Flow Sales From 2017 to 2030 | $ 140 | ||||||||||||||||
Percentage Of Warrant Exercised | 62.00% | 62.00% | |||||||||||||||
Vantiv, Inc. | Other Noninterest Income | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Taxable Receivable Agreement Payment | $ 31 | 23 | 9 | ||||||||||||||
Vantiv, Inc. | Class B Units | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Shares held in Vantiv, Inc. | 43,000,000 | 43,000,000 | |||||||||||||||
Vantiv, Inc. | Class A Units | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Exchange Of Class C Shares For Class A Shares | 5,400,000 | 5,400,000 | |||||||||||||||
SLK Global | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% | |||||||||||||||
Service fee paid to Vantiv Holding, LLC | $ 17 | 13 | 16 | ||||||||||||||
Equity investments, carrying value | $ 6 | 6 | 6 | ||||||||||||||
SLK Global | Other Noninterest Income | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 3 | 3 | $ 2 | ||||||||||||||
CDC | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Loans to related parties | 5 | 5 | 5 | ||||||||||||||
Related Party Deposit Liabilities | 23 | 23 | 29 | ||||||||||||||
CDC | Unfunded Commitment | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Due To Other Related Parties Current And Noncurrent | $ 88 | $ 88 | $ 9 | ||||||||||||||
[1] | The Bancorp’s remaining investment in Vantiv Holding, LLC of $360 as of December 31, 2015 was accounted for as an equity method investment in the Bancorp’s Consolidated Financial Statements. |
Applicable Income Taxes Include
Applicable Income Taxes Included in the Consolidated Statements of Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation Of Provision Of Income Taxes [Abstract] | |||
U.S. Federal income taxes | $ 662 | $ 424 | $ 494 |
State and local income taxes | 55 | 34 | 23 |
Foreign income taxes | 13 | 8 | 2 |
Total current tax (benefit) expense | 730 | 466 | 519 |
U.S. Federal income taxes | (78) | 71 | 232 |
State and local income taxes | 6 | 9 | 23 |
Foreign income taxes | 1 | (1) | (2) |
Total deferred tax expense (benefit) | (71) | 79 | 253 |
Applicable income tax expense | $ 659 | $ 545 | $ 772 |
Reconciliation Between the Stat
Reconciliation Between the Statutory U.S. Income Tax Rate and the Bancorp's Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation Of Statutory Federal Tax Rate [Abstract] | |||
Statutory tax rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 1.70% | 1.40% | 1.20% |
Tax-exempt income | 1.70% | 1.40% | 1.10% |
Credits | 7.50% | 8.10% | 6.00% |
Unrealized stock-based compensation benefits | 0.30% | ||
Other, net | 0.30% | 0.30% | |
Effective tax rate | 27.80% | 26.90% | 29.70% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | ||
Deferred tax assets related to state net operating loss carryforwards | $ 10 | $ 18 |
Operating loss carryforwards valuation allowances | $ 22 | 19 |
Operating loss carryforwards expiration date | Dec. 31, 2035 | |
Deferred tax assets operating loss carryforwards foreign | $ 5 | |
Foreign tax credit carryforward expiration date | Dec. 31, 2025 | |
Accrued interest liabilities, net of the related tax benefits | $ 1 | 1 |
Retained earnings included allocation of earnings for bad debt deductions of former thrift subsidiaries | $ 157 | $ 157 |
Reconciliation of the Beginning
Reconciliation of the Beginning and Ending Amounts of the Bancorp's Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | ||||||
Unrecognized tax benefits at January 1 | $ 11 | [1] | $ 7 | [1] | $ 18 | |
Gross increases for tax positions taken during prior period | 1 | 2 | 1 | |||
Gross decreases for tax positions taken during prior period | (7) | |||||
Gross increases for tax positions taken during current period | 2 | 2 | 1 | |||
Settlements with taxing authorities | (5) | |||||
Lapse of applicable statute of limitations | (1) | (1) | ||||
Unrecognized tax benefits at December 31 | [1] | $ 13 | $ 11 | $ 7 | ||
[1] | Amounts represent unrecognized tax benefits that, if recognized, would affect the annual effective tax rate. |
Deferred Income Taxes Included
Deferred Income Taxes Included in Other Assets in the Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Deferred Income Tax Assets And Liabilities [Abstract] | ||
Allowance for loan & lease losses | $ 445 | $ 463 |
Deferred compensation | 118 | 113 |
Reserves | 61 | 96 |
Reserve for unfunded commitments | 48 | 47 |
State net operating losses | 10 | 18 |
Other | 194 | 189 |
Total deferred tax assets | 876 | 926 |
Lease financing | 935 | 896 |
Investments in joint ventures and partnership interests | 248 | 329 |
MSRs and related economic hedges | 245 | 237 |
Other comprehensive income | 106 | 231 |
Qualifying Hedges And Free Standing Derivatives | 58 | 105 |
Bank premises and equipment | 53 | 103 |
State deferred taxes | 79 | 81 |
Other | 160 | 148 |
Total deferred tax liabilities | 1,884 | 2,130 |
Total net deferred tax liabilities | $ (1,008) | $ (1,204) |
Net Funded Status (Detail)
Net Funded Status (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net underfunded status | $ (54) | $ (52) |
Underfunded Defined Benefit Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued benefit liability | $ (54) | $ (52) |
Retirement and Benefit Plans -
Retirement and Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
The estimated net actuarial loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost | $ (10) | |||
The increase in pension expense by lowering both the expected rate of return on the plan and the discount rate by 0.25% | 1 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2016 | 19 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2017 | 18 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2018 | 17 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2019 | 16 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2020 | 16 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2021 through 2025 | 79 | |||
Estimated future defined benefit plan contributions | 3 | |||
Plan assets managed | [1] | 166 | $ 195 | |
Profit sharing plan expense | 323 | 334 | $ 357 | |
Net underfunded status | (54) | (52) | ||
Change in Mortality Assumption | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Mortality assumption PBO increase (decrease) | (3) | |||
Fifth Third Bank | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets managed through collective funds | 166 | 195 | ||
Non-qualified defined contribution plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expenses recognized for the Bancorp's defined contribution plan | 3 | 2 | 2 | |
Qualified defined contribution plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expenses recognized for the Bancorp's defined contribution plan | 71 | 44 | 43 | |
Deferred Profit Sharing | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expenses recognized for the Bancorp's defined contribution plan | 19 | $ 32 | ||
Common Stock | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets managed | $ 4 | $ 4 | ||
[1] | For further information on fair value hierarchy levels, refer to Note 1. |
Defined Benefit Retirement Plan
Defined Benefit Retirement Plans with Overfunded and Underfunded Status (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Defined Benefit Plan Change In Fair Value Roll Forward [Abstract] | ||||
Fair value of plan assets at January 1 | [1] | $ 195 | ||
Fair value of plan assets at December 31 | [1] | 166 | $ 195 | |
Defined Benefit Plan, Change in Benefit Obligation | ||||
Interest cost | 9 | 10 | $ 10 | |
Underfunded Defined Benefit Pension Plans | ||||
Defined Benefit Plan Change In Fair Value Roll Forward [Abstract] | ||||
Fair value of plan assets at January 1 | 195 | 200 | ||
Actual return on plan assets | (6) | 12 | ||
Contributions | 4 | 3 | ||
Settlement | (17) | (11) | ||
Benefits paid | (10) | (9) | ||
Fair value of plan assets at December 31 | 166 | 195 | 200 | |
Defined Benefit Plan, Change in Benefit Obligation | ||||
Projected benefit obligation at January 1 | 247 | 221 | ||
Interest cost | 9 | 10 | ||
Settlement | (17) | (11) | ||
Actuarial (gain) loss | (9) | 36 | ||
Benefits paid | (10) | (9) | ||
Projected benefit obligation at December 31 | 220 | 247 | $ 221 | |
Underfunded projected benefit obligation at December 31 | (54) | (52) | ||
Accumulated benefit obligation at December 31 | [2] | $ 220 | $ 247 | |
[1] | For further information on fair value hierarchy levels, refer to Note 1. | |||
[2] | Since the Plan’s benefits were frozen, the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at both December 31, 2015 and 2014. |
Net Periodic Benefit Cost and O
Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Pension And Other Postretirment Benefits Recgonized In Accumulated Other Comprehensive Income (Loss) [Abstract] | |||
Interest cost | $ 9 | $ 10 | $ 10 |
Expected return on assets | (13) | (14) | (13) |
Amortization of net actuarial loss | 10 | 7 | 11 |
Settlement | 7 | 5 | 5 |
Net periodic benefit cost | 13 | 8 | 13 |
Net actuarial gain (loss) arising during the period | 9 | 37 | (38) |
Amortization of net actuarial loss | (10) | (7) | (11) |
Settlement | (7) | (5) | (5) |
Total recognized in other comprehensive income | (8) | 25 | (54) |
Total recognized in net periodic benefit cost and other comprehensive income | $ 5 | $ 33 | $ (41) |
Plan Assets Measured at Fair Va
Plan Assets Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | $ 166 | $ 195 |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1],[2] | 52 | 56 |
Mutual And Exchange Traded Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 101 | 120 |
Mutual And Exchange Traded Funds | Money Market Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 15 | 7 |
Mutual And Exchange Traded Funds | International Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 35 | 38 |
Mutual And Exchange Traded Funds | Domestic Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 31 | 31 |
Mutual And Exchange Traded Funds | Debt Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 3 | 22 |
Mutual And Exchange Traded Funds | Alternative strategies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 11 | 22 |
Mutual And Exchange Traded Funds | Commodity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 6 | |
Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 13 | 19 |
Debt Securities | U.S. Treasury and Federal Agencies Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 4 | 3 |
Debt Securities | Agency Mortgage-Backed Securities | Residential mortgage backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 3 | 4 |
Debt Securities | Agency Mortgage-Backed Securities | Commercial mortgage backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 2 | 7 |
Debt Securities | Non-Agency Mortgage-Backed Securities | Commercial mortgage backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 1 | 2 |
Debt Securities | Asset-Backed Securities and Other Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1],[3] | 3 | 3 |
Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 75 | 66 |
Fair Value, Inputs, Level 1 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1],[2] | 52 | 56 |
Fair Value, Inputs, Level 1 | Mutual And Exchange Traded Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 21 | 7 |
Fair Value, Inputs, Level 1 | Mutual And Exchange Traded Funds | Money Market Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 15 | 7 |
Fair Value, Inputs, Level 1 | Mutual And Exchange Traded Funds | Commodity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 6 | |
Fair Value, Inputs, Level 1 | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 2 | 3 |
Fair Value, Inputs, Level 1 | Debt Securities | U.S. Treasury and Federal Agencies Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 2 | 3 |
Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 91 | 129 |
Fair Value, Inputs, Level 2 | Mutual And Exchange Traded Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 80 | 113 |
Fair Value, Inputs, Level 2 | Mutual And Exchange Traded Funds | International Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 35 | 38 |
Fair Value, Inputs, Level 2 | Mutual And Exchange Traded Funds | Domestic Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 31 | 31 |
Fair Value, Inputs, Level 2 | Mutual And Exchange Traded Funds | Debt Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 3 | 22 |
Fair Value, Inputs, Level 2 | Mutual And Exchange Traded Funds | Alternative strategies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 11 | 22 |
Fair Value, Inputs, Level 2 | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 11 | 16 |
Fair Value, Inputs, Level 2 | Debt Securities | U.S. Treasury and Federal Agencies Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 2 | |
Fair Value, Inputs, Level 2 | Debt Securities | Agency Mortgage-Backed Securities | Residential mortgage backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 3 | 4 |
Fair Value, Inputs, Level 2 | Debt Securities | Agency Mortgage-Backed Securities | Commercial mortgage backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 2 | 7 |
Fair Value, Inputs, Level 2 | Debt Securities | Non-Agency Mortgage-Backed Securities | Commercial mortgage backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1] | 1 | 2 |
Fair Value, Inputs, Level 2 | Debt Securities | Asset-Backed Securities and Other Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Securities | [1],[3] | $ 3 | $ 3 |
[1] | For further information on fair value hierarchy levels, refer to Note 1. | ||
[2] | Includes holdings in Bancorp common stock. | ||
[3] | Includes corporate bonds. |
Plan Assumptions (Detail)
Plan Assumptions (Detail) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
For measuring benefit obligations at year end | ||||
Discount rate | 4.16% | 3.82% | 4.72% | |
Rate of compensation increase | [1] | 4.00% | ||
Expected return on plan assets | 7.00% | 7.25% | 7.50% | |
For measuring net periodic benefit cost | ||||
Discount rate | 3.82% | 4.72% | 3.83% | |
Rate of compensation increase | [1] | 4.00% | ||
Expected return on plan assets | 7.00% | 7.25% | 7.50% | |
[1] | Since the Plan’s benefits were frozen, except for grandfathered employees, the rate of compensation increase is no longer applicable beginning in 2014 since minimal grandfathered employees are still accruing benefits. |
Targeted and Actual Weighted Av
Targeted and Actual Weighted Average Asset Allocations by Plan Asset Category (Detail) | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 69.00% | 62.00% | |
Total equity securities | [1] | 64.00% | |
Bancorp common stock | 2.00% | 2.00% | |
Fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 20.00% | ||
Alternative strategies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 12.00% | ||
Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 4.00% | ||
Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% | |
Targeted Range 60 to 90 Percent | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total equity securities | [1],[2] | 71.00% | |
Targeted Range 5 to 25 Percent | Fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | [2] | 16.00% | |
Targeted Range 3 to 11 Percent | Alternative strategies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | [2] | 7.00% | |
Targeted Range 0 to 13 Percent | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | [2] | 6.00% | |
[1] | Includes mutual and exchange-traded funds. | ||
[2] | These reflect the targeted ranges for the year ended December 31, 2015. |
Activity of the Components of O
Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Pre-tax activity for defined benefit plans, net | ||||
Net actuarial gain (loss) arising during the period | $ 9 | $ 37 | $ (38) | |
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 | (227) | 378 | (295) | |
Reclassification adjustment for net gains included in net income | (10) | (24) | 4 | |
Net activity for net unrealized gain (loss) on cash flow hedge derivatives | ||||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period | 48 | 39 | (8) | |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (49) | (29) | (29) | |
Net activity for defined benefit plans, net | ||||
Net actuarial gain (loss) arising during the period | 5 | 25 | (25) | |
Reclassification of amounts to net periodic benefit costs | (11) | (8) | (10) | |
Total Other Comprehensive Activity | ||||
Pre-tax activity total | (358) | 534 | (451) | |
Total, Tax | 126 | (187) | 158 | |
Other Comprehensive Income (Loss) Net Of Tax | (232) | 347 | (293) | |
Total Accumulated Other Comprehensive Income | ||||
Total Accumulated Other Comprehensive Income - Beginning Balance | 429 | 82 | 375 | |
Other comprehensive income (loss), Net of Tax | (232) | 347 | (293) | |
Total Accumulated Other Comprehensive Income - Ending Balance | 197 | 429 | 82 | |
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 | (349) | 580 | (454) | |
Reclassification adjustment for net losses (gains) included in net income | [1] | (16) | (37) | 6 |
Net unrealized gains on available-for-sale securities | (365) | 543 | (448) | |
Tax effect for accumulated net unrealized gain (loss) on available-for-sale securities | ||||
Unrealized holding gains on available-for-sale securities arising during period | 122 | (202) | 159 | |
Reclassification adjustment for net losses (gains) included in net income | 6 | 13 | (2) | |
Net unrealized gains on available-for-sale securities | 128 | (189) | 157 | |
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 | (227) | 378 | (295) | |
Reclassification adjustment for net gains included in net income | (10) | (24) | 4 | |
Net unrealized gains on available-for-sale securities | (237) | 354 | (291) | |
Total Other Comprehensive Activity | ||||
Other Comprehensive Income (Loss) Net Of Tax | (237) | 354 | (291) | |
Total Accumulated Other Comprehensive Income | ||||
Total Accumulated Other Comprehensive Income - Beginning Balance | 475 | 121 | 412 | |
Other comprehensive income (loss), Net of Tax | (237) | 354 | (291) | |
Total Accumulated Other Comprehensive Income - Ending Balance | 238 | 475 | 121 | |
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 | 74 | 60 | (13) | |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (75) | (44) | (44) | |
Net unrealized gains on cash flow hedge derivatives | (1) | 16 | (57) | |
Tax effect for net unrealized gain (loss) on cash flow hedge derivatives | ||||
Unrealized holding gains on cash flow hedge derivatives arising during period | (26) | (21) | 5 | |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 26 | 15 | 15 | |
Net unrealized gains on cash flow hedge derivatives | (6) | 20 | ||
Net activity for net unrealized gain (loss) on cash flow hedge derivatives | ||||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period | 48 | 39 | (8) | |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (49) | (29) | (29) | |
Net unrealized gains on cash flow hedge derivatives | (1) | 10 | (37) | |
Total Other Comprehensive Activity | ||||
Other Comprehensive Income (Loss) Net Of Tax | (1) | 10 | (37) | |
Total Accumulated Other Comprehensive Income | ||||
Total Accumulated Other Comprehensive Income - Beginning Balance | 23 | 13 | 50 | |
Other comprehensive income (loss), Net of Tax | (1) | 10 | (37) | |
Total Accumulated Other Comprehensive Income - Ending Balance | 22 | 23 | 13 | |
Accumulated Defined Benefit Plans Adjustment | ||||
Pre-tax activity for defined benefit plans, net | ||||
Net actuarial gain (loss) arising during the period | (9) | (37) | 38 | |
Reclassification of amounts to net periodic benefit costs | 17 | 12 | 16 | |
Defined benefit plans, net | 8 | (25) | 54 | |
Tax effect for defined benefit plans, net | ||||
Net actuarial (gain) loss arising during the period | 4 | 12 | (13) | |
Reclassification of amounts to net periodic benefit costs | (6) | (4) | (6) | |
Defined benefit plans, net | (2) | 8 | (19) | |
Net activity for defined benefit plans, net | ||||
Net actuarial gain (loss) arising during the period | (5) | (25) | 25 | |
Reclassification of amounts to net periodic benefit costs | 11 | 8 | 10 | |
Defined benefit plans, net | 6 | (17) | 35 | |
Total Other Comprehensive Activity | ||||
Other Comprehensive Income (Loss) Net Of Tax | (6) | 17 | (35) | |
Total Accumulated Other Comprehensive Income | ||||
Total Accumulated Other Comprehensive Income - Beginning Balance | (69) | (52) | (87) | |
Other comprehensive income (loss), Net of Tax | (6) | 17 | (35) | |
Total Accumulated Other Comprehensive Income - Ending Balance | $ (63) | $ (69) | $ (52) | |
[1] | Amounts in parentheses indicate reductions to net income. |
Reclassification Out of Accumul
Reclassification Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net periodic pension cost | $ 13 | $ 8 | $ 13 | |
Income Before Income Taxes | 2,365 | 2,028 | 2,598 | |
Applicable income tax expense | 659 | 545 | 772 | |
Net income | 1,712 | 1,481 | 1,836 | |
Total reclassifications for the period | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net income | 48 | 45 | 15 | |
Net unrealized gains on available-for-sale securities | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment for net losses (gains) included in net income | [1] | 16 | 37 | (6) |
Income Before Income Taxes | [1] | 16 | 37 | (6) |
Applicable income tax expense | [1] | (6) | (13) | 2 |
Net income | [1] | 10 | 24 | (4) |
Net unrealized gains on cash flow hedge derivatives | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 75 | 44 | 44 | |
Income Before Income Taxes | [1] | 75 | 44 | 44 |
Applicable income tax expense | [1] | (26) | (15) | (15) |
Net income | [1] | 49 | 29 | 29 |
Net unrealized gains on cash flow hedge derivatives | 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 | [1] | 75 | 44 | 45 |
Net unrealized gains on cash flow hedge derivatives | 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 periodic benefit costs | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Income Before Income Taxes | [1] | (17) | (12) | (16) |
Applicable income tax expense | [1] | 6 | 4 | 6 |
Net income | [1] | (11) | (8) | (10) |
Amortization of defined periodic benefit costs | Amortization of net actuarial (loss) gain | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net periodic pension cost | [1],[2] | (10) | (7) | (11) |
Amortization of defined periodic benefit costs | Pension Settlement | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net periodic pension cost | [1],[2] | $ (7) | $ (5) | $ (5) |
[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 for information on the computation of net periodic benefit cost. |
Share Acitivity within Common,
Share Acitivity within Common, Preferred and Treasury Stock (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Values | |||
Beginning Balance | $ 15,665 | $ 14,626 | $ 13,764 |
Shares acquired for treasury | (850) | (654) | (1,320) |
Issuance of preferred stock | 297 | 1,034 | |
Issuance of preferred shares | 297 | 1,034 | |
Impact of stock transactions under stock compensation plans, net | 75 | 60 | 60 |
Other | (2) | (1) | |
Ending Balance | 15,870 | 15,665 | 14,626 |
4.90% fixed-to-floating non-cumulative Series J perpetual preferred stock | |||
Values | |||
Issuance of preferred shares | 297 | ||
Series I Preferred Stock | |||
Values | |||
Issuance of preferred shares | 441 | ||
Preferred stock Series H | |||
Values | |||
Issuance of preferred shares | $ 593 | ||
Series G Preferred Stock | |||
Shares | |||
Redemption of preferred shares, Series G | 16,442 | ||
Common Stock | |||
Values | |||
Beginning Balance | 2,051 | 2,051 | $ 2,051 |
Ending Balance | $ 2,051 | $ 2,051 | $ 2,051 |
Shares | |||
Beginning balance | 923,892,581 | 923,892,581 | 923,892,581 |
Ending balance | 923,892,581 | 923,892,581 | 923,892,581 |
Preferred Stock | |||
Values | |||
Beginning Balance | $ 1,331 | $ 1,034 | $ 398 |
Issuance of preferred stock | 297 | 1,034 | |
Redemption of preferred shares, Series G | (398) | ||
Ending Balance | $ 1,331 | $ 1,331 | $ 1,034 |
Shares | |||
Beginning balance | 54,000 | 42,000 | 16,450 |
Ending balance | 54,000 | 54,000 | 42,000 |
Preferred Stock | 4.90% fixed-to-floating non-cumulative Series J perpetual preferred stock | |||
Shares | |||
Issuance of preferred stock | 12,000 | ||
Preferred Stock | Series I Preferred Stock | |||
Shares | |||
Issuance of preferred stock | 18,000 | ||
Preferred Stock | Preferred stock Series H | |||
Shares | |||
Issuance of preferred stock | 24,000 | ||
Preferred Stock | Series G Preferred Stock | |||
Shares | |||
Redemption of preferred shares, Series G | (16,450) | ||
Treasury Stock | |||
Values | |||
Beginning Balance | $ (1,972) | $ (1,295) | $ (634) |
Shares acquired for treasury | (847) | (726) | (1,242) |
Redemption of preferred shares, Series G | 540 | ||
Impact of stock transactions under stock compensation plans, net | 52 | 47 | 38 |
Other | 3 | 2 | 3 |
Ending Balance | $ (2,764) | $ (1,972) | $ (1,295) |
Shares | |||
Beginning balance | 99,845,629 | 68,586,836 | 41,740,524 |
Shares acquired for treasury | 42,607,855 | 34,799,873 | 65,516,126 |
Redemption of preferred shares, Series G | (35,529,018) | ||
Impact of stock transactions under stock compensation plans, net | (3,593,406) | (3,493,671) | (3,697,042) |
Other | (47,811) | (47,409) | 556,246 |
Ending balance | 138,812,267 | 99,845,629 | 68,586,836 |
Common, Preferred, and Treasury
Common, Preferred, and Treasury Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2008 | |
Issuance of preferred shares | $ 297 | $ 1,034 | ||
4.90% fixed-to-floating non-cumulative Series J perpetual preferred stock | ||||
Depositary shares | 300,000 | |||
Preferred stock, issued | 12,000 | 12,000 | ||
Issuance of preferred shares | $ 297 | |||
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | ||
Preferred Stock, Dividend Payment Terms | The preferred stock accrues dividends, on a non-cumulative semi-annual basis, at an annual rate of 4.90% through but excluding September 30, 2019, at which time it converts to a quarterly floating-rate dividend of three-month LIBOR plus 3.129%. | |||
Preferred Stock, Redemption Terms | Subject to any required regulatory approval, the Bancorp may redeem the Series J preferred shares at its option, in whole or in part, at any time on or after September 30, 2019, or any time prior following a regulatory capital event | |||
Preferred stock, shares authorized | 12,000 | 12,000 | ||
Series I Preferred Stock | ||||
Depositary shares | 18,000,000 | |||
Preferred stock, issued | 18,000 | 18,000 | 18,000 | |
Issuance of preferred shares | $ 441 | |||
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | $ 25,000 | |
Preferred Stock, Dividend Payment Terms | The preferred stock accrues dividends, on a non-cumulative quarterly basis, at an annual rate of 6.625% through but excluding December 31, 2023, at which time it converts to a quarterly floating-rate dividend of three-month LIBOR plus 3.71% | |||
Preferred Stock, Redemption Terms | Subject to any required regulatory approval, the Bancorp may redeem the Series I preferred shares at its option in whole or in part, at any time on or after December 31, 2023 and may redeem in whole but not in part, following a regulatory capital event at any time prior to December 31, 2023 | |||
Preferred stock, shares authorized | 18,000 | 18,000 | ||
Preferred stock Series H | ||||
Depositary shares | 600,000 | |||
Preferred stock, issued | 24,000 | 24,000 | 24,000 | |
Issuance of preferred shares | $ 593 | |||
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | $ 25,000 | |
Preferred Stock, Dividend Payment Terms | The preferred stock accrues dividends, on a non-cumulative semi-annual basis, at an annual rate of 5.10% through but excluding June 30, 2023, at which time it converts to a quarterly floating-rate dividend of three-month LIBOR plus 3.033% | |||
Preferred Stock, Redemption Terms | Subject to any required regulatory approval, the Bancorp may redeem the Series H preferred shares at its option in whole or in part, at any time on or after June 30, 2023 and may redeem in whole but not in part, following a regulatory capital event at any time prior to June 30, 2023 | |||
Preferred stock, shares authorized | 24,000 | 24,000 | ||
Series G Preferred Stock | ||||
Depositary shares | 4,110,500 | |||
Preferred stock, liquidation preference | $ 25,000 | |||
Preferred Stock, Redemption Terms | The preferred stock was convertible at any time, at the option of the shareholder, into 2,159.8272 shares of common stock, representing a conversion price of approximately $11.575 per share of common stock. On June 11, 2013, pursuant to the Amended Articles of Incorporation, the Bancorp’s Board of Directors authorized the conversion into common stock, no par value, of all outstanding shares of the Bancorp’s Series G perpetual preferred stock. The Articles grant the Bancorp the right, at its option, to convert all outstanding shares of Series G preferred stock if the closing price of common stock exceeded 130% of the applicable conversion price for 20 trading days within any period of 30 consecutive trading days. The closing price of shares of common stock satisfied such threshold for the 30 trading days ended June 10, 2013, and the Bancorp gave the required notice of its exercise of its conversion right. On July 1, 2013, the Bancorp converted the remaining 16,442 outstanding shares of Series G preferred stock, which represented 4,110,500 depositary shares, into shares of the Bancorp’s common stock. Each share of Series G preferred stock was converted into 2,159.8272 shares of common stock, representing a total of 35,511,740 issued shares. The common shares issued in the conversion are exempt securities pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended, as the securities exchanged were exclusively with the Bancorp’s existing security holders where no commission or other remuneration was paid. Upon conversion, the depositary shares were delisted from the NASDAQ Global Select Market and withdrawn from the Exchange. | |||
Preferred stock, convertible into shares of common stock | 2,159.8272 | |||
Preferred stock, conversion price per share of common stock | $ 11.575 | |||
March 2013 Repurchase Program | ||||
Stock Repurchase Authorization Amount | $ 984 | |||
Repurchase Shares Authorized | 100 | |||
March 2014 Repurchase Program | ||||
Stock Repurchase Authorization Amount | $ 765 | $ 669 | ||
Repurchase Shares Authorized | 100 | |||
Common stock issued after preferred Series G converstion | ||||
Preferred Stock Conversion Basis | 2,159.8272 | |||
Issuance of stock | 35,511,740 | |||
Preferred Stock | 4.90% fixed-to-floating non-cumulative Series J perpetual preferred stock | ||||
Issuance of stock | 12,000 | |||
Preferred Stock | Series I Preferred Stock | ||||
Issuance of stock | 18,000 | |||
Preferred Stock | Preferred stock Series H | ||||
Issuance of stock | 24,000 |
Accelerated Share Repurchase Tr
Accelerated Share Repurchase Transactions (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accelerated Share Repurchases [Line Items] | |||
Shares acquired for treasury | $ 850 | $ 654 | $ 1,320 |
November 13, 2013 ASR | |||
Accelerated Share Repurchases [Line Items] | |||
Redemption date | Nov. 18, 2013 | ||
Shares acquired for treasury | $ 200 | ||
Shares repurchased on repurchase date | 8,538,423 | ||
Shares received from forward contract settlement | 1,132,495 | ||
Total shares repurchased | 9,670,918 | ||
Settlement date | Mar. 5, 2014 | ||
December 10, 2013 ASR | |||
Accelerated Share Repurchases [Line Items] | |||
Redemption date | Dec. 13, 2013 | ||
Shares acquired for treasury | $ 456 | ||
Shares repurchased on repurchase date | 19,084,195 | ||
Shares received from forward contract settlement | 2,294,932 | ||
Total shares repurchased | 21,379,127 | ||
Settlement date | Mar. 31, 2014 | ||
January 28, 2014 ASR | |||
Accelerated Share Repurchases [Line Items] | |||
Redemption date | Jan. 31, 2014 | ||
Shares acquired for treasury | $ 99 | ||
Shares repurchased on repurchase date | 3,950,705 | ||
Shares received from forward contract settlement | 602,109 | ||
Total shares repurchased | 4,552,814 | ||
Settlement date | Mar. 31, 2014 | ||
April 28, 2014 ASR | |||
Accelerated Share Repurchases [Line Items] | |||
Redemption date | May 1, 2014 | ||
Shares acquired for treasury | $ 150 | ||
Shares repurchased on repurchase date | 6,216,480 | ||
Shares received from forward contract settlement | 1,016,514 | ||
Total shares repurchased | 7,232,994 | ||
Settlement date | Jul. 21, 2014 | ||
July 21, 2014 ASR | |||
Accelerated Share Repurchases [Line Items] | |||
Redemption date | Jul. 24, 2014 | ||
Shares acquired for treasury | $ 225 | ||
Shares repurchased on repurchase date | 9,352,078 | ||
Shares received from forward contract settlement | 1,896,685 | ||
Total shares repurchased | 11,248,763 | ||
Settlement date | Oct. 14, 2014 | ||
October 20, 2014 ASR | |||
Accelerated Share Repurchases [Line Items] | |||
Redemption date | Oct. 23, 2014 | ||
Shares acquired for treasury | $ 180 | ||
Shares repurchased on repurchase date | 8,337,875 | ||
Shares received from forward contract settlement | 794,245 | ||
Total shares repurchased | 9,132,120 | ||
Settlement date | Jan. 8, 2015 | ||
January 22, 2015 ASR | |||
Accelerated Share Repurchases [Line Items] | |||
Redemption date | Jan. 27, 2015 | ||
Shares acquired for treasury | $ 180 | ||
Settlement date | Apr. 28, 2015 | ||
January 22, 2015 ASR | March 2014 Repurchase Program | |||
Accelerated Share Repurchases [Line Items] | |||
Shares acquired for treasury | $ 180 | ||
Shares repurchased on repurchase date | 8,542,713 | ||
Shares received from forward contract settlement | 1,103,744 | ||
Total shares repurchased | 9,646,457 | ||
April 27, 2015 ASR | |||
Accelerated Share Repurchases [Line Items] | |||
Redemption date | Apr. 30, 2015 | ||
Shares acquired for treasury | $ 155 | ||
Settlement date | Jul. 31, 2015 | ||
April 27, 2015 ASR | March 2014 Repurchase Program | |||
Accelerated Share Repurchases [Line Items] | |||
Shares acquired for treasury | $ 155 | ||
Shares repurchased on repurchase date | 6,704,835 | ||
Shares received from forward contract settlement | 842,655 | ||
Total shares repurchased | 7,547,490 | ||
July 30, 2015 ASR | |||
Accelerated Share Repurchases [Line Items] | |||
Redemption date | Aug. 3, 2015 | ||
Shares acquired for treasury | $ 150 | ||
Settlement date | Sep. 3, 2015 | ||
July 30, 2015 ASR | March 2014 Repurchase Program | |||
Accelerated Share Repurchases [Line Items] | |||
Shares acquired for treasury | $ 150 | ||
Shares repurchased on repurchase date | 6,039,792 | ||
Shares received from forward contract settlement | 1,346,314 | ||
Total shares repurchased | 7,386,106 | ||
September 4, 2015 ASR | |||
Accelerated Share Repurchases [Line Items] | |||
Redemption date | Sep. 9, 2015 | ||
Shares acquired for treasury | $ 150 | ||
Settlement date | Oct. 23, 2015 | ||
September 4, 2015 ASR | March 2014 Repurchase Program | |||
Accelerated Share Repurchases [Line Items] | |||
Shares acquired for treasury | $ 150 | ||
Shares repurchased on repurchase date | 6,538,462 | ||
Shares received from forward contract settlement | 1,446,613 | ||
Total shares repurchased | 7,985,075 | ||
December 9, 2015 ASR | |||
Accelerated Share Repurchases [Line Items] | |||
Redemption date | Dec. 14, 2015 | ||
Shares acquired for treasury | $ 215 | ||
Settlement date | Jan. 14, 2016 | ||
December 9, 2015 ASR | March 2014 Repurchase Program | |||
Accelerated Share Repurchases [Line Items] | |||
Shares acquired for treasury | $ 215 | ||
Shares repurchased on repurchase date | 9,248,482 | ||
Shares received from forward contract settlement | 1,782,477 | ||
Total shares repurchased | 11,030,959 |
Number of Shares to be issued u
Number of Shares to be issued upon Exercise of Outstanding Stock-Based Awards and Remaining Shares Available for Future Issuance under all Equity Compensation Plans (Detail) shares in Thousands | Dec. 31, 2015$ / sharesshares | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Number of Shares to be Issued Upon Exercise | 8,659 | |
Shares available for future issuance | 31,480 | |
Equity Compensation Plans Approved Shareholders [Member] | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Shares available for future issuance | 24,667 | [1] |
Restricted Stock Awards | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Number of Shares to be Issued Upon Exercise | 8,281 | |
Stock Option | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Number of Shares to be Issued Upon Exercise | 7 | [2] |
Weighted-Average Exercise Price | $ / shares | $ 32.26 | [2] |
Employee stock purchase plan | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Shares available for future issuance | 6,813 | [3] |
Restricted Stock Units | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Number of Shares to be Issued Upon Exercise | 371 | |
[1] | Under the 2014 Incentive Compensation Plan, 36 million shares were authorized for issuance as SARs, RSAs, RSUs, stock options, performance share or unit awards, dividend or dividend equivalent rights and stock awards. | |
[2] | Excludes 0.1 million outstanding options awarded under plans assumed by the Bancorp in connection with certain mergers and acquisitions. The Bancorp has not made any awards under these plans and will make no additional awards under these plans. The weighted-average exercise price of the outstanding options is $13.89 per share. | |
[3] | Represents remaining shares of Fifth Third common stock under the Bancorp’s 1993 Stock Purchase Plan, as amended and restated, including an additional 1.5 million shares approved by shareholders on March 28, 2007 and an additional 12 million shares approved by shareholders on April 21, 2009. |
Number of Shares to be issue175
Number of Shares to be issued upon Exercise of Outstanding Stock-Based Awards and Remaining Shares Available for Future Issuance under all Equity Compensation Plans (Parenthetical) (Detail) - $ / shares shares in Thousands | 12 Months Ended | |||||
Dec. 31, 2009 | Dec. 31, 2007 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Outstanding options awarded in connection with mergers and acquisitions | 119 | 265 | 546 | 3,877 | ||
Weighted-average exercise price of the outstanding options | $ 14.97 | $ 14.25 | $ 20.72 | $ 45 | ||
Number of shares to be issued based on predefined performance targets | 8,659 | |||||
Additional shares approved by shareholders included under Bancorp's 1993 Stock Purchase Plan | 12,000 | 1,500 | ||||
Performance Units | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Number of shares to be issued based on predefined performance targets | 1,000 | |||||
Series of Individually Immaterial Business Acquisitions | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Outstanding options awarded in connection with mergers and acquisitions | 100 | |||||
Weighted-average exercise price of the outstanding options | $ 13.89 | |||||
2014 Incentive Compensation Plan | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Stock authorized for issuance | 36,000 |
Schedule of Share-based Payment
Schedule of Share-based Payment, Award, Stock Appreciation Rights, Valuation Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (in years) | 6 years | 6 years | 6 years |
Expected volatility | 35.00% | 35.00% | 36.00% |
Expected dividend yield | 2.70% | 2.40% | 3.00% |
Risk-free interest rate | 1.60% | 2.00% | 1.00% |
Schedule of Share-based Compens
Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity (Detail) - Stock Appreciation Rights - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shares | |||
Beginning Balance at January 1 | 45,590 | 48,599 | 44,120 |
Granted | 5,219 | 4,526 | 10,267 |
Exercised | (3,242) | (4,408) | (2,904) |
Forfeited or expired | (3,438) | (3,127) | (2,884) |
Ending Balance at December 31 | 44,129 | 45,590 | 48,599 |
Exercisable | 29,721 | 27,950 | 26,462 |
Weighted-Average Grant Price | |||
Beginning Balance at January 1 | $ 19.79 | $ 19.98 | $ 20.41 |
Granted | 18.99 | 21.63 | 16.16 |
Exercised | 13.59 | 13.63 | 11.18 |
Forfeited or expired | 32.96 | 34.19 | 21.78 |
Ending Balance at December 31 | 19.14 | 19.79 | 19.98 |
Exercisable | $ 19.71 | $ 21.71 | $ 24.14 |
Outstanding and Exercisable SAR
Outstanding and Exercisable SARs by Grant Price (Detail) - Stock Appreciation Rights - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of SARs Outstanding at Year End | 44,129 | 45,590 | 48,599 | 44,120 |
Outstanding SARs Weighted-Average Grant Price Per Share | $ 19.14 | $ 19.79 | $ 19.98 | $ 20.41 |
Outstanding Weighted-Average Remaining Contractual Life (in years) | 5 years 6 months | |||
Number of SARs Exercisable at Year End | 29,721 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 19.71 | $ 21.71 | $ 24.14 | |
Exercisable Weighted-Average Remaining Contractual Life (in years) | 4 years 2 months 12 days | |||
$10.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of SARs Outstanding at Year End | 2,943 | |||
Outstanding SARs Weighted-Average Grant Price Per Share | $ 3.98 | |||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 3 years 3 months 18 days | |||
Number of SARs Exercisable at Year End | 2,943 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 3.98 | |||
Exercisable Weighted-Average Remaining Contractual Life (in years) | 3 years 3 months 18 days | |||
$10.01-$20.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of SARs Outstanding at Year End | 30,488 | |||
Outstanding SARs Weighted-Average Grant Price Per Share | $ 15.99 | |||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 6 years 3 months 18 days | |||
Number of SARs Exercisable at Year End | 19,074 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 15.37 | |||
Exercisable Weighted-Average Remaining Contractual Life (in years) | 5 years 3 months 18 days | |||
$20.01-$30.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of SARs Outstanding at Year End | 4,047 | |||
Outstanding SARs Weighted-Average Grant Price Per Share | $ 21.64 | |||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 8 years 2 months 12 days | |||
Number of SARs Exercisable at Year End | 1,053 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 21.66 | |||
Exercisable Weighted-Average Remaining Contractual Life (in years) | 8 years 1 month 6 days | |||
$30.01-$40.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of SARs Outstanding at Year End | 6,069 | |||
Outstanding SARs Weighted-Average Grant Price Per Share | $ 38.66 | |||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 9 months 18 days | |||
Number of SARs Exercisable at Year End | 6,069 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 38.66 | |||
Exercisable Weighted-Average Remaining Contractual Life (in years) | 9 months 18 days | |||
$40.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of SARs Outstanding at Year End | 582 | |||
Outstanding SARs Weighted-Average Grant Price Per Share | $ 40.11 | |||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 1 year 3 months 18 days | |||
Number of SARs Exercisable at Year End | 582 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 40.11 | |||
Exercisable Weighted-Average Remaining Contractual Life (in years) | 1 year 3 months 18 days |
Schedule of Share-based Comp179
Schedule of Share-based Compensation, Restricted Stock Award Activity (Detail) - Restricted Stock Awards - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shares | |||
Beginning Balance at January 1 | 7,253 | 6,710 | 6,379 |
Granted | 4,250 | 3,264 | 3,583 |
Exercised | (2,580) | (2,183) | (2,720) |
Forfeited | 642 | 538 | 532 |
Ending Balance at December 31 | 8,281 | 7,253 | 6,710 |
Weighted-Average Grant Price | |||
Beginning Balance at January 1 | $ 17.98 | $ 15.11 | $ 14.32 |
Granted | 19.11 | 21.61 | 16.21 |
Exercised | 16.86 | 14.84 | 14.71 |
Forfeited | 18.64 | 16.73 | 14.97 |
Ending Balance at December 31 | $ 18.88 | $ 17.98 | $ 15.11 |
Unvested RSAs by Grant-Date Fai
Unvested RSAs by Grant-Date Fair Value (Detail) - Restricted Stock Awards - shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of SARs Outstanding at Year End | 8,281 | 7,253 | 6,710 | 6,379 |
Weighted-Average Remaining Contractual Life (in years) | 1 year 4 months 24 days | |||
$10.01-$15.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of SARs Outstanding at Year End | 690 | |||
Weighted-Average Remaining Contractual Life (in years) | 3 months 18 days | |||
$15.01-$20.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of SARs Outstanding at Year End | 5,153 | |||
Weighted-Average Remaining Contractual Life (in years) | 1 year 7 months 6 days | |||
$20.01-$25.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of SARs Outstanding at Year End | 2,438 | |||
Weighted-Average Remaining Contractual Life (in years) | 1 year 4 months 24 days |
Schedule of Share-based Comp181
Schedule of Share-based Compensation, Restricted Stock Units Activity (Detail) - Restricted Stock Units shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Shares | |
Granted | shares | 377 |
Vested | shares | (5) |
Forfeited | shares | (1) |
Ending Balance at December 31 | shares | 371 |
Weighted-Average Grant Price | |
Granted | $ / shares | $ 19.58 |
Vested | $ / shares | 21.63 |
Forfeited | $ / shares | 19.46 |
Ending Balance at December 31 | $ / shares | $ 19.56 |
Unvested RSUs by Grant-Date Fai
Unvested RSUs by Grant-Date Fair Value (Detail) - Restricted Stock Units shares in Thousands | 12 Months Ended |
Dec. 31, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares Outstanding at Year End | 371 |
Weighted-Average Remaining Contractual Life (in years) | 1 year 7 months 6 days |
$15.01-$20.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares Outstanding at Year End | 318 |
Weighted-Average Remaining Contractual Life (in years) | 1 year 9 months 18 days |
$20.01-$25.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares Outstanding at Year End | 53 |
Schedule of Share-based Comp183
Schedule of Share-based Compensation, Stock Options, Activity (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shares | |||
Outstanding at January 1 | 265 | 546 | 3,877 |
Exercised | (126) | (115) | (190) |
Forfeited or expired | (20) | (166) | (3,141) |
Outstanding at December 31 | 119 | 265 | 546 |
Exercisable at December 31 | 119 | 265 | 546 |
Weighted-Average Grant Price | |||
Outstanding at January 1 | $ 14.25 | $ 20.72 | $ 45 |
Exercised | 13.67 | 12.84 | 11.88 |
Forfeited or expired | 13.59 | 36.42 | 51.23 |
Outstanding at December 31 | 14.97 | 14.25 | 20.72 |
Exercisable at December 31 | $ 14.97 | $ 14.25 | $ 20.72 |
Outstanding and Exercisable Sto
Outstanding and Exercisable Stock Options by Exercise Price (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options at Year End | shares | 119 |
Weighted-Average Remaining Contractual Life | 9 months 18 days |
Weighted-Average Exercise Price | $ / shares | $ 14.97 |
$10.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options at Year End | shares | 1 |
Weighted-Average Remaining Contractual Life | 3 years |
Weighted-Average Exercise Price | $ / shares | $ 8.59 |
$10.01-$20.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options at Year End | shares | 112 |
Weighted-Average Remaining Contractual Life | 9 months 18 days |
Weighted-Average Exercise Price | $ / shares | $ 13.89 |
$20.01-$30.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options at Year End | shares | 1 |
Weighted-Average Remaining Contractual Life | 2 years |
Weighted-Average Exercise Price | $ / shares | $ 24.41 |
$40.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options at Year End | shares | 5 |
Weighted-Average Remaining Contractual Life | 1 year |
Weighted-Average Exercise Price | $ / shares | $ 40.98 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Shares available for future issuance | 31,480,000 | |||
The Bancorp's total overhang (potential dilution from share-based compensation) | 10.00% | |||
Stock options, SARs, restricted stock and performance units outstanding as a percentage of issued shares | 7.00% | |||
Stock-based compensation expense | $ 100 | $ 83 | $ 78 | |
Tax benefit for stock-based compensation expense | $ 36 | $ 30 | $ 28 | |
Incentive Compensation Plan 2014 | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Shares available for future issuance | 36,000,000 | |||
Full value awards | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Shares available for future issuance | 16,000,000 | |||
Stock Appreciation Rights | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Vesting period of share based compensation | four year period | |||
Stock-based compensation expense | $ 45 | |||
Weighted-average grant-date fair value per share | $ 18.99 | $ 21.63 | $ 16.16 | |
Total grant-date fair value | $ 35 | $ 34 | $ 29 | |
Weighted-average period over which expense is expected to be recognized | 2 years 4 months 24 days | |||
Shares granted | 5,219,000 | 4,526,000 | 10,267,000 | |
Exercisable Weighted-Average Remaining Contractual Life (in years) | 4 years 2 months 12 days | |||
Restricted Stock | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Vesting period of share based compensation | vest after four years or ratably over three or four years of continued employment. | |||
Stock-based compensation expense | $ 101 | |||
Weighted-average grant-date fair value per share | $ 19.11 | $ 21.61 | $ 16.21 | |
Total grant-date fair value | $ 43 | $ 32 | $ 40 | |
Weighted-average period over which expense is expected to be recognized | 2 years 8 months 12 days | |||
Shares granted | 4,250,000 | 3,264,000 | 3,583,000 | |
Phantom Stock Units | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Settled phantom stock units | 200,130 | |||
Settlement terms of phantom stock units | Phantom stock units issued on or before June 12, 2010 were settled in cash upon the earlier to occur of June 15, 2011 or the executive’s death. Units issued thereafter were settled in cash with 50% settled on June 15, 2012 and 50% settled on June 15, 2013. The amount paid on settlement of the phantom stock units was equal to the total amount of phantom stock units settled at the reported closing price of the Bancorp’s common stock on the settlement date. | |||
Stock Option | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Intrinsic Value of Options Exercised | $ 1 | $ 1 | $ 1 | |
Cash received from options exercised | 2 | 1 | 2 | |
Aggregate intrinsic value of exercisable options | $ 1 | |||
Employee stock purchase plan | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Shares available for future issuance | [1] | 6,813,000 | ||
Stock-based compensation expense | $ 1 | $ 1 | $ 1 | |
Match on qualifying employees purchase of shares of the Bancorp's common stock | 15.00% | |||
Stock purchased by plan participants | 617,829 | 599,101 | 690,039 | |
Restricted Stock Units | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Vesting period of share based compensation | vest after four years or ratably over three or four years of continued employment. | |||
Stock-based compensation expense | $ 4 | |||
Weighted-average grant-date fair value per share | $ 19.58 | |||
Total grant-date fair value | $ 2 | |||
Weighted-average period over which expense is expected to be recognized | 2 years 10 months 24 days | |||
Shares granted | 377,000 | |||
Performance Units | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Vesting period of share based compensation | three year cliff vesting terms | |||
Weighted-average grant-date fair value per share | $ 19.48 | $ 15.61 | $ 16.15 | |
Shares granted | 458,355 | 322,567 | 348,595 | |
Stock Appreciation Rights | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Weighted-average grant-date fair value per share | $ 5.52 | $ 6.53 | $ 4.56 | |
[1] | Represents remaining shares of Fifth Third common stock under the Bancorp’s 1993 Stock Purchase Plan, as amended and restated, including an additional 1.5 million shares approved by shareholders on March 28, 2007 and an additional 12 million shares approved by shareholders on April 21, 2009. |
Other Nonint Income and Expense
Other Nonint Income and Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Noninterest Income | |||
Gain on sale of Vantiv, Inc. shares | $ 331 | $ 125 | $ 327 |
Valuation adjustments on the warrant associated with Vantiv Holding, LLC | 236 | 31 | 206 |
Gain on sale and exercise of the warrant associated with Vantiv Holding, LLC | 89 | ||
Operating lease income | 89 | 84 | 75 |
Income from the tax receivable agreement associated with Vantiv, Inc. | 80 | 23 | 9 |
Equity method income from interest in Vantiv Holding, LLC | 63 | 48 | 77 |
BOLI income (loss) | 48 | 44 | 52 |
Cardholder fees | 43 | 45 | 47 |
Gain on loan sales | 38 | 3 | |
Private equity investment income | 28 | 27 | 24 |
Consumer loan and lease fees | 23 | 25 | 27 |
Banking center income | 21 | 30 | 34 |
Insurance income | 14 | 13 | 25 |
Net losses on disposition and impairment of bank premises and equipment | (101) | (19) | (6) |
Loss on swap associated with the sale of Visa, Inc. class B shares | (37) | (38) | (31) |
Other, net | 14 | 12 | 10 |
Total other noninterest income | 979 | 450 | 879 |
Other Noninterest Expense | |||
Impairment on affordable housing investments | 145 | 135 | 108 |
Loan and lease | 118 | 119 | 158 |
Marketing | 110 | 98 | 114 |
FDIC insurance and other taxes | 99 | 89 | 127 |
Operating Lease | 74 | 67 | 57 |
Professional services fees | 70 | 72 | 76 |
Losses and adjustments | 55 | 188 | 221 |
Travel | 54 | 52 | 54 |
Postal and courier | 45 | 47 | 48 |
Data processing | 45 | 41 | 42 |
Recruitment and education | 33 | 28 | 26 |
Donations | 29 | 18 | 24 |
Insurance | 17 | 16 | 17 |
Supplies | 16 | 15 | 16 |
Provision for (benefit from) for the reserve for unfunded commitments | 4 | (27) | (17) |
Other, net | 191 | 181 | 193 |
Total other noninterest expense | $ 1,105 | $ 1,139 | $ 1,264 |
Calculation of Earnings Per Sha
Calculation of Earnings Per Share and the Reconciliation of Earnings Per Share to Earnings Per Diluted Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings per share: | |||
Net income attributable to Bancorp | $ 1,712 | $ 1,481 | $ 1,836 |
Dividends on preferred stock | 75 | 67 | 37 |
Net income (loss) available to common shareholders | 1,637 | 1,414 | 1,799 |
Less: Income allocated to participating securities | 15 | 12 | 14 |
Net income allocated to common shareholders | 1,622 | 1,402 | 1,785 |
Earnings per diluted share: | |||
Net income available to common shareholders | 1,637 | 1,414 | 1,799 |
Series G convertible preferred stock | 18 | ||
Net income available to common shareholders plus assumed conversions | 1,637 | 1,414 | 1,817 |
Less: Income allocated to participating securities | 15 | 12 | 14 |
Net income allocated to common shareholders plus assumed conversions | $ 1,622 | $ 1,402 | $ 1,803 |
Earnings per share: | |||
Net income allocated to common shareholders | 798,628,173 | 833,116,349 | 869,462,977 |
Effect of dilutive securities: | |||
Stock-based awards | 9,000,000 | 10,000,000 | 8,000,000 |
Series G convertible preferred stock | 18,000,000 | ||
Net income allocated to common shareholders | 807,658,669 | 842,967,356 | 894,736,445 |
Earnings per share: | |||
Net income allocated to common shareholders | $ 2.03 | $ 1.68 | $ 2.05 |
Earnings per diluted share: | |||
Net income allocated to common shareholders plus assumed conversions | $ 2.01 | $ 1.66 | $ 2.02 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share Disclosure [Line Items] | |||
Incremental Common Shares Attributable to Conversion of Preferred Stock | 18,000,000 | ||
Stock Appreciation Rights | |||
Earnings Per Share Disclosure [Line Items] | |||
Anti-dilutive securities | 16,000,000 | 13,000,000 | 24,000,000 |
Stock Option | |||
Earnings Per Share Disclosure [Line Items] | |||
Anti-dilutive securities | 1,000,000 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |||
Assets: | |||||
Available-for-sale and other securities, fair value | [1] | $ 29,044 | $ 22,408 | ||
Trading securities | 386 | 360 | |||
Residential mortgage loans measured at fair value | 167 | 108 | |||
Derivative assets | 1,852 | 2,080 | |||
Fair value, recurring | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 28,440 | [2] | 21,808 | [3] | |
Trading securities | 386 | 360 | |||
Residential mortgage loans held for sale | 519 | 561 | |||
Residential mortgage loans measured at fair value | 167 | [4] | 108 | [5] | |
Derivative assets | 1,852 | [6] | 2,080 | [7] | |
Total assets | 31,364 | 24,917 | |||
Liabilities: | |||||
Derivative liabilities | 938 | [8] | 1,043 | [9] | |
Short positions | 29 | [8] | 21 | [9] | |
Total liabilities | 967 | 1,064 | |||
Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 910 | 900 | |||
Liabilities: | |||||
Derivative liabilities | 261 | 284 | |||
Foreign Exchange Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 386 | 417 | |||
Liabilities: | |||||
Derivative liabilities | 340 | 372 | |||
Equity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 262 | 415 | |||
Liabilities: | |||||
Derivative liabilities | 61 | 49 | |||
Commodity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 294 | 348 | |||
Liabilities: | |||||
Derivative liabilities | 276 | 338 | |||
U.S. Treasury and federal agencies | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 1,187 | 1,632 | |||
U.S. Treasury and federal agencies | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 1,187 | 1,632 | |||
Trading securities | 19 | 14 | |||
Obligations of states and political subdivisions | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 52 | 192 | |||
Obligations of states and political subdivisions | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 52 | 192 | |||
Trading securities | 9 | 8 | |||
Agency mortgage-backed securities | Residential mortgage backed securities | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | [10] | 15,081 | 12,404 | ||
Agency mortgage-backed securities | Residential mortgage backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 15,081 | 12,404 | |||
Trading securities | 6 | 9 | |||
Agency mortgage-backed securities | Commercial Mortgage Backed Securities [Member] | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 7,862 | 4,565 | |||
Agency mortgage-backed securities | Commercial Mortgage Backed Securities [Member] | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 7,862 | 4,565 | |||
Non-agency mortgage-backed securities | Commercial Mortgage Backed Securities [Member] | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 2,804 | 1,550 | |||
Non-agency mortgage-backed securities | Commercial Mortgage Backed Securities [Member] | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 2,804 | 1,550 | |||
Asset-backed securities and other debt securities | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 1,355 | 1,362 | |||
Asset-backed securities and other debt securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 1,355 | 1,362 | |||
Trading securities | 19 | 13 | |||
Equity securities | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | [11] | 703 | 703 | ||
Equity securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 99 | [2] | 103 | [3] | |
Trading securities | 333 | 316 | |||
Fair Value, Inputs, Level 1 | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 198 | [2],[12] | 109 | [3],[13] | |
Trading securities | 333 | [12] | 316 | [13] | |
Derivative assets | 57 | [6],[12] | 68 | [7],[13] | |
Total assets | 588 | [12] | 493 | [13] | |
Liabilities: | |||||
Derivative liabilities | 38 | [8],[12] | 64 | [9],[13] | |
Short positions | 22 | [8],[12] | 16 | [9],[13] | |
Total liabilities | 60 | [12] | 80 | [13] | |
Fair Value, Inputs, Level 1 | Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | [12] | 3 | |||
Liabilities: | |||||
Derivative liabilities | 1 | [12] | 6 | [13] | |
Fair Value, Inputs, Level 1 | Commodity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 54 | [12] | 68 | [13] | |
Liabilities: | |||||
Derivative liabilities | 37 | [12] | 58 | [13] | |
Fair Value, Inputs, Level 1 | U.S. Treasury and federal agencies | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 100 | [12] | 25 | [13] | |
Fair Value, Inputs, Level 1 | Equity securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 98 | [2],[12] | 84 | [3],[13] | |
Trading securities | 333 | [12] | 316 | [13] | |
Fair Value, Inputs, Level 2 | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 28,242 | [2],[12] | 21,699 | [3],[13] | |
Trading securities | 53 | [12] | 44 | [13] | |
Residential mortgage loans measured at fair value | 519 | [12] | 561 | [13] | |
Derivative assets | 1,518 | [6],[12] | 1,585 | [7],[13] | |
Total assets | 30,332 | [12] | 23,889 | [13] | |
Liabilities: | |||||
Derivative liabilities | 836 | [8],[12] | 928 | [9],[13] | |
Short positions | 7 | [8],[12] | 5 | [9],[13] | |
Total liabilities | 843 | [12] | 933 | [13] | |
Fair Value, Inputs, Level 2 | Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 892 | [12] | 888 | [13] | |
Liabilities: | |||||
Derivative liabilities | 257 | [12] | 276 | [13] | |
Fair Value, Inputs, Level 2 | Foreign Exchange Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 386 | [12] | 417 | [13] | |
Liabilities: | |||||
Derivative liabilities | 340 | [12] | 372 | [13] | |
Fair Value, Inputs, Level 2 | Commodity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 240 | [12] | 280 | [13] | |
Liabilities: | |||||
Derivative liabilities | 239 | [12] | 280 | [13] | |
Fair Value, Inputs, Level 2 | U.S. Treasury and federal agencies | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 1,087 | [12] | 1,607 | [13] | |
Trading securities | 19 | [12] | 14 | [13] | |
Fair Value, Inputs, Level 2 | Obligations of states and political subdivisions | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 52 | [12] | 192 | [13] | |
Trading securities | 9 | [12] | 8 | [13] | |
Fair Value, Inputs, Level 2 | Agency mortgage-backed securities | Residential mortgage backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 15,081 | [12] | 12,404 | [13] | |
Trading securities | 6 | [12] | 9 | [13] | |
Fair Value, Inputs, Level 2 | Agency mortgage-backed securities | Commercial Mortgage Backed Securities [Member] | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 7,862 | [12] | 4,565 | [13] | |
Fair Value, Inputs, Level 2 | Non-agency mortgage-backed securities | Commercial Mortgage Backed Securities [Member] | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 2,804 | [12] | 1,550 | [13] | |
Fair Value, Inputs, Level 2 | Asset-backed securities and other debt securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 1,355 | [12] | 1,362 | [13] | |
Trading securities | 19 | [12] | 13 | [13] | |
Fair Value, Inputs, Level 2 | Equity securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale and other securities, fair value | 1 | [2],[12] | 19 | [3],[13] | |
Fair Value, Inputs, Level 3 | Fair value, recurring | |||||
Assets: | |||||
Residential mortgage loans measured at fair value | 167 | [4] | 108 | [5] | |
Derivative assets | 277 | [6] | 427 | [7] | |
Total assets | 444 | 535 | |||
Liabilities: | |||||
Derivative liabilities | 64 | [8] | 51 | [9] | |
Total liabilities | 64 | 51 | |||
Fair Value, Inputs, Level 3 | Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 15 | 12 | |||
Liabilities: | |||||
Derivative liabilities | 3 | 2 | |||
Fair Value, Inputs, Level 3 | Equity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 262 | 415 | |||
Liabilities: | |||||
Derivative liabilities | $ 61 | $ 49 | |||
[1] | Amortized cost of $28,678 and $21,677 at December 31, 2015 and 2014, respectively. | ||||
[2] | Excludes FHLB, FRB and DTCC restricted stock totaling $248, $355 and $1, respectively, at December 31, 2015 | ||||
[3] | Excludes FHLB and FRB restricted stock totaling $248 and $352, respectively, at December 31, 2014. | ||||
[4] | Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. | ||||
[5] | Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. | ||||
[6] | Included in other assets in the Consolidated Balance Sheets. | ||||
[7] | Included in other assets in the Consolidated Balance Sheets. | ||||
[8] | Included in other liabilities in the Consolidated Balance Sheets | ||||
[9] | Included in other liabilities in the Consolidated Balance Sheets | ||||
[10] | Includes interest-only mortgage-backed securities of $50 and $175 as of December 31, 2015 and 2014, respectively, recorded at fair value with fair value changes recorded in securities gains, net, in the Consolidated Statements of Income. | ||||
[11] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $355, and $1, respectively, at December 31, 2015 and $248, $352 and $0, respectively, at December 31, 2014, that are carried at cost, and certain mutual fund and equity security holdings. | ||||
[12] | During the year ended December 31, 2015, no assets or liabilities were transferred between Level 1 and Level 2 | ||||
[13] | During the year ended December 31, 2014, no assets or liabilities were transferred between Level 1 and Level 2. |
Assets and Liabilities Measu190
Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Federal Home Loan Bank Stock | $ 248 | $ 248 |
Federal Reserve Bank Stock | 355 | $ 352 |
DTCC Stock | $ 1 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2009 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net fair value of the interest rate lock commitments | $ 15 | |||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 25 bp | 6 | |||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 50 bp | 11 | |||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 25 bp | 7 | |||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 50 bp | 14 | |||
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 | |||
Portfolio loans to loans held for sale | 487 | $ 855 | $ 641 | |
Existing loans held for sale, further adjusted | 519 | 561 | ||
Residential loans transferred to the Bancorp's portfolio | 288 | 31 | 44 | |
Fair value changes included in earnings for instruments for which the fair value option was elected | $ 17 | 26 | ||
Incremental Unit Purchase Option | 7.8 | |||
Vantiv Holding, LLC Warrant Exercise Price | $ 15.98 | |||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | |||
Private Equity Fund Impairment | $ 1 | $ 4 | ||
Commercial Loans Held For Sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Portfolio loans to loans held for sale | 37 | 28 | ||
Existing loans held for sale, further adjusted | 1 | 2 | ||
Net impact related to fair value adjustments | 1 | 10 | ||
Gain Loss On Sales Of Loans Net | 5 | |||
Residential Mortgagel Loans Held For Sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Portfolio loans to loans held for sale | 233 | 720 | ||
Net impact related to fair value adjustments | 2 | 87 | ||
Automobile Loans Held For Sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Portfolio loans to loans held for sale | 5 | |||
Credit Card Held For Sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Portfolio loans to loans held for sale | 102 | |||
Fair value adjustment | 2 | |||
Other Real Estate Owned | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net impact related to fair value adjustments | 10 | 14 | ||
Nonrecurring Losses Included As Charge-Offs | 14 | 12 | ||
Vantiv Holding, LLC | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | |||
Residential Portfolio Segment | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Residential loans transferred to the Bancorp's portfolio | 55 | |||
Fair value adjustment | 1 | |||
The fair value of loans | $ 2 | $ 2 |
Reconciliation of Assets and Li
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation Calculation Roll Forward | |||||||
Beginning balance | $ 484 | $ 437 | $ 278 | ||||
Included in earnings | 399 | 122 | 233 | ||||
Purchases | (2) | (1) | (2) | ||||
Sale and exercise of warrant | (477) | ||||||
Sales | (1) | ||||||
Settlements | (111) | (102) | (106) | ||||
Transfers into Level 3 | 87 | [1] | 29 | [2] | 34 | [3] | |
Ending balance | 380 | 484 | 437 | ||||
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 | 83 | [4] | 10 | [5] | 185 | [6] | |
Trading Securities | |||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation Calculation Roll Forward | |||||||
Beginning balance | 1 | 1 | |||||
Sales | (1) | ||||||
Ending balance | 1 | ||||||
Residential Mortgage | |||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation Calculation Roll Forward | |||||||
Beginning balance | 108 | 92 | 76 | ||||
Included in earnings | 4 | (1) | |||||
Settlements | (28) | (17) | (17) | ||||
Transfers into Level 3 | 87 | [1] | 29 | [2] | 34 | [3] | |
Ending balance | 167 | 108 | 92 | ||||
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 | 4 | [5] | (1) | [6] | |||
Interest Rate Contract | |||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation Calculation Roll Forward | |||||||
Beginning balance | 10 | [7],[8] | 8 | [7],[9] | 57 | [9] | |
Included in earnings | 111 | [8] | 125 | [7] | 59 | [9] | |
Purchases | (2) | [8] | (1) | [7] | (2) | [9] | |
Settlements | (107) | [8] | (122) | [7] | (106) | [9] | |
Ending balance | 12 | [8] | 10 | [7],[8] | 8 | [7],[9] | |
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 | 17 | [4],[8] | 13 | [5],[7] | 11 | [6],[9] | |
Equity Contract | |||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation Calculation Roll Forward | |||||||
Beginning balance | 366 | [7],[8] | 336 | [7],[9] | 144 | [9] | |
Included in earnings | 288 | [8] | (7) | [7] | 175 | [9] | |
Sale and exercise of warrant | [8] | (477) | |||||
Settlements | 24 | [8] | 37 | [7] | 17 | [9] | |
Ending balance | 201 | [8] | 366 | [7],[8] | 336 | [7],[9] | |
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 | $ 66 | [4],[8] | $ (7) | [5],[7] | $ 175 | [6],[9] | |
[1] | Includes residential mortgage loans held for sale that were transferred to held for investment. | ||||||
[2] | Includes residential mortgage loans held for sale that were transferred to held for investment. | ||||||
[3] | Includes residential mortgage loans held for sale that were transferred to held for investment. | ||||||
[4] | Includes interest income and expense. | ||||||
[5] | Includes interest income and expense. | ||||||
[6] | Includes interest income and expense. | ||||||
[7] | Net interest rate derivatives include derivative assets and liabilities of $12 and $2, respectively as of December 31, 2014. Net equity derivatives include derivative assets and liabilities of $415 and $49, respectively, as of December 31, 2014. | ||||||
[8] | Net interest rate derivatives include derivative assets and liabilities of $15 and $3, respectively, as of December 31, 2015. Net equity derivatives include derivative assets and liabilities of $262 and $61, respectively, as of December 31, 2015. | ||||||
[9] | Net interest rate derivatives include derivative assets and liabilities of $12 and $4, respectively, as of December 31, 2013. Net equity derivatives include derivative assets and liabilities of $384 and $48, respectively, as of December 31, 2013. |
Reconciliation of Assets and193
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Derivative assets | $ 380 | $ 484 | $ 437 | $ 278 |
Interest Rates | ||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Derivative assets | 15 | 12 | 12 | |
Derivative liabilities | 3 | 2 | 4 | |
Equity Contract | ||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Derivative assets | 262 | 415 | 384 | |
Derivative liabilities | $ 61 | $ 49 | $ 48 |
Total Gains and Losses Included
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) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains and losses included in earnings | $ 399 | $ 122 | $ 233 |
Mortgage Banking Revenue | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains and losses included in earnings | 110 | 127 | 57 |
Corporate Banking Revenue | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains and losses included in earnings | 1 | 2 | 1 |
Other Noninterest Income | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains and losses included in earnings | $ 288 | $ (7) | $ 175 |
Total Gains and Losses Inclu195
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 ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings | $ 83 | $ 10 | $ 185 |
Mortgage Banking Revenue | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings | 16 | 16 | 10 |
Corporate Banking Revenue | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings | 1 | 1 | |
Other Noninterest Income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings | $ 66 | $ (7) | $ 175 |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Recurring Basis) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value Inputs [Line Items] | |||
Residential mortgage loans measured at fair value | $ 167 | $ 108 | |
Derivative instruments | 1,852 | 2,080 | |
Residential mortgage loans | |||
Fair Value Inputs [Line Items] | |||
Residential mortgage loans measured at fair value | 167 | 108 | |
IRLCs, net | |||
Fair Value Inputs [Line Items] | |||
Derivative instruments | 15 | 12 | |
Stock warrants associated with Vantiv Holding, LLC | |||
Fair Value Inputs [Line Items] | |||
Derivative instruments | 262 | 415 | |
Swap associated with the sale of Visa, Inc. Class B shares | |||
Fair Value Inputs [Line Items] | |||
Derivative instruments | $ (61) | $ (49) | |
Lower limit | Residential mortgage loans | |||
Fair Value Inputs [Line Items] | |||
Interest rate risk factor | (9.20%) | (7.20%) | |
Lower limit | IRLCs, net | |||
Fair Value Inputs [Line Items] | |||
Loan closing rates | 5.80% | 8.80% | |
Lower limit | Stock warrants associated with Vantiv Holding, LLC | |||
Fair Value Inputs [Line Items] | |||
Expected term (years) | 2 years | 2 years | |
Expected volatility | [1] | 22.60% | 22.90% |
Lower limit | Swap associated with the sale of Visa, Inc. Class B shares | |||
Fair Value Inputs [Line Items] | |||
Timing of the resolution of the covered litigation | Dec. 31, 2016 | Dec. 31, 2015 | |
Maximum | Residential mortgage loans | |||
Fair Value Inputs [Line Items] | |||
Interest rate risk factor | 16.50% | 17.70% | |
Credit risk factor | 80.50% | 46.60% | |
Maximum | IRLCs, net | |||
Fair Value Inputs [Line Items] | |||
Loan closing rates | 94.00% | 86.70% | |
Maximum | Stock warrants associated with Vantiv Holding, LLC | |||
Fair Value Inputs [Line Items] | |||
Expected term (years) | 13 years 6 months | 14 years 6 months | |
Expected volatility | [1] | 31.20% | 32.20% |
Maximum | Swap associated with the sale of Visa, Inc. Class B shares | |||
Fair Value Inputs [Line Items] | |||
Timing of the resolution of the covered litigation | Mar. 31, 2021 | Jun. 30, 2020 | |
Weighted average | Residential mortgage loans | |||
Fair Value Inputs [Line Items] | |||
Interest rate risk factor | 3.10% | 5.00% | |
Credit risk factor | 1.30% | 1.80% | |
Weighted average | IRLCs, net | |||
Fair Value Inputs [Line Items] | |||
Loan closing rates | 76.30% | 65.20% | |
Weighted average | Stock warrants associated with Vantiv Holding, LLC | |||
Fair Value Inputs [Line Items] | |||
Expected term (years) | 5 years 10 months 24 days | 6 years | |
Expected volatility | [1] | 25.90% | 26.50% |
[1] | Based on historical and implied volatilities of Vantiv, Inc. and comparable companies assuming similar expected terms. |
Assets and Liabilities Measu197
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | $ 1,575 | $ 2,144 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (340) | (629) |
Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 13 | 33 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | 3 | (12) |
Residential Mortgagel Loans Held For Sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 68 | 554 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (2) | (87) |
Automobile Loans Held For Sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 2 | |
Credit Card Held For Sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 4 | |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (2) | |
Commercial and Industrial Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 344 | 456 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (137) | (382) |
Commercial Mortgage Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 103 | 110 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (41) | (36) |
Commercial Construction Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 6 | 23 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (5) | (1) |
Residential mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 55 | |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (1) | |
Mortgage Servicing Rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 784 | 856 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | 4 | (65) |
Other Real Estate Owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 58 | 90 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (24) | (26) |
Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 83 | 22 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (101) | (20) |
Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 42 | |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (33) | |
Private equity investment funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 13 | |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (1) | |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 1,575 | 2,144 |
Fair Value, Inputs, Level 3 | Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 13 | 33 |
Fair Value, Inputs, Level 3 | Residential Mortgagel Loans Held For Sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 68 | 554 |
Fair Value, Inputs, Level 3 | Automobile Loans Held For Sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 2 | |
Fair Value, Inputs, Level 3 | Credit Card Held For Sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 4 | |
Fair Value, Inputs, Level 3 | Commercial and Industrial Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 344 | 456 |
Fair Value, Inputs, Level 3 | Commercial Mortgage Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 103 | 110 |
Fair Value, Inputs, Level 3 | Commercial Construction Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 6 | 23 |
Fair Value, Inputs, Level 3 | Residential mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 55 | |
Fair Value, Inputs, Level 3 | Mortgage Servicing Rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 784 | 856 |
Fair Value, Inputs, Level 3 | Other Real Estate Owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 58 | 90 |
Fair Value, Inputs, Level 3 | Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 83 | $ 22 |
Fair Value, Inputs, Level 3 | Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 42 | |
Fair Value, Inputs, Level 3 | Private equity investment funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | $ 13 |
Fair Values of Assets and Li198
Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Nonrecurring Basis) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Commercial Loans Held For Sale | Commercial | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | $ 13 | $ 33 |
Residential Mortgagel Loans Held For Sale | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | 68 | 554 |
Automobile Loans Held For Sale | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | 2 | |
Credit Card Held For Sale | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | 4 | |
Commercial and Industrial Loans | Commercial | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | 344 | 456 |
Commercial Mortgage Loans | Commercial | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | 103 | 110 |
Commercial Construction Loans | Commercial | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | 6 | 23 |
Residential mortgage loans | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | 55 | |
Mortgage Servicing Rights | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | 784 | 856 |
OREO Property | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | 58 | 90 |
Bank premises and equipment | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | 83 | $ 22 |
Operating lease equipment | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | 42 | |
Private equity investment funds | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | $ 13 | |
Minimum | Residential Mortgagel Loans Held For Sale | ||
Fair Value Inputs [Line Items] | ||
Interest rate risk factor | (7.50%) | |
Minimum | Residential mortgage loans | ||
Fair Value Inputs [Line Items] | ||
Interest rate risk factor | (9.20%) | (7.20%) |
Minimum | Mortgage Servicing Rights | ||
Fair Value Inputs [Line Items] | ||
Prepayment speed | 1.00% | |
Discount rate | 9.60% | |
OAS spread (bps) | 364 | |
Maximum | Residential Mortgagel Loans Held For Sale | ||
Fair Value Inputs [Line Items] | ||
Interest rate risk factor | 0.10% | |
Maximum | Residential mortgage loans | ||
Fair Value Inputs [Line Items] | ||
Interest rate risk factor | 16.50% | 17.70% |
Credit risk factor | 80.50% | 46.60% |
Maximum | Mortgage Servicing Rights | ||
Fair Value Inputs [Line Items] | ||
Prepayment speed | 100.00% | 100.00% |
Discount rate | 13.20% | |
OAS spread (bps) | 1,515 | |
Weighted average | Commercial Loans Held For Sale | ||
Fair Value Inputs [Line Items] | ||
Cost to sell | 10.00% | |
Discount rate | 4.40% | |
Weighted average | Residential Mortgagel Loans Held For Sale | ||
Fair Value Inputs [Line Items] | ||
Estimated sales proceeds from comparable transactions | 15.00% | |
Interest rate risk factor | (1.60%) | |
Credit risk factor | 0.10% | |
Weighted average | Automobile Loans Held For Sale | ||
Fair Value Inputs [Line Items] | ||
Discount rate | 3.10% | |
Weighted average | Residential mortgage loans | ||
Fair Value Inputs [Line Items] | ||
Interest rate risk factor | 3.10% | 5.00% |
Credit risk factor | 1.30% | 1.80% |
Weighted average | Private equity investment funds | ||
Fair Value Inputs [Line Items] | ||
Liquidity discount | 18.00% | |
Weighted average | Fixed Rate | Mortgage Servicing Rights | ||
Fair Value Inputs [Line Items] | ||
Prepayment speed | 11.80% | 12.00% |
Discount rate | 9.90% | |
OAS spread (bps) | 618 | |
Weighted average | Adjustable | Mortgage Servicing Rights | ||
Fair Value Inputs [Line Items] | ||
Prepayment speed | 27.00% | 26.20% |
Discount rate | 11.80% | |
OAS spread (bps) | 703 |
Difference Between the Aggregat
Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance for Residential Mortgage Loans Measured at Fair Value (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Aggregate fair value | ||
Residential mortgage loans measured at fair value | $ 686 | $ 669 |
Residential mortgage loans | ||
Aggregate fair value | ||
Past due loans of 90 days or more | 2 | 2 |
Nonaccrual loans | 2 | 3 |
Aggregate unpaid principal balance | ||
Residential mortgage loans measured at fair value | 669 | 643 |
Past due loans of 90 days or more | 2 | 2 |
Nonaccrual loans | 2 | 3 |
Difference | ||
Residential mortgage loans measured at fair value | $ 17 | $ 26 |
Carrying Amounts and Estimated
Carrying Amounts and Estimated Fair Values for Certain Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Financial assets: | |||||||
Cash and due from banks | $ 2,540 | [1] | $ 3,091 | [1] | $ 3,178 | $ 2,441 | |
Held-to-maturity securities, amortized cost | [2] | 70 | 187 | ||||
Other short-term investments | 2,671 | 7,914 | |||||
Loans and leases held for sale | [3] | 903 | 1,261 | ||||
Portfolio loans and leases, net | 91,310 | 88,762 | |||||
Other securities, fair value | [4] | 29,044 | 22,408 | ||||
Held-to-maturity securities, fair value | 70 | 187 | |||||
Loans held for sale | 519 | 561 | |||||
Portfolio loans and leases at fair value | 167 | 108 | |||||
Financial liabilities: | |||||||
Deposits | [5] | 103,205 | 101,712 | ||||
Federal funds purchased | 151 | 144 | |||||
Other short-term borrowings | 1,507 | 1,556 | |||||
Long-term debt | [1] | 15,844 | 14,967 | ||||
Residential Mortgage | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 167 | 108 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | |||||||
Financial assets: | |||||||
Cash and due from banks | 2,540 | 3,091 | |||||
Other securities | 604 | 600 | |||||
Held-to-maturity securities, amortized cost | 70 | 187 | |||||
Other short-term investments | 2,671 | 7,914 | |||||
Loans and leases held for sale | 384 | 700 | |||||
Portfolio loans and leases, net | 91,143 | 88,654 | |||||
Unallocated Allowance for Loan and Lease Losses | (115) | (106) | |||||
Financial liabilities: | |||||||
Deposits | 103,205 | 101,712 | |||||
Federal funds purchased | 151 | 144 | |||||
Other short-term borrowings | 1,507 | 1,556 | |||||
Long-term debt | 15,844 | 14,967 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial and Industrial Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 41,479 | 40,092 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Mortgage Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 6,840 | 7,259 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Construction Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 3,190 | 2,052 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Leases | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 3,807 | 3,675 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Residential Mortgage | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 13,449 | 12,177 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Home Equity | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 8,234 | 8,799 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Automobile Loans | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 11,453 | 12,004 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Credit Card | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 2,160 | 2,297 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Other Consumer Loans and Leases | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 646 | 405 | |||||
Total Fair Value | |||||||
Financial assets: | |||||||
Cash and due from banks, fair value | 2,540 | 3,091 | |||||
Other securities, fair value | 604 | 600 | |||||
Held-to-maturity securities, fair value | 70 | 187 | |||||
Other Short Term Investments Fair Value Disclosure | 2,671 | 7,914 | |||||
Portfolio loans and leases at fair value | 92,282 | 89,041 | |||||
Financial liabilities: | |||||||
Deposits, fair value | 103,219 | 101,715 | |||||
Federal funds purchased, fair value | 151 | 144 | |||||
Other short-term borrowings, fair value | 1,507 | 1,561 | |||||
Long term debt, fair value | 16,262 | 15,648 | |||||
Total Fair Value | Non Fair Value Option Held For Sale Loans [Member] | |||||||
Financial assets: | |||||||
Loans held for sale | 384 | 700 | |||||
Total Fair Value | Commercial and Industrial Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 41,802 | 40,781 | |||||
Total Fair Value | Commercial Mortgage Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 6,656 | 6,878 | |||||
Total Fair Value | Commercial Construction Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 2,918 | 1,735 | |||||
Total Fair Value | Commercial Leases | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 3,533 | 3,426 | |||||
Total Fair Value | Residential Mortgage | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 14,061 | 12,249 | |||||
Total Fair Value | Home Equity | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 8,948 | 9,224 | |||||
Total Fair Value | Automobile Loans | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 11,170 | 11,748 | |||||
Total Fair Value | Credit Card | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 2,551 | 2,586 | |||||
Total Fair Value | Other Consumer Loans and Leases | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 643 | 414 | |||||
Total Fair Value | Fair Value, Inputs, Level 1 | |||||||
Financial assets: | |||||||
Cash and due from banks, fair value | 2,540 | 3,091 | |||||
Other Short Term Investments Fair Value Disclosure | 2,671 | 7,914 | |||||
Financial liabilities: | |||||||
Federal funds purchased, fair value | 151 | 144 | |||||
Long term debt, fair value | 15,637 | 14,993 | |||||
Total Fair Value | Fair Value, Inputs, Level 2 | |||||||
Financial assets: | |||||||
Other securities, fair value | 604 | 600 | |||||
Financial liabilities: | |||||||
Deposits, fair value | 103,219 | 101,715 | |||||
Other short-term borrowings, fair value | 1,507 | 1,561 | |||||
Long term debt, fair value | 625 | 655 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | |||||||
Financial assets: | |||||||
Held-to-maturity securities, fair value | 70 | 187 | |||||
Portfolio loans and leases at fair value | 92,282 | 89,041 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Non Fair Value Option Held For Sale Loans [Member] | |||||||
Financial assets: | |||||||
Loans held for sale | 384 | 700 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial and Industrial Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 41,802 | 40,781 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Mortgage Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 6,656 | 6,878 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Construction Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 2,918 | 1,735 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Leases | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 3,533 | 3,426 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Residential Mortgage | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 14,061 | 12,249 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Home Equity | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 8,948 | 9,224 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Automobile Loans | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 11,170 | 11,748 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Credit Card | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 2,551 | 2,586 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Other Consumer Loans and Leases | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | $ 643 | $ 414 | |||||
[1] | Includes $152 and $179 of cash and due from banks, $2,537 and $3,378 of portfolio loans and leases, $(28) and $(22) of ALLL, $20 and $25 of other assets, $3 and $5 of other liabilities and $2,493 and $3,434 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2015 and 2014, respectively. For further information, refer to Note 11. | ||||||
[2] | Fair value of $70 and $187 at December 31, 2015 and 2014, respectively. | ||||||
[3] | Includes $519 and $561 of residential mortgage loans held for sale measured at fair value at December 31, 2015 and 2014, respectively. | ||||||
[4] | Amortized cost of $28,678 and $21,677 at December 31, 2015 and 2014, respectively. | ||||||
[5] | Includes $628 and $0 of deposits held for sale at December 31, 2015 and 2014, respectively. For further information refer to Note 7. |
Certain Regulatory Requireme201
Certain Regulatory Requirements and Capital Ratios - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Banking Subsidiary Reserve Requirement | $ 1,900 | $ 1,800 |
Yearly Average | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Banking Subsidiary Reserve Requirement | 1,800 | $ 1,700 |
Trust Preferred Securities | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier I capital (to risk-weighted assets) | $ 13 | |
TruPS as a basis point percentage of risk-weighted assets | 1 |
Capital and Risk-Based Capital
Capital and Risk-Based Capital and Leverage Ratios for the Bancorp and its Significant Subsidiary Banks (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | [2] | ||
Fifth Third Bancorp | |||||
Risk Based Ratios | |||||
CET1 capital (to risk-weighted assets) | [1] | 9.82% | |||
Tier I risk-based capital (to risk-weighted assets) | 10.93% | [1] | 10.83% | ||
Total risk-based capital (to risk-weighted assets) | 14.13% | [1] | 14.33% | ||
Tier I leverage (to average assets) | 9.54% | [1] | 9.66% | ||
Risk Based Capital | |||||
CET1 capital (to risk-weighted assets) | [1] | $ 11,917 | |||
Tier I risk-based capital (to risk-weighted assets) | 13,260 | [1] | $ 12,764 | ||
Total risk-based capital (to risk weighted assets) | 17,134 | [1] | 16,895 | ||
Tier I leverage (to average assets) | $ 13,260 | [1] | $ 12,764 | ||
Fifth Third Bank | |||||
Risk Based Ratios | |||||
CET1 capital (to risk-weighted assets) | [1] | 11.92% | |||
Tier I risk-based capital (to risk-weighted assets) | 11.92% | [1] | 11.85% | ||
Total risk-based capital (to risk-weighted assets) | 13.12% | [1] | 13.10% | ||
Tier I leverage (to average assets) | 10.43% | [1] | 10.58% | ||
Risk Based Capital | |||||
CET1 capital (to risk-weighted assets) | [1] | $ 14,216 | |||
Tier I risk-based capital (to risk-weighted assets) | 14,216 | [1] | $ 13,760 | ||
Total risk-based capital (to risk weighted assets) | 15,642 | [1] | 15,213 | ||
Tier I leverage (to average assets) | $ 14,216 | [1] | $ 13,760 | ||
[1] | Under the U.S. banking agencies’ Basel III Final Rule, assets and credit equivalent amounts of off-balance sheet exposures are calculated according to the standardized approach for risk-weighted assets. The resulting weighted values are added together resulting in the total risk-weighted assets. | ||||
[2] | These capital amounts and ratios were calculated under the Supervisory Agencies general risk-based capital rules (Basel I) which were in effect prior to January 1, 2015. |
Condensed Statements of Income
Condensed Statements of Income - Parent Company Only (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Dividends from subsidiaries: | ||||
Consolidated nonbank subsidiaries | $ 1,000 | $ 1,100 | ||
Total income | 4,028 | 4,030 | $ 3,973 | |
Expenses | ||||
Interest | 495 | 451 | 412 | |
Other | 191 | 181 | 193 | |
Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries | 2,365 | 2,028 | 2,598 | |
Applicable income tax benefit | (659) | (545) | (772) | |
Net income attributable to Bancorp | 1,712 | 1,481 | 1,836 | |
Other Comprehensive Income (loss) | (232) | 347 | (293) | |
Comprehensive income attributable to Bancorp | 1,480 | 1,828 | 1,543 | |
Parent Company Only | ||||
Dividends from subsidiaries: | ||||
Consolidated nonbank subsidiaries | [1] | 1,040 | 1,094 | 859 |
Interest on loans to subsidiaries | 15 | 14 | 14 | |
Total income | 1,055 | 1,108 | 873 | |
Expenses | ||||
Interest | 178 | 163 | 178 | |
Other | 22 | 17 | 36 | |
Total expenses | 200 | 180 | 214 | |
Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries | 855 | 928 | 659 | |
Applicable income tax benefit | 69 | 62 | 74 | |
Income (Loss) Before Change in Undistributed Earnings of Subsidiaries | 924 | 990 | 733 | |
Change in undistributed earnings (loss) | 788 | 491 | 1,103 | |
Net income attributable to Bancorp | 1,712 | 1,481 | 1,836 | |
Comprehensive income attributable to Bancorp | $ 1,712 | $ 1,481 | $ 1,836 | |
[1] | The Bancorp’s indirect banking subsidiary paid dividends to the Bancorp’s direct nonbank subsidiary holding company of $1.0 billion, $1.1 billion and $859 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Condensed Statements of Inco204
Condensed Statements of Income - Parent Company Only (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Dividend Received From Nonbank Companies And Related Subsidiaries | $ 1,000 | $ 1,100 | ||
Parent Company Only | ||||
Dividend Received From Nonbank Companies And Related Subsidiaries | [1] | $ 1,040 | $ 1,094 | $ 859 |
[1] | The Bancorp’s indirect banking subsidiary paid dividends to the Bancorp’s direct nonbank subsidiary holding company of $1.0 billion, $1.1 billion and $859 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Condensed Balance Sheet - Paren
Condensed Balance Sheet - Parent Company Only (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Investments in subsidiaries: | |||||
Goodwill | $ 2,416 | $ 2,416 | $ 2,416 | ||
Other assets | [1] | 7,999 | 8,241 | ||
Total Assets | 141,082 | 138,706 | 130,443 | ||
Liabilities | |||||
Other short-term borrowings | 1,507 | 1,556 | |||
Accrued expenses and other liabilities | [1] | 2,341 | 2,642 | ||
Long-term debt (external) | [1] | 15,844 | 14,967 | ||
Total liabilities | 125,212 | 123,041 | |||
Shareholders' Equity | |||||
Common stock | [2] | 2,051 | 2,051 | ||
Preferred stock | [3] | 1,331 | 1,331 | ||
Capital surplus | 2,666 | 2,646 | |||
Retained earnings | 12,358 | 11,141 | |||
Accumulated other comprehensive income | 197 | 429 | $ 82 | $ 375 | |
Treasury stock | [2] | (2,764) | (1,972) | ||
Noncontrolling interests | 31 | 39 | |||
Total Equity | 15,839 | 15,626 | |||
Total Liabilities and Equity | 141,082 | 138,706 | |||
Parent Company Only | |||||
Assets | |||||
Cash | 128 | ||||
Short-term Investments | 3,728 | 3,189 | |||
Loans to subsidiaries: | |||||
Nonbank subsidiaries | 982 | 984 | |||
Total loans to subsidiaries | 982 | 984 | |||
Investments in subsidiaries: | |||||
Nonbank subsidiaries | 17,831 | 17,186 | |||
Total investment in subsidiaries | 17,831 | 17,186 | |||
Goodwill | 80 | 80 | |||
Other assets | 432 | 451 | |||
Total Assets | 23,181 | 21,890 | |||
Liabilities | |||||
Other short-term borrowings | 404 | 426 | |||
Accrued expenses and other liabilities | 433 | 405 | |||
Long-term debt (external) | 6,474 | 5,394 | |||
Total liabilities | 7,311 | 6,225 | |||
Shareholders' Equity | |||||
Common stock | 2,051 | 2,051 | |||
Preferred stock | 1,331 | 1,331 | |||
Capital surplus | 2,666 | 2,646 | |||
Retained earnings | 12,358 | 11,141 | |||
Accumulated other comprehensive income | 197 | 429 | |||
Treasury stock | (2,764) | (1,972) | |||
Noncontrolling interests | 31 | 39 | |||
Total Equity | 15,870 | 15,665 | |||
Total Liabilities and Equity | $ 23,181 | $ 21,890 | |||
[1] | Includes $152 and $179 of cash and due from banks, $2,537 and $3,378 of portfolio loans and leases, $(28) and $(22) of ALLL, $20 and $25 of other assets, $3 and $5 of other liabilities and $2,493 and $3,434 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2015 and 2014, respectively. For further information, refer to Note 11. | ||||
[2] | Common shares: Stated value $2.22 per share; authorized 2,000,000; outstanding at December 31, 2015 – 785,080,314 (excludes 138,812,267 treasury shares), 2014 – 824,046,952 (excludes 99,845,629 treasury shares). | ||||
[3] | 446,000 shares of undesignated no par value preferred stock are authorized and unissued at December 31, 2015 and 2014; 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 December 31, 2015 and 2014; 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 December 31, 2015 and 2014; and fixed-to-floating rate non-cumulative Series J perpetual preferred stock with a $25,000 liquidation preference: 12,000 authorized shares, issued and outstanding at December 31, 2015 and 2014. |
Condensed Statement of Cash Flo
Condensed Statement of Cash Flow - Parent Company Only (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Operating Activities | |||||
Net income (loss) | $ 1,712 | $ 1,481 | $ 1,836 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
(Benefit from) provision for deferred income taxes | (71) | 79 | 253 | ||
Net change in undistributed earnings | 63 | 48 | 77 | ||
Net change in: | |||||
Other assets | 94 | (221) | (672) | ||
Accrued expenses and other liabilities | 327 | 1 | 8 | ||
Net Cash Provided by (Used in) Operating Activities | 2,418 | 2,076 | 4,595 | ||
Net change in: | |||||
Other short-term investments | 5,243 | (2,798) | (2,695) | ||
Net Cash (Used in) Provided by Investing Activities | (3,931) | (8,938) | (10,184) | ||
Financing Activities | |||||
Net change in other short-term borrowings | (49) | 176 | (4,900) | ||
Proceeds from issuance of long-term debt | 3,091 | 6,570 | 5,044 | ||
Repayment of long-term debt | 2,205 | 1,399 | 2,225 | ||
Dividends paid on common shares | 422 | 423 | 393 | ||
Dividends paid on preferred shares | 75 | 67 | 37 | ||
Issuance of preferred shares | 297 | 1,034 | |||
Repurchase of treasury shares and related forward contract | 850 | 654 | 1,320 | ||
Other | (28) | (22) | (17) | ||
Net Cash Used In Financing Activities | 962 | 6,775 | 6,326 | ||
Net (Decrease) Increase in Cash | (551) | (87) | 737 | ||
Cash and Due from Banks at Beginning of Period | 3,091 | [1] | 3,178 | 2,441 | |
Cash and Due from Banks at End of Period | 2,540 | [1] | 3,091 | [1] | 3,178 |
Parent Company Only | |||||
Operating Activities | |||||
Net income (loss) | 1,712 | 1,481 | 1,836 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
(Benefit from) provision for deferred income taxes | (4) | (1) | (1) | ||
Net change in undistributed earnings | (788) | (491) | (1,103) | ||
Net change in: | |||||
Other assets | (19) | 8 | 13 | ||
Accrued expenses and other liabilities | 32 | (40) | (28) | ||
Net Cash Provided by (Used in) Operating Activities | 933 | 957 | 717 | ||
Net change in: | |||||
Other short-term investments | (539) | (684) | 976 | ||
Loans to subsidiaries | 2 | (10) | 47 | ||
Net Cash (Used in) Provided by Investing Activities | (537) | (694) | 1,023 | ||
Financing Activities | |||||
Net change in other short-term borrowings | (22) | 115 | (255) | ||
Proceeds from issuance of long-term debt | 1,099 | 499 | 750 | ||
Repayment of long-term debt | (1,500) | ||||
Dividends paid on common shares | (422) | (423) | (393) | ||
Dividends paid on preferred shares | (75) | (67) | (37) | ||
Issuance of preferred shares | 297 | 1,034 | |||
Repurchase of treasury shares and related forward contract | (850) | (654) | (1,320) | ||
Other | 2 | (30) | (19) | ||
Net Cash Used In Financing Activities | (268) | $ (263) | $ (1,740) | ||
Net (Decrease) Increase in Cash | 128 | ||||
Cash and Due from Banks at End of Period | $ 128 | ||||
[1] | Includes $152 and $179 of cash and due from banks, $2,537 and $3,378 of portfolio loans and leases, $(28) and $(22) of ALLL, $20 and $25 of other assets, $3 and $5 of other liabilities and $2,493 and $3,434 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2015 and 2014, respectively. For further information, refer to Note 11. |
Results of Operations and Avera
Results of Operations and Average Assets by Segment - Additional Information (Detail) | Dec. 31, 2015 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Full-service Banking Centers | 1,254 |
Results of Operations and Av208
Results of Operations and Average Assets by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Segment Reporting Information | ||||||
Net interest income | $ 3,533 | $ 3,579 | $ 3,561 | |||
Provision for loan and lease losses | 396 | 315 | 229 | |||
Net interest income after provision for loan and lease losses | 3,137 | 3,264 | 3,332 | |||
Total noninterest income | 3,003 | 2,473 | 3,227 | |||
Total noninterest expense | 3,775 | 3,709 | 3,961 | |||
Income Before Income Taxes | 2,365 | 2,028 | 2,598 | |||
Applicable income tax benefit | 659 | 545 | 772 | |||
Net income (loss) | 1,706 | 1,483 | 1,826 | |||
Less: Net income attributable to noncontrolling interests | (6) | 2 | (10) | |||
Net income attributable to Bancorp | 1,712 | 1,481 | 1,836 | |||
Dividends on preferred stock | 75 | 67 | 37 | |||
Net income available to common shareholders | 1,637 | 1,414 | 1,799 | |||
Total goodwill | 2,416 | 2,416 | 2,416 | |||
Total Assets | 141,082 | 138,706 | 130,443 | |||
Commercial Banking | ||||||
Segment Reporting Information | ||||||
Net interest income | 1,625 | 1,627 | 1,569 | |||
Provision for loan and lease losses | 239 | 235 | 195 | |||
Net interest income after provision for loan and lease losses | 1,386 | 1,392 | 1,374 | |||
Total noninterest income | 853 | [1] | 880 | 811 | ||
Total noninterest expense | 1,402 | 1,317 | 1,230 | |||
Income Before Income Taxes | 837 | 955 | 955 | |||
Applicable income tax benefit | 98 | 155 | 157 | |||
Net income (loss) | 739 | 800 | 798 | |||
Net income attributable to Bancorp | 739 | 800 | 798 | |||
Net income available to common shareholders | 739 | 800 | 798 | |||
Total goodwill | 613 | 613 | 613 | |||
Total Assets | 58,166 | 56,306 | 54,495 | |||
Branch Banking | ||||||
Segment Reporting Information | ||||||
Net interest income | 1,555 | 1,573 | 1,380 | |||
Provision for loan and lease losses | 159 | 181 | 211 | |||
Net interest income after provision for loan and lease losses | 1,396 | 1,392 | 1,169 | |||
Total noninterest income | 652 | [2] | 726 | [3] | 745 | [4] |
Total noninterest expense | 1,567 | 1,554 | 1,576 | |||
Income Before Income Taxes | 481 | 564 | 338 | |||
Applicable income tax benefit | 170 | 199 | 119 | |||
Net income (loss) | 311 | 365 | 219 | |||
Net income attributable to Bancorp | 311 | 365 | 219 | |||
Net income available to common shareholders | 311 | 365 | 219 | |||
Total goodwill | 1,655 | 1,655 | 1,655 | |||
Total Assets | 53,587 | 51,462 | 47,788 | |||
Consumer Lending | ||||||
Segment Reporting Information | ||||||
Net interest income | 249 | 258 | 312 | |||
Provision for loan and lease losses | 45 | 156 | 93 | |||
Net interest income after provision for loan and lease losses | 204 | 102 | 219 | |||
Total noninterest income | 407 | 350 | 755 | |||
Total noninterest expense | 436 | 554 | 685 | |||
Income Before Income Taxes | 175 | (102) | 289 | |||
Applicable income tax benefit | 63 | (36) | 102 | |||
Net income (loss) | 112 | (66) | 187 | |||
Net income attributable to Bancorp | 112 | (66) | 187 | |||
Net income available to common shareholders | 112 | (66) | 187 | |||
Total Assets | 22,656 | 22,567 | 22,624 | |||
Investment Advisors | ||||||
Segment Reporting Information | ||||||
Net interest income | 128 | 121 | 154 | |||
Provision for loan and lease losses | 3 | 3 | 2 | |||
Net interest income after provision for loan and lease losses | 125 | 118 | 152 | |||
Total noninterest income | 418 | 410 | 406 | |||
Total noninterest expense | 455 | 445 | 453 | |||
Income Before Income Taxes | 88 | 83 | 105 | |||
Applicable income tax benefit | 30 | 29 | 37 | |||
Net income (loss) | 58 | 54 | 68 | |||
Net income attributable to Bancorp | 58 | 54 | 68 | |||
Net income available to common shareholders | 58 | 54 | 68 | |||
Total goodwill | 148 | 148 | 148 | |||
Total Assets | 9,938 | 10,443 | 10,711 | |||
General Corporate and Other | ||||||
Segment Reporting Information | ||||||
Net interest income | (24) | 146 | ||||
Provision for loan and lease losses | (50) | (260) | (272) | |||
Net interest income after provision for loan and lease losses | 26 | 260 | 418 | |||
Total noninterest income | 822 | 253 | 654 | |||
Total noninterest expense | 64 | (15) | 161 | |||
Income Before Income Taxes | 784 | 528 | 911 | |||
Applicable income tax benefit | 298 | 198 | 357 | |||
Net income (loss) | 486 | 330 | 554 | |||
Less: Net income attributable to noncontrolling interests | (6) | 2 | (10) | |||
Net income attributable to Bancorp | 492 | 328 | 564 | |||
Dividends on preferred stock | 75 | 67 | 37 | |||
Net income available to common shareholders | 417 | 261 | 527 | |||
Total Assets | (3,265) | (2,072) | (5,175) | |||
Intersegment Elimination | ||||||
Segment Reporting Information | ||||||
Total noninterest income | (149) | [5] | (146) | [6] | (144) | [7] |
Total noninterest expense | $ (149) | $ (146) | $ (144) | |||
[1] | Includes an impairment charge of $36 for operating lease equipment. For more information refer to Note 8 and Note 27. | |||||
[2] | Includes an impairment charge of $109 for branches and land. For more information refer to Note 7 and Note 27. | |||||
[3] | Includes an impairment charge of $20 for branches and land. For more information refer to Note 7 and Note 27. | |||||
[4] | Includes an impairment charge of $6 for branches and land. For more information refer to Note 7 and Note 27. | |||||
[5] | Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Consolidated Statements of Income. | |||||
[6] | Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Consolidated Statements of Income. | |||||
[7] | Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Consolidated Statements of Income. |
Results of Operations and Av209
Results of Operations and Average Assets by Segment (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Branch Banking | |||
Segment Reporting Information [Line Items] | |||
Impairment of Branches and Land | $ 109 | $ 20 | $ 6 |
Commercial Banking | Operating lease equipment | |||
Segment Reporting Information [Line Items] | |||
Other Asset Impairment Charges | $ 36 |
Subsequent Event (Detail)
Subsequent Event (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Subsequent Event | |||
Loans held for sale | [1] | $ 903 | $ 1,261 |
Deposits held for sale | 628 | ||
Subsequent event | St. Louis MSA to Great Southern Bank | |||
Subsequent Event | |||
Loans held for sale | 158 | ||
Deposits held for sale | 228 | ||
Premises and equipment held for sale | 18 | ||
Gain on branch consolidation and sales plan | $ 8 | ||
Subsequent Events Date | Jan. 29, 2016 | ||
[1] | Includes $519 and $561 of residential mortgage loans held for sale measured at fair value at December 31, 2015 and 2014, respectively. |