Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
Document Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
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 | 767,717,824 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Assets | |||
Cash and due from banks | [1] | $ 2,298 | $ 2,540 |
Available-for-sale and other securities | [2] | 29,891 | 29,044 |
Held-to-matury securities | [3] | 64 | 70 |
Trading securities | 405 | 386 | |
Other short-term investments | 1,778 | 2,671 | |
Loans held for sale | [4] | 803 | 903 |
Portfolio loans and leases | [1],[5] | 93,605 | 92,582 |
ALLL | [1] | (1,295) | (1,272) |
Portfolio loans and leases, net | 92,310 | 91,310 | |
Bank premises and equipment | [6] | 2,185 | 2,239 |
Operating lease equipment | 738 | 707 | |
Goodwill | 2,416 | 2,416 | |
Intangible assets | 11 | 12 | |
Servicing rights | 685 | 785 | |
Other assets | [1],[7] | 8,846 | 7,965 |
Total Assets | [7] | 142,430 | 141,048 |
Deposits | |||
Noninterest-bearing deposits | 35,858 | 36,267 | |
Interest-bearing deposits | 66,617 | 66,938 | |
Total deposits | [8] | 102,475 | 103,205 |
Federal funds purchased | 134 | 151 | |
Other short-term borrowings | 3,523 | 1,507 | |
Accrued taxes, interest and expenses | 2,011 | 2,164 | |
Other liabilities | [1] | 2,627 | 2,341 |
Long-term debt | [1],[7] | 15,305 | 15,810 |
Total liabilities | [7] | 126,075 | 125,178 |
Equity | |||
Common stock | [9] | 2,051 | 2,051 |
Preferred stock | [10] | 1,331 | 1,331 |
Capital surplus | 2,686 | 2,666 | |
Retained earnings | 12,570 | 12,358 | |
Accumulated other comprehensive income | 684 | 197 | |
Treasury stock | [9] | (2,999) | (2,764) |
Total Bancorp Shareholders' Equity | 16,323 | 15,839 | |
Noncontrolling interests | 32 | 31 | |
Total Equity | 16,355 | 15,870 | |
Total Liabilities and Equity | [7] | $ 142,430 | $ 141,048 |
[1] | Includes $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9. | ||
[2] | Amortized cost of $28,838 and $28,678 at March 31, 2016 and December 31, 2015, respectively. | ||
[3] | Fair value of $64 and $70 at March 31, 2016 and December 31, 2015, respectively. | ||
[4] | Includes $600 and $519 of residential mortgage loans held for sale measured at fair value at March 31, 2016 and December 31, 2015, respectively. | ||
[5] | Includes $160 and $167 of residential mortgage loans measured at fair value at March 31, 2016 and December 31, 2015, respectively. | ||
[6] | Includes $68 and $81 of bank premises and equipment held for sale at March 31, 2016 and December 31, 2015, respectively. Refer to Note 7. | ||
[7] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Condensed Consolidated Balance Sheets were adjusted to reflect the reclassification of $34 million of debt issuance costs from other assets to long-term debt. For further information refer to Note 3. | ||
[8] | Includes $331 and $628 of deposits held for sale at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 7. | ||
[9] | Common shares: Stated value $2.22 per share; authorized 2,000,000,000; outstanding at March 31, 2016 – 770,470,768 (excludes 153,421,813 treasury shares), December 31, 2015 – 785,080,314 (excludes 138,812,267 treasury shares). | ||
[10] | 446,000 shares of undesignated no par value preferred stock are authorized and unissued at March 31, 2016 and December 31, 2015; fixed-to-floating rate non-cumulative Series H perpetual preferred stock with a $25,000 liquidation preference: 24,000 authorized shares, issued and outstanding at March 31, 2016 and December 31, 2015; fixed-to-floating rate non-cumulative Series I perpetual preferred stock with a $25,000 liquidation preference; 18,000 authorized shares, issued and outstanding at March 31, 2016 and December 31, 2015; and fixed-to-floating rate non-cumulative Series J perpetual preferred stock with a $25,000 liquidation preference: 12,000 authorized shares, issued and outstanding at March 31, 2016 and December 31, 2015. |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Cash and due from banks | [1] | $ 2,298 | $ 2,540 |
Portfolio loans and leases | [1],[2] | 93,605 | 92,582 |
ALLL | [1] | (1,295) | (1,272) |
Other assets | [1],[3] | 8,846 | 7,965 |
Other liabilities | [1] | 2,627 | 2,341 |
Long-term debt | [1],[3] | 15,305 | 15,810 |
Available-for-sale and other securities, amortized cost | 28,838 | 28,678 | |
Held-to-maturity securities, fair value | 64 | 70 | |
Residential mortgage loans held for sale measured at FV | 600 | 519 | |
Bank premises and equipment held for sale | 68 | 81 | |
Deposits Held for Sale | $ 331 | $ 628 | |
Common stock, stated value | $ 2.22 | $ 2.22 | |
Common stock, authorized | 2,000,000,000 | 2,000,000,000 | |
Common stock, outstanding | 770,470,768 | 785,080,314 | |
Common stock, treasury shares | 153,421,813 | 138,812,267 | |
Residential Mortgage | |||
Residential mortgage loans measured at FV | $ 160 | $ 167 | |
Variable Interest Entities | |||
Cash and due from banks | 147 | 152 | |
Portfolio loans and leases | 2,178 | 2,537 | |
ALLL | (27) | (28) | |
Other assets | 11 | 14 | |
Other liabilities | 4 | 3 | |
Long-term debt | $ 2,102 | $ 2,487 | |
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 $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9. | ||
[2] | Includes $160 and $167 of residential mortgage loans measured at fair value at March 31, 2016 and December 31, 2015, respectively. | ||
[3] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Condensed Consolidated Balance Sheets were adjusted to reflect the reclassification of $34 million of debt issuance costs from other assets to long-term debt. For further information refer to Note 3. |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME Unaudited - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest Income | ||
Interest and fees on loans and leases | $ 804 | $ 778 |
Interest on securities | 232 | 188 |
Interest on other short-term investments | 2 | 4 |
Total interest income | 1,038 | 970 |
Interest Expense | ||
Interest on deposits | 49 | 50 |
Interest on federal funds purchased | 1 | |
Interest on other short-term borrowings | 3 | |
Interest on long-term debt | 82 | 73 |
Total interest expense | 135 | 123 |
Net Interest Income | 903 | 847 |
Provision for loan and lease losses | 119 | 69 |
Net Interest Income After Provision for Loan and Lease Losses | 784 | 778 |
Noninterest Income | ||
Service charges on deposits | 137 | 135 |
Investment advisory revenue | 102 | 108 |
Corporate banking revenue | 102 | 63 |
Card and processing revenue | 79 | 71 |
Mortgage banking net revenue | 78 | 86 |
Other noninterest income | 136 | 163 |
Securities gains, net | 3 | 4 |
Total noninterest income | 637 | 630 |
Noninterest Expense | ||
Salaries, wages and incentives | 403 | 369 |
Employee benefits | 100 | 99 |
Net occupancy expense | 77 | 79 |
Technology and communications | 56 | 55 |
Card and processing expense | 35 | 36 |
Equipment expense | 30 | 31 |
Other noninterest expense | 285 | 254 |
Total noninterest expense | 986 | 923 |
Income (Loss) Before Income Taxes | 435 | 485 |
Applicable income tax expense | 108 | 124 |
Net Income (loss) | 327 | 361 |
Net income attributable to Bancorp | 327 | 361 |
Dividends on preferred stock | 15 | 15 |
Net income (loss) available to common shareholders | $ 312 | $ 346 |
Earnings per share - basic | $ 0.40 | $ 0.42 |
Earnings per share - diluted | $ 0.40 | $ 0.42 |
Average common shares outstanding- basic | 773,564,178 | 810,209,585 |
Average common shares oustanding - diluted | 778,392,453 | 818,672,259 |
Common stock dividends declared per share | $ 0.13 | $ 0.13 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Unaudited - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement Of Income And Comprehensive Income | ||
Net income (loss) | $ 327 | $ 361 |
Other Comprehensive Income (Loss), Net of Tax | ||
Unrealized holding gains (losses) on available-for-sale securities arising during period | 452 | 141 |
Reclassification adjustment for net (gains) losses included in net income | (5) | (8) |
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period | 48 | 34 |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (9) | (10) |
Reclassification of amounts to net periodic benefit costs | 1 | 2 |
Other comprehensive income (loss), Net of Tax | 487 | 159 |
Comprehensive income | 814 | 520 |
Comprehensive income attributable to Bancorp | $ 814 | $ 520 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Unaudited - 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 Interest | |
Beginning Balance at Dec. 31, 2014 | $ 15,665 | $ 2,051 | $ 1,331 | $ 2,646 | $ 11,141 | $ 429 | $ (1,972) | $ 15,626 | $ 39 | |
Net income (loss) | 361 | 361 | 361 | |||||||
Other comprehensive income (loss), Net of Tax | 159 | 159 | 159 | |||||||
Cash dividends declared: | ||||||||||
Common stock at $0.13 in 2016 and $0.13 in 2015 per share | (106) | (106) | (106) | |||||||
Preferred stock | [1] | (15) | (15) | (15) | ||||||
Shares acquired for treasury | (180) | (180) | (180) | |||||||
Impact of stock transactions under stock compensation plans, net | 21 | 14 | 7 | 21 | ||||||
Other | (1) | (1) | (1) | (2) | 1 | |||||
Ending Balance at Mar. 31, 2015 | 15,904 | 2,051 | 1,331 | 2,659 | 11,380 | 588 | (2,145) | 15,864 | 40 | |
Beginning Balance at Dec. 31, 2015 | 15,870 | 2,051 | 1,331 | 2,666 | 12,358 | 197 | (2,764) | 15,839 | 31 | |
Net income (loss) | 327 | 327 | 327 | |||||||
Other comprehensive income (loss), Net of Tax | 487 | 487 | 487 | |||||||
Cash dividends declared: | ||||||||||
Common stock at $0.13 in 2016 and $0.13 in 2015 per share | (100) | (100) | (100) | |||||||
Preferred stock | [1] | (15) | (15) | (15) | ||||||
Shares acquired for treasury | (240) | (8) | (232) | (240) | ||||||
Impact of stock transactions under stock compensation plans, net | 24 | 27 | (3) | 24 | ||||||
Other | 2 | 1 | 1 | 1 | ||||||
Ending Balance at Mar. 31, 2016 | $ 16,355 | $ 2,051 | $ 1,331 | $ 2,686 | $ 12,570 | $ 684 | $ (2,999) | $ 16,323 | $ 32 | |
[1] | For both the three months ended March 31, 2016 and 2015, dividends were $414.06 per preferred share for Perpetual Preferred Stock, Series I and $612.50 per preferred share for Perpetual Preferred Stock, Series J. |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Unaudited (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Common stock, per share | $ 0.13 | $ 0.13 |
Preferred stock Series I | ||
Preferred stock, per share | 414.06 | 414.06 |
Preferred stock Series J | ||
Preferred stock, per share | $ 612.50 | $ 612.50 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Operating Activities | |||
Net income | $ 327 | $ 361 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan and lease losses | 119 | 69 | |
Depreciation, amortization and accretion | 110 | 107 | |
Stock-based compensation expense | 26 | 21 | |
Provision for (benefit from) deferred income taxes | 9 | (3) | |
Securities gains, net | (1) | (4) | |
Provision for MSR impairment | 85 | 48 | |
Net gains on sales of loans and fair value adjustments on loans held for sale | (15) | (51) | |
Net losses on disposition and impairment of bank premises and equipment | 1 | (3) | |
Gain on sale of certain retail branch operations | (8) | ||
Net losses on disposition and impairment of operating lease equipment | (30) | ||
Proceeds from sales of loans held for sale | 1,133 | 999 | |
Loans originated for sale, net of repayments | (1,180) | (1,179) | |
Dividends representing return on equity method investments | 2 | 2 | |
Net change in: | |||
Trading securities | (20) | (32) | |
Other assets | 345 | 413 | |
Accrued taxes, interest and expenses | (422) | (126) | |
Other liabilities | (114) | (155) | |
Net Cash Provided by (Used in) Operating Activities | 395 | 503 | |
Proceeds from sales: | |||
Available-for-sale securities | 2,677 | 730 | |
Loans | 7 | 661 | |
Bank premises and equipment | 15 | 11 | |
Proceeds from repayments / maturities: | |||
Available-for-sale securities | 531 | 694 | |
Held-to-maturity securities | 6 | 10 | |
Purchases: | |||
Available-for-sale securities | (4,069) | (4,873) | |
Bank premises and equipment | (41) | (45) | |
Proceeds from sale and dividends representing return of equity method investments | 9 | 13 | |
Net cash paid on sale of certain retail branch operations | (43) | ||
Net change in: | |||
Other short-term investments | 893 | 2,995 | |
Loans and leases | (1,119) | (1,212) | |
Operating lease equipment | (50) | (15) | |
Net Cash (Used in) Provided by Investing Activities | (1,184) | (1,031) | |
Net change in: | |||
Deposits | (502) | 1,703 | |
Federal funds purchased | (17) | 56 | |
Other short-term borrowings | 2,016 | (143) | |
Dividends paid on common stock | (102) | (107) | |
Dividends paid on preferred stock | (15) | (15) | |
Proceeds from issuance of long-term debt | 1,494 | 0 | |
Repayment of long-term debt | (2,088) | (956) | |
Repurchase of treasury stock and related forward contract | 240 | 180 | |
Other | 1 | (1) | |
Net Cash Provided by (Used in) Financing Activities | 547 | 357 | |
Increase (Decrease) in Cash and Due from Banks | (242) | (171) | |
Cash and Due from Banks at Beginning of Period | 2,540 | [1] | 3,091 |
Cash and Due from Banks at End of Period | $ 2,298 | [1] | $ 2,920 |
[1] | Includes $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Basis of Presentation | |
Basis of Presentation | 1. Basis of Presentation The Condensed Consolidated Financial Statements include the accounts of the Bancorp and its majority-owned subsidiaries and VIEs in which the Bancorp has been determined to be the primary beneficiary. Other entities, including certain joint ventures, in which the Bancorp has the ability to exercise significant influence over operating and financial policies of the investee, but upon which the Bancorp does not possess control, are accounted for by the equity method and not consolidated. Those entities in which the Bancorp does not have the ability to exercise significant influence are generally carried at the lower of cost or fair value. Intercompany transactions and balances have been eliminated. In the opinion of management, the unaudited Condensed Consolidated Financial Statements include all adjustments, which consist of normal recurring accruals, necessary to present fairly the results for the periods presented. In accordance with U.S. GAAP and the rules and regulations of the SEC for interim financial information, these statements do not include certain information and footnote disclosures required for complete annual financial statements and it is suggested that these Condensed Consolidated Financial Statements be read in conjunction with the Bancorp's Annual Report on Form 10-K . The results of operations and comprehensive income for the three months ended March 31, 2016 and 2015 and the cash flows and changes in equity for the three months ended March 31, 2016 and 2015 are not necessarily indicative of the results to be expected for the full year. Financial inf ormation as of December 31, 2015 has been derived from the Bancorp's Annual Report on Form 10-K . The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2016 | |
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 three months ended March 31: ($ in millions) 2016 2015 Cash Payments: Interest $ 191 166 Income taxes 334 13 Transfers: Portfolio loans to loans held for sale 3 9 Loans held for sale to portfolio loans 12 78 Portfolio loans to OREO 12 33 |
Accounting and Reporting Develo
Accounting and Reporting Developments | 3 Months Ended |
Mar. 31, 2016 | |
Accounting and Reporting Developments | |
Accounting and Reporting Developments | 3. Accounting and Reporting Developments Revenue from Contracts with Customers In May 2014, the FASB issued amended guidance on revenue recognition from contracts with customers. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most contract revenue recognition guidance, including industry-specific guidance. The core principle of the amended guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amended guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within the reporting period, and should be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the amendments recognized at the date of initial application. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016 and interim reporting periods within those fiscal years. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements. Subsequently, the FASB has issued additional guidance to clarify certain implementation issues. Specifically, the FASB issued Principal versus Agent Considerations and Identifying Performance Obligations and Licensing in March and April 2016, respectively. These amendments do not change the core principle in Revenue from Contracts with Customers (Topic 606) and the effective date and transition requirements for the amendments are consistent with those in Topic 606. Accounting for Share-Based Payments When the Terms of the Award Provide That a Performance Target Could be Achieved after the Requisite Service Period In June 2014, the FASB issued amended guidance which clarifies that a performance target that affects vesting and can be achieved after the requisite service period be treated as a performance condition. The amended guidance provides that an entity should apply existing guidance as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The amended guidance was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. The amended guidance may be adopted either prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying the amended guidance as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. The Bancorp adopted the amended guidance prospectively on January 1, 2016 and the adoption of the amended guidance did not have a material impact on the Condensed Consolidated Financial Statements. Measuring the Financial Assets and Financial Liabilities of a Consolidated Collateralized Financing Entity In August 2014, the FASB issued amended guidance that provides an alternative to ASC Topic 820: Fair Value Measurement for measuring the financial assets and financial liabilities of a CFE, such as a collateralized debt obligation or a collateralized loan obligation entity consolidated as a VIE when a) all of the financial assets and the financial liabilities of that CFE are measured at fair value in the Condensed Consolidated financial statements and b) the changes in the fair values of those financial assets and financial liabilities are reflected in earnings. If elected, the measurement alternative would allow the Bancorp to measure both the financial assets and the financial liabilities of the CFE by using the more observable of the fair value of the financial assets or the fair value of the financial liabilities and to eliminate any measurement difference. When the measurement alternative is not elected for a consolidated CFE within the scope of this amended guidance, the amendments clarify that 1) the fair value of the financial assets and the fair value of the financial liabilities of the Condensed Consolidated CFE should be measured using the requirements of Topic 820 and 2) any difference in the fair value of the financial assets and the fair value of the financial liabilities of that consolidated CFE should be reflected in earnings and attributed to the Bancorp in the Condensed Consolidated Statements of Income. The amended guidance may be applied retrospectively or through a modified retrospective approach and was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption did not have a material impact on the Condensed Consolidated Financial Statements. Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or Equity In November 2014, the FASB issued amended guidance that clarifies how current U.S. GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative features being evaluated for bifurcation, in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The effects of initially adopting the amended guidance should be applied on a modified retrospective basis to existing hybrid financial instruments issued in the form of a share as of the beginning of the fiscal year for which the amendments are effective and shall be reported as a cumulative-effect adjustment directly to retained earnings as of the beginning of the year of adoption. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption of the amended guidance did not have a material impact on the Condensed Consolidated Financial Statements. Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items In January 2015, the FASB issued amended guidance that eliminates the concept of extraordinary items from U.S. GAAP. Presently, an event or transaction is presumed to be an ordinary and usual activity of a reporting entity unless evidence clearly supports its classification as an extraordinary item, which must be both unusual in nature and infrequent in occurrence. An entity was required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. An entity was also required to disclose applicable income taxes and eith er present or disclose earnings per share data applicable to the extraordinary item. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The amended guidance may be applied prospectively or retrospectively to all periods presented in the financial statements. The Bancorp adopted the amended guidance prospectively on January 1, 2016 and the adoption of the amended guidance did not have a material impact on the Condensed Consolidated Financial Statements. Amendments to the Consolidation Analysis In February 2015, the FASB issued amended guidance that changes the analysis a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The amended guidance 1) modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities; 2) eliminates the presumption that a general partner should consolidate a limited partnership; 3) affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and 4) provides a scope exception from consolidation guidance for reporting entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The amended guidance was effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early adoption permitted. The amended guidance may be applied using either a retrospective approach or a modified retrospective approach with a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption of the amended guidance did not have a material impact on the Condensed Consolidated Financial Statements. Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued amended guidance to address the different balance sheet presentation requirements for debt issuance costs and debt discounts and premiums. The amended guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amended guidance. The amended guidance was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted for financial statements that have not been previously issued. The amended guidance should be applied retrospectively, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the amended guidance. Upon adoption on January 1, 2016 , the Bancorp reclassified approximately $ 3 4 million of debt issuance costs from other assets to a direct deduction from long-term debt in the Condensed Consolidated Balance Sheets. Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets In April 2015, the FASB issued amended guidance intended to simplify an entity's measurement of the fair value of plan assets of a defined benefit pension or other postretirement benefit plan when the fiscal year-end does not coincide with a month end. For an entity with a fiscal year-end that does not coincide with a month-end, the amended guidance provides a practical expedient that permits the entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity's fiscal year-end and apply that practical expedient consistently from year to year. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The amended guidance should be applied prospectively. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption of the amended guidance did not have an impact on the Condensed Consolidated Financial Statements as the Bancorp's fiscal year-end coincides with a month-end. Customer's Accounting for Fees Paid in a Cloud Computing Arrangement In April 2015, the FASB issued amended guidance on a customer's accounting for fees paid in a cloud computing arrangement . Under the amended guidance, if a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amended guidance was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The amended guidance may be applied either prospectively to all arrangements entered into or materially modified after the effective date, or retrospectively. The Bancorp adopted the amended guidance prospectively on January 1, 2016 and the adoption did not have a material impact on the Condensed Consolidated Financial Statements. Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share In May 2015, the FASB issued amended guidance to remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amended guidance also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amended guidance should be applied retrospectively to all periods presented. The retrospective approach requires that an investment for which fair value is measured using the net asset value per share practical expedient be removed from the fair value hierarchy in all periods presented in an entity's financial statements. Earlier application is permitted. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption did not have a material impact on the Condensed Consolidated Financial Statements. Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-Of-Credit Agreements In August 2015, the FASB issued amended guidance about the presentation and subsequent measurement of debt issuance costs associated with line of credit arrangements. Given the absence of authoritative guidance for debt issuance costs related to line of credit arrangements within ASU 2015-03, the amended guidance provides that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line of credit arrangement, regardless of whether there were any outstanding borrowings on the line of credit arrangement. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amended guidance should be applied retrospectively, where in the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the amendments. Early adoption is permitted for financial statements that have not been previously issued. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption did not have a material impact on the Condensed Consolidated Financial Statements. Simplifying the Accounting for Measurement-Period Adjustments In September 2015, the FASB issued amended guidance to simplify the accounting for adjustments made to provisional amounts recognized in a business combination. The amended guidance eliminates the requirement to retrospectively account for those adjustments and requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer shall record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amended guidance requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with earlier application permitted for financial statements that have not been issued. The amended guidance should be applied prospectively to adjustments to provisional amounts that occur after the effective date of the amended guidance. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption did not have an impact on the Condensed Consolidated Financial Statements. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued amended guidance to improve certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Specifically, the amendments significantly revise an entity's accounting related to 1) the classification and measurement of inves tments in equity securities, 2) the presentation of certain fair value changes for financial lia bilities measured at fair value, and 3) certain disclosure requirements associated with the fair value of financial instruments . The amendments require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes as a result of an observable price change. The amendments also simplify the impairment assessment of equity investments for which fair value is not readily determinable by requiring an entity to perform a qualitative assessment to identify impairment. If qualitative indicators are identified, the entity will be required to measure the investment at fair value. For financial liabilities that an entity has elected to measure at fair value, the amendments require an entity to present separately in other comprehensive income the portion of the change in fair value that results from a change in instrument-specific credit risk. For public business entities, the amendments 1) eliminate the requirement to disclose the method(s) and significant assumptions used to estimate fair value for financial instruments measured at amortized cost and 2) require, for disclosure purposes, the use of an exit price notion in the determination of the fair value of financial instruments. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Upon adoption, the Bancorp will be required to make a cumulative-effect adjustment to the Condensed Consolidated Balance Sheets as of the beginning of the fiscal year of adoption. The guidance on equity securities without readily determinable fair value will be applied prospectively to all equity investments that exist as of the date of adoption of the standard. Early adoption of the amendments is not permitted with the exception of the presentation of certain fair value changes for financial lia bilities measured at fair value for which early application is permitted. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements. Accounting for Leases In February 2016, the FASB issued amended guidance that establishes a new accounting model for leases. The amended guidance requires lessees to record lease liabilities on the lessees balance sheets along with corresponding right-of-use assets for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the lessee's statements of income. From a lessor perspective, the accounting model is largely unchanged, except that the amended guidance includes certain targeted improvements to align, where necessary, lessor accounting with the lessee accounting model and the revenue recognition guidance in ASC Topic 606. The amendments also modify disclosure requirements for an entity's lease arrangements. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. The amendments should be applied to each prior reporting period presented using a modified retrospective approach, although the amended guidance contains certain transition relief provisions that, among other things, permit an entity to elect not to reassess the classification of leases which existed or expired as of the date the amendments are effective. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements. Recognition of Breakage on Certain Prepaid Stored-Value Products In March 2016, the FASB issued amended guidance to permit proportional derecognition of the liability for unused funds on certain prepaid stored-value products (known as breakage) to the extent that it is probable that a significant reversal of the recognized breakage amount will not subsequently occur. The amendments do not apply to any prepaid stored-value products that are attached to a segregated customer deposit account, or products for which unused funds are subject to unclaimed property remittance laws. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted, and should be applied retrospectively to all comparable periods presented in the year of adoption. Entities may also elect a modified retrospective application by means of a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year in which the guidance is effective. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements. Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships In March 2016, the FASB issued amended guidance to clarify that a change in counterparty in a derivative contract does not, in and of itself, represent a change in critical terms that would require discontinuation of hedge accounting provided that other hedge accounting criteria continue to be met. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted, and should be applied prospectively. However, entities may elect to apply a modified retrospective approach to redesignate hedges that were derecognized in a prior period presented in the financial statements because of a novation . The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements. Contingent Put and Call Options in Debt Instruments In March 2016, the FASB issued amended guidance to clarify the requirements for determining when contingent put and call options embedded in debt instruments should be bifurcated from the debt instrument and accounted for separately as derivatives. A four-step decision sequence should be followed in determining whether such options are clearly and closely related to the economic characteristics and risks of the debt instrument, which determines whether bifurcation is necessary. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted, and should be applied on a modified retrospective basis for debt instruments existing as of the beginning of the fiscal year for which the amendments are effective. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements. Simplifying Transition to the Equity Method of Accounting In March 2016, the FASB issued amended guidance to eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualifi ed for equity method accounting , eliminating the requirement to retrospectively apply the equity method of accounting back to the date of the initial investment. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted, and should be applied prospectively to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements. Accounting for Share-Based Payments to Employees In March 2016, the FASB issued amended guidance simplifying the accounting for share-based compensation paid to employees. The amended guidance 1) requires excess tax benefits and tax deficiencies on share-based payments to employees to be recognized directly to income tax expense or benefit in the Condensed Consolidated Income Statements; 2) requires excess tax benefits to be included as operating activities on the Condensed Consolidated Statements of Cash Flows; 3) provides entities with the option of making an accounting policy election to account for forfeitures of share-based payments as they occur instead of estimating the awards expected to be forfeited; and 4) changes the threshold to qualify for equity classification to permit withholdings up to the maximum statutory tax rate in the applicable jurisdiction. In addition, excess tax benefits and tax deficiencies are considered discrete items in the reporting period they occur and are not included in the estimate of an entity's annual effective tax rate. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted. The majority of the amendments should be applied using a modified retrospective approach with a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. The amendments related to the presentation of excess tax benefits on the Condensed Consolidated Statements of Cash Flows may be applied prospectively or retrospectively. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements . |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2016 | |
Securities | |
Securities | 4. Investment Securities The following tables provide 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: Amortized Unrealized Unrealized Fair March 31, 2016 ($ in millions) Cost Gains Losses Value Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 1,131 30 - 1,161 Obligations of states and political subdivisions securities 50 2 - 52 Mortgage-backed securities: Agency residential mortgage-backed securities (a) 14,586 545 (2) 15,129 Agency commercial mortgage-backed securities 7,837 368 - 8,205 Non-agency commercial mortgage-backed securities 3,005 115 - 3,120 Asset-backed securities and other debt securities 1,526 13 (19) 1,520 Equity securities (b) 703 2 (1) 704 Total available-for-sale and other securities $ 28,838 1,075 (22) 29,891 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 62 - - 62 Asset-backed securities and other debt securities 2 - - 2 Total held-to-maturity securities $ 64 - - 64 Includes interest-only mortgage- backed securities of $ 41 as of March 31, 2016 recorded at fair value with fair value changes re corded in securities gains, net , in the Condensed Consolidated Statement s of Income. Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 355 and $ 1 , respectively , at March 31, 2016 , that are carried at cost, and certain mutual fund and equity security holdings. Amortized Unrealized Unrealized Fair December 31, 2015 ($ in millions) Cost Gains Losses Value Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 1,155 32 - 1,187 Obligations of states and political subdivisions securities 50 2 - 52 Mortgage-backed securities: Agency residential mortgage-backed securities (a) 14,811 283 (13) 15,081 Agency commercial mortgage-backed securities 7,795 100 (33) 7,862 Non-agency commercial mortgage-backed securities 2,801 35 (32) 2,804 Asset-backed securities and other debt securities 1,363 13 (21) 1,355 Equity securities (b) 703 2 (2) 703 Total available-for-sale and other securities $ 28,678 467 (101) 29,044 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 68 - - 68 Asset-backed securities and other debt securities 2 - - 2 Total held-to-maturity securities $ 70 - - 70 Includes interest-only mortgage- backed securities of $ 50 as of December 31, 2015 , recorded at fair value with fair value changes re corded in securities gains, net , in the Condensed Consolidated Statement s of Income. Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 355 , and $ 1 , respectively, at December 31, 2015, that are carried at cost, and certain mutual fund and equity security holdings . The following table presents realized gains and losses that were recognized in income from available-for-sale securities: For the three months ended March 31, ($ in millions) 2016 2015 Realized gains $ 15 15 Realized losses (4) (2) OTTI (3) (1) Net realized gains (a) $ 8 12 Excludes net losses on interest-only m ortgage-backed securities of $ 6 and $ 9 for the three months ended March 31, 2016 and March 31, 20 1 5 , respectively . Trading securities were $405 million as of March 31, 2016, compared to $386 million at December 31, 2015. The following table presents total gains and losses that were recognized in income from trading securities: For the three months ended March 31, ($ in millions) 2016 2015 Realized gains (a) $ 2 1 Realized losses (b) (4) (3) Net unrealized gains (c) 1 1 Total trading securities losses $ (1) (1) In cludes realized gains of $ 2 and $ 1 during the three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking reven ue and investment advisory revenue in the Condensed Consolidated Statements of Income . In cludes realized losses of $ 4 and $ 3 during the three months ended March 31, 2016 and 2015, respectively, recor ded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income . Includes an immaterial amount of net unrealized gains and losses during the three months ended March 31, 2016 and 2015 , respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income . A t March 31, 2016 and December 31, 2015 , securities with a fair value of $ 10. 4 billion and $ 11.0 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 March 31, 2016 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 $ 835 857 37 37 1-5 years 9,003 9,329 12 12 5-10 years 16,480 17,146 13 13 Over 10 years 1,817 1,855 2 2 Equity securities 703 704 - - Total $ 28,838 29,891 64 64 Actual maturities may differ from contractual maturities when there exists a right to call or prepay obligations with or without call or prepayment penalties. The following table provides the fair value and gross unrealized losses on available-for-sale and other securities in an unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized ($ in millions) Fair Value Losses Fair Value Losses Fair Value Losses March 31, 2016 Agency residential mortgage-backed securities $ 268 (2) - - 268 (2) Asset-backed securities and other debt securities 499 (8) 266 (11) 765 (19) Equity securities - - 31 (1) 31 (1) Total $ 767 (10) 297 (12) 1,064 (22) December 31, 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) Other-T han-Temporary Impairments The Bancorp recognized $ 2 million and $ 1 million of OTTI on its available-for sale and other debt securities , included i n securities gains, net, in the Condensed Consolidated Statements of Income d uring the three months ended March 31, 2016 and 2015, respectively . T he Bancorp recognized $ 1 million of OTTI on its available-for-sale equity securities , included in securities gains, net , in the Condensed Consolidated Statements of Income during the three months ended March 31, 2016 . The Bancorp did not recognize OTTI on its held-to-maturity debt securities during the three months ended March 31, 2016 . The Bancorp did not recognize OTTI on any of its available-for-sale equity securities or its held-to-maturity debt securities during the three months ended March 31, 2015. At March 31, 2016 , 2% of unrealized losses in the available-for-sale and other securities po rtfolio were represented by non- r ated securities, compared to 1% at December 31, 2015. |
Loans and Leases
Loans and Leases | 3 Months Ended |
Mar. 31, 2016 | |
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 commerc ial 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: March 31, December 31, ($ in millions) 2016 2015 Loans held for sale: Commercial and industrial loans $ 8 20 Commercial mortgage loans 10 34 Residential mortgage loans 668 708 Home equity 19 35 Automobile loans 1 4 Credit card 97 101 Other consumer loans and leases - 1 Total loans held for sale $ 803 903 Portfolio loans and leases: Commercial and industrial loans $ 43,433 42,131 Commercial mortgage loans 6,864 6,957 Commercial construction loans 3,428 3,214 Commercial leases 3,956 3,854 Total commercial loans and leases $ 57,681 56,156 Residential mortgage loans 13,895 13,716 Home equity 8,112 8,301 Automobile loans 11,128 11,493 Credit card 2,138 2,259 Other consumer loans and leases 651 657 Total consumer loans and leases $ 35,924 36,426 Total portfolio loans and leases $ 93,605 92,582 T otal portfolio loans and leases are recorded net of unearned income, which totaled $ 6 01 million as of March 31, 2016 and $ 6 24 m illion as of December 31, 2015 . Additionally, portfolio loans and leases are recorded net of unamortized premiums and discounts , deferred loan fees and costs and fair value adjustments (associated with acquired loans or loans designated a t fair value upon origination) which totaled a net premium of $ 2 23 million and $ 220 million as of March 31, 2016 and December 31, 2015 , respectively . The Bancorp's FHLB and FRB advances are generally secured by loans. The Bancorp had loans of $ 1 2 . 1 billion and $ 1 1. 9 billion at March 31, 2016 and December 31, 2015, respectively, pledged at the FHLB, and loans of $ 3 3 . 5 billion and $ 33 . 7 billion at March 31, 2016 and December 31, 2015, respectively, pledged at the FRB. The following table presents a summary of the total loans and leases owned by the Bancorp as of: March 31, December 31, March 31, December 31, 2016 2015 2016 2015 90 Days Past Due ($ in millions) Carrying Value and Still Accruing Commercial and industrial loans $ 43,441 42,151 3 7 Commercial mortgage loans 6,874 6,991 - - Commercial construction loans 3,428 3,214 - - Commercial leases 3,956 3,854 - - Residential mortgage loans 14,563 14,424 44 40 Home equity 8,131 8,336 - - Automobile loans 11,129 11,497 8 10 Credit card 2,235 2,360 18 18 Other consumer loans and leases 651 658 - - Total loans and leases $ 94,408 93,485 73 75 Less: Loans held for sale 803 903 Total portfolio loans and leases $ 93,605 92,582 The following table presents a summary of net charge-offs for the three months ended March 31: ($ in millions) 2016 2015 Commercial and industrial loans $ 46 38 Commercial mortgage loans 6 1 Commercial leases 2 - Residential mortgage loans 2 6 Home equity 8 14 Automobile loans 9 8 Credit card 20 21 Other consumer loans and leases 3 3 Total net charge-offs $ 96 91 |
Credit Quality and the Allowanc
Credit Quality and the Allowance for Loan and Lease Losses | 3 Months Ended |
Mar. 31, 2016 | |
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: Residential For the three months ended March 31, 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 840 100 217 115 1,272 Losses charged-off (60) (4) (52) - (116) Recoveries of losses previously charged-off 6 2 12 - 20 Provision for loan and lease losses 81 - 37 1 119 Balance, end of period $ 867 98 214 116 1,295 Residential For the three months ended March 31, 2015 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 875 104 237 106 1,322 Losses charged-off (48) (9) (58) - (115) Recoveries of losses previously charged-off 9 3 12 - 24 Provision for loan and lease losses 16 5 50 (2) 69 Balance, end of period $ 852 103 241 104 1,300 The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: Residential As of March 31, 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 102 (c) 66 48 - 216 Collectively evaluated for impairment 765 32 166 - 963 Unallocated - - - 116 116 Total ALLL $ 867 98 214 116 1,295 Portfolio loans and leases: (b) Individually evaluated for impairment $ 1,022 (c) 655 415 - 2,092 Collectively evaluated for impairment 56,659 13,078 21,614 - 91,351 Loans acquired with deteriorated credit quality - 2 - - 2 Total portfolio loans and leases $ 57,681 13,735 22,029 - 93,445 Includes $ 5 related to leverage d lease s at March 31, 2016 . Excludes $ 160 of residential mortgage loans measured at fair value, and includes $ 8 12 of leverage d leases, net of unearned income at March 31, 2016 . In clud es five restructured loans at March 31, 2016 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, 2015 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 119 (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 (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 leveraged leases at December 31, 2015 . Excludes $ 167 of residential mortgage loans measured at fair value, and includes $ 8 01 of leveraged leases, net of unearned income at December 31, 2015 . 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 $ 2 7 and an ALLL of $ 1 5 . CREDIT RISK PROFILE Commercial Portfolio Segment For purposes of monitoring the credit quality and risk characteristics of its commercial portfolio segment, the Bancorp disaggregates the segment into the following classes: commercial and industrial, commercial mortgage owner-occupied, commercial mortgage non owner - occupied, commercial construction and commercial 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 fully 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 March 31, 2016 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 39,909 1,513 1,987 24 43,433 Commercial mortgage owner-occupied loans 3,305 128 177 3 3,613 Commercial mortgage nonowner-occupied loans 3,063 65 123 - 3,251 Commercial construction loans 3,423 1 4 - 3,428 Commercial leases 3,848 74 34 - 3,956 Total commercial loans and leases $ 53,548 1,781 2,325 27 57,681 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 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 i n 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 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2015 for additional delinquency 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: March 31, 2016 December 31, 2015 ($ in millions) Performing Nonperforming Performing Nonperforming Residential mortgage loans (a) $ 13,691 44 13,498 51 Home equity 8,032 80 8,222 79 Automobile loans 11,126 2 11,491 2 Credit card 2,106 32 2,226 33 Other consumer loans and leases 651 - 657 - Total residential mortgage and consumer loans and leases (a) $ 35,606 158 36,094 165 Excludes $ 160 and $ 167 of loans measured at fair value at March 31, 2016 and December 31, 2015, respectiv ely. 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 March 31, 2016 ($ in millions) Leases (c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 43,255 31 147 178 43,433 3 Commercial mortgage owner-occupied loans 3,580 6 27 33 3,613 - Commercial mortgage nonowner-occupied loans 3,210 17 24 41 3,251 - Commercial construction loans 3,428 - - - 3,428 - Commercial leases 3,952 - 4 4 3,956 - Residential mortgage loans (a)(b) 13,613 32 90 122 13,735 44 Consumer loans and leases: Home equity 7,980 72 60 132 8,112 - Automobile loans 11,060 58 10 68 11,128 8 Credit card 2,089 25 24 49 2,138 18 Other consumer loans and leases 650 1 - 1 651 - Total portfolio loans and leases (a) $ 92,817 242 386 628 93,445 73 Excludes $ 160 of residential mortgage loans measured at fair value at March 31, 2016 . Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA . As of March 31, 2016 , $ 9 5 of these loans were 30-89 days past due and $ 3 15 were 90 days or more pas t due. The Bancorp recognized $ 2 of losses during the three months ended March 31, 2016 due to claim denials and cu rtailments 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, 2015 ($ in millions) Leases (c) Days (c) Greater (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 whose repayments are insured by the FHA or guaranteed by the VA . As of December 31 , 2015 , $ 102 of these loa ns were 30-89 days past due and $ 3 35 were 90 days or more past due. The Bancorp recognized $ 2 o f losses during the three months e nded March 31, 2015 due to claim denials and cu rtailments 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 $1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment. The Bancorp also performs an individual review on loans and leases that are restructured in a TDR . The Bancorp considers the current value of collateral, credit quality of any guarantees, the loan structure and other factors when evaluating whether an individual loan or lease is impaired. Other factors may include the geography and industry of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower, and the Bancorp's evaluation of the borrower's management. Smaller-balance homogenous loans or leases that are collectively evaluated for impairment are not included in the following tables. The following tables summarize the Bancorp’s impaired portfolio loans and leases, by class, that were subject to individual review, which includes all portfolio loans and leases restructured in a TDR: Unpaid Principal Recorded As of March 31, 2016 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 516 441 81 Commercial mortgage owner-occupied loans (b) 26 16 3 Commercial mortgage nonowner-occupied loans 57 53 2 Commercial leases 4 2 1 Restructured residential mortgage loans 453 440 66 Restructured consumer loans and leases: Home equity 220 220 32 Automobile loans 16 17 2 Credit card 58 58 14 Total impaired portfolio loans and leases with a related ALLL $ 1,350 1,247 201 With no related ALLL: Commercial loans and leases: Commercial and industrial loans $ 372 320 - Commercial mortgage owner-occupied loans 58 55 - Commercial mortgage nonowner-occupied loans 115 101 - Commercial construction loans 4 4 - Commercial leases 3 3 - Restructured residential mortgage loans 230 215 - Restructured consumer loans and leases: Home equity 120 117 - Automobile loans 3 3 - Total impaired portfolio loans and leases with no related ALLL $ 905 818 - Total impaired portfolio loans and leases $ 2,255 2,065 a (a) 201 Includes $ 461 , $ 636 and $ 362 , respectively, of commercial , resid ential mortgage and consumer portfolio TDR s on accrual status and $ 210 , $ 19 an d $ 5 3 , respectively , of commercial , reside ntial mortgage and consumer portfolio TDR s on nonaccrual status at March 31, 2016 . Excludes five restructured loans at March 31, 2016 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 As of December 31, 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 $ 372 , respectively, of commercial , resid ential mortgage and consumer portfolio TDR s on accrual status and $ 2 03 , $ 2 3 and $ 52 , respectively , of commercial, reside ntial mortgage and consumer portfolio TDR s on nonaccrual status at December 31, 2015 . Excludes five restruc tured 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 $ 2 7 , a recorded investment of $ 27 and an ALLL of $ 15 . The following tables summarize the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class, for the three months ended: March 31, 2016 March 31, 2015 Average Interest Average Interest Recorded Income Recorded Income ($ in millions) Investment Recognized Investment Recognized Commercial loans and leases: Commercial and industrial loans $ 645 2 742 5 Commercial mortgage owner-occupied loans (a) 71 - 112 1 Commercial mortgage nonowner-occupied loans 165 1 262 2 Commercial construction loans 7 - 62 - Commercial leases 5 - 5 - Restructured residential mortgage loans 642 6 552 6 Restructured consumer loans and leases: Home equity 340 3 375 3 Automobile loans 19 - 23 - Credit card 60 1 75 2 Total average impaired portfolio loans and leases $ 1,954 13 2,208 19 Excludes five restructured l oans 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 $ 2 7 and $ 28 at March 31, 2016 and March 31, 2015 , respectively, and an immaterial amount of interest income recognized for both the three months ended March 31, 2016 and March 31, 2015 . 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 nonaccrual loans and leases, by class, and OREO and other repossessed property as of: March 31, December 31, ($ in millions) 2016 2015 Commercial loans and leases: Commercial and industrial loans $ 460 259 Commercial mortgage owner-occupied loans (a) 41 46 Commercial mortgage nonowner-occupied loans 37 35 Commercial leases 5 1 Total nonaccrual portfolio commercial loans and leases 543 341 Residential mortgage loans 44 51 Consumer loans and leases: Home equity 80 79 Automobile loans 2 2 Credit card 32 33 Total nonaccrual portfolio consumer loans and leases 114 114 Total nonaccrual portfolio loans and leases (b)(c) $ 701 506 OREO and other repossessed property 124 141 a Total nonperforming portfolio assets (b)(c) $ 825 647 Excludes $ 20 of restructured nonaccrual loans at both March 31, 2016 and 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 . Excludes $ 5 and $ 12 of nonaccrual loans held for sale at March 31, 2016 and December 31 , 2015 , respectively . Includes $ 5 and $ 6 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at March 31, 2016 and December 31, 2015 , respectively, and $ 1 and $ 2 of restructured nonaccrual government insured commercial loans at March 31, 2016 and December 31, 2015 , respectively . 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 $ 290 million and $ 303 million as of March 31, 2016 and December 31, 2015, respectively . Troubled Debt Restructurings If a borrower is experiencing financial difficulty, the Bancorp may consider, in certain circumstances, modifying the terms of their loan to maximize collection of amounts due . Within each of the Bancorp's loan classes, TDRs typically involve either a reduction of the stated interest rate of the loan, an extension of the loan's maturity date 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 or at the time of modification . Refer to the ALLL section of Note 1 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2015 for i nformation on the Bancorp's ALLL methodology. Upon modification of a loan, the Bancorp measures the related impairment as the difference between the estimated future cash flows 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 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. I f a TDR involves a reduction of the principal balance of the loan or the loan's accrued interest, that amount is charged off to the ALLL . As of March 31, 2016 , t he Bancorp had $ 46 million and $ 2 2 million in line of credit and letter of credit commitments , respectively, compared to $ 39 million and $ 2 3 million in line of credit and letter of credit commitments as of December 31, 2015, 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 three months ended: Recorded investment Increase Number of loans in loans modified (Decrease) Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon March 31, 2016 ($ in millions) (a) during the period (b) during the period modification modification Commercial loans: Commercial and industrial loans 24 $ 56 (2) - Commercial mortgage owner-occupied loans 7 6 (2) - Commercial mortgage nonowner-occupied loans 2 - - - Residential mortgage loans 243 36 2 - Consumer loans: Home equity 64 5 - - Automobile loans 78 1 - - Credit card 2,592 12 2 1 Total portfolio loans 3,010 $ 116 - 1 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 March 31, 2015 ($ in millions) (a) during the period (b) during the period modification modification Commercial loans: Commercial and industrial loans 21 $ 18 (7) 3 Commercial mortgage owner-occupied loans 7 8 (1) - Commercial mortgage nonowner-occupied loans 6 3 - - Residential mortgage loans 300 42 1 - Consumer loans: Home equity 76 4 - - Automobile loans 131 2 - - Credit card 3,667 19 4 - Total portfolio loans 4,208 $ 96 (3) 3 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 . The Bancorp considers TDRs that become 90 days or more past due under the modified te rms 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 loan s 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 three months ended March 31, 2016 and 2015 that was within twelve months of the restructuring date: Number of Recorded March 31, 2016 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 1 $ - Commercial mortgage nonowner-occupied loans 1 - Residential mortgage loans 53 7 Consumer loans and leases: Home equity 6 1 Credit card 423 2 Total portfolio loans and leases 484 $ 10 E xcludes all loans and leases held for sale and loans acquired with deteriorated credit quality . Number of Recorded March 31, 2015 ($ in millions) (a) Contracts Investment Residential mortgage loans 40 $ 5 Consumer loans and leases: Home equity 5 - Automobile loans 4 - Credit card 588 3 Total portfolio loans and leases 637 $ 8 E xcludes all loans and leases held for sale and loans acquired with deteriorated credit quality . |
Bank Premises and Equipment
Bank Premises and Equipment | 3 Months Ended |
Mar. 31, 2016 | |
Bank Premises and Equipment | |
Bank Premises and Equipment | 7. Bank Premises a nd Equipment The following table provides a summary of bank premises and equipment as of: ($ in millions) March 31, 2016 December 31, 2015 Land and improvements (a) $ 682 685 Buildings 1,695 1,755 Equipment 1,715 1,696 Leasehold improvements 403 403 Construction in progress 86 85 Bank premises and equipment held for sale: Land and improvements 41 55 Buildings 23 20 Equipment 2 3 Leasehold improvements 2 3 Accumulated depreciation and amortization (2,464) (2,466) Total bank premises and equipment $ 2,185 2,239 At March 31, 2016 and December 31, 2015, land and improvements included $ 10 1 and $ 1 02 , r espectively, associated with parcels of undeveloped land intended for future branch expansion. The Ban corp 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 pla n 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 . On January 29, 2016, the Bancorp closed the previously announced sale in the St. Louis MSA to Great Southern Bank. The sale included loans, premises and equipment and deposits with aggregate carrying amounts of $ 15 8 million, $ 1 8 million and $ 2 2 8 million, respectively. The Bancorp recorded a gain o n the sale of $ 8 million which wa s recorded in other noninterest income in the Condensed Consolidated Statements of Income. Pursuant to the Branch Consolidation and Sales Plan , the Bancorp intended to consolidate and/or sell 60 operating branch locations and to sell an additional 23 parcels of undeveloped land that had been acquired by the Bancorp for future branch expansion as of March 31, 2016 . The sale of the Pittsburgh MSA retail operations to First National Bank of Pennsylvania closed on April 2 2 , 2016. For further information on this transaction , refer to N ote 22. The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. Impairment losses associated with such assessments and lower of cost or market adjustments were $ 2 million and $ 4 million for the three months ended March 31, 2016 and 2015 , respectively . The recognized impairment losses were recorded in other noninterest income in the Condensed Co nsolidated 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) March 31, 2016 (d) Assets: Loans held for sale: Commercial and industrial loans $ 8 Commercial mortgage loans 5 Residential mortgage loans 68 Home equity 19 Automobile loans 1 Total loans held for sale (a) $ 101 Bank premises and equipment held for sale (included in the preceding table): Land and improvements (b) 28 Buildings (b) 10 Equipment (b) 2 Leasehold improvements (b) 2 Total bank premises and equipment held for sale (included in the preceding table) $ 42 Total assets held for sale $ 143 Liabilities: Deposits held for sale: Noninterest-bearing deposits $ 51 Interest-bearing deposits 280 Total deposits held for sale (c) $ 331 Total liabilities held for sale $ 331 Included in loans held for sale in the Condensed Consolidated Balance Sheets. Included in bank premises and equipment in the Condensed Consolidated Balance Sheets. Included in non interest-bearing deposits and interest-bearing deposits in the Condensed Consolidated Balance Sheets. Included in the Branch Banking , Consumer Lending and Investment Advisors business segment s . |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Intangible Assets | |
Intangible Assets | 8. Intangible Assets Intangible assets consist of core deposit intangibles, customer lists, non-compete agreements and cardholder relationships. Intangible assets are amortized on either a straight-line or an accelerated basis over their estimated useful lives . Intangible assets have an estimated remaining weighted-average life at March 31, 2016 of 4. 2 years . The details of the Bancorp’s intangible assets are shown in the following table: Gross Carrying Accumulated Net Carrying ($ in millions) Amount Amortization Amount As of March 31, 2016 Core deposit intangibles $ 34 (26) 8 Other 32 (29) 3 Total intangible assets $ 66 (55) 11 As of December 31, 2015 Core deposit intangibles $ 34 (26) 8 Other 33 (29) 4 Total intangible assets $ 67 (55) 12 As of March 31, 2016 , all of the Bancorp's intangible assets were being amortized. Amortization expense recognized on intangible assets was immaterial for the three months ended March 31, 2016 and $ 1 million for the three months ended March 31, 2015 . The Bancorp's projections of amortization expense shown below are based on existing asset balances as of March 31, 2016. Future amortization expense may vary from these projections. Estimated amortization expense for the remainder of 2016 through 2020 is as follows: ($ in millions) Total Remainder of 2016 $ 1 2017 2 2018 2 2019 1 2020 1 |
VIE
VIE | 3 Months Ended |
Mar. 31, 2016 | |
Variable Interest Entities | |
Variable Interest Entities | 9. Variable Interest Entities The Bancorp, in the normal course of business, engages in a variety of activities that involve VIEs, which are legal entities that lack sufficient equity to finance their activities without additional subordinated financial support or the equity investors of the entities as a group lack any of the characteristics of a controlling interest. The Bancorp evaluates its interest in certain entities to determine if these entities meet the definition of a VIE and whether the Bancorp is the primary beneficiary and should consolidate the entity based on the variable interests it held both at inception and when there is a change in circumstances that requires a reconsideration. If the Bancorp is determined to be the primary beneficiary of a VIE, it must account for the VIE as a consolidated subsidiary. If the Bancorp is determined not to be the primary beneficiary of a VIE but holds a variable interest in the entity, such variable interests are accounted for under the equity method of accounting or other accounting standards as appropriate. Consolidated VIEs The following tables provide a summary of the classifications of consolidated VIE assets, liabilities and noncontrolling interests included in the Condensed Consolidated Balance Sheets as of: Automobile Loan CDC March 31, 2016 ($ in millions) Securitizations Investments Total Assets: Cash and due from banks $ 146 1 147 Commercial mortgage loans - 47 47 Automobile loans 2,131 - 2,131 ALLL (10) (17) (27) Other assets 10 1 11 Total assets $ 2,277 32 2,309 Liabilities: Other liabilities $ 4 - 4 Long-term debt 2,102 - 2,102 Total liabilities $ 2,106 - 2,106 Noncontrolling interests $ - 32 32 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 14 - 14 Total assets $ 2,644 31 2,675 Liabilities Other liabilities $ 3 - 3 Long-term debt 2,487 - 2,487 Total liabilities $ 2,490 - 2,490 Noncontrolling interests $ - 31 31 Automobile Loan Securitization s In securitization transaction s that occurr ed during the year s ended December 31, 2015 and 2014 , the Bancorp transferred an aggregate amount of $ 750 m illion and $ 3.8 billion, respectively, in consumer automobile loans to bankruptcy remote trusts which were deemed to be VIEs . The primary purposes of the VIE s were to issue asset- backed securities with varying levels of credit subordination and payment priority , as well as residual interest s , and to provide the Bancorp with access to liquidity for its originated loans. The Bancorp retained residual interests in the VIE s and, therefore, has an obligation to absorb losses and a right to receive benefits from the VIE s that could potentially be significant to the VIE s . In addition, the Bancorp retained servicing rights for the underlying loans and, therefore, holds the power to direct the activities of the VIE s that most significantly impact the economic performance of the VIE s . As a result, the Bancorp concluded that it is the primary beneficiary of the VIE s and, therefor e, has consolidated these VIE s . The assets of the VIE s are restricted to the settlement of the asset-backed securities and other obligations of the VIE s . Third-party holders of the notes do not have recourse to the general assets of the Bancorp. The 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 enhancement s 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 as limited partnerships and LLCs and CDC typically invests as a limited partner/investor member in the form of equity contributions. The economic performance of the VIEs is driven by the performance of their underlying investment projects as well as the VIEs' ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. The Bancorp's subsidiaries serve as the managing member of certain LLCs invested in business revitalization projects and have the right to make decisions that most significantly impact the economic performance of the LLCs. Additionally, the investor members do not own substantive kick-out rights or substantive participating rights over the managing member . The Bancorp has provided an indemnification guarantee to the investor member of these LLCs related to the qualification of tax credits generated by the investor members' investment. Accordingly, the Bancorp concluded that it is the primary beneficiary and, therefore, has consolidated these VIEs. As a result, the investor members' interests in these VIEs are presented as noncontrolling interests in the Condensed Consolidated Financial Statements. This presentation includes reporting separately the equity attributable to the noncontrolling interests in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Changes in Equity and reporting separately the comprehensive income attributable to the noncontrolling interests in the Condensed Consolidated Statements of Comprehensive Income and the net income attributable to the noncontrolling interests in the Condensed Consolidated Statements of Income. The Bancorp's maxi mum exposure related to the se indemnification s at March 31, 2016 and December 31, 2015 was $ 2 8 million and $ 2 7 million, respectively , which is based on an amount required to meet the investor member's defined target rate of return . Non-consolidated VIEs The following tables provide a summary of assets and liabilities carried on the Condensed Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities as of: Total Total Maximum March 31, 2016 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,410 329 1,410 Private equity investments 212 - 270 Loans provided to VIEs 1,842 - 2,858 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 CDC Investments As noted previously, CDC typically invests in VIEs as a limited partner or investor member in the form of equity contributions and has no substantive kick-out or substantive participating rights over the managing member . The Bancorp has determined that it is not the primary beneficiary of these VIEs because it lacks the power to direct the activities that most significantly impact the economic performance of the underlying project or the VIEs' ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. This power is held by the managing members who exercise full and exclusive control of the operations of the VIEs. Accordingly, the Bancorp accounts for these investments under the equity method of accounting. The Bancorp's funding requirements are limited to its invested capital and any additional unfunded commitments for future equity contributions. The Bancorp's maximum exposure to loss as a result of its involvement with the VIEs is limited to the carrying amounts of the investments, including the unfunded commitments. The carrying amounts of these investments, which are included in other assets in the Condensed Consolidated Balance Sheets, and the liabilities related to the unfunded commitments, which are included in other liabilities in the Condensed Consolidated Balance Sheets, are included in the previous tables for all periods presented. The Bancorp has no other liquidity arrangements or obligations to purchase assets of the VIEs that would expose the Bancorp to a loss. In certain arrangements, the general partner/managing member of the VIE has guaranteed a level of projected tax credits to be received by the limited partners/investor members, thereby minimizing a portion of the Bancorp's risk . At both March 31, 2016 and December 31, 2015 , t he Bancorp 's CDC investments included $ 1 .3 billion of investment s in affordable housing tax cred its recognized in other assets i n the Condensed Consolidated Balance Sheets. The unfunded commitments related to these investments were $ 3 19 million and $ 35 6 million at March 31, 2016 and Dec ember 31, 2015, respectively. The unfunded commitments as of March 31, 2016 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 Condensed Consolidated Statements of Income relating to investments in qualified affordable housing investments: Condensed Consolidated For the three months ended March 31, ($ in millions) Statements of Income Caption 2016 2015 Pre-tax investment and impairment losses (a) Other noninterest expense $ 36 34 Tax credits and other benefits Applicable income tax expense (55) (52) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credit s or other circumstances during three months ended March 31, 2016 and 2015. 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. T he Bancorp has determined that it is not the primary beneficiary of the funds because it does not have the obligation to abso rb the funds' expected losses o r the right to receive the fund s ' expected residual returns that could potentially be significant to the funds' and lacks the power to direct the activities that most significantly impact the economic performance of the funds . The Bancorp, as a limited partner, does not have substantive participating or substantive kick-out rights over the general partner . Therefore, the Bancorp accounts for its investments in these limited partnerships under the equity method of accounting. The Bancorp is exposed to losses arising from the negative performance of the underlying investments in the private equity 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 Condensed Consolidated Balance Sheets, are included in the previous tables. Also, at March 31, 2016 and December 31, 2015 , the unfunded commitment amounts to the funds were $ 58 million and $ 60 million , respectively. The Bancorp made capital contributions of $ 2 million and $ 10 million, respectively, to private equity funds during the three months ended March 31, 2016 and 2015. The Bancorp recognized no OTTI on its investments in private equity funds during the three months ended March 31, 2016 and 2015. Loans Provided to VIEs The Bancorp has provided funding to certain unconsolidated VIEs sponsored by third parties. These VIEs are generally established to finance certain consumer and small business loans originated by third parties. The entities are primarily funded through the issuance of a loan from the Bancorp or a syndication through which the Bancorp is involved. The sponsor/administrator of the entities is responsible for servicing the underlying assets in the VIEs. Because the sponsor/administrator, not the Bancorp, holds the servicing responsibilities, which include the establishment and employment of default mitigation policies and procedures, the Bancorp does not hold the power to direct the activities that most 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 outstanding loans to these V IEs are included in commercial loans in Note 5 . A s of March 31, 2016 and December 31, 2015 , the Bancorp's unfunded commitments to these entities were $ 1.0 b illion and $ 969 million, respectively. The loans and unfunded commitments to these VIEs are included in the Bancorp's overall analysis of the ALLL and reserve for unfunded commitments, respectively. The Bancorp does not provide any implicit or explicit liquidity guarantees or principal value guarantees to these VIEs . |
Sales of Receivables and Servic
Sales of Receivables and Servicing Rights | 3 Months Ended |
Mar. 31, 2016 | |
Sales of Receivables and Servicing Rights | |
Sales of Receivables and Servicing Rights | 10. Sales of Receivables and Servicing Rights Residential Mortgage TDR Loan Sale In March of 2015, t he Bancorp recognized a $ 37 million gain, included in other noninterest income in the Condensed 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, t he 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 Bancorp sold fixed and adjustable - rate residential mortgage loans during the three months ended March 31, 2016 and 2015. 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 Condensed Consolidated Statements of Income, is as follows: For the three months ended March 31, ($ in millions) 2016 2015 Residential mortgage loan sales (a) $ 1,114 a 1,001 (b) Origination fees and gains on loan sales 42 44 Gross mortgage servicing fees 52 59 Represents the unpaid principal balance at the time of the sale . Excludes $ 568 of HFS residential mortgag e loan s 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 three months ended March 31: ($ in millions) 2016 2015 Carrying amount before valuation allowance: Balance, beginning of period $ 1,204 1,392 Servicing rights that result from the transfer of residential mortgage loans 12 13 Amortization (27) (34) Balance, end of period $ 1,189 1,371 Valuation allowance for servicing rights: Balance, beginning of period $ (419) (534) Provision for MSR impairment (85) (48) Balance, end of period (504) (582) Carrying amount after valuation allowance $ 685 789 The Bancorp's projections of amortization expense shown below are based on existing asset balances and static key economic assumptions as of March 31, 2016 . Future amortization expense may vary from these projection s. Estimated amortization expense for the remainder of 2016 through 2020 is as follows: ($ in millions) Total Remainder of 2016 $ 90 2017 109 2018 98 2019 89 2020 80 Temporary impa irment or impairment recovery, affected through a change in the MSR valuation allowance, is captured as a component of mortgage banking net revenue in the Condensed Consolidated Statements of Income. The Bancorp maintains a non-qualifying hedging strategy to manage a portion of the risk associated with changes in the value of the MSR portfolio. This strategy may include 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 OAS spreads , 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 three months ended March 31: ($ in millions) 2016 2015 Fixed-rate residential mortgage loans: Balance, beginning of period $ 757 823 Balance, end of period 660 759 Adjustable-rate residential mortgage loans: Balance, beginning of period 27 33 Balance, end of period 25 29 Fixed-rate automobile loans: Balance, beginning of period 1 2 Balance, end of period - 1 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 mortgage banking net revenue in the Condensed Consolidated Statements of Income: For the three months ended March 31, ($ in millions) 2016 2015 Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio $ 96 65 Provision for MSR impairment (85) (48) As of March 31, 2016 and 2015, the key economic assumptions used in measuring the interests in residential mortgage loans that continued to be held by the Bancorp at the date of sale or securitization resulting from transactions completed during the three months ended were as follows: March 31, 2016 March 31, 2015 Rate Weighted-Average Life (in years) Prepayment Speed (annual) OAS Spread (bps) Weighted-Average Default Rate Weighted-Average Life (in years) Prepayment Speed (annual) OAS Spread (bps) Weighted-Average Default Rate Residential mortgage loans: Servicing rights Fixed 6.3 12.6 % 539 N/A 6.2 12.6 % 900 N/A Servicing rights Adjustable 3.0 27.5 681 N/A 3.6 23.4 1,180 N/A Based on historical credit experience, expected credit losses for residential mortgage loan servicing rights have been deemed immaterial, as the Bancorp sold the majority of the underlying loans without recourse. At March 31, 2016 and December 31, 2015 , the Bancorp serviced $ 57.8 billion and $ 59 . 0 billion , respectively , of residential mortgage loans for other i nvestors. The value of MSRs that continue to be held by the Bancorp is subject to credit, prepayment and interest rate risks on the sold financial assets. At March 31, 2016, 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 $ 660 5.2 14.1 % $ (33) (63) (138) 603 $ (15) (29) Servicing rights Adjustable 25 2.9 27.8 (2) (3) (7) 713 - (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 | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 11. Derivative Financial Instruments T he Bancorp maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce c ertain 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 certain contractual features in which the Bancorp requires the counterparties to provide collateral in the form of cash and securities to offset changes in the fair value of the derivatives, including changes in the fair value due to credit risk of the counterparty. As of March 31, 2016 and December 31, 2015 , the balance of collateral held by the Bancorp for derivative assets was $ 858 m illion and $ 8 21 m illion , respectively . The credit component negatively impacting the fair value of derivative assets associated with customer accommodation contracts as of March 31, 2016 and December 31, 2015 was $ 13 million and $ 9 million, respectively. In measuring the fair value of derivative liabilities, the Bancorp considers its own credit risk, taking into consideration collateral maintenance requirements of certain derivative counterparties and the duration of instruments with counterparties that do not require collateral maintenance. When necessary, the Bancorp posts collateral primarily in the form of cash and securities to offset changes in fair value of the derivatives, including changes in fair value due to the Bancorp's credit risk. As of March 31, 2016 and December 31, 2015 , the balance of collateral posted by the Bancorp for derivative liabilities was $ 5 44 million and $ 5 04 million, respectively. Certain of the Bancorp's derivative liabilities contain credit-risk related contingent features that could result in the requirement to post additional collateral upon the occurrence of specified events. As of March 31, 2016 , 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 Condensed Consolidated Financial Statements. The posting of collateral has been determined to remove the need for further consideration of credit risk. As a result , the Bancorp determined that the impact of the Bancorp's credit risk to the valuation of its derivative liabilities was immaterial to the Condensed Consolidated Financial Statements. The Bancorp holds certain derivative instruments that qualify for hedge accounting treatment and are designated as either fair value hedges or cash flow hedges. Derivative instruments that do not qualify for hedge accounting treatment, or for which hedge accounting is not established, are held as free-standing derivatives. All customer accommodation derivatives are held as free-standing derivatives. The fair value of derivative instruments is presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Derivative instruments with a positive fair value are reported in other assets in the Condensed Consolidated Balance Sheets while derivative instruments with a negative fair value are reported in other liabilities in the Condensed Consolidated Balance Sheets. Cash collateral payables and receivables associated with the derivative instruments are not added to or netted against the fair value amounts. The following tables reflect the notional amounts and fair values for all derivative instruments included in the Condensed Consolidated Balance Sheets as of: Fair Value Notional Derivative Derivative March 31, 2016 ($ in millions) Amount Assets Liabilities Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 2,705 453 - Total fair value hedges 453 - Cash flow hedges: Interest rate swaps related to C&I loans 4,475 98 - Total cash flow hedges 98 - Total derivatives designated as qualifying hedging instruments 551 - Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSRs 9,407 363 55 Forward contracts related to held for sale residential mortgage loans 1,423 - 8 Stock warrant associated with Vantiv Holding, LLC 420 308 - Swap associated with the sale of Visa, Inc. Class B shares 1,274 - 55 Foreign exchange contracts 129 - 3 Total free-standing derivatives - risk management and other business purposes 671 121 Free-standing derivatives - customer accommodation: Interest rate contracts for customers 30,604 357 366 Interest rate lock commitments 1,121 29 - Commodity contracts 2,248 233 211 Foreign exchange contracts 15,039 285 269 Total free-standing derivatives - customer accommodation 904 846 Total derivatives not designated as qualifying hedging instruments 1,575 967 Total $ 2,126 967 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 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 March 31, 2016, an assessment of hedge effectiveness was performed using regression analysis and such swaps were accounted for using the “long-haul” method. The long-haul method requires a quarterly assessment of hedge effectiveness and measurement of ineffectiveness. For interest rate swaps accounted for as a fair value hedge using the long-haul method, ineffectiveness is the difference between the changes in the fair value of the interest rate swap and changes in fair value of the related hedged item attributable to the risk being hedged. The ineffectiveness on interest rate swaps hedging fixed-rate funding is reported within interest expense in the Condensed Consolidated Statements of Income. The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Condensed Consolidated Statements of Income: Condensed Consolidated For the three months Statements of ended March 31, ($ in millions) Income Caption 2016 2015 Change in fair value of interest rate swaps hedging long-term debt Interest on long-term debt $ 83 41 Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt (85) (43) Cash Flow Hedges The Bancorp may enter into interest rate swaps to convert floating-rate assets and liabilities to fixed rates or to hedge certain forecasted transactions. The assets or liabilities may be grouped in circumstances where they share the same risk exposure 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 March 31, 2016 , all hedges designated as cash fl ow hedges were assessed for effectiveness using regression analysis. Ineffectiveness is generally measured as the amount by which the cumulative change in the fair value of the hedging instrument exceeds the present value of the cumulative change in the hedged item's expected cash flows attributable to the risk being hedged . Ineffectiveness is reported within other noninterest income in the Condensed Consolidated Statements of Income. The effective portion of the cumulative gains or losses on cash flow hedg es are reported within AOCI and are reclassified from AOCI to current period earnings when the forecasted transaction affects earnings. As of March 31, 2016 , the maximum length of time over which the Bancorp is hedging its exposure to the variability in future cash flows is 45 months . Reclassified gains and losses on interest rate contracts related to commercial and industrial loans are recorded within interest income in the Condensed Consolidated Statements of Income. As of March 31, 2016 a nd December 31, 2015 , $ 61 million and $ 2 2 million , respectively, of net deferred gains , net of tax, on ca sh flow hedges were recorded in AOCI in the Condensed Consolidated Balance Sheets. As of March 31, 2016 , approximately $ 14 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 March 31, 2016 . During the three months ended March 31, 2016 and 2015 , there were no gains or losses reclassified from AOCI into earnings associated with the discontinuance of cash flo w 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 recorded in the Condensed Consolidated Statements of Income and in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: For the three months ended March 31, ($ in millions) 2016 2015 Amount of pretax net gains recognized in OCI $ 74 52 Amount of pretax net gains reclassified from OCI into net income 14 16 Free-Standing Derivative Instruments – Risk Management and Other Business Purposes As part of its overall risk management strategy relative to its mortgage banking activity, the Bancorp may enter into various free-standing derivatives (principal-only swaps, interest rate swaptions, interest rate floors, mortgage options , TBAs and interest rate swaps) to economically hedge changes in fair value of its largely fixed-rate MSR portfolio. Principal-only swaps hedge the mortgage-LIBOR spread because these swaps appreciate in value as a result of tightening spreads. Principal-only swaps also provide prepayment protection by increasing in value when prepayment speeds increase, as opposed to MSRs that lose value in a faster prepayment environment. Receive fixed/pay floating interest rate swaps and swaptions increase in value when interest rates do not increase as quickly as expected. The Bancorp enters into forward contracts and mortgage options to economically hedge the change in fair value of certain residential mortgage loans held for sale due to changes in interest rates. IRLCs issued on residential mortgage loan commitments that will be held for sale are also considered free-standing derivative instruments and the interest rate exposure on these commitments is economically hedged primarily with forward contracts. Revaluation gains and losses from free-standing derivatives related to mortgage banking activity are recorded as a component of mortgage banking net revenue in the Condensed Consolidated Statements of Income. In conjunction with the initial sale of the Bancorp's 51 % interest in Vantiv Holding, LLC , the Bancorp received a warrant which is accounted f or as a free-standing derivative . Refer to Note 20 for further discussion of significant inputs and assumptions used in the valuation of the warrant . In conjunction with the initial 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 20 for further discussion of significant inputs and assumptions used in th e valuation of this instrument. The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: Condensed Consolidated For the three months Statements of ended March 31, ($ in millions) Income Caption 2016 2015 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ (11) - Interest rate contracts related to MSR portfolio Mortgage banking net revenue 96 65 Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income (4) 15 Equity contracts: Stock warrant associated with Vantiv Holding, LLC Other noninterest income 47 70 Swap associated with sale of Visa, Inc. Class B shares Other noninterest income 1 (17) 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 Condensed Consolidated Balance Sheet s 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 and independent counterparties with substantially matching terms. The Bancorp hedges its interest rate exposure on commercial customer transactions by executing offsetting swap agreements with primary dealers. Revaluation gains and losses on interest rate, foreign exchange, commodity and other commercial customer derivative contracts are recorded as a component of corporate banking revenue in the Condensed Consolidated Statements of Income. The Bancorp enters into risk participation agreements, under which the Bancorp assumes credit exposure relating to certain underlying interest rate derivative contracts. The Bancorp only enters into these risk participation agreements in instances in which the Bancorp has participated in the loan that the underlying interest rate derivative contract was designed to hedge. The Bancorp will make payments under these agreements if a customer defaults on its obligation to perform under the terms of the underlying interest rate derivative contract. As of March 31, 2016 and December 31, 2015 , the total notional amount of the risk participation agreements was $ 2.3 billion and $ 1. 7 b illion , respectively, and the fair value was a liability of $ 4 million and $ 3 million at March 31, 2016 and December 31, 2015 , respectively, which is included in interest rate contracts for customers. As of March 31, 2016 , the risk participation agreements had a weighted- average remaining life of 3 . 4 years. The Bancorp's maximum exposure in the risk participation agreements is contingent on the fair value of the underlying interest rate derivative contracts in an asset position at the time of default. The Bancorp monitors the credit risk associated with the underlying customers in the risk participation agreements through the same risk grading system currently utilized for establishing loss reserves 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 as of: March 31, December 31, ($ in millions) 2016 2015 Pass $ 2,324 1,650 Special mention 17 7 Substandard 3 7 Total $ 2,344 1,664 The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: For the three months Condensed Consolidated ended March 31, ($ in millions) Statements of Income Caption 2016 2015 Interest rate contracts: Interest rate contracts for customers (contract revenue) Corporate banking revenue $ 7 6 Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense (1) (1) Interest rate lock commitments Mortgage banking net revenue 42 35 Commodity contracts: Commodity contracts for customers (contract revenue) Corporate banking revenue 1 1 Commodity contracts for customers (credit losses) Other noninterest expense - (2) Commodity contracts for customers (credit portion of fair value adjustment) Other noninterest expense (1) 5 Foreign exchange contracts: Foreign exchange contracts for customers (contract revenue) Corporate banking revenue 16 21 Foreign exchange contracts for customers (credit portion of fair value adjustment) Other noninterest expense (2) (1) Offsetting Derivative Financial Instruments The Bancorp's derivative transactions are generally governed by ISDA Master Agreements and similar arrangements, which include provisions governing the setoff of assets and liabilities between the parties. When the Bancorp has more than one outstanding derivative transaction with a single counterparty, the setoff provisions contained within these agreements generally allow the non-defaulting party the right to reduce its liability to the defaulting party by amounts eligible for setoff, including the collateral received as well as eligible offsetting transactions with that counterparty, irrespective of the currency, place of payment, or booking office. The Bancorp's policy is to present its derivative ass ets and derivative liabilities i n the Condensed 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 . The following tables provide a summary of offsetting derivative financial instruments: Gross Amount Gross Amounts Not Offset in the Recognized in the Condensed Consolidated Balance Sheets As of March 31, 2016 ($ in millions) Condensed Consolidated Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets Derivatives $ 1,789 (656) (578) 555 Total assets 1,789 (656) (578) 555 Liabilities Derivatives 967 (656) (110) 201 Total liabilities $ 967 (656) (110) 201 Amount does not includ e 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 Condensed Consolidated Balance Sheet s were excluded from this table . Gross Amount Gross Amounts Not Offset in the Recognized in the Condensed Consolidated Balance Sheets As of December 31, 2015 ($ in millions) Condensed 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 includ e 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 Condensed Consolidated Balance Sheet s were excluded from this table . |
Other Short Term Borrowings
Other Short Term Borrowings | 3 Months Ended |
Mar. 31, 2016 | |
Other Short Term Borrowings | |
Other Short Term Borrowings | 12 . Other Short-Term Borrowings Borrowings with original maturities of one year or less are classified as short-term. The following table presents a summary of the Bancorp's other short-term borrowings as of: March 31, December 31, ($ in millions) 2016 2015 FHLB advances $ 2,000 - Securities sold under repurchase agreements 785 925 Derivative collateral 738 582 Total other short-term borrowings $ 3,523 1,507 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 Condensed Consolidated Balance Sheets. These securities are subject to changes in market value and , therefore , the Bancorp may increase or decrease the level of securities pledged as collateral based upon these movements in market value. 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: ($ in millions) March 31, 2016 December 31, 2015 Amount Remaining Contractual Maturity Amount Remaining Contractual Maturity Collateral type: Agency residential mortgage-backed securities $ 602 Overnight 646 Overnight U.S. Treasury and federal agencies securities 183 Overnight 279 Overnight Total securities sold under repurchase agreements $ 785 925 |
Capital Actions
Capital Actions | 3 Months Ended |
Mar. 31, 2016 | |
Capital Actions | |
Capital Actions | 14. Capital Actions Accelerated Share Repurchase Transactions During the three months ended March 31, 2016 , the Bancorp entered into or settled accelerate d share repurchase transactions. As part of these t ransactions, the Bancorp entered into forward contracts in which the final number of shares delivered at settlement was based generally on a discount to the average daily volume weighted - average price of the Bancorp's common stock during the term of the se repurchase a greement s . The accelerated share repurchase s were treated as two separate transactions , ( i ) the acquisition of treasury shares on the acquisition date and (ii) a forward contract i ndexed 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 three months ended March 31, 2016: Repurchase Date Amount ($ in millions) Shares Repurchased on Repurchase Date Shares Received from Forward Contract Settlement Total Shares Repurchased Settlement Date December 14, 2015 $ 215 9,248,482 1,782,477 11,030,959 January 14, 2016 March 4, 2016 240 12,623,762 1,868,379 14,492,141 April 11, 2016 |
Long Term Debt
Long Term Debt | 3 Months Ended |
Mar. 31, 2016 | |
Long-Term Debt | |
Long-Term Debt | 13. Long-Term Debt On March 15 , 2016 , the Bank issued and sold $ 1. 5 billion in aggregate principal amount of unsecured bank notes. The bank notes consisted of $ 750 million of 2.30 % senior fixed-rate notes, with a maturity of three years, due on March 15, 2019 ; and $ 7 50 million of 3.85% subordinated fixed-rate notes, with a maturity of ten years, due on March 15, 2026 . These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding , the redemption date . |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Guarantees | 3 Months Ended |
Mar. 31, 2016 | |
Commitments, Contingent Liabilities and Guarantees | |
Commitments, Contingent Liabilities and Guarantees | 15. Commitments, Contingent Liabilities and Guarantees The Bancorp, in the normal course of business, enters into financial instruments and various agreements to meet the financing needs of its customers. The Bancorp also enters into certain transactions and agreements to manage its interest rate and prepayment risks, provide funding, equipment and locations for its operations and invest in its communities. These instruments and agreements involve, to varying degrees, elements of credit risk, counterparty risk and market risk in excess of the amounts recognized in the Condensed Conso lidated Balance Sheets. The cred itworthiness of counterparties for all instruments and agreements is evaluated on a case-by-case basis in accordance with the Bancorp's credit policies. The Bancorp's significant commitments, contingent liabilities and guarantees in excess of the amounts recognized in the Condensed Consolidated Balance Sheets are discussed in further detail belo w: Commitments The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of: March 31, December 31, ($ in millions) 2016 2015 Commitments to extend credit $ 66,908 66,884 Letters of credit 2,945 3,055 Forward contracts related to held for sale residential mortgage loans 1,423 1,330 Noncancelable operating lease obligations 618 635 Purchase obligations 70 60 Capital commitments for private equity investments 62 60 Capital expenditures 30 30 Capital lease obligations 24 27 Commitments to extend credit Commitments to e xtend 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 v alue of those commitments. As of March 31, 2016 and December 31, 2015 , the Bancorp had a reserve for unfunded commitments , including letters of credit, totaling $ 144 million and $ 138 million, respectively, included in other liabilities in the Condensed Consolidated Balance Sheets. The Bancorp monitors the credit risk associated with commitments to extend credit using the same risk rating system utilized within its loan and lease portfolio. Risk ratings under this risk rating system are summarized in the following table as of: March 31, December 31, ($ in millions) 2016 2015 Pass $ 65,672 65,645 Special mention 585 647 Substandard 648 592 Doubtful 3 - Total commitments to extend credit $ 66,908 66,884 Letters of credit Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of March 31, 2016: ($ in millions) Less than 1 year (a) $ 1,673 1 - 5 years (a) 1,244 Over 5 years 28 Total letters of credit $ 2,945 Includes $ 25 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 - 5 years, respectively. Standby letters of credit accounted for 9 9 % of total letters of credit at both March 31, 2016 and December 31, 2015 , and are considered guarantees in accordance with U.S. GAAP. Approximately 6 4 % and 6 5 % of the total standby letters of credit were collateralized as of March 31, 2016 and December 31, 2015 , 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. T he reserve related to these standby letters of credit , which was included in the total reserve for unfunded commitments , was $ 3 million and immaterial, respectively, at March 31, 2016 and December 31, 2015 . The Bancorp monitors the credit risk associated with letters of credit using the same risk rating system utilized within its loan and lease portfolio. Risk ratings under this risk rating system are summarized in the following table as of: March 31, December 31, ($ in millions) 2016 2015 Pass $ 2,477 2,606 Special mention 138 130 Substandard 250 258 Doubtful 80 61 Total letters of credit $ 2,945 3,055 At March 31, 2016 and December 31, 2015 , the Bancorp had outstanding letters of credit that were supporting certain securities issued as VRDNs. The Bancorp facilitates financing for its commercial customers, which consist of companies and municipalities, by marketing the VRDNs to investors. The VRDNs pay interest to holders at a rate of interest that fluctuates based upon market demand. The VRDNs generally have long-term maturity dates, but can be tendered by the holder for purchase at par value upon proper advance notice. When the VRDNs are tendered, a remarketing agent generally finds another investor to purchase the VRDNs to keep the securities outstanding in the market. As of March 31, 2016 and December 31, 2015 , total VRDNs in which the Bancorp was the remarketing agent or were supported by a Bancorp letter of credit were $ 1 . 2 billion and $ 1. 3 billion , respectively, of which FTS acted as the remarketing agent to issuers on $ 1 . 0 billion and $ 1 . 1 billion , respectively . As remarketing agent, FTS is responsible for finding purchasers for VRDNs that are put by investors. The Bancorp issue d letters of credit, as a credit enhancement , to $ 841 m illion and $ 921 m illion of the VRDNs remarketed by FTS, in addition to $ 185 million and $ 187 million in VRDNs remarketed by third parties at March 31, 2016 and December 31, 2015 , respectively. These letters of credit are included in the total letters of credit balance provided in the previous table . The Bancorp held $ 5 million and an immaterial amount of these VRDNs in its portfolio and classified them as trading securities at March 31, 2016 and December 31, 2015 , respectively . 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 significant commitments table for all periods presented. Noncancelable operating 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 both March 31, 2016 and December 31, 2015 . At both March 31, 2016 and December 31, 2015 , the Bancorp maintained a reserve of $ 2 million related to exposures within the reinsurance portfolio which was included in other liabilities in the Condensed Consolidated Balance 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 16 for additional information regarding these proceedings. Guarantees The Bancorp has performance obligations upon the occurrence of certain events under financial guarantees provided in certain contractual arrangements as discussed in the following sections. Residential mortgage loans sold with representation and warranty provisions Conforming residential mortgage loans sold to unrelated third parties are generally sold with representation and warranty provisions. A contractual liability arises only in the event of a breach of these representations and warranties and, in general, only when a loss results from the breach. The Bancorp may be required to repurchase any previously sold loan or indemnify (make whole) the investor or insurer for which the representation or warranty of the Bancorp proves to be inaccurate, incomplete or misleading. For more information on how the Bancorp establishes the residential mortgage repurchase reserve, refer to Note 1 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2015. 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 March 31, 2016 and December 31, 2015, t he Bancorp maintained reserves related to loans sold with representation and warranty provisions totaling $ 2 3 million and $ 2 5 million, respectively, included in other liabilities i n the Conden sed Consolidated Balance Sheets. The Bancorp uses the best information available when estimating its mortgage representation and warranty reserve ; however, the estimation process is inherently uncertain and imprecise and, accordingly, losses in excess of the amounts reserved as of March 31, 2016 , 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 $ 34 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 possibl e losses, depending on the outcome of various facto rs, including those previously discussed . The Bancorp paid an immaterial amount in the form of make whole payments f or the three months ended March 31, 2016 and paid $ 1 million in the form of make whole payments for the three months ended March 31, 2015 . For the three months ended March 31, 2016 and 2015, the Bancorp repurchased $ 4 million and $ 9 million, respectively, in outstanding principal of lo ans to satisfy investor demands . Total repurchase demand requests during the three months ended March 31, 2016 and 2015 were $ 6 million and $ 9 million , respectively . Total outstanding repurchase demand inventory was $ 2 million at March 31, 2016 compared to $ 4 million at December 31, 2015 . The following table summarizes activity in the reserve for representation and warranty provisions: For the three months ended March 31, ($ in millions) 2016 2015 Balance, beginning of period $ 25 35 Net (reductions) additions to the reserve (2) 2 Losses charged against the reserve - (1) Balance, end of period $ 23 36 The following tables provide a rollforward of unresolved claims by claimant type for the three months ended March 31: GSE Private Label 2016 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 16 $ 4 2 $ - New demands 71 6 2 - Loan paydowns/payoffs (4) (1) - - Resolved demands (68) (7) (3) - Balance, end of period 15 $ 2 1 $ - GSE Private Label 2015 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 37 $ 6 1 $ 1 New demands 118 9 6 - Loan paydowns/payoffs (4) - - - Resolved demands (119) (11) (5) (1) Balance, end of period 32 $ 4 2 $ - 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 51 million and $ 465 million at March 31, 2016 and December 31, 2015 , respectively, and the delinquency rates were 2.6 % at March 31, 2016 and 3 . 0 % at December 31, 2015 . T he Bancorp maintained an estimated credit loss reserve on these loan s sold with credit recourse of $ 9 million at both March 31, 2016 and December 31, 2015 , recorded in other liabilities in the Condensed Consolidated Balance Sheets. To determine the credit loss reserve, the Bancorp used an approach that is consistent with its overall approach in estimating credit losses for various categories of residential mortgage loans held in its loan portfolio. Margin accounts FTS, a 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 1 million and $ 1 0 million at March 31, 2016 and December 31, 2015 , respectively. In the event of any customer default, FTS has rights to the underlying collateral provided. Given the existence of the underlying collateral provided and negligible historical credit losses, the Bancorp does not maintain a loss reserve related to the margin accounts. Long-term borrowing obligations The Bancorp had certain fully and unconditionally guaranteed long-term borrowing obligations issued by wholly-owned issuing trust entities of $ 62 million at both March 31, 2016 and December 31, 2015 . 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 initially 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 20 for additional information on the valuation of the swap. The counterparty to the swap as a result of its ownership of the Class B Shares will be impacted by dilutive adjustments to the conversion rate of the Class B Shares into Class A Shares caused by any Covered Litigation losses in excess of the litigation escrow account. If actual judgments in, or settlements of, the Covered Litigation significantly exceed current expectations, then additional funding by Visa of the litigation escrow account and the resulting dilution of the Class B Shares could result in a scenario where the Bancorp's ultimate exposure associated with the Covered Litigation (the “Visa Litigation Exposure”) exceeds the value of the Class B Shares owned by the swap counterparty (the “Class B Value”). In the event the Bancorp concludes that it is probable that the Visa Litigation Exposure exceeds the Class B Value, the Bancorp would record a litigation reserve liability and a corresponding amount of other noninterest expense for the amount of the excess. Any such litigation reserve liability would be separate and distinct from the fair value derivative liability associated with the total return swap. As of the date of the Bancorp's sale of Visa Class B Shares and through March 31, 2016 , the Bancorp has concluded that it is not probable that the Visa Litigation Exposure will exceed the Class B value. Based on this determination, upon the sale of Class B Shares, the Bancorp reversed its net Visa litigation reserve liability and recognized a free-standing derivative liability associated with the total return swap. The fair value of the swap liability was $ 5 5 million at March 31, 2016 and $ 61 million at December 31, 2015 . R efer to Note 11 and Note 16 for further information . After the Bancorp's sale of Visa Class B Shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further 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 i |
Legal and Regulatory Proceeding
Legal and Regulatory Proceedings | 3 Months Ended |
Mar. 31, 2016 | |
Legal And Regulatory Proceedings | |
Legal and Regulatory Proceedings | 16. Legal and Regulatory Proceedings Litigation In April 2006, the Bancorp was added as a defendant in a consolidated antitrust class action lawsuit originally filed against Visa®, MasterCard® and several other major financial institutions in the United States District Court for the Eastern District of New York. 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 15 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 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, merchants opposing the class settlement filed a motion in the District Court to set aside the order approving the settlement because of alleged misconduct in another case by certain counsel to the merchant class and a former attorney for MasterCard. Pursuant to the terms of the settlement agreement, the Bancorp paid $ 46 million into a class settlement escrow account. Approximately 8,000 merchants have requested exclusion from the class settlement, and therefore, pursuant to the terms of the settlement agreement, 25% of the funds paid into the class settlement escrow account have been returned to the control of the defendants. More than 460 of the merchants who requested exclusion from the class have filed separate federal lawsuits against Visa, MasterCard and certain other defendants alleging similar antitrust violations. These “opt-out” federal lawsuits have been transferred to the United States District Court for the Eastern District of New York. The Bancorp was not named as a defendant in any of the opt-out federal lawsuits, but may have obligations pursuant to indemnification arrangements and/or the judgment or loss sharing agreements noted above. On July 18, 2015, the court in which all the remaining opt-out federal lawsuits have been consolidated denied defendants' motion to dismis s the complaints. Refer to Note 15 for further information. On March 29, 2016, the court in two class action lawsuits consolidated as Dudenhoeffer v Fifth Third Bancorp et al. filed in 2008 in the United States District Court for the Southern District of Ohio preliminarily approved a settlement in which the Bancorp agreed to pay $ 6 million and make certain changes to th e Bancorp's profit sharing plan . 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 final court approval. On August 3, 2012, William Klopfenstein and Adam McKinney filed a lawsuit against Fifth Third Bank in the United States District Court for the Northern District of Ohio (Klopfenstein et al. v. Fifth Third Bank), alleging that the 120% APR that Fifth Third disclosed on its Early Access program was misleading. Early Access is a deposit-advance program offered to eligible cus tomers with checking accounts. The plaintiffs sought to represent a nationwide class of customers who used the Early Access program and repaid their cash advances within 30 days. On October 31, 2012, the case was transferred to the United States District Court for t he Southern District of Ohio. In 2013, four similar putative class actions were filed against Fifth Third Bank in federal courts throughout the country (Lori and Danielle Laskaris v. Fifth Third Bank, Janet Fyock v. Fifth Third Bank, Jesse McQuillen v. Fifth Third Bank, and Brian Harrison v. Fifth Third Bank). Those four lawsuits were transferred to the Southern District of Ohio and consolidated with the original lawsuit as In re: Fifth Third Early A ccess Cash Advance Litigation. On behalf of a putative class, the plaintiffs seek unspecified monetary and statutory damages, injunctive relief, punitive damages, attorney's fees, and pr e- and post-judgment interest. On March 30, 2015, the court dismissed all claims alleged in the consolidated l awsuit except a claim under the TILA. The parties are currently engaged in discovery. No trial date has been scheduled. On July 5, 2012, Nina Investments, LLC filed a lawsuit against Fifth Third Bank in the Circuit Court of Cook County, Illinois, (Nina Investments, LLC. v. Fifth Third Bank, et al.) alleging fraud and conspiracy to commit fraud related to a credit facility established by Fifth Third Bank in 2007 to fi nance life insurance premiums. Nina invested funds in an entity related to the borrower under the credit facility and is claiming over $ 70 million in damages based on its alleged loss of these f unds. Nina alleges that it would have made different investment decisions if Fifth Third had disclosed fraud committed by the borrower with the alleged knowledge of Fifth Third employees. Nina filed this lawsuit in response to a lawsuit filed by Fifth Third Bank in the same court on June 11, 2010 against Nina and other defendants (Fifth Third Bank v. Concord Capital Management, LLC, et al.) alleging fraud and breach of contract. The court recently dismissed Fifth Third's claims against certain def endants but Fifth Third's claims against Nina and ot her defendants remain pending. Accordingly, t he parties have been conducting discovery in the coordinated actions . Discovery is presently scheduled to close on May 16, 2016, and trial has been s cheduled for October 31, 2016. The Bancorp and its subsidiaries are not parties to any other material litigation. However, there are other litigation matters that arise in the normal course of business. While it is impossible to ascertain the ultimate resolution or range of financial liability with respect to these contingent matters, management believes that the resulting liability, if any, from these other actions would not have a material effect upon the Bancorp's consolidated financial position, results of operations or cash flows. Governmental Investigations and Proceedings The Bancorp and/or its affiliates are involved in information-gathering requests, reviews, investigations and proceedings (both formal and informal) by various governmental regulatory agencies and law enforcement authorities, as well as self-regulatory bodies regarding their respective businesses. Additional matters will likely arise from time to time. Any of these matters may result in material adverse consequences to the Bancorp, its affiliates and/or their respective directors, officers and other personnel, including adverse judgments, findings, settlements, fines, penalties, orders, injunctions or other actions, amendments and/or restatements of the Bancorp's SEC filings and/or financial statements, as applicable, and/or determinations of material weaknesses in our disclosure controls and procedures. Investigations by regulatory authorities may from time to time result in civil or criminal referrals to law enforcement. Reasonably Possible Losses in Excess of Accruals The Bancorp and its subsidiaries are parties to numerous claims and lawsuits as well as threatened or potential actions or claims concerning matters arising from the conduct of its business activities. The outcome of claims or litigation and the timing of ultimate resolution are inherently difficult to predict. The following factors, among others, contribute to this lack of predictability: claims often include significant legal uncertainties, damages alleged by plaintiffs are often unspecified or overstated, discovery may not have started or may not be complete and material facts may be disputed or unsubstantiated. As a result of these factors, the Bancorp is not always able to provide an estimate of the range of reasonably possible outcomes for each claim. An accrual for a potential litigation loss is established when information related to the loss contingency indicates both that a loss is probable and that the amount of loss can be reasonably estimated. Any such accrual is adjusted from time to time thereafter as appropriate to reflect changes in circumstances. The Bancorp also determines, when possible (due to the uncertainties described above), estimates of reasonably possible losses or ranges of reasonably possible losses, in excess of amounts accrued. Under U.S. GAAP, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight.” Thus, references to the upper end of the range of reasonably possible loss for cases in which the Bancorp is able to estimate a range of reasonably possible loss mean the upper end of the range of loss for cases for which the Bancorp believes the risk of loss is more than slight. For matters where the Bancorp is able to estimate such possible losses or ranges of possible losses, the Bancorp currently estimates that it is reasonably possible that it could incur losses related to legal and regulatory proceedings in an aggregate amount up to approximately $ 38 million in excess of amounts accrued, with it also being reasonably possible that no losses will be incurred in these matters. The estimates included in this amount are based on the Bancorp's analysis of currently available information, and as new information is obtained the Bancorp may change its estimates. For these matters and others where an unfavorable outcome is reasonably possible but not probable, there may be a range of possible losses in excess of the established accrual that cannot be estimated. Based on information currently available, advice of counsel, available insurance coverage and established accruals, the Bancorp believes that the eventual outcome of the actions against the Bancorp and/or its subsidiaries, including the matters described above, will not, individually or in the aggregate, have a material adverse effect on the Bancorp's consolidated financial position. However, in the event of unexpected future developments, it is possible that the ultimate resolution of those matters, if unfavorable, may be material to the Bancorp's results of operations for any particular period, depending, in part, upon the size of the loss or liability imposed and the operating results for the applicable period. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Taxes | |
Income Taxes | 17. Income Taxes The applicable income tax expense was $1 0 8 million and $124 million for the t hree months ended March 31, 2016 and 2015 , respectively. The effective tax rates for the t hree months ended March 31, 2016 and 2015 were 25. 0 % and 25 . 6 %, respectively. While it is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of the Bancorp's uncertain tax positions could increase or decrease during the next 12 months, the Bancorp believes it is unlikely that its unrecognized tax benefits will change by a material amount during the next 12 months. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2016 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | 18. Accumulated Other Comprehensive Income The tables below present the activity of the components of OCI and AOCI for the three months ended March 31, 2016 and 2015: Total Other Total Accumulated Other Comprehensive Income Comprehensive Income Pretax Tax Net Beginning Net Ending March 31, 2016 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during period $ 695 (243) 452 Reclassification adjustment for net gains on available-for-sale securities included in net income (8) 3 (5) Net unrealized gains on available-for-sale securities 687 (240) 447 238 447 685 Unrealized holding gains on cash flow hedge derivatives arising during period 74 (26) 48 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (14) 5 (9) Net unrealized gains on cash flow hedge derivatives 60 (21) 39 22 39 61 Reclassification of amounts to net periodic benefit costs 2 (1) 1 Defined benefit pension plans, net 2 (1) 1 (63) 1 (62) Total $ 749 (262) 487 197 487 684 Total Other Total Accumulated Other Comprehensive Income Comprehensive Income Pretax Tax Net Beginning Net Ending March 31, 2015 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during period $ 215 (74) 141 Reclassification adjustment for net gains on available-for-sale securities included in net income (12) 4 (8) Net unrealized gains on available-for-sale securities 203 (70) 133 475 133 608 Unrealized holding gains on cash flow hedge derivatives arising during period 52 (18) 34 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (16) 6 (10) Net unrealized gains on cash flow hedge derivatives 36 (12) 24 23 24 47 Reclassification of amounts to net periodic benefit costs 3 (1) 2 Defined benefit pension plans, net 3 (1) 2 (69) 2 (67) Total $ 242 (83) 159 429 159 588 The table below presents reclassifications out of AOCI: Condensed Consolidated Statements of Income Caption For the three months ended March 31, Components of AOCI: ($ in millions) 2016 2015 Net unrealized gains on available-for-sale securities: (b) Net gains included in net income Securities gains, net $ 8 12 Income before income taxes 8 12 Applicable income tax expense (3) (4) Net income 5 8 Net unrealized gains on cash flow hedge derivatives: (b) Interest rate contracts related to C&I loans Interest and fees on loans and leases 14 16 Income before income taxes 14 16 Applicable income tax expense (5) (6) Net income 9 10 Net periodic benefit costs: (b) Amortization of net actuarial loss Employee benefits expense (a) (2) (3) Income before income taxes (2) (3) Applicable income tax expense 1 1 Net income (1) (2) Total reclassifications for the period Net income $ 13 16 This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 21 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2015 for information on the computation of net periodic benefit cost . Amounts in parentheses indicate reductions to net income . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share | |
Earnings Per Share | 19. Earnings Per Share The following table provides the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share for the three months ended March 31: 2016 2015 Average Per Share Average Per Share (in millions, except per share data) Income Shares Amount Income Shares Amount Earnings Per Share: Net income attributable to Bancorp $ 327 361 Dividends on preferred stock 15 15 Net income available to common shareholders 312 346 Less: Income allocated to participating securities 3 3 Net income allocated to common shareholders $ 309 774 0.40 343 810 0.42 Earnings Per Diluted Share: Net income available to common shareholders $ 312 346 Effect of dilutive securities: Stock-based awards - 4 - 9 Net income available to common shareholders 312 346 plus assumed conversions Less: Income allocated to participating securities 3 3 Net income allocated to common shareholders plus assumed conversions $ 309 778 0.40 343 819 0.42 Shares are excluded from the computation of net income per diluted share when their inclusion has an anti-dilutive effect on earnings per share. The diluted earnings per share computation for the three months ended March 31, 2016 and 201 5 excludes 20 million and 1 8 million, respectively, of SARs an d an immaterial amount of stock options because their inclusion would have been anti-dilutive . The diluted earnings per share computation for the three months ended March 31 , 201 6 excludes the impact of the forward contract related to the March 4 , 201 6 accelerated share repurchase transaction . B ase d upon the average daily volume weighted- average price of the Bancorp's common stock during the first quarter of 201 6 , the counterparty to the transaction would have been required to deliver additional shares for the settlement of the forward contract as of March 31, 201 6 , and thus the impact of the forward contract related to the accelerat ed share repurchase transaction would have been anti-dilutive to earnings per share . The diluted earnings per share computation for the three months ended March 31, 2015 excludes the impact of the forward contract related to the January 27, 2015 accelerated share repurchase transaction. Based upon the average daily volume weighted- average price of the Bancorp's common stock during the first 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 March 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 . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements | |
Fair Value Measurements | 20. Fair Value Measurements The Bancorp measures certain financial assets and liabilities at fair value in accordance with U.S. GAAP, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument's fair value measurement. For more information regardi ng the fair value hierarchy, refer to Note 1 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2015. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables summarize assets and liabilities measured at fair value on a recurring basis, including residential mortgage loans held for sale for which the Bancorp has elected the fair value option as of: Fair Value Measurements Using March 31, 2016 ($ 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 $ 77 1,084 - 1,161 Obligations of states and political subdivisions securities - 52 - 52 Mortgage-backed securities: Agency residential mortgage-backed securities - 15,129 - 15,129 Agency commercial mortgage-backed securities - 8,205 - 8,205 Non-agency commercial mortgage-backed securities - 3,120 - 3,120 Asset-backed securities and other debt securities - 1,520 - 1,520 Equity securities (a) 99 1 - 100 Available-for-sale and other securities (a) 176 29,111 - 29,287 Trading securities: U.S. Treasury and federal agencies securities 1 17 - 18 Obligations of states and political subdivisions securities - 54 - 54 Mortgage-backed securities: Agency residential mortgage-backed securities - 5 - 5 Agency commercial mortgage-backed securities - 1 - 1 Asset-backed securities and other debt securities - 23 - 23 Equity securities 304 - - 304 Trading securities 305 100 - 405 Residential mortgage loans held for sale - 600 - 600 Residential mortgage loans (b) - - 160 160 Derivative assets: Interest rate contracts 1 1,270 29 1,300 Foreign exchange contracts - 285 - 285 Equity contracts - - 308 308 Commodity contracts 37 196 - 233 Derivative assets (d) 38 1,751 337 2,126 Total assets $ 519 31,562 497 32,578 Liabilities: Derivative liabilities: Interest rate contracts $ 9 416 4 429 Foreign exchange contracts - 272 - 272 Equity contracts - - 55 55 Commodity contracts 21 190 - 211 Derivative liabilities (e) 30 878 59 967 Short positions (e) 15 9 - 24 Total liabilities $ 45 887 59 991 Excludes FHLB, FRB and DTCC restricted stock holdings totaling $ 248 , $ 355 and $ 1 respectively, at March 31, 2016 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. During the three months ended March 31, 2016 , no assets or l iabilities were transferred between Level 1 and Level 2. Included in other assets in the Condensed Consolidated Balance Sheets. Included in other liabilities in the Condensed Consolidated Balance Sheets. 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 holdings 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 l iabilities were transferred between Level 1 and Level 2 . Included in other assets in the Condensed Consolidated Balance Sheets. Included in other liabilities in the Condensed Consolidated Balance Sheets. The following is a description of the valuation methodologies used for significant instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. Available-for-sale and other securities and trading securities Where quoted prices are available in an active market, securities are classified within Leve l 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 DCFs. 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 commercial 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 that are valued based on mortgage-backed securities prices are classified within Level 2 of the valuation hierarchy as the valuation is based on external pricing for similar instruments. ARM loans classified as held for sale are also classified within Level 2 of the valuation hierarchy due to the use of observable inputs in the DCF model. These observable inputs include interest rate spreads from agency mortgage-backed securities market rates and observable discount rates. Residential mortgage loans Residential mortgage loans held for sale that are reclassified to held for investment are transferred from Level 2 to Level 3 of the fair value hierarchy. It is the Bancorp's policy to value any transfers between levels of the fair value hierarchy based on end of period fair values. For residential mortgage loans 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 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 . Derivatives Exchange-traded derivatives valued using quoted prices and certain over-the-counter derivatives valued using active bids are classified within Level 1 of the valuation hierarchy. Most of the Bancorp's derivative contracts are valued using DCF or other models that incorporate current market interest rates, credit spreads assigned to the derivative counterparties and other market parameters and, therefore, are classified within Level 2 of the valuation hierarchy. Such derivatives include basic and structured interest rate , foreign exchange and commodity swaps and options. Derivatives that are valued based upon models with significant unobservable market parameters are classified within Level 3 of the valuation hierarchy. At March 31, 2016 and December 31, 2015 , derivatives classified as Level 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 Visa, Inc. Class B shares. Level 3 derivatives also include IRLCs , which utilize internally generated loan closing rate assumptions as a significant unobservable input in the v aluation process. As of March 31, 2016 , t he warrant allow s the Bancorp to purchase approximately 7.8 million incremental nonvoti ng 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 value of the warrant is calculated i n 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 unobservable inputs, such as expected term and exp ected volatility . For the warrant , an increase in the expected term (years) and the expected volatility assumptions would result in an increase in the fair value; co nversely , a decrease in these assumptions would result in a decrease in the fair value . T he Accounting and Treasury d epartments, both of which report to the Bancorp's Chief Financial Officer, determine d the valuation methodology for the warrant. Accounting and Treasury review changes in fair value on a quarterly basis for reasonableness based on changes in historical and implied volatilities, expected terms, probability weightings of the related scenarios, and other assumptions. Under the terms of the total return swap, the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Visa , Inc. Clas s 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 i ncrease in the loss estimate or a delay in the resolution of the Covered Litigation would result in an increase in fair value ; co nversely , a decrease in the loss estimate or an acceleration of the resolution of the Covered Litigation would result in a decrease in fair value . The Accounting and Treasury d epartments determine d the valuation methodology for the total return swap. Accounting and Treasury review the changes in fair value on a quarterly basis for reasonableness based on Visa stock price changes, litigation contingencies, and escrow funding. The net fair value asset of the IRLCs at March 31, 2016 was $ 2 9 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 IRLCs of approximately $ 8 million and $ 1 5 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 IRLCs of approximately $ 10 million and $ 2 1 million, respectively. The decrease in fair value of IRLCs due to immediate 10% and 20% adverse changes in the assumed loan closing rates would be approximately $ 3 million and $ 6 million, respectively, and the increase in fair value due to immediate 10% and 20% favorable changes in the assumed loan closing rates would be approximately $ 3 million and $ 6 million, respectively. These sensitivities are hypothetical and should be used with caution, as changes in fair value based on a variation in assumptions typically cannot be extrapolated because the relationship of the change in assumptions to the change in fair value may not be linear. T he Con sumer Line of Business Finance d epartment, which reports to the Banco rp's Chief Financial Officer, and the afor ementioned Secondary Marketing d epartment are responsible for determining the valuation methodology for IRLCs. Secondary Marketing, in conjunction with a third party valuatio n provider, periodically review loan closing rate assumptions and recent loan sales to determine if adjustments are needed for current market conditions no t reflected in historical data. The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity For the three months ended March 31, 2016 Mortgage Derivatives, Derivatives, Total ($ in millions) Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 167 12 201 380 Total gains (realized/unrealized): Included in earnings 1 42 48 91 Purchases - (1) - (1) Settlements (11) (28) 4 (35) Transfers into Level 3 (b) 3 - - 3 Balance, end of period $ 160 25 253 438 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 March 31, 2016 (c) $ 1 29 48 78 Net interest rate derivatives include derivative assets and liabilities of $ 29 and $ 4 , respectively, as of March 31, 2016 . Net equity derivatives include derivative assets and liabilities of $ 308 and $ 55 , respectively, as of March 31, 2016 . Includes certain residential mortgage loans originated as held for sale that were transferred to held for invest ment. Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity For the three months ended March 31, 2015 Mortgage Derivatives, Derivatives, Total ($ in millions) Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 108 10 366 484 Total gains or losses (realized/unrealized): Included in earnings 2 35 53 90 Settlements (7) (28) 6 (29) Transfers into Level 3 (b) 23 - - 23 Balance, end of period $ 126 17 425 568 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 March 31, 2015 (c) $ 2 19 53 74 Net interest rate derivatives include derivative assets and liabilities of $ 19 and $ 2 , respectively, as of March 31, 2015 . Net equity derivatives include derivative assets and liabilities of $ 485 and $ 60 , respectively, as of March 31, 2015 . Includes certain residential mortgage loans originated as held for sale that were transferred to held for invest ment. Includes interest income and expense. The total gains and losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended March 31, ($ in millions) 2016 2015 Mortgage banking net revenue $ 43 36 Corporate banking revenue - 1 Other noninterest income 48 53 Total gains $ 91 90 The total gains and losses included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at March 31, 2016 and 2015 were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended March 31, ($ in millions) 2016 2015 Mortgage banking net revenue $ 30 20 Corporate banking revenue - 1 Other noninterest income 48 53 Total gains $ 78 74 The following tables present information as of March 31, 2016 and 2015 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured at fair value on a recurring basis: As of March 31, 2016 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Residential mortgage loans $ 160 Loss rate model Interest rate risk factor (6.0) - 16.5% 4.4% Credit risk factor 0 - 80.5% 1.4% IRLCs, net 29 Discounted cash flow Loan closing rates 5.6 - 94.0% 75.0% Stock warrant associated with Vantiv 308 Black-Scholes option- Expected term (years) 2.0 - 13.3 5.8 Holding, LLC pricing model Expected volatility (a) 23.0 - 30.4% 25.9% Swap associated with the sale of Visa, Inc. (55) 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 March 31, 2015 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Residential mortgage loans $ 126 Loss rate model Interest rate risk factor (5.7) - 18.3% 5.3% Credit risk factor 0 - 47.9% 1.2% IRLCs, net 19 Discounted cash flow Loan closing rates 2.3 - 87.6% 67.0% Stock warrant associated with Vantiv 485 Black-Scholes option- Expected term (years) 2.0 - 14.3 5.9 Holding, LLC pricing model Expected volatility (a) 22.9 - 32.2% 26.5% Swap associated with the sale of Visa, Inc. (60) Discounted cash flow Timing of the resolution 9/30/2016- 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. 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 March 31, 2016 and 2015, and for which a nonrecurring fair value adjustment was recorded during the three months ended March 31, 2016 and 2015, 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 For the three months As of March 31, 2016 ($ in millions) Level 1 Level 2 Level 3 Total ended March 31, 2016 Commercial loans held for sale $ - - 5 5 (2) Commercial and industrial loans - - 347 347 (47) Commercial mortgage loans - - 85 85 6 Commercial construction loans - - - - 2 MSRs - - 685 685 (85) OREO - - 27 27 (3) Bank premises and equipment - - 12 12 1 Total $ - - 1,161 1,161 (128) Fair Value Measurements Using Total (Losses) Gains For the three months As of March 31, 2015 ($ in millions) Level 1 Level 2 Level 3 Total ended March 31, 2015 Commercial loans held for sale $ - - 1 1 4 Commercial and industrial loans - - 366 366 (43) Commercial mortgage loans - - 52 52 (13) Residential mortgage loans - - 55 55 (1) MSRs - - 788 788 (48) OREO - - 36 36 (8) Bank premises and equipment - - 5 5 (3) Operating lease equipment - - 39 39 (30) Total $ - - 1,342 1,342 (142) The following tables present information as of March 31, 2016 and 2015 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a nonrecurring basis: As of March 31, 2016 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 5 Appraised value Appraised value NM NM Cost to sell NM 10.0% Commercial and industrial loans 347 Appraised value Collateral value NM NM Commercial mortgage loans 85 Appraised value Collateral value NM NM Commercial construction loans 0 Appraised value Collateral value NM NM MSRs 685 Discounted cash flow Prepayment speed 0 - 100% (Fixed) 14.1% (Adjustable) 27.8% OAS spread (bps) 364-1,515 (Fixed) 603 (Adjustable) 713 OREO 27 Appraised value Appraised value NM NM Bank premises and equipment 12 Appraised value Appraised value NM NM As of March 31, 2015 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 1 Appraised value Appraised value NM NM Cost to sell NM 10.0% Commercial and industrial loans 366 Appraised value Collateral value NM NM Commercial mortgage loans 52 Appraised value Collateral value NM NM Residential mortgage loans 55 Appraised value Appraised value NM NM MSRs 788 Discounted cash flow Prepayment speed 0.6 - 100% (Fixed) 10.0% (Adjustable) 32.2% OAS spread (bps) 430-1,700 (Fixed) 920 (Adjustable) 640 OREO 36 Appraised value Appraised value NM NM Bank premises and equipment 5 Appraised value Appraised value NM NM Operating lease equipment 39 Appraised value Appraised value NM NM Commercial loans held for sale During the three months ended March 31, 2016 and 2015, respectively, the Bancorp transferred $ 5 million and an immaterial amount of com mercial loans from the portfolio to loans held for sale that upon trans fer were measured at lower of cost or fair value. There were immaterial amounts of fair value adjustments for both the three months ended March 31, 2016 and 2015 that were generally based on appraisal s 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 , there was an immaterial amount and $ 1 million of fair value adjustments on existing commercial loans held for sale for the three months ended March 31, 2016 and 2015 , respectively . The fair value adjustments were also based on appraisals of the underlying collateral . During the t hree months ended March 31, 2016 the Bancorp recognized a $2 million loss on the sale of commercial loan s held for sale. During the three months ended March 31, 2015 the Bancorp recognized a $ 5 million gain on the sale of commercial loans held for sale. 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. Quarterly, 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 of 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 reviews 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. Comme rcial loans held for investment During the three months ended March 31, 2016 and 2015 , the Bancorp recorded nonrecurring impairment adjustments to cer tai n 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 in dividual 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 tables. Commercial Credit Risk, which reports to the Bancorp's Chief Risk Officer, is responsible for preparing and r eviewing the fair value estimates for commercial loans held for investment. Residential mortgage loans During the three months ended March 31, 2015, the Bancorp transferred approximately $ 55 million of restructured residential mortgage loans from held for sale to portfolio as the Bancorp no longer had the intent to sell the loans. Upon transfer, the Bancorp recognized a nonrecurring fair value adjustment of $ 1 million on these loans, which had previously been transferred to held for sale in the fourth quarter of 2014. M SRs Mortgage interest rates decreased during both the t hree months ended March 31, 2016 and 2015 and the Bancorp recognized temporary impairment in certain classes of the MSR portfolio and the carrying value was adjusted to the fair value. MSRs do not trade in an active, open market with readily observable prices. While sales of MSRs do occur, the precise terms and conditions typically are not readily available. Accordingly, the Bancorp estimates the fair value of MSRs using internal OAS models with certain unobservable inputs, primarily prepayment speed assumptions, OAS and weighted - average lives, resulting in a classification within Level 3 of the valuation hierarchy. Refer to Note 10 for further information on the assumptions used in the valuation of the Bancorp's MSRs. The Secondary Marketing department and Treasury department are responsible for determining the valuation methodology for MSRs. Representatives from Secondary Marketing, Treasury, Accounting and Risk Management are responsible for reviewing key assumptions used in the internal OAS model. Two external valuations of the MSR portfolio are obtained from third parties that use valuation models in order to assess the reasonableness of the internal OAS model. Additionally, the Bancorp participates in peer surveys that provide additional confirmation of the reasonableness of key assumptions utilized in the MSR valuation process and the resulting MSR prices. OREO During the three mont hs ended March 31, 2016 and 2015 , the Bancorp recorded nonrecurring adjustments to certain commercial and residential real estate properties classified as OREO and measured at the lower of carrying amount or fair value. These nonrecurring losses wer e primarily due to declines in real estate values of the properties recorded in OREO. For the three months ended March 31, 2016 and 2015, t hese losses include $ 2 million and $ 5 million , respectively , recorded as charge-offs, on new OREO properties transferred from loans during the respective periods and $ 1 million and $ 3 million , respectively, recorded as negative fair value adjustments on OREO in other noninterest expense in the Bancorp's Condensed Consolidated Statements of Income subsequent to their transfer from loans. As discussed in the following paragraphs, the fair value amounts are generally based on appraisals of the property values, resulting in a classification within Level 3 of the valuation hierarchy. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. The previous tables reflect the fair value measurements of the properties before deducting the estimated costs to sell. The Real Estate Valuation department , which reports to the Bancorp's Chief Risk Officer, is solely responsible for managing the appraisal process and evaluating the appraisal for all commercial properties transferred to OREO . All appraisals on commercial OREO properties are updated on at least an annual basis. The Real Estate Valuation department reviews the BPO data and internal market information to determine the initial charge-off on residential real estate loans transferred to OREO . Once the foreclosure process is completed, the Bancorp performs an interior inspection to update the initial fair value of the property. These properties are reviewed at least every 30 days after the initial interior inspections are completed . The Asset Manager receives a monthly status report for each property , which includes the number of showings, recently sold properties, current comparable listings and overall market conditions. Bank p remises and equipment The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. These properties were written down to their lower of cost or market values. At least annually thereafter, the Bancorp will review these properties for market fluctuations. The fair value amounts were generally based on appraisals of the property values, resulting in a classification within Level 3 of the valuation hierarchy. Corporate Facilities, which reports to the Bancorp's Chief Administrative Officer, in conjunction with Accounting, is responsible for preparing and reviewing the fair value estimates for bank premises and equipment. For further information on bank premises and equipment and discussion on changes to the branch network, refer to Note 7. Operating lease equipment During the three months ended March 31, 2015, the Bancorp recorded nonrecurring impairment adjustments to certain operating lease equipment. When eva luating whether an individual asset is impaired, the Bancorp considers the current fair value of the asset, the changes in overall market demand for the asset and the rate of change in advancements associated with technological improvements that impact the demand for the specific asse t under review. As part of this ongoing assessment, the Bancorp determined that the carrying value s of certain operating lease equipment were not recoverable and as a result, the Bancorp recorded an impairment loss equal to the amount by which the carrying value of the assets exceeded the fair value. The fair |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting | |
Business Segments | 21. 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 business segment so its resulting net interest income is insulated from interest rate risk. In a rising rate environment, the Bancorp benefits from the widening spread between deposit costs and wholesale funding costs. However, the Bancorp's FTP system credits this benefit to deposit-providing businesses, such as Branch Banking and Investment Advisors, on a duration-adjusted basis. The net impact of the FTP methodology is captured in General Corporate and Other. The Bancorp adjusts the FTP charge and credit rates as dictated by changes in interest rates for various interest-earning assets and interest-bearing liabilities and by the review of the estimated durations for the indeterminate-lived deposits. The credit rate provided for demand deposit accounts is reviewed annually based upon the account type, its estimated duration and the corresponding fed funds, U.S. swap curve or swap rate. The credit rates for several deposit products were reset January 1, 201 6 to reflect the current market rates and updated market assumptions. These rates were generally higher than those in place during 201 5 , thus net interest income f or deposit- providing businesses was positively impacted during 201 6 . FTP charge rates on assets were affected by the prevailing level of interest rates and by the duration and repricing characteristics of the portfolio. As overall market rates increased, the FTP charge increased for asset-generating businesses, thus negatively affecting net interest income during 2016. During the first quarter of 2016, the Bancorp refined its methodology for allocating provision expense to the business segments to include charges or benefits associated with changes in criticized commercial loan levels in addition to actual net charge-offs experienced by the loans and leases owned by each business segment. The results of operations and financial position for the three months ended March 31, 2015 were adjusted to reflect this change. 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 services 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 three months ended March 31, 2015 were adjusted to reflect change s in internal expense allocation methodologies . The following is a d escription of each of the Bancorp's business segments and the products and services they provide to their respective client bases . Commercial Banking o ffers 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 p rovides a full range of deposit and loan and lease products to individuals and small businesses through 1, 2 41 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, retention and servicing of residential mortgage and home equity loans or lines of credit, sales and securitizations of those loans, po ols 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 inclu ding states and municipalities. The following tables present the results of operations and assets by business segment for the three months ended: General Commercial Branch Consumer Investment Corporate March 31, 2016 ($ in millions) Banking Banking Lending Advisors and Other Eliminations Total Net interest income $ 451 426 60 43 (77) - 903 Provision for loan and lease losses 65 34 12 - 8 - 119 Net interest income after provision for loan and lease losses 386 392 48 43 (85) - 784 Total noninterest income 223 189 (b) 83 100 75 (33) (a) 637 Total noninterest expense 363 411 118 107 20 (33) 986 Income (loss) before income taxes 246 170 13 36 (30) - 435 Applicable income tax expense 35 60 5 13 (5) - 108 Net income (loss) 211 110 8 23 (25) - 327 Less: Net income attributable to noncontrolling interests - - - - - - - Net income (loss) attributable to Bancorp 211 110 8 23 (25) - 327 Dividends on preferred stock - - - - 15 - 15 Net income (loss) available to common shareholders $ 211 110 8 23 (40) - 312 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 59,652 54,528 22,475 8,900 (3,125) - 142,430 Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income. Includes an impairment charge of $ 2 for branches and land. For more information refer to Note 7 and Note 20. General Commercial Branch Consumer Investment Corporate March 31, 2015 ($ in millions) Banking Banking Lending Advisors and Other Eliminations Total Net interest income $ 392 377 63 29 (14) - 847 Provision for loan and lease losses 42 42 14 1 (30) - 69 Net interest income after provision for loan and lease losses 350 335 49 28 16 - 778 Total noninterest income 174 (c) 176 (b) 129 107 82 (38) (a) 630 Total noninterest expense 348 400 105 115 (7) (38) 923 Income before income taxes 176 111 73 20 105 - 485 Applicable income tax expense 13 39 26 7 39 - 124 Net income 163 72 47 13 66 - 361 Less: Net income attributable to noncontrolling interests - - - - - - - Net income attributable to Bancorp 163 72 47 13 66 - 361 Dividends on preferred stock - - - - 15 - 15 Net income available to common shareholders $ 163 72 47 13 51 - 346 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 57,855 53,295 22,057 10,042 (2,812) - 140,437 Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income. Includes an impairment charge of $4 for branches and land. For more information, refer to Note 7 and Note 20 . Includes an impairment charge of $ 30 for operating lease equipment. For more informa tion, refer to Note 20 . |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events | |
Subsequent Event | 22. Subsequent Event On April 22 , 2016, the Bancorp closed the previously announced sale of its retail operations, including retail accounts, certain private banking deposits and related loan relationships in Pittsburgh to First National Bank of Pennsylvania . The sale included loans, premises and equipment and deposits with aggregate carrying amounts of approximately $ 99 million, $ 16 million and $ 302 million , respectively. The Bancorp recorded a gain on the sale of approximately $ 11 million that will be recognized in the Bancorp's second quarter 2016 Quarterly Report on Form 10-Q. |
Supplemental Cash Flow Inform31
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow | |
Noncash Investing and Financing Activities | Cash payments related to interest and income taxes in addition to non-cash investing and financing activities are presented in the following table for the three months ended March 31: ($ in millions) 2016 2015 Cash Payments: Interest $ 191 166 Income taxes 334 13 Transfers: Portfolio loans to loans held for sale 3 9 Loans held for sale to portfolio loans 12 78 Portfolio loans to OREO 12 33 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Securities | |
Available-for-Sale and Other and Held-to-Maturity Securities | The following tables provide 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: Amortized Unrealized Unrealized Fair March 31, 2016 ($ in millions) Cost Gains Losses Value Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 1,131 30 - 1,161 Obligations of states and political subdivisions securities 50 2 - 52 Mortgage-backed securities: Agency residential mortgage-backed securities (a) 14,586 545 (2) 15,129 Agency commercial mortgage-backed securities 7,837 368 - 8,205 Non-agency commercial mortgage-backed securities 3,005 115 - 3,120 Asset-backed securities and other debt securities 1,526 13 (19) 1,520 Equity securities (b) 703 2 (1) 704 Total available-for-sale and other securities $ 28,838 1,075 (22) 29,891 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 62 - - 62 Asset-backed securities and other debt securities 2 - - 2 Total held-to-maturity securities $ 64 - - 64 Includes interest-only mortgage- backed securities of $ 41 as of March 31, 2016 recorded at fair value with fair value changes re corded in securities gains, net , in the Condensed Consolidated Statement s of Income. Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 355 and $ 1 , respectively , at March 31, 2016 , that are carried at cost, and certain mutual fund and equity security holdings. Amortized Unrealized Unrealized Fair December 31, 2015 ($ in millions) Cost Gains Losses Value Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 1,155 32 - 1,187 Obligations of states and political subdivisions securities 50 2 - 52 Mortgage-backed securities: Agency residential mortgage-backed securities (a) 14,811 283 (13) 15,081 Agency commercial mortgage-backed securities 7,795 100 (33) 7,862 Non-agency commercial mortgage-backed securities 2,801 35 (32) 2,804 Asset-backed securities and other debt securities 1,363 13 (21) 1,355 Equity securities (b) 703 2 (2) 703 Total available-for-sale and other securities $ 28,678 467 (101) 29,044 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 68 - - 68 Asset-backed securities and other debt securities 2 - - 2 Total held-to-maturity securities $ 70 - - 70 Includes interest-only mortgage- backed securities of $ 50 as of December 31, 2015 , recorded at fair value with fair value changes re corded in securities gains, net , in the Condensed Consolidated Statement s of Income. Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 355 , and $ 1 , respectively, at December 31, 2015, 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 three months ended March 31, ($ in millions) 2016 2015 Realized gains $ 15 15 Realized losses (4) (2) OTTI (3) (1) Net realized gains (a) $ 8 12 Excludes net losses on interest-only m ortgage-backed securities of $ 6 and $ 9 for the three months ended March 31, 2016 and March 31, 20 1 5 , respectively . Trading securities were $405 million as of March 31, 2016, compared to $386 million at December 31, 2015. The following table presents total gains and losses that were recognized in income from trading securities: For the three months ended March 31, ($ in millions) 2016 2015 Realized gains (a) $ 2 1 Realized losses (b) (4) (3) Net unrealized gains (c) 1 1 Total trading securities losses $ (1) (1) In cludes realized gains of $ 2 and $ 1 during the three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking reven ue and investment advisory revenue in the Condensed Consolidated Statements of Income . In cludes realized losses of $ 4 and $ 3 during the three months ended March 31, 2016 and 2015, respectively, recor ded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income . Includes an immaterial amount of net unrealized gains and losses during the three months ended March 31, 2016 and 2015 , respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed 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 March 31, 2016 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 $ 835 857 37 37 1-5 years 9,003 9,329 12 12 5-10 years 16,480 17,146 13 13 Over 10 years 1,817 1,855 2 2 Equity securities 703 704 - - Total $ 28,838 29,891 64 64 Actual maturities may differ from contractual maturities when there exists a right to call or prepay obligations with or without call or prepayment penalties. |
Fair Value and Gross Unrealized Loss of Securities Available for Sale | The following table provides the fair value and gross unrealized losses on available-for-sale and other securities in an unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized ($ in millions) Fair Value Losses Fair Value Losses Fair Value Losses March 31, 2016 Agency residential mortgage-backed securities $ 268 (2) - - 268 (2) Asset-backed securities and other debt securities 499 (8) 266 (11) 765 (19) Equity securities - - 31 (1) 31 (1) Total $ 767 (10) 297 (12) 1,064 (22) December 31, 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) |
Loans and Leases (Tables)
Loans and Leases (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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: March 31, December 31, ($ in millions) 2016 2015 Loans held for sale: Commercial and industrial loans $ 8 20 Commercial mortgage loans 10 34 Residential mortgage loans 668 708 Home equity 19 35 Automobile loans 1 4 Credit card 97 101 Other consumer loans and leases - 1 Total loans held for sale $ 803 903 Portfolio loans and leases: Commercial and industrial loans $ 43,433 42,131 Commercial mortgage loans 6,864 6,957 Commercial construction loans 3,428 3,214 Commercial leases 3,956 3,854 Total commercial loans and leases $ 57,681 56,156 Residential mortgage loans 13,895 13,716 Home equity 8,112 8,301 Automobile loans 11,128 11,493 Credit card 2,138 2,259 Other consumer loans and leases 651 657 Total consumer loans and leases $ 35,924 36,426 Total portfolio loans and leases $ 93,605 92,582 |
Total Loans And Leases Owned By The Bancorp | The following table presents a summary of the total loans and leases owned by the Bancorp as of: March 31, December 31, March 31, December 31, 2016 2015 2016 2015 90 Days Past Due ($ in millions) Carrying Value and Still Accruing Commercial and industrial loans $ 43,441 42,151 3 7 Commercial mortgage loans 6,874 6,991 - - Commercial construction loans 3,428 3,214 - - Commercial leases 3,956 3,854 - - Residential mortgage loans 14,563 14,424 44 40 Home equity 8,131 8,336 - - Automobile loans 11,129 11,497 8 10 Credit card 2,235 2,360 18 18 Other consumer loans and leases 651 658 - - Total loans and leases $ 94,408 93,485 73 75 Less: Loans held for sale 803 903 Total portfolio loans and leases $ 93,605 92,582 The following table presents a summary of net charge-offs for the three months ended March 31: ($ in millions) 2016 2015 Commercial and industrial loans $ 46 38 Commercial mortgage loans 6 1 Commercial leases 2 - Residential mortgage loans 2 6 Home equity 8 14 Automobile loans 9 8 Credit card 20 21 Other consumer loans and leases 3 3 Total net charge-offs $ 96 91 |
Credit Quality and the Allowa34
Credit Quality and the Allowance for Loan and Lease Losses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Credit Quality and the Allowance for Loan and Leases Losses | |
Summary of Transactions in the ALLL | Allowance for Loan and Lease Losses The following tables summarize transactions in the ALLL by portfolio segment: Residential For the three months ended March 31, 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 840 100 217 115 1,272 Losses charged-off (60) (4) (52) - (116) Recoveries of losses previously charged-off 6 2 12 - 20 Provision for loan and lease losses 81 - 37 1 119 Balance, end of period $ 867 98 214 116 1,295 Residential For the three months ended March 31, 2015 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 875 104 237 106 1,322 Losses charged-off (48) (9) (58) - (115) Recoveries of losses previously charged-off 9 3 12 - 24 Provision for loan and lease losses 16 5 50 (2) 69 Balance, end of period $ 852 103 241 104 1,300 |
Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment | The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: Residential As of March 31, 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 102 (c) 66 48 - 216 Collectively evaluated for impairment 765 32 166 - 963 Unallocated - - - 116 116 Total ALLL $ 867 98 214 116 1,295 Portfolio loans and leases: (b) Individually evaluated for impairment $ 1,022 (c) 655 415 - 2,092 Collectively evaluated for impairment 56,659 13,078 21,614 - 91,351 Loans acquired with deteriorated credit quality - 2 - - 2 Total portfolio loans and leases $ 57,681 13,735 22,029 - 93,445 Includes $ 5 related to leverage d lease s at March 31, 2016 . Excludes $ 160 of residential mortgage loans measured at fair value, and includes $ 8 12 of leverage d leases, net of unearned income at March 31, 2016 . In clud es five restructured loans at March 31, 2016 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, 2015 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 119 (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 (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 leveraged leases at December 31, 2015 . Excludes $ 167 of residential mortgage loans measured at fair value, and includes $ 8 01 of leveraged leases, net of unearned income at December 31, 2015 . 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 $ 2 7 and an ALLL of $ 1 5 . |
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 March 31, 2016 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 39,909 1,513 1,987 24 43,433 Commercial mortgage owner-occupied loans 3,305 128 177 3 3,613 Commercial mortgage nonowner-occupied loans 3,063 65 123 - 3,251 Commercial construction loans 3,423 1 4 - 3,428 Commercial leases 3,848 74 34 - 3,956 Total commercial loans and leases $ 53,548 1,781 2,325 27 57,681 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 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: March 31, 2016 December 31, 2015 ($ in millions) Performing Nonperforming Performing Nonperforming Residential mortgage loans (a) $ 13,691 44 13,498 51 Home equity 8,032 80 8,222 79 Automobile loans 11,126 2 11,491 2 Credit card 2,106 32 2,226 33 Other consumer loans and leases 651 - 657 - Total residential mortgage and consumer loans and leases (a) $ 35,606 158 36,094 165 Excludes $ 160 and $ 167 of loans measured at fair value at March 31, 2016 and December 31, 2015, respectiv ely. |
Summary by Age and Class of the Recorded Investment in Delinquencies Included in the Bancorp's Portfolio of Loans and Leases | Age Analysis of Past Due Loans and Leases The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases, by age and class: Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of March 31, 2016 ($ in millions) Leases (c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 43,255 31 147 178 43,433 3 Commercial mortgage owner-occupied loans 3,580 6 27 33 3,613 - Commercial mortgage nonowner-occupied loans 3,210 17 24 41 3,251 - Commercial construction loans 3,428 - - - 3,428 - Commercial leases 3,952 - 4 4 3,956 - Residential mortgage loans (a)(b) 13,613 32 90 122 13,735 44 Consumer loans and leases: Home equity 7,980 72 60 132 8,112 - Automobile loans 11,060 58 10 68 11,128 8 Credit card 2,089 25 24 49 2,138 18 Other consumer loans and leases 650 1 - 1 651 - Total portfolio loans and leases (a) $ 92,817 242 386 628 93,445 73 Excludes $ 160 of residential mortgage loans measured at fair value at March 31, 2016 . Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA . As of March 31, 2016 , $ 9 5 of these loans were 30-89 days past due and $ 3 15 were 90 days or more pas t due. The Bancorp recognized $ 2 of losses during the three months ended March 31, 2016 due to claim denials and cu rtailments 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, 2015 ($ in millions) Leases (c) Days (c) Greater (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 whose repayments are insured by the FHA or guaranteed by the VA . As of December 31 , 2015 , $ 102 of these loa ns were 30-89 days past due and $ 3 35 were 90 days or more past due. The Bancorp recognized $ 2 o f losses during the three months e nded March 31, 2015 due to claim denials and cu rtailments 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: Unpaid Principal Recorded As of March 31, 2016 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 516 441 81 Commercial mortgage owner-occupied loans (b) 26 16 3 Commercial mortgage nonowner-occupied loans 57 53 2 Commercial leases 4 2 1 Restructured residential mortgage loans 453 440 66 Restructured consumer loans and leases: Home equity 220 220 32 Automobile loans 16 17 2 Credit card 58 58 14 Total impaired portfolio loans and leases with a related ALLL $ 1,350 1,247 201 With no related ALLL: Commercial loans and leases: Commercial and industrial loans $ 372 320 - Commercial mortgage owner-occupied loans 58 55 - Commercial mortgage nonowner-occupied loans 115 101 - Commercial construction loans 4 4 - Commercial leases 3 3 - Restructured residential mortgage loans 230 215 - Restructured consumer loans and leases: Home equity 120 117 - Automobile loans 3 3 - Total impaired portfolio loans and leases with no related ALLL $ 905 818 - Total impaired portfolio loans and leases $ 2,255 2,065 a (a) 201 Includes $ 461 , $ 636 and $ 362 , respectively, of commercial , resid ential mortgage and consumer portfolio TDR s on accrual status and $ 210 , $ 19 an d $ 5 3 , respectively , of commercial , reside ntial mortgage and consumer portfolio TDR s on nonaccrual status at March 31, 2016 . Excludes five restructured loans at March 31, 2016 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 As of December 31, 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 $ 372 , respectively, of commercial , resid ential mortgage and consumer portfolio TDR s on accrual status and $ 2 03 , $ 2 3 and $ 52 , respectively , of commercial, reside ntial mortgage and consumer portfolio TDR s on nonaccrual status at December 31, 2015 . Excludes five restruc tured 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 $ 2 7 , a recorded investment of $ 27 and an ALLL of $ 15 . The following tables summarize the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class, for the three months ended: March 31, 2016 March 31, 2015 Average Interest Average Interest Recorded Income Recorded Income ($ in millions) Investment Recognized Investment Recognized Commercial loans and leases: Commercial and industrial loans $ 645 2 742 5 Commercial mortgage owner-occupied loans (a) 71 - 112 1 Commercial mortgage nonowner-occupied loans 165 1 262 2 Commercial construction loans 7 - 62 - Commercial leases 5 - 5 - Restructured residential mortgage loans 642 6 552 6 Restructured consumer loans and leases: Home equity 340 3 375 3 Automobile loans 19 - 23 - Credit card 60 1 75 2 Total average impaired portfolio loans and leases $ 1,954 13 2,208 19 Excludes five restructured l oans 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 $ 2 7 and $ 28 at March 31, 2016 and March 31, 2015 , respectively, and an immaterial amount of interest income recognized for both the three months ended March 31, 2016 and March 31, 2015 . |
Summary of the Bancorp's Nonperforming Loans and Leases by Class | Nonperforming Assets Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain; restructured commercial and credit card loans which have not yet met the requirements to be classified as a performing asset; restructured consumer loans which are 90 days past due based on the restructured terms unless the loan is both well-secured and in the process of collection; and certain other assets, including OREO and other repossessed property. The following table presents the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property as of: March 31, December 31, ($ in millions) 2016 2015 Commercial loans and leases: Commercial and industrial loans $ 460 259 Commercial mortgage owner-occupied loans (a) 41 46 Commercial mortgage nonowner-occupied loans 37 35 Commercial leases 5 1 Total nonaccrual portfolio commercial loans and leases 543 341 Residential mortgage loans 44 51 Consumer loans and leases: Home equity 80 79 Automobile loans 2 2 Credit card 32 33 Total nonaccrual portfolio consumer loans and leases 114 114 Total nonaccrual portfolio loans and leases (b)(c) $ 701 506 OREO and other repossessed property 124 141 a Total nonperforming portfolio assets (b)(c) $ 825 647 Excludes $ 20 of restructured nonaccrual loans at both March 31, 2016 and 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 . Excludes $ 5 and $ 12 of nonaccrual loans held for sale at March 31, 2016 and December 31 , 2015 , respectively . Includes $ 5 and $ 6 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at March 31, 2016 and December 31, 2015 , respectively, and $ 1 and $ 2 of restructured nonaccrual government insured commercial loans at March 31, 2016 and December 31, 2015 , respectively . |
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 three months ended: Recorded investment Increase Number of loans in loans modified (Decrease) Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon March 31, 2016 ($ in millions) (a) during the period (b) during the period modification modification Commercial loans: Commercial and industrial loans 24 $ 56 (2) - Commercial mortgage owner-occupied loans 7 6 (2) - Commercial mortgage nonowner-occupied loans 2 - - - Residential mortgage loans 243 36 2 - Consumer loans: Home equity 64 5 - - Automobile loans 78 1 - - Credit card 2,592 12 2 1 Total portfolio loans 3,010 $ 116 - 1 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 March 31, 2015 ($ in millions) (a) during the period (b) during the period modification modification Commercial loans: Commercial and industrial loans 21 $ 18 (7) 3 Commercial mortgage owner-occupied loans 7 8 (1) - Commercial mortgage nonowner-occupied loans 6 3 - - Residential mortgage loans 300 42 1 - Consumer loans: Home equity 76 4 - - Automobile loans 131 2 - - Credit card 3,667 19 4 - Total portfolio loans 4,208 $ 96 (3) 3 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 . |
Summary of Subsequent Defaults | The following tables provide a summary of TDRs that subsequently defaulted during the three months ended March 31, 2016 and 2015 that was within twelve months of the restructuring date: Number of Recorded March 31, 2016 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 1 $ - Commercial mortgage nonowner-occupied loans 1 - Residential mortgage loans 53 7 Consumer loans and leases: Home equity 6 1 Credit card 423 2 Total portfolio loans and leases 484 $ 10 E xcludes all loans and leases held for sale and loans acquired with deteriorated credit quality . Number of Recorded March 31, 2015 ($ in millions) (a) Contracts Investment Residential mortgage loans 40 $ 5 Consumer loans and leases: Home equity 5 - Automobile loans 4 - Credit card 588 3 Total portfolio loans and leases 637 $ 8 E xcludes all loans and leases held for sale and loans acquired with deteriorated credit quality . |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Bank Premises and Equipment | |
Bank Premises and Equipment | The following table provides a summary of bank premises and equipment as of: ($ in millions) March 31, 2016 December 31, 2015 Land and improvements (a) $ 682 685 Buildings 1,695 1,755 Equipment 1,715 1,696 Leasehold improvements 403 403 Construction in progress 86 85 Bank premises and equipment held for sale: Land and improvements 41 55 Buildings 23 20 Equipment 2 3 Leasehold improvements 2 3 Accumulated depreciation and amortization (2,464) (2,466) Total bank premises and equipment $ 2,185 2,239 At March 31, 2016 and December 31, 2015, land and improvements included $ 10 1 and $ 1 02 , r espectively, 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) March 31, 2016 (d) Assets: Loans held for sale: Commercial and industrial loans $ 8 Commercial mortgage loans 5 Residential mortgage loans 68 Home equity 19 Automobile loans 1 Total loans held for sale (a) $ 101 Bank premises and equipment held for sale (included in the preceding table): Land and improvements (b) 28 Buildings (b) 10 Equipment (b) 2 Leasehold improvements (b) 2 Total bank premises and equipment held for sale (included in the preceding table) $ 42 Total assets held for sale $ 143 Liabilities: Deposits held for sale: Noninterest-bearing deposits $ 51 Interest-bearing deposits 280 Total deposits held for sale (c) $ 331 Total liabilities held for sale $ 331 Included in loans held for sale in the Condensed Consolidated Balance Sheets. Included in bank premises and equipment in the Condensed Consolidated Balance Sheets. Included in non interest-bearing deposits and interest-bearing deposits in the Condensed Consolidated Balance Sheets. Included in the Branch Banking , Consumer Lending and Investment Advisors business segment s . |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Intangible Assets | |
Intangible Assets | The details of the Bancorp’s intangible assets are shown in the following table: Gross Carrying Accumulated Net Carrying ($ in millions) Amount Amortization Amount As of March 31, 2016 Core deposit intangibles $ 34 (26) 8 Other 32 (29) 3 Total intangible assets $ 66 (55) 11 As of December 31, 2015 Core deposit intangibles $ 34 (26) 8 Other 33 (29) 4 Total intangible assets $ 67 (55) 12 |
Estimated Amortization Expense | The Bancorp's projections of amortization expense shown below are based on existing asset balances as of March 31, 2016. Future amortization expense may vary from these projections. Estimated amortization expense for the remainder of 2016 through 2020 is as follows: ($ in millions) Total Remainder of 2016 $ 1 2017 2 2018 2 2019 1 2020 1 Estimated amortization expense for the remainder of 2016 through 2020 is as follows: ($ in millions) Total Remainder of 2016 $ 90 2017 109 2018 98 2019 89 2020 80 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Variable Interest Entities | |
Consolidation of Variable Interest Entities Disclosure | The following tables provide a summary of the classifications of consolidated VIE assets, liabilities and noncontrolling interests included in the Condensed Consolidated Balance Sheets as of: Automobile Loan CDC March 31, 2016 ($ in millions) Securitizations Investments Total Assets: Cash and due from banks $ 146 1 147 Commercial mortgage loans - 47 47 Automobile loans 2,131 - 2,131 ALLL (10) (17) (27) Other assets 10 1 11 Total assets $ 2,277 32 2,309 Liabilities: Other liabilities $ 4 - 4 Long-term debt 2,102 - 2,102 Total liabilities $ 2,106 - 2,106 Noncontrolling interests $ - 32 32 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 14 - 14 Total assets $ 2,644 31 2,675 Liabilities Other liabilities $ 3 - 3 Long-term debt 2,487 - 2,487 Total liabilities $ 2,490 - 2,490 Noncontrolling interests $ - 31 31 |
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 Condensed Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities as of: Total Total Maximum March 31, 2016 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,410 329 1,410 Private equity investments 212 - 270 Loans provided to VIEs 1,842 - 2,858 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 |
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 Condensed Consolidated Statements of Income relating to investments in qualified affordable housing investments: Condensed Consolidated For the three months ended March 31, ($ in millions) Statements of Income Caption 2016 2015 Pre-tax investment and impairment losses (a) Other noninterest expense $ 36 34 Tax credits and other benefits Applicable income tax expense (55) (52) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credit s or other circumstances during three months ended March 31, 2016 and 2015. |
Sales of Receivables and Serv38
Sales of Receivables and Servicing Rights (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Sales of Receivables and Servicing Rights | |
Activity Related to Mortgage Banking Net Revenue | Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Condensed Consolidated Statements of Income, is as follows: For the three months ended March 31, ($ in millions) 2016 2015 Residential mortgage loan sales (a) $ 1,114 a 1,001 (b) Origination fees and gains on loan sales 42 44 Gross mortgage servicing fees 52 59 Represents the unpaid principal balance at the time of the sale . Excludes $ 568 of HFS residential mortgag e loan s previously modified in a TDR that were sold during the first quarter of 2015 . |
Changes in the Servicing Assets | Servicing Rights The following table presents changes in the servicing rights related to residential mortgage and automobile loans for the three months ended March 31: ($ in millions) 2016 2015 Carrying amount before valuation allowance: Balance, beginning of period $ 1,204 1,392 Servicing rights that result from the transfer of residential mortgage loans 12 13 Amortization (27) (34) Balance, end of period $ 1,189 1,371 Valuation allowance for servicing rights: Balance, beginning of period $ (419) (534) Provision for MSR impairment (85) (48) Balance, end of period (504) (582) Carrying amount after valuation allowance $ 685 789 |
Estimated Amortization Expense on Servicing Rights | The Bancorp's projections of amortization expense shown below are based on existing asset balances as of March 31, 2016. Future amortization expense may vary from these projections. Estimated amortization expense for the remainder of 2016 through 2020 is as follows: ($ in millions) Total Remainder of 2016 $ 1 2017 2 2018 2 2019 1 2020 1 Estimated amortization expense for the remainder of 2016 through 2020 is as follows: ($ in millions) Total Remainder of 2016 $ 90 2017 109 2018 98 2019 89 2020 80 |
Fair Value of the Servicing Assets | The following table displays the beginning and ending fair value of the servicing rights for the three months ended March 31: ($ in millions) 2016 2015 Fixed-rate residential mortgage loans: Balance, beginning of period $ 757 823 Balance, end of period 660 759 Adjustable-rate residential mortgage loans: Balance, beginning of period 27 33 Balance, end of period 25 29 Fixed-rate automobile loans: Balance, beginning of period 1 2 Balance, end of period - 1 |
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 mortgage banking net revenue in the Condensed Consolidated Statements of Income: For the three months ended March 31, ($ in millions) 2016 2015 Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio $ 96 65 Provision for MSR impairment (85) (48) |
Servicing Assets and Residual Interests Economic Assumptions | As of March 31, 2016 and 2015, the key economic assumptions used in measuring the interests in residential mortgage loans that continued to be held by the Bancorp at the date of sale or securitization resulting from transactions completed during the three months ended were as follows: March 31, 2016 March 31, 2015 Rate Weighted-Average Life (in years) Prepayment Speed (annual) OAS Spread (bps) Weighted-Average Default Rate Weighted-Average Life (in years) Prepayment Speed (annual) OAS Spread (bps) Weighted-Average Default Rate Residential mortgage loans: Servicing rights Fixed 6.3 12.6 % 539 N/A 6.2 12.6 % 900 N/A Servicing rights Adjustable 3.0 27.5 681 N/A 3.6 23.4 1,180 N/A |
Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions | At March 31, 2016, 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 $ 660 5.2 14.1 % $ (33) (63) (138) 603 $ (15) (29) Servicing rights Adjustable 25 2.9 27.8 (2) (3) (7) 713 - (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 Instrume39
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Financial Instruments | |
Notional Amounts and Fair Values for All Derivative Instruments Included in the Consolidated Balance Sheets | The following tables reflect the notional amounts and fair values for all derivative instruments included in the Condensed Consolidated Balance Sheets as of: Fair Value Notional Derivative Derivative March 31, 2016 ($ in millions) Amount Assets Liabilities Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 2,705 453 - Total fair value hedges 453 - Cash flow hedges: Interest rate swaps related to C&I loans 4,475 98 - Total cash flow hedges 98 - Total derivatives designated as qualifying hedging instruments 551 - Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSRs 9,407 363 55 Forward contracts related to held for sale residential mortgage loans 1,423 - 8 Stock warrant associated with Vantiv Holding, LLC 420 308 - Swap associated with the sale of Visa, Inc. Class B shares 1,274 - 55 Foreign exchange contracts 129 - 3 Total free-standing derivatives - risk management and other business purposes 671 121 Free-standing derivatives - customer accommodation: Interest rate contracts for customers 30,604 357 366 Interest rate lock commitments 1,121 29 - Commodity contracts 2,248 233 211 Foreign exchange contracts 15,039 285 269 Total free-standing derivatives - customer accommodation 904 846 Total derivatives not designated as qualifying hedging instruments 1,575 967 Total $ 2,126 967 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 |
Net Gains (Losses) Recognized in the Income Statement Related to Derivatives in Fair Value Hedging Relationships | The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Condensed Consolidated Statements of Income: Condensed Consolidated For the three months Statements of ended March 31, ($ in millions) Income Caption 2016 2015 Change in fair value of interest rate swaps hedging long-term debt Interest on long-term debt $ 83 41 Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt (85) (43) |
Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges | The following table presents the pretax net gains recorded in the Condensed Consolidated Statements of Income and in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: For the three months ended March 31, ($ in millions) 2016 2015 Amount of pretax net gains recognized in OCI $ 74 52 Amount of pretax net gains reclassified from OCI into net income 14 16 |
Schedule of Price Risk Derivatives | The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: Condensed Consolidated For the three months Statements of ended March 31, ($ in millions) Income Caption 2016 2015 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ (11) - Interest rate contracts related to MSR portfolio Mortgage banking net revenue 96 65 Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income (4) 15 Equity contracts: Stock warrant associated with Vantiv Holding, LLC Other noninterest income 47 70 Swap associated with sale of Visa, Inc. Class B shares Other noninterest income 1 (17) |
Risk Ratings of the Notional Amount of Risk Participation Agreements | Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table as of: March 31, December 31, ($ in millions) 2016 2015 Pass $ 2,324 1,650 Special mention 17 7 Substandard 3 7 Total $ 2,344 1,664 |
Net Gains (Losses) Recognized in the Income Statement Related to Free-Standing Derivative Instruments Used For Customer Accomodation | The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: For the three months Condensed Consolidated ended March 31, ($ in millions) Statements of Income Caption 2016 2015 Interest rate contracts: Interest rate contracts for customers (contract revenue) Corporate banking revenue $ 7 6 Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense (1) (1) Interest rate lock commitments Mortgage banking net revenue 42 35 Commodity contracts: Commodity contracts for customers (contract revenue) Corporate banking revenue 1 1 Commodity contracts for customers (credit losses) Other noninterest expense - (2) Commodity contracts for customers (credit portion of fair value adjustment) Other noninterest expense (1) 5 Foreign exchange contracts: Foreign exchange contracts for customers (contract revenue) Corporate banking revenue 16 21 Foreign exchange contracts for customers (credit portion of fair value adjustment) Other noninterest expense (2) (1) |
Offsetting Derivative Financial Instruments | The following tables provide a summary of offsetting derivative financial instruments: Gross Amount Gross Amounts Not Offset in the Recognized in the Condensed Consolidated Balance Sheets As of March 31, 2016 ($ in millions) Condensed Consolidated Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets Derivatives $ 1,789 (656) (578) 555 Total assets 1,789 (656) (578) 555 Liabilities Derivatives 967 (656) (110) 201 Total liabilities $ 967 (656) (110) 201 Amount does not includ e 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 Condensed Consolidated Balance Sheet s were excluded from this table . Gross Amount Gross Amounts Not Offset in the Recognized in the Condensed Consolidated Balance Sheets As of December 31, 2015 ($ in millions) Condensed 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 includ e 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 Condensed Consolidated Balance Sheet s were excluded from this table . |
Other Short Term Borrowings (Ta
Other Short Term Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Short-term Debt | |
Schedule Of Short Term Debt | Borrowings with original maturities of one year or less are classified as short-term. The following table presents a summary of the Bancorp's other short-term borrowings as of: March 31, December 31, ($ in millions) 2016 2015 FHLB advances $ 2,000 - Securities sold under repurchase agreements 785 925 Derivative collateral 738 582 Total other short-term borrowings $ 3,523 1,507 |
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: ($ in millions) March 31, 2016 December 31, 2015 Amount Remaining Contractual Maturity Amount Remaining Contractual Maturity Collateral type: Agency residential mortgage-backed securities $ 602 Overnight 646 Overnight U.S. Treasury and federal agencies securities 183 Overnight 279 Overnight Total securities sold under repurchase agreements $ 785 925 |
Capital Actions (Tables)
Capital Actions (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Capital Actions | |
Summary of the Bancorp's Accelerated Share Repurchase Transactions | The following table presents a summary of the Bancorp's accelerated share repurchase transactions that were entered into or settled during the three months ended March 31, 2016: Repurchase Date Amount ($ in millions) Shares Repurchased on Repurchase Date Shares Received from Forward Contract Settlement Total Shares Repurchased Settlement Date December 14, 2015 $ 215 9,248,482 1,782,477 11,030,959 January 14, 2016 March 4, 2016 240 12,623,762 1,868,379 14,492,141 April 11, 2016 |
Commitments, Contingent Liabi42
Commitments, Contingent Liabilities and Guarantees (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments, Contingent Liabilities and Guarantees | |
Summary of Significant Commitments | Commitments The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of: March 31, December 31, ($ in millions) 2016 2015 Commitments to extend credit $ 66,908 66,884 Letters of credit 2,945 3,055 Forward contracts related to held for sale residential mortgage loans 1,423 1,330 Noncancelable operating lease obligations 618 635 Purchase obligations 70 60 Capital commitments for private equity investments 62 60 Capital expenditures 30 30 Capital lease obligations 24 27 |
Credit Risk Associated With Commitments | Risk ratings under this risk rating system are summarized in the following table as of: March 31, December 31, ($ in millions) 2016 2015 Pass $ 65,672 65,645 Special mention 585 647 Substandard 648 592 Doubtful 3 - Total commitments to extend credit $ 66,908 66,884 |
Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party | Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of March 31, 2016: ($ in millions) Less than 1 year (a) $ 1,673 1 - 5 years (a) 1,244 Over 5 years 28 Total letters of credit $ 2,945 Includes $ 25 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 - 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: March 31, December 31, ($ in millions) 2016 2015 Pass $ 2,477 2,606 Special mention 138 130 Substandard 250 258 Doubtful 80 61 Total letters of credit $ 2,945 3,055 |
Activity in Reserve for Representation and Warranty Provisions | The following table summarizes activity in the reserve for representation and warranty provisions: For the three months ended March 31, ($ in millions) 2016 2015 Balance, beginning of period $ 25 35 Net (reductions) additions to the reserve (2) 2 Losses charged against the reserve - (1) Balance, end of period $ 23 36 |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The following tables provide a rollforward of unresolved claims by claimant type for the three months ended March 31: GSE Private Label 2016 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 16 $ 4 2 $ - New demands 71 6 2 - Loan paydowns/payoffs (4) (1) - - Resolved demands (68) (7) (3) - Balance, end of period 15 $ 2 1 $ - GSE Private Label 2015 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 37 $ 6 1 $ 1 New demands 118 9 6 - Loan paydowns/payoffs (4) - - - Resolved demands (119) (11) (5) (1) Balance, end of period 32 $ 4 2 $ - |
Visa Funding and Bancorp Cash Payments | After the Bancorp's sale of Visa Class B Shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further 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 i |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accumulated Other Comprehensive Income | |
Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income | The tables below present the activity of the components of OCI and AOCI for the three months ended March 31, 2016 and 2015: Total Other Total Accumulated Other Comprehensive Income Comprehensive Income Pretax Tax Net Beginning Net Ending March 31, 2016 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during period $ 695 (243) 452 Reclassification adjustment for net gains on available-for-sale securities included in net income (8) 3 (5) Net unrealized gains on available-for-sale securities 687 (240) 447 238 447 685 Unrealized holding gains on cash flow hedge derivatives arising during period 74 (26) 48 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (14) 5 (9) Net unrealized gains on cash flow hedge derivatives 60 (21) 39 22 39 61 Reclassification of amounts to net periodic benefit costs 2 (1) 1 Defined benefit pension plans, net 2 (1) 1 (63) 1 (62) Total $ 749 (262) 487 197 487 684 Total Other Total Accumulated Other Comprehensive Income Comprehensive Income Pretax Tax Net Beginning Net Ending March 31, 2015 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during period $ 215 (74) 141 Reclassification adjustment for net gains on available-for-sale securities included in net income (12) 4 (8) Net unrealized gains on available-for-sale securities 203 (70) 133 475 133 608 Unrealized holding gains on cash flow hedge derivatives arising during period 52 (18) 34 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (16) 6 (10) Net unrealized gains on cash flow hedge derivatives 36 (12) 24 23 24 47 Reclassification of amounts to net periodic benefit costs 3 (1) 2 Defined benefit pension plans, net 3 (1) 2 (69) 2 (67) Total $ 242 (83) 159 429 159 588 |
Reclassification Out of Accumulated Other Comprehensive Income to Net Income | The table below presents reclassifications out of AOCI: Condensed Consolidated Statements of Income Caption For the three months ended March 31, Components of AOCI: ($ in millions) 2016 2015 Net unrealized gains on available-for-sale securities: (b) Net gains included in net income Securities gains, net $ 8 12 Income before income taxes 8 12 Applicable income tax expense (3) (4) Net income 5 8 Net unrealized gains on cash flow hedge derivatives: (b) Interest rate contracts related to C&I loans Interest and fees on loans and leases 14 16 Income before income taxes 14 16 Applicable income tax expense (5) (6) Net income 9 10 Net periodic benefit costs: (b) Amortization of net actuarial loss Employee benefits expense (a) (2) (3) Income before income taxes (2) (3) Applicable income tax expense 1 1 Net income (1) (2) Total reclassifications for the period Net income $ 13 16 This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 21 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2015 for information on the computation of net periodic benefit cost . Amounts in parentheses indicate reductions to net income . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share | |
Calculation of Earnings Per Share and the Reconciliation of Earnings Per Share to Earnings Per Diluted Share | The following table provides the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share for the three months ended March 31: 2016 2015 Average Per Share Average Per Share (in millions, except per share data) Income Shares Amount Income Shares Amount Earnings Per Share: Net income attributable to Bancorp $ 327 361 Dividends on preferred stock 15 15 Net income available to common shareholders 312 346 Less: Income allocated to participating securities 3 3 Net income allocated to common shareholders $ 309 774 0.40 343 810 0.42 Earnings Per Diluted Share: Net income available to common shareholders $ 312 346 Effect of dilutive securities: Stock-based awards - 4 - 9 Net income available to common shareholders 312 346 plus assumed conversions Less: Income allocated to participating securities 3 3 Net income allocated to common shareholders plus assumed conversions $ 309 778 0.40 343 819 0.42 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables summarize assets and liabilities measured at fair value on a recurring basis, including residential mortgage loans held for sale for which the Bancorp has elected the fair value option as of: Fair Value Measurements Using March 31, 2016 ($ 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 $ 77 1,084 - 1,161 Obligations of states and political subdivisions securities - 52 - 52 Mortgage-backed securities: Agency residential mortgage-backed securities - 15,129 - 15,129 Agency commercial mortgage-backed securities - 8,205 - 8,205 Non-agency commercial mortgage-backed securities - 3,120 - 3,120 Asset-backed securities and other debt securities - 1,520 - 1,520 Equity securities (a) 99 1 - 100 Available-for-sale and other securities (a) 176 29,111 - 29,287 Trading securities: U.S. Treasury and federal agencies securities 1 17 - 18 Obligations of states and political subdivisions securities - 54 - 54 Mortgage-backed securities: Agency residential mortgage-backed securities - 5 - 5 Agency commercial mortgage-backed securities - 1 - 1 Asset-backed securities and other debt securities - 23 - 23 Equity securities 304 - - 304 Trading securities 305 100 - 405 Residential mortgage loans held for sale - 600 - 600 Residential mortgage loans (b) - - 160 160 Derivative assets: Interest rate contracts 1 1,270 29 1,300 Foreign exchange contracts - 285 - 285 Equity contracts - - 308 308 Commodity contracts 37 196 - 233 Derivative assets (d) 38 1,751 337 2,126 Total assets $ 519 31,562 497 32,578 Liabilities: Derivative liabilities: Interest rate contracts $ 9 416 4 429 Foreign exchange contracts - 272 - 272 Equity contracts - - 55 55 Commodity contracts 21 190 - 211 Derivative liabilities (e) 30 878 59 967 Short positions (e) 15 9 - 24 Total liabilities $ 45 887 59 991 Excludes FHLB, FRB and DTCC restricted stock holdings totaling $ 248 , $ 355 and $ 1 respectively, at March 31, 2016 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. During the three months ended March 31, 2016 , no assets or l iabilities were transferred between Level 1 and Level 2. Included in other assets in the Condensed Consolidated Balance Sheets. Included in other liabilities in the Condensed Consolidated Balance Sheets. 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 holdings totaling $248, $355 and $1 , respectively, at December 31, 2015 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. During the year ended December 31, 2015 , no assets or l iabilities were transferred between Level 1 and Level 2 . Included in other assets in the Condensed Consolidated Balance Sheets. Included in other liabilities in the Condensed Consolidated Balance Sheets. |
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity For the three months ended March 31, 2016 Mortgage Derivatives, Derivatives, Total ($ in millions) Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 167 12 201 380 Total gains (realized/unrealized): Included in earnings 1 42 48 91 Purchases - (1) - (1) Settlements (11) (28) 4 (35) Transfers into Level 3 (b) 3 - - 3 Balance, end of period $ 160 25 253 438 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 March 31, 2016 (c) $ 1 29 48 78 Net interest rate derivatives include derivative assets and liabilities of $ 29 and $ 4 , respectively, as of March 31, 2016 . Net equity derivatives include derivative assets and liabilities of $ 308 and $ 55 , respectively, as of March 31, 2016 . Includes certain residential mortgage loans originated as held for sale that were transferred to held for invest ment. Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity For the three months ended March 31, 2015 Mortgage Derivatives, Derivatives, Total ($ in millions) Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 108 10 366 484 Total gains or losses (realized/unrealized): Included in earnings 2 35 53 90 Settlements (7) (28) 6 (29) Transfers into Level 3 (b) 23 - - 23 Balance, end of period $ 126 17 425 568 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 March 31, 2015 (c) $ 2 19 53 74 Net interest rate derivatives include derivative assets and liabilities of $ 19 and $ 2 , respectively, as of March 31, 2015 . Net equity derivatives include derivative assets and liabilities of $ 485 and $ 60 , respectively, as of March 31, 2015 . Includes certain residential mortgage loans originated as held for sale that were transferred to held for invest ment. Includes interest income and expense. |
Total Gains and Losses Included in Earnings for Assets and Liabilites Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The total gains and losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended March 31, ($ in millions) 2016 2015 Mortgage banking net revenue $ 43 36 Corporate banking revenue - 1 Other noninterest income 48 53 Total gains $ 91 90 The total gains and losses included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at March 31, 2016 and 2015 were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended March 31, ($ in millions) 2016 2015 Mortgage banking net revenue $ 30 20 Corporate banking revenue - 1 Other noninterest income 48 53 Total gains $ 78 74 |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of March 31, 2016 and 2015, and for which a nonrecurring fair value adjustment was recorded during the three months ended March 31, 2016 and 2015, 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 For the three months As of March 31, 2016 ($ in millions) Level 1 Level 2 Level 3 Total ended March 31, 2016 Commercial loans held for sale $ - - 5 5 (2) Commercial and industrial loans - - 347 347 (47) Commercial mortgage loans - - 85 85 6 Commercial construction loans - - - - 2 MSRs - - 685 685 (85) OREO - - 27 27 (3) Bank premises and equipment - - 12 12 1 Total $ - - 1,161 1,161 (128) Fair Value Measurements Using Total (Losses) Gains For the three months As of March 31, 2015 ($ in millions) Level 1 Level 2 Level 3 Total ended March 31, 2015 Commercial loans held for sale $ - - 1 1 4 Commercial and industrial loans - - 366 366 (43) Commercial mortgage loans - - 52 52 (13) Residential mortgage loans - - 55 55 (1) MSRs - - 788 788 (48) OREO - - 36 36 (8) Bank premises and equipment - - 5 5 (3) Operating lease equipment - - 39 39 (30) Total $ - - 1,342 1,342 (142) |
Quantitative information about significant unobservable level 3 fair value measurement inputs | The following tables present information as of March 31, 2016 and 2015 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured at fair value on a recurring basis: As of March 31, 2016 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Residential mortgage loans $ 160 Loss rate model Interest rate risk factor (6.0) - 16.5% 4.4% Credit risk factor 0 - 80.5% 1.4% IRLCs, net 29 Discounted cash flow Loan closing rates 5.6 - 94.0% 75.0% Stock warrant associated with Vantiv 308 Black-Scholes option- Expected term (years) 2.0 - 13.3 5.8 Holding, LLC pricing model Expected volatility (a) 23.0 - 30.4% 25.9% Swap associated with the sale of Visa, Inc. (55) 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 March 31, 2015 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Residential mortgage loans $ 126 Loss rate model Interest rate risk factor (5.7) - 18.3% 5.3% Credit risk factor 0 - 47.9% 1.2% IRLCs, net 19 Discounted cash flow Loan closing rates 2.3 - 87.6% 67.0% Stock warrant associated with Vantiv 485 Black-Scholes option- Expected term (years) 2.0 - 14.3 5.9 Holding, LLC pricing model Expected volatility (a) 22.9 - 32.2% 26.5% Swap associated with the sale of Visa, Inc. (60) Discounted cash flow Timing of the resolution 9/30/2016- 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. The following tables present information as of March 31, 2016 and 2015 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a nonrecurring basis: As of March 31, 2016 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 5 Appraised value Appraised value NM NM Cost to sell NM 10.0% Commercial and industrial loans 347 Appraised value Collateral value NM NM Commercial mortgage loans 85 Appraised value Collateral value NM NM Commercial construction loans 0 Appraised value Collateral value NM NM MSRs 685 Discounted cash flow Prepayment speed 0 - 100% (Fixed) 14.1% (Adjustable) 27.8% OAS spread (bps) 364-1,515 (Fixed) 603 (Adjustable) 713 OREO 27 Appraised value Appraised value NM NM Bank premises and equipment 12 Appraised value Appraised value NM NM As of March 31, 2015 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 1 Appraised value Appraised value NM NM Cost to sell NM 10.0% Commercial and industrial loans 366 Appraised value Collateral value NM NM Commercial mortgage loans 52 Appraised value Collateral value NM NM Residential mortgage loans 55 Appraised value Appraised value NM NM MSRs 788 Discounted cash flow Prepayment speed 0.6 - 100% (Fixed) 10.0% (Adjustable) 32.2% OAS spread (bps) 430-1,700 (Fixed) 920 (Adjustable) 640 OREO 36 Appraised value Appraised value NM NM Bank premises and equipment 5 Appraised value Appraised value NM NM Operating lease equipment 39 Appraised value Appraised value NM NM |
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 March 31, 2016 Residential mortgage loans measured at fair value $ 760 730 30 Past due loans of 90 days or more 1 1 - Nonaccrual loans 1 1 - 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 - |
Carrying Amounts and Estimated Fair Values for Certain Financial Instruments | Fair Value of Certain Financial Instruments The following tables summarize the carrying amounts and estimated fair values for certain financial instruments, excluding financial instruments measured at fair value on a recurring basis: Net Carrying Fair Value Measurements Using Total As of March 31, 2016 ($ in millions) Amount Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and due from banks $ 2,298 2,298 - - 2,298 Other securities 604 - 604 - 604 Held-to-maturity securities 64 - - 64 64 Other short-term investments 1,778 1,778 - - 1,778 Loans held for sale 203 - - 203 203 Portfolio loans and leases: Commercial and industrial loans 42,736 - - 43,168 43,168 Commercial mortgage loans 6,758 - - 6,624 6,624 Commercial construction loans 3,404 - - 3,169 3,169 Commercial leases 3,916 - - 3,675 3,675 Residential mortgage loans 13,637 - - 14,588 14,588 Home equity 8,050 - - 8,855 8,855 Automobile loans 11,087 - - 10,834 10,834 Credit card 2,039 - - 2,432 2,432 Other consumer loans and leases 639 - - 616 616 Unallocated ALLL (116) - - - - Total portfolio loans and leases, net $ 92,150 - - 93,961 93,961 Financial liabilities: Deposits $ 102,475 - 102,544 - 102,544 Federal funds purchased 134 134 - - 134 Other short-term borrowings 3,523 - 3,523 - 3,523 Long-term debt 15,305 15,202 702 - 15,904 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 ALLL (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 15,810 15,603 625 - 16,228 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting | |
Results of Operations and Average Assets by Segment | The following tables present the results of operations and assets by business segment for the three months ended: General Commercial Branch Consumer Investment Corporate March 31, 2016 ($ in millions) Banking Banking Lending Advisors and Other Eliminations Total Net interest income $ 451 426 60 43 (77) - 903 Provision for loan and lease losses 65 34 12 - 8 - 119 Net interest income after provision for loan and lease losses 386 392 48 43 (85) - 784 Total noninterest income 223 189 (b) 83 100 75 (33) (a) 637 Total noninterest expense 363 411 118 107 20 (33) 986 Income (loss) before income taxes 246 170 13 36 (30) - 435 Applicable income tax expense 35 60 5 13 (5) - 108 Net income (loss) 211 110 8 23 (25) - 327 Less: Net income attributable to noncontrolling interests - - - - - - - Net income (loss) attributable to Bancorp 211 110 8 23 (25) - 327 Dividends on preferred stock - - - - 15 - 15 Net income (loss) available to common shareholders $ 211 110 8 23 (40) - 312 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 59,652 54,528 22,475 8,900 (3,125) - 142,430 Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income. Includes an impairment charge of $ 2 for branches and land. For more information refer to Note 7 and Note 20. General Commercial Branch Consumer Investment Corporate March 31, 2015 ($ in millions) Banking Banking Lending Advisors and Other Eliminations Total Net interest income $ 392 377 63 29 (14) - 847 Provision for loan and lease losses 42 42 14 1 (30) - 69 Net interest income after provision for loan and lease losses 350 335 49 28 16 - 778 Total noninterest income 174 (c) 176 (b) 129 107 82 (38) (a) 630 Total noninterest expense 348 400 105 115 (7) (38) 923 Income before income taxes 176 111 73 20 105 - 485 Applicable income tax expense 13 39 26 7 39 - 124 Net income 163 72 47 13 66 - 361 Less: Net income attributable to noncontrolling interests - - - - - - - Net income attributable to Bancorp 163 72 47 13 66 - 361 Dividends on preferred stock - - - - 15 - 15 Net income available to common shareholders $ 163 72 47 13 51 - 346 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 57,855 53,295 22,057 10,042 (2,812) - 140,437 Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income. Includes an impairment charge of $4 for branches and land. For more information, refer to Note 7 and Note 20 . Includes an impairment charge of $ 30 for operating lease equipment. For more informa tion, refer to Note 20 . |
Noncash Investing and Financing
Noncash Investing and Financing Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest paid | ||
Interest | $ 191 | $ 166 |
Income taxes paid, net | ||
Income taxes | 334 | 13 |
Transfers: | ||
Portfolio loans to loans held for sale | 3 | 9 |
Loans held for sale to portfolio loans | 12 | 78 |
Portfolio loans to OREO | $ 12 | $ 33 |
Summary of Significant Accounti
Summary of Significant Accounting and Reporting Developments - Additional Information (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Unamortized debt issuance costs | $ 34 |
Available-for-Sale and Held-to-
Available-for-Sale and Held-to-Maturity Securities (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |||
Investment Holdings [Line Items] | |||||
Available-for-sale securities, fair value | [1] | $ 29,891 | $ 29,044 | ||
Available-for-sale securities, unrealized losses | (22) | (101) | |||
Available-for-sale securities, unrealized gains | 1,075 | 467 | |||
Available-for-sale and other securities, Amortized Cost | 28,838 | 28,678 | |||
Held-to-maturity securities, fair value | 64 | 70 | |||
Held-to-maturity securities, amortized cost | [2] | 64 | 70 | ||
U.S. Treasury and federal agencies | |||||
Investment Holdings [Line Items] | |||||
Available-for-sale securities, fair value | 1,161 | 1,187 | |||
Available-for-sale securities, unrealized gains | 30 | 32 | |||
Available-for-sale and other securities, Amortized Cost | 1,131 | 1,155 | |||
Obligations of states and political subdivisions | |||||
Investment Holdings [Line Items] | |||||
Available-for-sale securities, fair value | 52 | 52 | |||
Available-for-sale securities, unrealized gains | 2 | 2 | |||
Available-for-sale and other securities, Amortized Cost | 50 | 50 | |||
Held-to-maturity securities, fair value | 62 | 68 | |||
Held-to-maturity securities, amortized cost | 62 | 68 | |||
Agency mortgage-backed securities | Residential mortgage backed securities | |||||
Investment Holdings [Line Items] | |||||
Available-for-sale securities, fair value | 15,129 | [3] | 15,081 | [4] | |
Available-for-sale securities, unrealized losses | (2) | [3] | (13) | [4] | |
Available-for-sale securities, unrealized gains | 545 | [3] | 283 | [4] | |
Available-for-sale and other securities, Amortized Cost | 14,586 | [3] | 14,811 | [4] | |
Agency mortgage-backed securities | Commercial mortgage backed securities | |||||
Investment Holdings [Line Items] | |||||
Available-for-sale securities, fair value | 8,205 | 7,862 | |||
Available-for-sale securities, unrealized losses | (33) | ||||
Available-for-sale securities, unrealized gains | 368 | 100 | |||
Available-for-sale and other securities, Amortized Cost | 7,837 | 7,795 | |||
Non-agency mortgage-backed securities | Commercial mortgage backed securities | |||||
Investment Holdings [Line Items] | |||||
Available-for-sale securities, fair value | 3,120 | 2,804 | |||
Available-for-sale securities, unrealized losses | (32) | ||||
Available-for-sale securities, unrealized gains | 115 | 35 | |||
Available-for-sale and other securities, Amortized Cost | 3,005 | 2,801 | |||
Asset-backed securities and other debt securities | |||||
Investment Holdings [Line Items] | |||||
Available-for-sale securities, fair value | 1,520 | 1,355 | |||
Available-for-sale securities, unrealized losses | (19) | (21) | |||
Available-for-sale securities, unrealized gains | 13 | 13 | |||
Available-for-sale and other securities, Amortized Cost | 1,526 | 1,363 | |||
Held-to-maturity securities, fair value | 2 | 2 | |||
Held-to-maturity securities, amortized cost | 2 | 2 | |||
Equity securities | |||||
Investment Holdings [Line Items] | |||||
Available-for-sale securities, fair value | 704 | [5] | 703 | [6] | |
Available-for-sale securities, unrealized losses | (1) | [5] | (2) | [6] | |
Available-for-sale securities, unrealized gains | 2 | [5] | 2 | [6] | |
Available-for-sale and other securities, Amortized Cost | $ 703 | [5] | $ 703 | [6] | |
[1] | Amortized cost of $28,838 and $28,678 at March 31, 2016 and December 31, 2015, respectively. | ||||
[2] | Fair value of $64 and $70 at March 31, 2016 and December 31, 2015, respectively. | ||||
[3] | Includes interest-only mortgage-backed securities of $41 as of March 31, 2016 recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income. | ||||
[4] | Includes interest-only mortgage-backed securities of $50 as of December 31, 2015, recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income. | ||||
[5] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $355 and $1, respectively, at March 31, 2016, that are carried at cost, and certain mutual fund and equity security holdings. | ||||
[6] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $355, and $1, respectively, at December 31, 2015, that are carried at cost, and certain mutual fund and equity security holdings |
Available-for-Sale and Held-t50
Available-for-Sale and Held-to-Maturity Securities (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Investment Holdings [Line Items] | |||
FHLB, restricted stock holdings | $ 248 | $ 248 | |
Federal Reserve Bank, restricted stock holdings | 355 | 355 | |
Available-for-sale and other securities | [1] | 29,891 | 29,044 |
DTCC, restricted stock holdings | 1 | 1 | |
Interest-Only Mortgage-Backed Securities | |||
Investment Holdings [Line Items] | |||
Available-for-sale and other securities | $ 41 | $ 50 | |
[1] | Amortized cost of $28,838 and $28,678 at March 31, 2016 and December 31, 2015, respectively. |
Realized Gains and Losses Recog
Realized Gains and Losses Recognized in Income from Available-for-Sale Securities (Detail) - Available-for-sale Securities - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Investments, Unrealized Loss Position [Line Items] | |||
Realized gains | $ 15 | $ 15 | |
Realized losses | (4) | (2) | |
OTTI | (3) | (1) | |
Net realized gains (losses) | [1] | $ 8 | $ 12 |
[1] | Excludes net losses on interest-only mortgage-backed securities of $6 and $9 for the three months ended March 31, 2016 and March 31, 2015, respectively. |
Realized Gains and Losses Rec52
Realized Gains and Losses Recognized in Income from Available-for-Sale Securities (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest-Only Mortgage-Backed Securities | ||
Investment Holdings [Line Items] | ||
Net gains/losses on interest-only mortgage-backed securities | $ (6) | $ (9) |
Gains and Losses Recognized in
Gains and Losses Recognized in Income from Trading Securities (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Investments Debt And Equity Securities [Table] | |||
Realized gains | [1] | $ 2 | $ 1 |
Gross realized losses on trading securities | [2] | (4) | (3) |
Net unrealized gains (losses) | [3] | 1 | 1 |
Total trading securities gains (losses) | $ (1) | $ (1) | |
[1] | Includes realized gains of $2 and $1 during the three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income. | ||
[2] | Includes realized losses of $4 and $3 during the three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income. | ||
[3] | Includes an immaterial amount of net unrealized gains and losses during the three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income. |
Gains and Losses Recognized i54
Gains and Losses Recognized in Income from Trading Securities (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Realized gains | [1] | $ 2 | $ 1 |
Realized losses | [2] | 4 | 3 |
Net unrealized gains (losses) | [3] | 1 | 1 |
Corporate Banking Revenue and Investment Advisory Revenue | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Realized gains | 2 | 1 | |
Realized losses | $ (4) | $ (3) | |
[1] | Includes realized gains of $2 and $1 during the three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income. | ||
[2] | Includes realized losses of $4 and $3 during the three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income. | ||
[3] | Includes an immaterial amount of net unrealized gains and losses during the three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income. |
Securities - Additional Informa
Securities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Investment Holdings [Line Items] | |||
Trading securities | $ 405 | $ 386 | |
Securities with a fair value, pledged as collateral | 10,400 | $ 11,000 | |
Available-for-sale Securities | |||
Investment Holdings [Line Items] | |||
OTTI | $ 3 | $ 1 | |
Percent of unrealized losses represented by non-rated securities | 2.00% | 1.00% | |
Available-for-sale Securities | Equity Securities | |||
Investment Holdings [Line Items] | |||
OTTI | $ 1 | ||
Available-for-sale Securities | Debt Securities | |||
Investment Holdings [Line Items] | |||
OTTI | $ 2 | $ 1 |
Amortized Cost and Fair Value o
Amortized Cost and Fair Value of Available-for-Sale and Held-to-Maturity Securities (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Debt securities: | |||
Less than 1 year | [1] | $ 835 | |
1-5 years | [1] | 9,003 | |
5-10 years | [1] | 16,480 | |
Over 10 years | [1] | 1,817 | |
Equity securities | 703 | ||
Available-for-sale and other securities, Amortized Cost | 28,838 | $ 28,678 | |
Debt securities: | |||
Less than 1 year | [1] | 857 | |
1-5 years | [1] | 9,329 | |
5-10 years | [1] | 17,146 | |
Over 10 years | [1] | 1,855 | |
Equity securities | 704 | ||
Available-for-sale and other securities, fair value | [2] | 29,891 | 29,044 |
Debt securities: | |||
Less than 1 year | [1] | 37 | |
1-5 years | [1] | 12 | |
5-10 years | [1] | 13 | |
Over 10 years | [1] | 2 | |
Held-to-maturity securities, amortized cost | [3] | 64 | 70 |
Debt securities: | |||
Under 1 year | [1] | 37 | |
1-5 years | [1] | 12 | |
5-10 years | [1] | 13 | |
Over 10 years | [1] | 2 | |
Held-to-maturity securities, fair value | $ 64 | $ 70 | |
[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 $28,838 and $28,678 at March 31, 2016 and December 31, 2015, respectively. | ||
[3] | Fair value of $64 and $70 at March 31, 2016 and December 31, 2015, respectively. |
Fair Value and Gross Unrealized
Fair Value and Gross Unrealized Losses on Available-for-Sale Securities (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | ||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair Value | $ 767 | $ 8,248 | ||
Less than 12 months Unrealized Losses | (10) | (90) | ||
12 months or more Fair Value | 297 | 263 | ||
12 months or more Unrealized Losses | (12) | (11) | ||
Total Fair Value | 1,064 | 8,511 | ||
Total Unrealized Losses | (22) | (101) | ||
Agency mortgage-backed securities | Residential mortgage backed securities | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair Value | 268 | 2,903 | ||
Less than 12 months Unrealized Losses | (2) | (13) | ||
Total Fair Value | 268 | 2,903 | ||
Total Unrealized Losses | (2) | [1] | (13) | [2] |
Agency mortgage-backed securities | Commercial mortgage backed securities | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair Value | 3,111 | |||
Less than 12 months Unrealized Losses | (33) | |||
Total Fair Value | 3,111 | |||
Total Unrealized Losses | (33) | |||
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 | 499 | 623 | ||
Less than 12 months Unrealized Losses | (8) | (11) | ||
12 months or more Fair Value | 266 | 226 | ||
12 months or more Unrealized Losses | (11) | (10) | ||
Total Fair Value | 765 | 849 | ||
Total Unrealized Losses | (19) | (21) | ||
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 | 31 | 37 | ||
12 months or more Unrealized Losses | (1) | (1) | ||
Total Fair Value | 31 | 38 | ||
Total Unrealized Losses | $ (1) | [3] | $ (2) | [4] |
[1] | Includes interest-only mortgage-backed securities of $41 as of March 31, 2016 recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income. | |||
[2] | Includes interest-only mortgage-backed securities of $50 as of December 31, 2015, recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income. | |||
[3] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $355 and $1, respectively, at March 31, 2016, that are carried at cost, and certain mutual fund and equity security holdings. | |||
[4] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $355, and $1, respectively, at December 31, 2015, that are carried at cost, and certain mutual fund and equity security holdings |
Loans and Leases Classified by
Loans and Leases Classified by Primary Purpose (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Loans held for sale: | |||
Loans held for sale | [1] | $ 803 | $ 903 |
Portfolio loans and leases: | |||
Commercial and industrial loans | 43,433 | 42,131 | |
Commercial mortgage loans | 6,864 | 6,957 | |
Commercial construction loans | 3,428 | 3,214 | |
Commercial leases | 3,956 | 3,854 | |
Total commercial loans and leases | 57,681 | 56,156 | |
Residential mortgage loans | 13,895 | 13,716 | |
Home equity | 8,112 | 8,301 | |
Automobile loans | 11,128 | 11,493 | |
Credit card | 2,138 | 2,259 | |
Other consumer loans and leases | 651 | 657 | |
Total consumer loans and leases | 35,924 | 36,426 | |
Portfolio loans and leases | [2],[3] | 93,605 | 92,582 |
Commercial Portfolio Segment | Commercial and industrial loans | |||
Loans held for sale: | |||
Loans held for sale | 8 | 20 | |
Commercial Portfolio Segment | Commercial mortgage loans | |||
Loans held for sale: | |||
Loans held for sale | 10 | 34 | |
Residential Mortgage Loans | Residential mortgage loans | |||
Loans held for sale: | |||
Loans held for sale | 668 | 708 | |
Consumer Portfolio Segment | Home equity | |||
Loans held for sale: | |||
Loans held for sale | 19 | 35 | |
Consumer Portfolio Segment | Automobile Loans | |||
Loans held for sale: | |||
Loans held for sale | 1 | 4 | |
Consumer Portfolio Segment | Credit Card | |||
Loans held for sale: | |||
Loans held for sale | $ 97 | 101 | |
Consumer Portfolio Segment | Other consumer loans and leases | |||
Loans held for sale: | |||
Loans held for sale | $ 1 | ||
[1] | Includes $600 and $519 of residential mortgage loans held for sale measured at fair value at March 31, 2016 and December 31, 2015, respectively. | ||
[2] | Includes $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9. | ||
[3] | Includes $160 and $167 of residential mortgage loans measured at fair value at March 31, 2016 and December 31, 2015, respectively. |
Loans and Leases - Additional I
Loans and Leases - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable | ||
Unamortized premiums and discounts, deferred loan fees and costs, and fair value adjustments | $ 223 | $ 220 |
Unearned Income | 601 | 624 |
Loans pledged at the FHLB | 12,100 | 11,900 |
Loans pledged at the FRB | $ 33,500 | $ 33,700 |
Total Loans And Leases Managed
Total Loans And Leases Managed By The Bancorp (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | |||
Balance | $ 93,605 | $ 92,582 | |
Net Credit Losses | 96 | $ 91 | |
Commercial and Industrial Loans | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | |||
Balance | 43,441 | 42,151 | |
Balance of Loans 90 days or More Past Due | 3 | 7 | |
Net Credit Losses | 46 | 38 | |
Commercial Mortgage Loans | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | |||
Balance | 6,874 | 6,991 | |
Net Credit Losses | 6 | 1 | |
Commercial Construction Loans | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | |||
Balance | 3,428 | 3,214 | |
Commercial Leases | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | |||
Balance | 3,956 | 3,854 | |
Net Credit Losses | 2 | ||
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 | 14,563 | 14,424 | |
Balance of Loans 90 days or More Past Due | 44 | 40 | |
Net Credit Losses | 2 | 6 | |
Home Equity | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | |||
Balance | 8,131 | 8,336 | |
Net Credit Losses | 8 | 14 | |
Automobile Loans | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | |||
Balance | 11,129 | 11,497 | |
Balance of Loans 90 days or More Past Due | 8 | 10 | |
Net Credit Losses | 9 | 8 | |
Credit Card | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | |||
Balance | 2,235 | 2,360 | |
Balance of Loans 90 days or More Past Due | 18 | 18 | |
Net Credit Losses | 20 | 21 | |
Other Consumer Loans and Leases | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | |||
Balance | 651 | 658 | |
Net Credit Losses | 3 | $ 3 | |
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 | 803 | 903 | |
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 | 94,408 | 93,485 | |
Balance of Loans 90 days or More Past Due | $ 73 | $ 75 |
Summary of Transactions in the
Summary of Transactions in the ALLL by Portfolio segment (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | $ 1,272 | [1] | $ 1,322 |
Losses charged-off | (116) | (115) | |
Recoveries of losses previously charged- off | 20 | 24 | |
Provision for loan and lease losses | 119 | 69 | |
Ending Balance | 1,295 | [1] | 1,300 |
Commercial Portfolio Segment | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 840 | [2] | 875 |
Losses charged-off | (60) | (48) | |
Recoveries of losses previously charged- off | 6 | 9 | |
Provision for loan and lease losses | 81 | 16 | |
Ending Balance | 867 | [3] | 852 |
Residential Mortgage Loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 100 | [2] | 104 |
Losses charged-off | (4) | (9) | |
Recoveries of losses previously charged- off | 2 | 3 | |
Provision for loan and lease losses | 5 | ||
Ending Balance | 98 | [3] | 103 |
Consumer Portfolio Segment | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 217 | [2] | 237 |
Losses charged-off | (52) | (58) | |
Recoveries of losses previously charged- off | 12 | 12 | |
Provision for loan and lease losses | 37 | 50 | |
Ending Balance | 214 | [3] | 241 |
Unallocated | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 115 | [2] | 106 |
Provision for loan and lease losses | 1 | (2) | |
Ending Balance | $ 116 | [3] | $ 104 |
[1] | Includes $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9. | ||
[2] | Includes $5 related to leveraged leases at December 31, 2015. | ||
[3] | Includes $5 related to leveraged leases at March 31, 2016. |
Summary of the ALLL and Related
Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | $ 216 | [1] | $ 235 | [2] | ||
Collectively evaluated for impairment | 963 | [1] | 922 | [2] | ||
Unallocated | 116 | [1] | 115 | [2] | ||
Total allowance for loan and lease losses | 1,295 | [3] | 1,272 | [3] | $ 1,300 | $ 1,322 |
Individually evaluated for impairment | 2,092 | [4] | 1,869 | [5] | ||
Collectively evaluated for impairment | 91,351 | [4] | 90,544 | [5] | ||
Loans acquired with deteriorated credit quality | 2 | [4] | 2 | [5] | ||
Total Loans and Leases | 93,445 | [6] | 92,415 | [7] | ||
Commercial Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 102 | [1],[8] | 119 | [2],[9] | ||
Collectively evaluated for impairment | 765 | [1] | 721 | [2] | ||
Total allowance for loan and lease losses | 867 | [1] | 840 | [2] | 852 | 875 |
Individually evaluated for impairment | 1,022 | [4],[8] | 815 | [5],[9] | ||
Collectively evaluated for impairment | 56,659 | [4] | 55,341 | [5] | ||
Total Loans and Leases | 57,681 | [4] | 56,156 | [5] | ||
Residential Mortgage Loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 66 | [1] | 67 | [2] | ||
Collectively evaluated for impairment | 32 | [1] | 33 | [2] | ||
Total allowance for loan and lease losses | 98 | [1] | 100 | [2] | 103 | 104 |
Individually evaluated for impairment | 655 | [4] | 630 | [5] | ||
Collectively evaluated for impairment | 13,078 | [4] | 12,917 | [5] | ||
Loans acquired with deteriorated credit quality | 2 | [4] | 2 | [5] | ||
Total Loans and Leases | 13,735 | [4] | 13,549 | [5] | ||
Consumer Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 48 | [1] | 49 | [2] | ||
Collectively evaluated for impairment | 166 | [1] | 168 | [2] | ||
Total allowance for loan and lease losses | 214 | [1] | 217 | [2] | 241 | 237 |
Individually evaluated for impairment | 415 | [4] | 424 | [5] | ||
Collectively evaluated for impairment | 21,614 | [4] | 22,286 | [5] | ||
Total Loans and Leases | 22,029 | [4] | 22,710 | [5] | ||
Unallocated | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Unallocated | 116 | [1] | 115 | [2] | ||
Total allowance for loan and lease losses | $ 116 | [1] | $ 115 | [2] | $ 104 | $ 106 |
[1] | Includes $5 related to leveraged leases at March 31, 2016. | |||||
[2] | Includes $5 related to leveraged leases at December 31, 2015. | |||||
[3] | Includes $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9. | |||||
[4] | Excludes $160 of residential mortgage loans measured at fair value, and includes $812 of leveraged leases, net of unearned income at March 31, 2016. | |||||
[5] | Excludes $167 of residential mortgage loans measured at fair value, and includes $801 of leveraged leases, net of unearned income at December 31, 2015. | |||||
[6] | Excludes $160 of residential mortgage loans measured at fair value at March 31, 2016. | |||||
[7] | Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015. | |||||
[8] | Includes five restructured loans at March 31, 2016 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, 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. |
Summary of the ALLL and Relat63
Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment (Parenthetical) (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2016USD ($)number | Dec. 31, 2015USD ($)number | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan and lease losses | $ 1,295 | [1] | $ 1,272 | [1] | $ 1,300 | $ 1,322 |
Portfolio loans and leases | 93,445 | [2] | 92,415 | [3] | ||
Recorded Investment | 2,065 | [4] | 1,842 | [5] | ||
Variable Interest Entity, Primary Beneficiary | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan and lease losses | 27 | 28 | ||||
Commercial | Variable Interest Entity, Primary Beneficiary | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan and lease losses | $ 15 | $ 15 | ||||
Number of Contracts | number | 5 | 5 | ||||
Recorded Investment | $ 27 | $ 27 | ||||
Leveraged Leases | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan and lease losses | 5 | 5 | ||||
Portfolio loans and leases | 812 | 801 | ||||
Residential Mortgage Loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Portfolio loans and leases at fair value | $ 160 | $ 167 | ||||
[1] | Includes $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9. | |||||
[2] | Excludes $160 of residential mortgage loans measured at fair value at March 31, 2016. | |||||
[3] | Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015. | |||||
[4] | Includes $461, $636 and $362, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $210, $19 and $53, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at March 31, 2016. | |||||
[5] | Includes $491, $607 and $372, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $203, $23 and $52, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2015. |
Summary of the Credit Risk Prof
Summary of the Credit Risk Profile of the Bancorp's Commercial Portfolio Segment by Class (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | $ 93,445 | [1] | $ 92,415 | [2] |
Commercial Portfolio Segment | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 57,681 | 56,156 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 43,433 | 42,131 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 3,613 | 3,659 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 3,251 | 3,298 | ||
Commercial Portfolio Segment | Commercial construction loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 3,428 | 3,214 | ||
Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 3,956 | 3,854 | ||
Pass | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 53,548 | 52,130 | ||
Pass | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 39,909 | 38,756 | ||
Pass | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 3,305 | 3,344 | ||
Pass | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 3,063 | 3,105 | ||
Pass | Commercial Portfolio Segment | Commercial construction loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 3,423 | 3,201 | ||
Pass | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 3,848 | 3,724 | ||
Special Mention | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 1,781 | 1,917 | ||
Special Mention | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 1,513 | 1,633 | ||
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 128 | 124 | ||
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 65 | 63 | ||
Special Mention | Commercial Portfolio Segment | Commercial construction loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 1 | 4 | ||
Special Mention | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 74 | 93 | ||
Risk Level, Substandard | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 2,325 | 2,109 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 1,987 | 1,742 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 177 | 191 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 123 | 130 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial construction loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 4 | 9 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 34 | $ 37 | ||
Risk Level, Doubtful | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 27 | |||
Risk Level, Doubtful | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | 24 | |||
Risk Level, Doubtful | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans and leases | $ 3 | |||
[1] | Excludes $160 of residential mortgage loans measured at fair value at March 31, 2016. | |||
[2] | Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015. |
Summary of the Credit Risk Pr65
Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |||
Total loans and leases | $ 93,445 | [1] | $ 92,415 | [2] | |
Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 8,112 | 8,301 | |||
Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 11,128 | 11,493 | |||
Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | 2,138 | 2,259 | |||
Other consumer loans and leases | Consumer Portfolio Segment | |||||
Total loans and leases | 651 | 657 | |||
Performing Financing Receivable | |||||
Total loans and leases | [3] | 35,606 | 36,094 | ||
Performing Financing Receivable | Residential Mortgage | Residential Mortgage Loans | |||||
Total loans and leases | [3] | 13,691 | 13,498 | ||
Performing Financing Receivable | Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 8,032 | 8,222 | |||
Performing Financing Receivable | Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 11,126 | 11,491 | |||
Performing Financing Receivable | Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | 2,106 | 2,226 | |||
Performing Financing Receivable | Other consumer loans and leases | Consumer Portfolio Segment | |||||
Total loans and leases | 651 | 657 | |||
Nonperforming Financing Receivable | |||||
Total loans and leases | [3] | 158 | 165 | ||
Nonperforming Financing Receivable | Residential Mortgage | Residential Mortgage Loans | |||||
Total loans and leases | [3] | 44 | 51 | ||
Nonperforming Financing Receivable | Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 80 | 79 | |||
Nonperforming Financing Receivable | Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 2 | 2 | |||
Nonperforming Financing Receivable | Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | $ 32 | $ 33 | |||
[1] | Excludes $160 of residential mortgage loans measured at fair value at March 31, 2016. | ||||
[2] | Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015. | ||||
[3] | Excludes $160 and $167 of loans measured at fair value at March 31, 2016 and December 31, 2015, respectively. |
Summary of the Credit Risk Pr66
Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Residential Mortgage Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Portfolio loans and leases at fair value | $ 160 | $ 167 |
Summarizes the Bancorp's Record
Summarizes the Bancorp's Recorded Investment in Portfolio Loans and Leases by Age and Class (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | $ 92,817 | [1],[2] | $ 91,780 | [3],[4] | |
Total Past Due | 628 | [1] | 635 | [3] | |
Total Loans and Leases | 93,445 | [1] | 92,415 | [3] | |
90-Days past Due and Still Accruing | 73 | [1] | 75 | [3] | |
30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 242 | [1],[2] | 306 | [3],[4] | |
90 Days and Greater Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 386 | [1],[2] | 329 | [3],[4] | |
Commercial Portfolio Segment | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Loans and Leases | 57,681 | 56,156 | |||
Commercial Portfolio Segment | Commercial and Industrial Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 43,255 | [2] | 41,996 | [4] | |
Total Past Due | 178 | 135 | |||
Total Loans and Leases | 43,433 | 42,131 | |||
90-Days past Due and Still Accruing | 3 | 7 | |||
Commercial Portfolio Segment | Commercial and Industrial Loans | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 31 | [2] | 55 | [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 | 147 | [2] | 80 | [4] | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 3,580 | [2] | 3,610 | [4] | |
Total Past Due | 33 | 49 | |||
Total Loans and Leases | 3,613 | 3,659 | |||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 6 | [2] | 15 | [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 | 27 | [2] | 34 | [4] | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 3,210 | [2] | 3,262 | [4] | |
Total Past Due | 41 | 36 | |||
Total Loans and Leases | 3,251 | 3,298 | |||
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 17 | [2] | 9 | [4] | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | 90 Days and Greater Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 24 | [2] | 27 | [4] | |
Commercial Portfolio Segment | Commercial Construction Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 3,428 | [2] | 3,214 | [4] | |
Total Loans and Leases | 3,428 | 3,214 | |||
Commercial Portfolio Segment | Commercial Leases | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 3,952 | [2] | 3,850 | [4] | |
Total Past Due | 4 | 4 | |||
Total Loans and Leases | 3,956 | 3,854 | |||
Commercial Portfolio Segment | Commercial Leases | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | [4] | 3 | |||
Commercial Portfolio Segment | Commercial Leases | 90 Days and Greater Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 4 | [2] | 1 | [4] | |
Residential Mortgage | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 13,613 | [1],[2],[5] | 13,420 | [3],[4],[6] | |
Total Past Due | 122 | [1],[5] | 129 | [3],[6] | |
Total Loans and Leases | 13,735 | [1],[5] | 13,549 | [3],[6] | |
90-Days past Due and Still Accruing | 44 | [1],[5] | 40 | [3],[6] | |
Residential Mortgage | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 32 | [1],[2],[5] | 37 | [3],[4],[6] | |
Residential Mortgage | 90 Days and Greater Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 90 | [1],[2],[5] | 92 | [3],[4],[6] | |
Consumer Portfolio Segment | Home Equity | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 7,980 | [2] | 8,158 | [4] | |
Total Past Due | 132 | 143 | |||
Total Loans and Leases | 8,112 | 8,301 | |||
Consumer Portfolio Segment | Home Equity | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 72 | [2] | 82 | [4] | |
Consumer Portfolio Segment | Home Equity | 90 Days and Greater Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 60 | [2] | 61 | [4] | |
Consumer Portfolio Segment | Automobile Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 11,060 | [2] | 11,407 | [4] | |
Total Past Due | 68 | 86 | |||
Total Loans and Leases | 11,128 | 11,493 | |||
90-Days past Due and Still Accruing | 8 | 10 | |||
Consumer Portfolio Segment | Automobile Loans | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 58 | [2] | 75 | [4] | |
Consumer Portfolio Segment | Automobile Loans | 90 Days and Greater Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 10 | [2] | 11 | [4] | |
Consumer Portfolio Segment | Credit Card | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 2,089 | [2] | 2,207 | [4] | |
Total Past Due | 49 | 52 | |||
Total Loans and Leases | 2,138 | 2,259 | |||
90-Days past Due and Still Accruing | 18 | 18 | |||
Consumer Portfolio Segment | Credit Card | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 25 | [2] | 29 | [4] | |
Consumer Portfolio Segment | Credit Card | 90 Days and Greater Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 24 | [2] | 23 | [4] | |
Consumer Portfolio Segment | Other Consumer Loans and Leases | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current Loans and Leases | 650 | [2] | 656 | [4] | |
Total Past Due | 1 | 1 | |||
Total Loans and Leases | 651 | 657 | |||
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 $160 of residential mortgage loans measured at fair value at March 31, 2016. | ||||
[2] | Includes accrual and nonaccrual loans and leases. | ||||
[3] | Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015. | ||||
[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 March 31, 2016, $95 of these loans were 30-89 days past due and $315 were 90 days or more past due. The Bancorp recognized $2 of losses during the three months ended March 31, 2016 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, 2015, $102 of these loans were 30-89 days past due and $335 were 90 days or more past due. The Bancorp recognized $2 of losses during the three months ended March 31, 2015 due to claim denials and curtailments associated with these insured or guaranteed loans. |
Summarizes the Bancorp's Reco68
Summarizes the Bancorp's Recorded Investment in Portfolio Loans and Leases by Age and Class (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | $ 628 | [1] | $ 635 | [2] | |
30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 242 | [1],[3] | 306 | [2],[4] | |
90 Days and Greater Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 386 | [1],[3] | 329 | [2],[4] | |
Residential Mortgage Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Portfolio loans and leases at fair value | 160 | 167 | |||
Residential Mortgage Loans | Federal Housing Administration Loan | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Losses Due To Claim Denials And Curtailments | 2 | $ 2 | |||
Residential Mortgage Loans | Federal Housing Administration Loan | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 95 | 102 | |||
Residential Mortgage Loans | Federal Housing Administration Loan | 90 Days and Greater Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | $ 315 | $ 335 | |||
[1] | Excludes $160 of residential mortgage loans measured at fair value at March 31, 2016. | ||||
[2] | Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015. | ||||
[3] | Includes accrual and nonaccrual loans and leases. | ||||
[4] | Includes accrual and nonaccrual loans and leases. |
Summarizes the Bancorp's Reco69
Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | ||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | $ 1,350 | $ 1,276 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 905 | 753 | ||
Unpaid Principal Balance | 2,255 | 2,029 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 1,247 | 1,184 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 818 | 658 | ||
Recorded Investment | 2,065 | [1] | 1,842 | [2] |
Allowance | 201 | 220 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 516 | 412 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 372 | 228 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 441 | 346 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 320 | 182 | ||
Allowance | 81 | 84 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 26 | [3] | 28 | [4] |
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 58 | 54 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 16 | [3] | 21 | [4] |
Impaired Financing Receivable With No Related Allowance Recorded Investment | 55 | 51 | ||
Allowance | 3 | [3] | 5 | [4] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 57 | 75 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 115 | 126 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 53 | 64 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 101 | 111 | ||
Allowance | 2 | 12 | ||
Commercial Portfolio Segment | Commercial Construction Loans | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 4 | |||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 4 | 9 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 4 | |||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 4 | 5 | ||
Allowance | 2 | |||
Commercial Portfolio Segment | Commercial Leases | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 4 | 3 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 3 | 1 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 2 | 3 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 3 | 1 | ||
Allowance | 1 | 1 | ||
Residential Mortgage Loans | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 453 | 450 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 230 | 210 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 440 | 444 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 215 | 186 | ||
Allowance | 66 | 67 | ||
Consumer Portfolio Segment | Home Equity | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 220 | 226 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 120 | 122 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 220 | 225 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 117 | 119 | ||
Allowance | 32 | 32 | ||
Consumer Portfolio Segment | Automobile Loans | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 16 | 17 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 3 | 3 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 17 | 16 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 3 | 3 | ||
Allowance | 2 | 2 | ||
Consumer Portfolio Segment | Credit Card | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 58 | 61 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 58 | 61 | ||
Allowance | $ 14 | $ 15 | ||
[1] | Includes $461, $636 and $362, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $210, $19 and $53, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at March 31, 2016. | |||
[2] | 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. | |||
[3] | Excludes five restructured loans at March 31, 2016 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, 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. |
Summarizes the Bancorp's Reco70
Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class (Parenthetical) (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016USD ($)number | Dec. 31, 2015USD ($)number | |||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Principal Balance | $ 2,255 | $ 2,029 | ||
Recorded Investment | 2,065 | [1] | 1,842 | [2] |
Allowance | 201 | 220 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Allowance | 81 | 84 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Financing Receivable, Impaired [Line Items] | ||||
Allowance | 3 | [3] | 5 | [4] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | Variable Interest Entity, Primary Beneficiary | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Principal Balance | 27 | 27 | ||
Recorded Investment | 27 | 27 | ||
Allowance | $ 15 | $ 15 | ||
Number of Contracts | number | 5 | 5 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Impaired [Line Items] | ||||
Allowance | $ 2 | $ 12 | ||
Commercial Portfolio Segment | Troubled Debt Restructuring On Accrual Status | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment | 461 | 491 | ||
Commercial Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment | 210 | 203 | ||
Residential Mortgage Loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Allowance | 66 | 67 | ||
Residential Mortgage Loans | Troubled Debt Restructuring On Accrual Status | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment | 636 | 607 | ||
Residential Mortgage Loans | Troubled Debt Restructuring On Nonaccrual Status | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment | 19 | 23 | ||
Consumer Portfolio Segment | Troubled Debt Restructuring On Accrual Status | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment | 362 | 372 | ||
Consumer Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment | $ 53 | $ 52 | ||
[1] | Includes $461, $636 and $362, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $210, $19 and $53, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at March 31, 2016. | |||
[2] | 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. | |||
[3] | Excludes five restructured loans at March 31, 2016 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, 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 $15. |
Summary of Average Impaired Loa
Summary of Average Impaired Loans and Leases and Interest Income by Class (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | $ 1,954 | $ 2,208 | |
Interest Income Recognized | 13 | 19 | |
Commercial Portfolio Segment | Commercial and Industrial Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 645 | 742 | |
Interest Income Recognized | 2 | 5 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | [1] | 71 | 112 |
Interest Income Recognized | [1] | 1 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 165 | 262 | |
Interest Income Recognized | 1 | 2 | |
Commercial Portfolio Segment | Commercial Construction Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 7 | 62 | |
Commercial Portfolio Segment | Commercial Leases | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 5 | 5 | |
Residential Mortgage Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 642 | 552 | |
Interest Income Recognized | 6 | 6 | |
Consumer Portfolio Segment | Home Equity | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 340 | 375 | |
Interest Income Recognized | 3 | 3 | |
Consumer Portfolio Segment | Automobile Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 19 | 23 | |
Consumer Portfolio Segment | Credit Card | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 60 | 75 | |
Interest Income Recognized | $ 1 | $ 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 and $28 at March 31, 2016 and March 31, 2015, respectively, and an immaterial amount of interest income recognized for both the three months ended March 31, 2016 and March 31, 2015. |
Summary of Average Impaired L72
Summary of Average Impaired Loans and Leases and Interest Income by Class (Parenthetical) (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016USD ($)number | Mar. 31, 2015USD ($) | Dec. 31, 2015number | ||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | $ 1,954 | $ 2,208 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | [1] | 71 | 112 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | Variable Interest Entity, Primary Beneficiary | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | $ 27 | $ 28 | ||
Number of Contracts | number | 5 | 5 | ||
[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 and $28 at March 31, 2016 and March 31, 2015, respectively, and an immaterial amount of interest income recognized for both the three months ended March 31, 2016 and March 31, 2015. |
Summary of the Bancorp's Nonper
Summary of the Bancorp's Nonperforming Loans and Leases by Class (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Modifications [Line Items] | |||
Nonaccrual portfolio loans and leases | [1],[2] | $ 701 | $ 506 |
OREO and other repossessed property | 124 | 141 | |
Nonperforming Portfolio Assets | [1],[2] | 825 | 647 |
Commercial Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
Nonaccrual portfolio loans and leases | 543 | 341 | |
Commercial Portfolio Segment | Commercial and Industrial Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Nonaccrual portfolio loans and leases | 460 | 259 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | |||
Financing Receivable, Modifications [Line Items] | |||
Nonaccrual portfolio loans and leases | [3] | 41 | 46 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | |||
Financing Receivable, Modifications [Line Items] | |||
Nonaccrual portfolio loans and leases | 37 | 35 | |
Commercial Portfolio Segment | Commercial Leases | |||
Financing Receivable, Modifications [Line Items] | |||
Nonaccrual portfolio loans and leases | 5 | 1 | |
Residential Mortgage Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Nonaccrual portfolio loans and leases | 44 | 51 | |
Consumer Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
Nonaccrual portfolio loans and leases | 114 | 114 | |
Consumer Portfolio Segment | Home Equity | |||
Financing Receivable, Modifications [Line Items] | |||
Nonaccrual portfolio loans and leases | 80 | 79 | |
Consumer Portfolio Segment | Automobile Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Nonaccrual portfolio loans and leases | 2 | 2 | |
Consumer Portfolio Segment | Credit Card | |||
Financing Receivable, Modifications [Line Items] | |||
Nonaccrual portfolio loans and leases | $ 32 | $ 33 | |
[1] | Excludes $5 and $12 of nonaccrual loans held for sale at March 31, 2016 and December 31, 2015, respectively. | ||
[2] | Includes $5 and $6 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at March 31, 2016 and December 31, 2015, respectively, and $1 and $2 of restructured nonaccrual government insured commercial loans at March 31, 2016 and December 31, 2015, respectively. | ||
[3] | Excludes $20 of restructured nonaccrual loans at both March 31, 2016 and December 31, 2015 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party. |
Summary of the Bancorp's Nonp74
Summary of the Bancorp's Nonperforming Loans and Leases by Class (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |||
Financing Receivable, Modifications [Line Items] | |||||
Loans held for sale | [1] | $ 803 | $ 903 | ||
OREO and other repossessed property | 124 | 141 | |||
Portfolio loans and leases | 93,445 | [2] | 92,415 | [3] | |
Commercial Portfolio Segment | |||||
Financing Receivable, Modifications [Line Items] | |||||
Portfolio loans and leases | 57,681 | 56,156 | |||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | |||||
Financing Receivable, Modifications [Line Items] | |||||
Portfolio loans and leases | 3,613 | 3,659 | |||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | Variable Interest Entity, Primary Beneficiary | |||||
Financing Receivable, Modifications [Line Items] | |||||
Restructured nonaccrual loans and leases | 20 | 20 | |||
Nonperforming Financing Receivable | |||||
Financing Receivable, Modifications [Line Items] | |||||
Loans held for sale | 5 | 12 | |||
Portfolio loans and leases | [4] | 158 | 165 | ||
Nonperforming Financing Receivable | Government Insured | Commercial Portfolio Segment | |||||
Financing Receivable, Modifications [Line Items] | |||||
Restructured nonaccrual loans and leases | 1 | 2 | |||
Nonperforming Financing Receivable | Government Insured | Commercial Portfolio Segment | Small Business Administration | |||||
Financing Receivable, Modifications [Line Items] | |||||
Portfolio loans and leases | $ 5 | $ 6 | |||
[1] | Includes $600 and $519 of residential mortgage loans held for sale measured at fair value at March 31, 2016 and December 31, 2015, respectively. | ||||
[2] | Excludes $160 of residential mortgage loans measured at fair value at March 31, 2016. | ||||
[3] | Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015. | ||||
[4] | Excludes $160 and $167 of loans measured at fair value at March 31, 2016 and December 31, 2015, respectively. |
Credit Quality Additional Infor
Credit Quality Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Troubled Debt Restructuring | ||
Line of credit commitments for modified troubled debt restructurings | $ 46 | $ 39 |
Letter of credit commitments for modified troubled debt restructurings | 22 | 23 |
Mortgage Loans In Process Of Foreclosure Amount | $ 290 | $ 303 |
Summary of Loans Modified in a
Summary of Loans Modified in a TDR (Detail) - Quarterly $ in Millions | 3 Months Ended | ||||
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | ||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Loans Modified in a TDR During the Period | 3,010 | [1],[2] | 4,208 | [3],[4] | |
Recorded Investment in Loans Modified in a TDR During the Period | $ 116 | [1] | $ 96 | [3] | |
Increase (Decrease) to ALLL Upon Modification | [3] | (3) | |||
Charge-offs Recognized Upon Modification | $ 1 | [1] | $ 3 | [3] | |
Commercial Portfolio Segment | Commercial and Industrial Loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Loans Modified in a TDR During the Period | 24 | [1],[2] | 21 | [3],[4] | |
Recorded Investment in Loans Modified in a TDR During the Period | $ 56 | [1] | $ 18 | [3] | |
Increase (Decrease) to ALLL Upon Modification | $ (2) | [1] | (7) | [3] | |
Charge-offs Recognized Upon Modification | [3] | $ 3 | |||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Loans Modified in a TDR During the Period | 7 | [1],[2] | 7 | [3],[4] | |
Recorded Investment in Loans Modified in a TDR During the Period | $ 6 | [1] | $ 8 | [3] | |
Increase (Decrease) to ALLL Upon Modification | $ (2) | [1] | $ (1) | [3] | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Loans Modified in a TDR During the Period | 2 | [1],[2] | 6 | [3],[4] | |
Recorded Investment in Loans Modified in a TDR During the Period | [3] | $ 3 | |||
Residential Mortgage Loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Loans Modified in a TDR During the Period | 243 | [1],[2] | 300 | [3],[4] | |
Recorded Investment in Loans Modified in a TDR During the Period | $ 36 | [1] | $ 42 | [3] | |
Increase (Decrease) to ALLL Upon Modification | $ 2 | [1] | $ 1 | [3] | |
Consumer Portfolio Segment | Home Equity | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Loans Modified in a TDR During the Period | 64 | [1],[2] | 76 | [3],[4] | |
Recorded Investment in Loans Modified in a TDR During the Period | $ 5 | [1] | $ 4 | [3] | |
Consumer Portfolio Segment | Automobile Loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Loans Modified in a TDR During the Period | 78 | [1],[2] | 131 | [3],[4] | |
Recorded Investment in Loans Modified in a TDR During the Period | $ 1 | [1] | $ 2 | [3] | |
Consumer Portfolio Segment | Credit Card | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Loans Modified in a TDR During the Period | 2,592 | [1],[2] | 3,667 | [3],[4] | |
Recorded Investment in Loans Modified in a TDR During the Period | $ 12 | [1] | $ 19 | [3] | |
Increase (Decrease) to ALLL Upon Modification | 2 | [1] | $ 4 | [3] | |
Charge-offs Recognized Upon Modification | [1] | $ 1 | |||
[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 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. |
Summary of Subsequent Defaults
Summary of Subsequent Defaults (Detail) - Quarter to date $ in Millions | 3 Months Ended | ||
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | ||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | [1] | 484 | 637 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 10 | $ 8 |
Commercial Portfolio Segment | Commercial and Industrial Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | [1] | 1 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | [1] | 1 | |
Residential Mortgage Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | [1] | 53 | 40 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 7 | $ 5 |
Consumer Portfolio Segment | Home Equity | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | [1] | 6 | 5 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 1 | |
Consumer Portfolio Segment | Automobile Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | [1] | 4 | |
Consumer Portfolio Segment | Credit Card | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | [1] | 423 | 588 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 2 | $ 3 |
[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 | Mar. 31, 2016 | Dec. 31, 2015 | |
Bank Premises and Equipment | |||
Land and improvements | [1] | $ 682 | $ 685 |
Buildings | 1,695 | 1,755 | |
Equipment | 1,715 | 1,696 | |
Leasehold improvements | 403 | 403 | |
Construction in progress | 86 | 85 | |
Land and improvements held for sale | 41 | 55 | |
Buildings held for sale | 23 | 20 | |
Equipment held for sale | 2 | 3 | |
Leasehold improvements held for sale | 2 | 3 | |
Accumulated depreciation and amortization | (2,464) | (2,466) | |
Total bank premises and equipment | [2] | $ 2,185 | $ 2,239 |
[1] | At March 31, 2016 and December 31, 2015, land and improvements included $101 and $102, respectively, associated with parcels of undeveloped land intended for future branch expansion. | ||
[2] | Includes $68 and $81 of bank premises and equipment held for sale at March 31, 2016 and December 31, 2015, respectively. Refer to Note 7. |
Bank Premises and Equipment (Pa
Bank Premises and Equipment (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Bank Premises And Equipment [Line Items] | |||
Land and improvements | [1] | $ 682 | $ 685 |
Branches and undeveloped parcels of land | |||
Bank Premises And Equipment [Line Items] | |||
Land and improvements | $ 101 | $ 102 | |
[1] | At March 31, 2016 and December 31, 2015, land and improvements included $101 and $102, 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 | 3 Months Ended | |
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
Bank Premises And Equipment [Line Items] | ||
Gain on Branch Consolidation and Sales Plan | $ 8 | |
Branch Banking | ||
Bank Premises And Equipment [Line Items] | ||
Bank premises impairment | 2 | $ 4 |
St. Louis MSA to Great Southern Bank | ||
Bank Premises And Equipment [Line Items] | ||
Loans Sold | 158 | |
Deposits Sold | 228 | |
Premises And Equipment Sold | 18 | |
Gain on Branch Consolidation and Sales Plan | $ 8 | |
Branch Consolidation and Sales Plan | Disposal group classified as held for sale | ||
Bank Premises And Equipment [Line Items] | ||
Operating Branch Locations | 60 | |
Parcels Of Undeveloped Land | 23 |
Assets and Liabilities Classifi
Assets and Liabilities Classified as HFS (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Loans held for sale: | |||
Loans held for sale | [1] | $ 803 | $ 903 |
Long Lived Assets Held For Sale | |||
Land and improvements held for sale | 41 | 55 | |
Buildings held for sale | 23 | 20 | |
Equipment Held For Sale | 2 | 3 | |
Leasehold Improvements Held For Sale | 2 | 3 | |
Deposits Held For Sale | |||
Deposits held for sale | 331 | 628 | |
Branch Consolidation and Sales Plan | |||
Deposits Held For Sale | |||
Total Liabilities Held For Sale | [2] | 331 | |
Commercial Portfolio Segment | Commercial mortgage loans | |||
Loans held for sale: | |||
Loans held for sale | 10 | 34 | |
Residential Mortgage Loans | Residential mortgage loans | |||
Loans held for sale: | |||
Loans held for sale | 668 | 708 | |
Consumer Portfolio Segment | Home Equity | |||
Loans held for sale: | |||
Loans held for sale | 19 | 35 | |
Consumer Portfolio Segment | Automobile Loans | |||
Loans held for sale: | |||
Loans held for sale | 1 | 4 | |
Consumer Portfolio Segment | Other consumer loans and leases | |||
Loans held for sale: | |||
Loans held for sale | $ 1 | ||
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Branch Consolidation and Sales Plan | |||
Long Lived Assets Held For Sale | |||
Total Assets Held For Sale | [2] | 143 | |
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Loans Held For Sale | Branch Consolidation and Sales Plan | |||
Loans held for sale: | |||
Loans held for sale | [2],[3] | 101 | |
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 | Branch Consolidation and Sales Plan | |||
Loans held for sale: | |||
Loans held for sale | [2] | 8 | |
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Loans Held For Sale | Commercial Portfolio Segment | Commercial mortgage loans | Branch Consolidation and Sales Plan | |||
Loans held for sale: | |||
Loans held for sale | [2] | 5 | |
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Loans Held For Sale | Residential Mortgage Loans | Residential mortgage loans | Branch Consolidation and Sales Plan | |||
Loans held for sale: | |||
Loans held for sale | [2] | 68 | |
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Loans Held For Sale | Consumer Portfolio Segment | Home Equity | Branch Consolidation and Sales Plan | |||
Loans held for sale: | |||
Loans held for sale | [2] | 19 | |
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Loans Held For Sale | Consumer Portfolio Segment | Automobile Loans | Branch Consolidation and Sales Plan | |||
Loans held for sale: | |||
Loans held for sale | [2] | 1 | |
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Bank Premises And Equipment | Branch Consolidation and Sales Plan | |||
Long Lived Assets Held For Sale | |||
Land and improvements held for sale | [2],[4] | 28 | |
Buildings held for sale | [2],[4] | 10 | |
Equipment Held For Sale | [2],[4] | 2 | |
Leasehold Improvements Held For Sale | [2],[4] | 2 | |
Total bank premises and equipment held for sale | [2],[4] | 42 | |
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Interest Bearing and Noninterest Bearing Deposits | Branch Consolidation and Sales Plan | |||
Deposits Held For Sale | |||
Noninterest Bearing Deposits Held For Sale | [2],[5] | 51 | |
Interest Bearing Deposits Held For Sale | [2],[5] | 280 | |
Deposits held for sale | [2],[5] | $ 331 | |
[1] | Includes $600 and $519 of residential mortgage loans held for sale measured at fair value at March 31, 2016 and December 31, 2015, respectively. | ||
[2] | Included in the Branch Banking, Consumer Lending and Investment Advisors business segments. | ||
[3] | Included in loans held for sale in the Condensed Consolidated Balance Sheets. | ||
[4] | Included in bank premises and equipment in the Condensed Consolidated Balance Sheets. | ||
[5] | Included in noninterest-bearing deposits and interest-bearing deposits in the Condensed Consolidated Balance Sheets. |
Operating Lease Equipment - Add
Operating Lease Equipment - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2015USD ($) | |
Bank Premises And Equipment [Line Items] | |
Other Asset Impairment Charges | $ (30) |
Operating lease equipment | |
Bank Premises And Equipment [Line Items] | |
Other Asset Impairment Charges | $ 30 |
Changes in the Net Carrying Amo
Changes in the Net Carrying Amount of Goodwill by Reporting Segment (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Goodwill Roll Forward | ||
Net carrying value, beginning of period: | $ 2,416 | $ 2,416 |
Net carrying value, end of period: | $ 2,416 | $ 2,416 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Intangible Assets by Major Class | ||
Estimated weighted-average life (in years) | 4 years 2 months 12 days | |
Amortization of Intangible Assets | $ 1 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 66 | $ 67 |
Accumulated Amortization | (55) | (55) |
Net Carrying Amount | 11 | 12 |
Core Deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 34 | 34 |
Accumulated Amortization | (26) | (26) |
Net Carrying Amount | 8 | 8 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 32 | 33 |
Accumulated Amortization | (29) | (29) |
Net Carrying Amount | $ 3 | $ 4 |
Estimated Amortization Expense
Estimated Amortization Expense Other Intangible Assets (Detail) - Other Intangible Assets $ in Millions | Mar. 31, 2016USD ($) |
Finite-Lived Intangible Assets | |
Remainder of 2016 | $ 1 |
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 | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |||
Assets | |||||||
Cash and due from banks | $ 2,298 | [1] | $ 2,540 | [1] | $ 2,920 | $ 3,091 | |
Commercial mortgage loans | 6,864 | 6,957 | |||||
Automobile loans | 11,128 | 11,493 | |||||
ALLL | (1,295) | [1] | (1,272) | [1] | $ (1,300) | $ (1,322) | |
Other assets | [1],[2] | 8,846 | 7,965 | ||||
Liabilities | |||||||
Other liabilities | [1] | 2,627 | 2,341 | ||||
Long-term debt | [1],[2] | 15,305 | 15,810 | ||||
Noncontrolling interests | 32 | 31 | |||||
Variable Interest Entity, Primary Beneficiary | |||||||
Assets | |||||||
Cash and due from banks | 147 | 152 | |||||
Commercial mortgage loans | 47 | 47 | |||||
Automobile loans | 2,131 | 2,490 | |||||
ALLL | (27) | (28) | |||||
Other assets | 11 | 14 | |||||
Total Assets | 2,309 | 2,675 | |||||
Liabilities | |||||||
Other liabilities | 4 | 3 | |||||
Long-term debt | 2,102 | 2,487 | |||||
Total liabilities | 2,106 | 2,490 | |||||
Noncontrolling interests | 32 | 31 | |||||
Variable Interest Entity, Primary Beneficiary | Automobile Loans | |||||||
Assets | |||||||
Cash and due from banks | 146 | 151 | |||||
Automobile loans | 2,131 | 2,490 | |||||
ALLL | (10) | (11) | |||||
Other assets | 10 | 14 | |||||
Total Assets | 2,277 | 2,644 | |||||
Liabilities | |||||||
Other liabilities | 4 | 3 | |||||
Long-term debt | 2,102 | 2,487 | |||||
Total liabilities | 2,106 | 2,490 | |||||
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) | (17) | |||||
Other assets | 1 | ||||||
Total Assets | 32 | 31 | |||||
Liabilities | |||||||
Noncontrolling interests | $ 32 | $ 31 | |||||
[1] | Includes $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9. | ||||||
[2] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Condensed Consolidated Balance Sheets were adjusted to reflect the reclassification of $34 million of debt issuance costs from other assets to long-term debt. For further information refer to Note 3. |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Variable Interest Entity, Primary Beneficiary | Automobile Loans | ||||
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 | ||||
Variable Interest Entity | ||||
Maximum Exposure | $ 28 | 27 | ||
Variable Interest Entity, Not Primary Beneficiary | Loans Provided to VIEs | ||||
Variable Interest Entity | ||||
Unfunded commitment amounts | 1,000 | 969 | ||
Variable Interest Entity, Not Primary Beneficiary | Fifth Third Community Development Corporation Investments | ||||
Variable Interest Entity | ||||
Maximum Exposure | 1,410 | 1,455 | ||
Bancorp's Investment in Affordable Housing Tax Credits | 1,410 | 1,455 | ||
Variable Interest Entity, Not Primary Beneficiary | Fifth Third Community Development Corporation Investments | Qualified Affordable Housing Tax Credits | ||||
Variable Interest Entity | ||||
Bancorp's Investment in Affordable Housing Tax Credits | 1,300 | 1,300 | ||
Unfunded commitments | $ 319 | 356 | ||
Unfunded commitments expected funding date | 2,033 | |||
Variable Interest Entity, Not Primary Beneficiary | Private Equity Investment Funds | ||||
Variable Interest Entity | ||||
Maximum Exposure | $ 270 | 271 | ||
Bancorp's Investment in Affordable Housing Tax Credits | 212 | 211 | ||
Unfunded commitment amounts | 58 | $ 60 | ||
Capital Contribution To Private Equity Funds | $ 2 | $ 10 |
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 | Mar. 31, 2016 | Dec. 31, 2015 |
Fifth Third Community Development Corporation Investments | ||
Variable Interest Entity | ||
Total Assets | $ 1,410 | $ 1,455 |
Total Liabilities | 329 | 367 |
Maximum Exposure | 1,410 | 1,455 |
Private Equity Investment Funds | ||
Variable Interest Entity | ||
Total Assets | 212 | 211 |
Maximum Exposure | 270 | 271 |
Loans Provided to VIEs | ||
Variable Interest Entity | ||
Total Assets | 1,842 | 1,630 |
Maximum Exposure | $ 2,858 | $ 2,599 |
Investments in Qualified Afford
Investments in Qualified Affordable Housing Tax Credits (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Other noninterest expense | |||
Schedule of Equity Method Investments | |||
Pre-tax investment and impairment losses | [1] | $ 36 | $ 34 |
Applicable income tax expense | |||
Schedule of Equity Method Investments | |||
Tax credits and other benefits | $ (55) | $ (52) | |
[1] | The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during three months ended March 31, 2016 and 2015. |
Activity Related to Mortgage Ba
Activity Related to Mortgage Banking Net Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale | ||||
Residential mortgage loan sales | [1] | $ 1,114 | $ 1,001 | [2] |
Origination fees and gains on loan sales | 42 | 44 | ||
Gross Mortgage Servicing Fees | $ 52 | $ 59 | ||
[1] | Represents the unpaid principal balance at the time of the sale. | |||
[2] | Excludes $568 of HFS residential mortgage loans previously modified in a TDR that were sold during the first quarter of 2015. |
Activity Related to Mortgage 92
Activity Related to Mortgage Banking Net Revenue (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | |||
Mortgage Loans On Real Estate | ||||
Residential mortgage loan sales | [1] | $ 1,114 | $ 1,001 | [2] |
Residential mortgage loans | Troubled Debt Restructuring | ||||
Mortgage Loans On Real Estate | ||||
Residential mortgage loan sales | $ 568 | |||
[1] | Represents the unpaid principal balance at the time of the sale. | |||
[2] | Excludes $568 of HFS residential mortgage loans previously modified in a TDR that were sold during the first quarter of 2015. |
Changes in the Servicing Assets
Changes in the Servicing Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Servicing Assets at Fair Value | |||
Carrying amount before valuation allowance as of the beginning of the period | $ 1,204 | $ 1,392 | |
Servicing rights that result from the transfer of residential mortgage loans | 12 | 13 | |
Amortization | (27) | (34) | |
Carrying amount before valuation allowance | 1,189 | 1,371 | |
Valuation allowance for servicing rights: | |||
Beginning balance | (419) | (534) | |
(Provision for) recovery of MSR impairment | (85) | (48) | |
Ending balance | (504) | (582) | |
Carrying amount as of the end of the period | $ 685 | $ 789 | $ 785 |
Estimated Amortization Expens94
Estimated Amortization Expense Mortgage Servicing Rights (Detail) - Mortgage Servicing Rights $ in Millions | Mar. 31, 2016USD ($) |
Finite-Lived Intangible Assets | |
Remainder of 2016 | $ 90 |
2,017 | 109 |
2,018 | 98 |
2,019 | 89 |
2,020 | $ 80 |
Fair Value of the Servicing Rig
Fair Value of the Servicing Rights (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
Fixed Rate Residential Mortgage Loans | |||
Servicing Assets at Fair Value | |||
Fair value at beginning of period | $ 757 | $ 759 | $ 823 |
Fair value at end of period | 660 | 757 | 759 |
Adjustable Rate Residential Mortgage Loans | |||
Servicing Assets at Fair Value | |||
Fair value at beginning of period | 27 | 29 | 33 |
Fair value at end of period | 25 | 27 | 29 |
Fixed Rate Automobile Loans | |||
Servicing Assets at Fair Value | |||
Fair value at beginning of period | $ 1 | 1 | 2 |
Fair value at end of period | $ 1 | $ 1 |
Activity Related to the MSR Por
Activity Related to the MSR Portfolio (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Servicing Assets at Fair Value | ||
Recovery of (provision for) MSR impairment (Mortgage banking net revenue) | $ (85) | $ (48) |
Interest Rate Contract | Servicing Rights | Mortgage Banking Revenue | ||
Servicing Assets at Fair Value | ||
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (Mortgage banking net revenue) | $ 96 | $ 65 |
Servicing Assets and Residual I
Servicing Assets and Residual Interests Economic Assumptions (Detail) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fixed Rate Residential Mortgage Loans | ||
Servicing Assets at Amortized Value | ||
Weighted- Average Life (in years) | 6 years 3 months 18 days | 6 years 2 months 12 days |
Prepayment Speed (annual) | 12.60% | 12.60% |
OAS spread (bps) | 539 |  900 |
Adjustable Rate Residential Mortgage Loans | ||
Servicing Assets at Amortized Value | ||
Weighted- Average Life (in years) | 3 years | 3 years 7 months 6 days |
Prepayment Speed (annual) | 27.50% | 23.40% |
OAS spread (bps) |  681 |  1,180 |
Sales of Receivables and Serv98
Sales of Receivables and Servicing Rights - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |||
Servicing Rights at Fair Value | |||||
Residential mortgage loan sales | [1] | $ 1,114 | $ 1,001 | [2] | |
Sevicing of residential mortgage loans for other investors | 57,800 | $ 59,000 | |||
Amortization | $ (27) | (34) | |||
Residential Mortgage Loans | Troubled Debt Restructuring | |||||
Servicing Rights at Fair Value | |||||
Gain on sale of HFS loans | $ 37 | ||||
[1] | Represents the unpaid principal balance at the time of the sale. | ||||
[2] | Excludes $568 of HFS residential mortgage loans previously modified in a TDR that were sold during the first quarter of 2015. |
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 | 3 Months Ended | |
Mar. 31, 2016USD ($) | [1] | |
Fixed Rate Residential Mortgage Loans | ||
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 | $ 660 | |
Weighted- Average Life (in years) | 5 years 2 months 12 days | |
Prepayment Speed (annual) | 14.10% | |
Impact of Adverse Change on Fair Value 10% | $ (33) | |
Impact of Adverse Change on Fair Value 20% | (63) | |
Impact of Adverse Change on Fair Value 50% | $ (138) | |
OAS spread (bps) | 603 | |
Impact of Adverse Change on Fair Value 10% | $ (15) | |
Impact of Adverse Change on Fair Value 20% | (29) | |
Adjustable Rate Residential Mortgage Loans | ||
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 | $ 25 | |
Weighted- Average Life (in years) | 2 years 10 months 24 days | |
Prepayment Speed (annual) | 27.80% | |
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) | 713 | |
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 Instrum100
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2009 | |
Derivative | |||
Valuation adjustments related to the credit risk associated with counterparties of customer accomodation derivative contracts | $ 13 | $ 9 | |
Maximum length of time hedged in cash flow hedge | 3 years 9 months | ||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | ||
Credit Risk | |||
Derivative | |||
Credit Risk Derivatives Average Remaining Life | 3 years 4 months 24 days | ||
Interest Rate Contract | |||
Derivative | |||
Fair value of risk participation agreements | $ 4 | 3 | |
Interest Rate Contract | Cash Flow Hedging | |||
Derivative | |||
Deferred gains, net of tax, on cash flow hedges were recorded in accumulated other comprehensive income | 61 | 22 | |
Net deferred gains, net of tax, recorded in accumulated other comprehensive income are expected to be reclassified into earnings during the next twelve months | 14 | ||
Interest Rate Contract | Lender Concentration Risk | |||
Derivative | |||
Notional amount of the risk participation agreements | 2,344 | 1,664 | |
Total collateral | |||
Derivative | |||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 858 | 821 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 544 | $ 504 |
Notional Amounts and Fair Value
Notional Amounts and Fair Values for All Derivative Instruments Included in the Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value | ||
Fair value - Derivative Assets | $ 2,126 | $ 1,852 |
Fair value - Derivative Liabilities | 967 | 938 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 551 | 411 |
Fair value - Derivative Liabilities | 2 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Fair Value Hedging | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 453 | 372 |
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 | ||
Notional amount | 2,705 | 2,705 |
Fair value - Derivative Assets | 453 | 372 |
Fair value - Derivative Liabilities | 2 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 98 | 39 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | Interest Rate Swap | Commercial and Industrial Loans | ||
Derivatives, Fair Value | ||
Notional amount | 4,475 | 5,475 |
Fair value - Derivative Assets | 98 | 39 |
Nondesignated | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 1,575 | 1,441 |
Fair value - Derivative Liabilities | 967 | 936 |
Nondesignated | Risk Management and Other Business Purposes | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 671 | 504 |
Fair value - Derivative Liabilities | 121 | 71 |
Nondesignated | Risk Management and Other Business Purposes | Interest Rate Contract | Servicing Rights | ||
Derivatives, Fair Value | ||
Notional amount | 9,407 | 11,657 |
Fair value - Derivative Assets | 363 | 239 |
Fair value - Derivative Liabilities | 55 | 9 |
Nondesignated | Risk Management and Other Business Purposes | Forward Contracts | Assets Held For Sale | ||
Derivatives, Fair Value | ||
Notional amount | 1,423 | 1,330 |
Fair value - Derivative Assets | 3 | |
Fair value - Derivative Liabilities | 8 | 1 |
Nondesignated | Risk Management and Other Business Purposes | Warrant | ||
Derivatives, Fair Value | ||
Notional amount | 420 | 369 |
Fair value - Derivative Assets | 308 | 262 |
Nondesignated | Risk Management and Other Business Purposes | Swap | ||
Derivatives, Fair Value | ||
Notional amount | 1,274 | 1,292 |
Fair value - Derivative Liabilities | 55 | 61 |
Nondesignated | Risk Management and Other Business Purposes | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Notional amount | 129 | |
Fair value - Derivative Liabilities | 3 | |
Nondesignated | Customer Accommodation | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 904 | 937 |
Fair value - Derivative Liabilities | 846 | 865 |
Nondesignated | Customer Accommodation | Interest Rate Contract | ||
Derivatives, Fair Value | ||
Notional amount | 30,604 | 29,889 |
Fair value - Derivative Assets | 357 | 242 |
Fair value - Derivative Liabilities | 366 | 249 |
Nondesignated | Customer Accommodation | Interest Rate Lock Commitments | ||
Derivatives, Fair Value | ||
Notional amount | 1,121 | 721 |
Fair value - Derivative Assets | 29 | 15 |
Nondesignated | Customer Accommodation | Commodity Contract | ||
Derivatives, Fair Value | ||
Notional amount | 2,248 | 2,464 |
Fair value - Derivative Assets | 233 | 294 |
Fair value - Derivative Liabilities | 211 | 276 |
Nondesignated | Customer Accommodation | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Notional amount | 15,039 | 16,243 |
Fair value - Derivative Assets | 285 | 386 |
Fair value - Derivative Liabilities | $ 269 | $ 340 |
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 | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivatives, Fair Value | ||
Change in fair value of interest rate swaps hedging long-term debt | $ 83 | $ 41 |
Change in fair value of hedged long-term debt | $ (85) | $ (43) |
Net Gains (Losses) Relating to
Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges (Detail) - Cash Flow Hedging - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) | ||
Amount of pretax net (losses) gains recognized in OCI | $ 74 | $ 52 |
Interest Income (Expense) Net | ||
Derivative Instruments, Gain (Loss) | ||
Amount of pretax net gains reclassified from OCI into net income | $ 14 | $ 16 |
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 (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest Rate Contract | Forward Contracts | Loans Held For Sale | Mortgage Banking Revenue | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | $ (11) | |
Interest Rate Contract | Servicing Rights | Mortgage Banking Revenue | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | 96 | $ 65 |
Foreign Exchange Contract | Forward Contracts | Other Noninterest Income | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | (4) | 15 |
Equity Contract | Warrant | Other Noninterest Income | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | 47 | 70 |
Equity Contract | Swap | Other Noninterest Income | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | $ 1 | $ (17) |
Risk Ratings of the Notional Am
Risk Ratings of the Notional Amount of Risk Participation Agreements (Detail) - Interest Rate Contract - Lender Concentration Risk - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value | ||
Notional amount of the risk participation agreements | $ 2,344 | $ 1,664 |
Pass | ||
Derivatives, Fair Value | ||
Notional amount of the risk participation agreements | 2,324 | 1,650 |
Risk Level, Special Mention | ||
Derivatives, Fair Value | ||
Notional amount of the risk participation agreements | 17 | 7 |
Risk Level, Substandard | ||
Derivatives, Fair Value | ||
Notional amount of the risk participation agreements | $ 3 | $ 7 |
Net Gains (Losses) Recorded 106
Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used For Customer Accommodation (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest Rate Contract | Customer Contracts | Corporate Banking Revenue | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | $ 7 | $ 6 |
Interest Rate Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | (1) | (1) |
Interest Rate Contract | Interest Rate Lock Commitments | Mortgage Banking Revenue | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | 42 | 35 |
Commodity Contract | Customer Contracts | Corporate Banking Revenue | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | 1 | 1 |
Commodity Contract | Customer Contracts | Other noninterest expense | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | (2) | |
Commodity Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | (1) | 5 |
Foreign Exchange Contract | Customer Contracts | Corporate Banking Revenue | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | 16 | 21 |
Foreign Exchange Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | $ (2) | $ (1) |
Offsetting Derivative Financial
Offsetting Derivative Financial Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | ||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Gross amount recognized in the balance sheet | $ 2,126 | $ 1,852 | ||
Derivative, Collateral, Obligation to Return Cash | (738) | (582) | ||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Gross amount recognized in the balance sheet | 967 | 938 | ||
Assets | ||||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Gross amount recognized in the balance sheet | 1,789 | [1] | 1,575 | [2] |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | (656) | (512) | ||
Derivative, Collateral, Obligation to Return Cash | (578) | [3] | (627) | [4] |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 555 | 436 | ||
Liability | ||||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Gross amount recognized in the balance sheet | 967 | [1] | 938 | [2] |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (656) | (512) | ||
Derivative, Collateral, Right to Reclaim Cash | (110) | [3] | (173) | [4] |
Derivative Fair Value Amount Offset Against Collateral Net | 201 | 253 | ||
Derivative | Assets | ||||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Gross amount recognized in the balance sheet | 1,789 | [1] | 1,575 | [2] |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | (656) | (512) | ||
Derivative, Collateral, Obligation to Return Cash | (578) | [3] | (627) | [4] |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 555 | 436 | ||
Derivative | Liability | ||||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Gross amount recognized in the balance sheet | 967 | [1] | 938 | [2] |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (656) | (512) | ||
Derivative, Collateral, Right to Reclaim Cash | (110) | [3] | (173) | [4] |
Derivative Fair Value Amount Offset Against Collateral Net | $ 201 | $ 253 | ||
[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 Condensed 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 Condensed Consolidated Balance Sheets were excluded from this table. |
Components of Other Short-Term
Components of Other Short-Term Borrowings (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Short Term Debt | ||
FHLB advances | $ 2,000 | |
Securities sold under repurchase agreements | 785 | $ 925 |
Derivative collateral | 738 | 582 |
Total other short-term borrowings | $ 3,523 | $ 1,507 |
Securities Sold Under Repurchas
Securities Sold Under Repurchase Agreements By Collateral Type (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Short Term Debt [Line Items] | ||
Securities sold under repurchase agreements | $ 785 | $ 925 |
Overnight maturity | U.S. Treasury and federal agencies | ||
Short Term Debt [Line Items] | ||
Securities sold under repurchase agreements | 183 | 279 |
Overnight maturity | Agency mortgage-backed securities | Residential mortgage backed securities | ||
Short Term Debt [Line Items] | ||
Securities sold under repurchase agreements | $ 602 | $ 646 |
Capital Actions (Detail)
Capital Actions (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Capital Actions [Line Items] | ||
Shares acquired for treasury | $ 240 | $ 180 |
December 10, 2015 ASR | March 2014 Repurchase Program | ||
Capital Actions [Line Items] | ||
Repurchase date | Dec. 14, 2015 | |
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 | |
Settlement date | Jan. 14, 2016 | |
March 2, 2016 ASR | March 2014 Repurchase Program | ||
Capital Actions [Line Items] | ||
Repurchase date | Mar. 4, 2016 | |
Shares acquired for treasury | $ 240 | |
Shares repurchased on repurchase date | 12,623,762 | |
Shares received from forward contract settlement | 1,868,379 | |
Total shares repurchased | 14,492,141 | |
Settlement date | Apr. 11, 2016 |
Long Term Debt - Additional Inf
Long Term Debt - Additional Information (Detail) - Subsidiaries $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Debt Instrument | |
Issue of senior notes to third party investors | $ 1,500 |
Senior Debt Obligations | Fixed Rate 2.30 Percent Notes Due 2019 | |
Debt Instrument | |
Issue of senior notes to third party investors | $ 750 |
Maturity date(s) Start | Mar. 15, 2016 |
Maturity date(s) End | Mar. 15, 2019 |
Subordinated Debt | Fixed Rate 3.85 Percent Notes Due 2026 | |
Debt Instrument | |
Issue of senior notes to third party investors | $ 750 |
Maturity date(s) Start | Mar. 15, 2016 |
Maturity date(s) End | Mar. 15, 2026 |
Summary of Significant Commitme
Summary of Significant Commitments (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Commitments to extend credit | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | $ 66,908 | $ 66,884 |
Letters of credit | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | 2,945 | 3,055 |
Forward contracts related to held for sale residential mortgage loans | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | 1,423 | 1,330 |
Noncancelable operating lease obligations | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | 618 | 635 |
Purchase obligations | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | 70 | 60 |
Capital commitments for private equity funds | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | 62 | 60 |
Capital expenditures | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | 30 | 30 |
Capital lease obligations | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | $ 24 | $ 27 |
Risk Rating Under the Risk Rati
Risk Rating Under the Risk Rating System (Detail) - Commitments to Extend Credit - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Line of Credit Facility [Line Items] | ||
Commitments | $ 66,908 | $ 66,884 |
Pass | ||
Line of Credit Facility [Line Items] | ||
Commitments | 65,672 | 65,645 |
Risk Level, Special Mention | ||
Line of Credit Facility [Line Items] | ||
Commitments | 585 | 647 |
Risk Level, Substandard | ||
Line of Credit Facility [Line Items] | ||
Commitments | 648 | $ 592 |
Risk Level, Doubtful | ||
Line of Credit Facility [Line Items] | ||
Commitments | $ 3 |
Commitments, Contingent Liab114
Commitments, Contingent Liabilities and Guarantees - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2010 | Jun. 30, 2010 | Dec. 31, 2009 | |||
Loss Contingencies [Line Items] | |||||||||||||
Fifth Third Securities, Inc. (FTS) acted as the remarketing agent to issuers of VRDNs | $ 1,000 | $ 1,100 | |||||||||||
Letters of credit | 2,945 | 3,055 | |||||||||||
Total Variable Rate Demand Notes | 1,200 | 1,300 | |||||||||||
Margin account balance held by the brokerage clearing agent | 11 | 10 | |||||||||||
Amount in excess of amounts reserved | 38 | ||||||||||||
Credit loss reserve | 1,295 | [1] | $ 1,300 | 1,272 | [1] | $ 1,322 | |||||||
Residential Mortgage | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Amount in excess of amounts reserved | 34 | ||||||||||||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | 23 | 36 | 25 | $ 35 | |||||||||
Outstanding balances on residential mortgage loans sold with credit recourse | $ 451 | $ 465 | |||||||||||
Delinquency Rates | 2.60% | 3.00% | |||||||||||
Credit loss reserve | $ 9 | $ 9 | |||||||||||
Make Whole Payments | 1 | ||||||||||||
Repurchased Outstanding Principal | 4 | 9 | |||||||||||
Repurchase Demand Request | 6 | $ 9 | |||||||||||
Outstanding Repurchase Demand Inventory | 2 | 4 | |||||||||||
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 | $ 3 | ||||||||||||
Standby letters of credit as a percentage of total letters of credit | 99.00% | 99.00% | |||||||||||
Standby Letters of Credit | Secured Debt | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Standby letters of credit as a percentage of total letters of credit | 64.00% | 65.00% | |||||||||||
Variable Rate Demand Note | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Letters of credit | $ 185 | $ 187 | |||||||||||
Letters of credit issued by the Bancorp related to variable rate demand notes | 841 | 921 | |||||||||||
Variable Rate Demand Note | Trading Securities | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Total Variable Rate Demand Notes | 5 | ||||||||||||
Other Liabilities | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Reserve for unfunded commitments | 144 | 138 | |||||||||||
Other Liabilities | Residential Mortgage | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | 23 | 25 | |||||||||||
Private Mortgage Reinsurance | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Total outstanding reinsurance coverage | 27 | 27 | |||||||||||
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 | $ 55 | $ 61 | |||||||||||
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 $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9. |
Standby and Commercial Letters
Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party (Detail) - Financial Standby Letter of Credit $ in Millions | Mar. 31, 2016USD ($) | |
Line of Credit Facility [Line Items] | ||
Commitments | $ 2,945 | |
Less Than One Year From The Balance Sheet Date | ||
Line of Credit Facility [Line Items] | ||
Commitments | 1,673 | [1] |
More than One and within Five Years from Balance Sheet Date | ||
Line of Credit Facility [Line Items] | ||
Commitments | 1,244 | [1] |
More than five years from balance sheet date | ||
Line of Credit Facility [Line Items] | ||
Commitments | $ 28 | |
[1] | Includes $25 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 - 5 years, respectively. |
Standby and Commercial Lette116
Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party (Parenthetical) (Detail) - Financial Standby Letter of Credit $ in Millions | Mar. 31, 2016USD ($) | |
Line of Credit Facility [Line Items] | ||
Commitments | $ 2,945 | |
Less Than One Year From The Balance Sheet Date | ||
Line of Credit Facility [Line Items] | ||
Commitments | 1,673 | [1] |
Less Than One Year From The Balance Sheet Date | Commercial | ||
Line of Credit Facility [Line Items] | ||
Commitments | 25 | |
More than One and within Five Years from Balance Sheet Date | ||
Line of Credit Facility [Line Items] | ||
Commitments | 1,244 | [1] |
More than One and within Five Years from Balance Sheet Date | Commercial | ||
Line of Credit Facility [Line Items] | ||
Commitments | 15 | |
More than five years from balance sheet date | ||
Line of Credit Facility [Line Items] | ||
Commitments | $ 28 | |
[1] | Includes $25 and $15 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 - 5 years, respectively. |
Letters of Credit (Detail)
Letters of Credit (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Letters of credit | $ 2,945 | $ 3,055 |
Pass | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Letters of credit | 2,477 | 2,606 |
Risk Level, Special Mention | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Letters of credit | 138 | 130 |
Risk Level, Substandard | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Letters of credit | 250 | 258 |
Risk Level, Doubtful | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Letters of credit | $ 80 | $ 61 |
Activity in Reserve for Represe
Activity in Reserve for Representation and Warranty Provisions (Detail) - Residential Mortgage - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Balance, beginning of period | $ 25 | $ 35 |
Net additions to the reserve | (2) | 2 |
Losses charged against the reserve | (1) | |
Balance, end of period | $ 23 | $ 36 |
Unresolved Claims by Claimant (
Unresolved Claims by Claimant (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
GSE | ||
Loss Contingencies Dollars | ||
Balance, beginning of period | $ 4 | $ 6 |
New demands | 6 | 9 |
Loan paydowns/payoffs | (1) | |
Resolved claims | (7) | (11) |
Balance, end of period | $ 2 | $ 4 |
Loss Contingencies Units | ||
Balance, beginning of period | 16 | 37 |
New demands | 71 | 118 |
Loan paydowns/payoffs | (4) | (4) |
Resolved claims | (68) | (119) |
Balance, end of period | 15 | 32 |
Private Label | ||
Loss Contingencies Dollars | ||
Balance, beginning of period | $ 1 | |
Resolved claims | $ (1) | |
Loss Contingencies Units | ||
Balance, beginning of period | 2 | 1 |
New demands | 2 | 6 |
Resolved claims | (3) | (5) |
Balance, end of period | 1 | 2 |
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 Proceed121
Legal and Regulatory Proceedings - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016USD ($) | Dec. 31, 2013 | Mar. 31, 2013USD ($) | Sep. 30, 2012USD ($) | |
Loss Contingencies [Line Items] | ||||
Percentage of funds returned to defendants | 25.00% | |||
Class Settlement Escrow | $ 46 | |||
Amount in excess of amounts reserved | $ 38 | |||
Litigation Settlement Amount | $ 6 | |||
APR Percentage Allegedly Misleading | 120.00% | |||
Number Of Putative Class Actions Filed | 4 | |||
Damages Claimed By Plaintiff | $ 70 | |||
Federal Lawsuits | ||||
Loss Contingencies [Line Items] | ||||
Number of merchants | 460 | |||
Merchants requesting exclusion from class settlement | ||||
Loss Contingencies [Line Items] | ||||
Number of merchants | 8,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Taxes | ||
Applicable income tax expense | $ 108 | $ 124 |
Effective tax rate | 25.00% | 25.60% |
Activity of the Components of O
Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
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 | $ 452 | $ 141 |
Reclassification adjustment for net (gains) losses included in net income | (5) | (8) |
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 | 34 |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (9) | (10) |
Net activity for defined benefit plans, net | ||
Reclassification of amounts to net periodic benefit costs | (1) | (2) |
Total Other Comprehensive Activity | ||
Pre-tax activity total | 749 | 242 |
Total, Tax | (262) | (83) |
Other comprehensive income (loss) | 487 | 159 |
Total Accumulated Other Comprehensive Income | ||
Total Accumulated Other Comprehensive Income - Beginning Balance | 197 | 429 |
Other comprehensive income (loss), Net of Tax | 487 | 159 |
Total Accumulated Other Comprehensive Income - Ending Balance | 684 | 588 |
Accumulated Net Unrealized Investment Gain (Loss) | ||
Pre-tax activity for accumulated net unrealized gain (loss) on available-for-sale securities | ||
Unrealized holding gains (losses) on available-for-sale securities arising during period | 695 | 215 |
Reclassification adjustment for net losses (gains) included in net income | (8) | (12) |
Net unrealized gains on available-for-sale securities | 687 | 203 |
Tax effect for accumulated net unrealized gain (loss) on available-for-sale securities | ||
Unrealized holding gains (losses) on available-for-sale securities arising during period | (243) | (74) |
Reclassification adjustment for net losses (gains) included in net income | 3 | 4 |
Net unrealized gains on available-for-sale securities | (240) | (70) |
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 | 452 | 141 |
Reclassification adjustment for net (gains) losses included in net income | (5) | (8) |
Net unrealized gains on available-for-sale securities | 447 | 133 |
Total Other Comprehensive Activity | ||
Other comprehensive income (loss) | 447 | 133 |
Total Accumulated Other Comprehensive Income | ||
Total Accumulated Other Comprehensive Income - Beginning Balance | 238 | 475 |
Other comprehensive income (loss), Net of Tax | 447 | 133 |
Total Accumulated Other Comprehensive Income - Ending Balance | 685 | 608 |
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 (losses) on cash flow hedge derivatives arising during period | 74 | 52 |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (14) | (16) |
Net unrealized gains on cash flow hedge derivatives | 60 | 36 |
Tax effect for net unrealized gain (loss) on cash flow hedge derivatives | ||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period | (26) | (18) |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 5 | 6 |
Net unrealized gains on cash flow hedge derivatives | (21) | (12) |
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 | 34 |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (9) | (10) |
Net unrealized gains on cash flow hedge derivatives | 39 | 24 |
Total Other Comprehensive Activity | ||
Other comprehensive income (loss) | 39 | 24 |
Total Accumulated Other Comprehensive Income | ||
Total Accumulated Other Comprehensive Income - Beginning Balance | 22 | 23 |
Other comprehensive income (loss), Net of Tax | 39 | 24 |
Total Accumulated Other Comprehensive Income - Ending Balance | 61 | 47 |
Accumulated Defined Benefit Plans Adjustment | ||
Pre-tax activity for defined benefit plans, net | ||
Reclassification of amounts to net periodic benefit costs | 2 | 3 |
Defined benefit plans, net | 2 | 3 |
Tax effect for defined benefit plans, net | ||
Reclassification of amounts to net periodic benefit costs | (1) | (1) |
Defined benefit plans, net | (1) | (1) |
Net activity for defined benefit plans, net | ||
Reclassification of amounts to net periodic benefit costs | 1 | 2 |
Defined benefit plans, net | 1 | 2 |
Total Other Comprehensive Activity | ||
Other comprehensive income (loss) | (1) | (2) |
Total Accumulated Other Comprehensive Income | ||
Total Accumulated Other Comprehensive Income - Beginning Balance | (63) | (69) |
Other comprehensive income (loss), Net of Tax | (1) | (2) |
Total Accumulated Other Comprehensive Income - Ending Balance | $ (62) | $ (67) |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Income Before Income Taxes | $ 435 | $ 485 | |
Applicable income tax expense | 108 | 124 | |
Net income | 327 | 361 | |
Total Reclassifications For The Period | |||
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Net income | 13 | 16 | |
Net Unrealized Gains On Available For Sale Securities | |||
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification adjustment for net losses (gains) included in net income | 8 | 12 | |
Net Unrealized Gains On Available For Sale Securities | Net Losses Included In Net Income | |||
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification adjustment for net losses (gains) included in net income | [1] | 8 | 12 |
Income Before Income Taxes | [1] | 8 | 12 |
Applicable income tax expense | [1] | (3) | (4) |
Net income | [1] | 5 | 8 |
Net Unrealized Gains On Cash Flow Hedge Activities | |||
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 14 | 16 | |
Income Before Income Taxes | [1] | 14 | 16 |
Applicable income tax expense | [1] | (5) | (6) |
Net income | [1] | 9 | 10 |
Net Unrealized Gains On Cash Flow Hedge Activities | Interest Rate Contracts Related To C&I Loans | |||
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | [1] | 14 | 16 |
Amortization Of Defined Benefit Pension Items | Net Actuarial Loss | |||
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Net periodic pension cost | [1],[2] | (2) | (3) |
Income Before Income Taxes | [1] | (2) | (3) |
Applicable income tax expense | [1] | 1 | 1 |
Net income | [1] | $ (1) | $ (2) |
[1] | Amounts in parentheses indicate reductions to net income | ||
[2] | This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 21 in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2015 for information on the computation of net periodic benefit cost. |
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 | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings per share: | ||
Net income attributable to Bancorp | $ 327 | $ 361 |
Dividends on preferred stock | 15 | 15 |
Net income (loss) available to common shareholders | 312 | 346 |
Less: Income allocated to participating securities | 3 | 3 |
Earnings per share - basic | 309 | 343 |
Earnings per diluted share: | ||
Net income available to common shareholders | 312 | 346 |
Net income available to common shareholders plus assumed conversions | 312 | 346 |
Less: Income allocated to participating securities | 3 | 3 |
Net income allocated to common shareholders | $ 309 | $ 343 |
Earnings per share: | ||
Net income allocated to common shareholders | 773,564,178 | 810,209,585 |
Effect of dilutive securities: | ||
Stock-based awards | 4,000,000 | 9,000,000 |
Net income allocated to common shareholders | 778,392,453 | 818,672,259 |
Earnings per share: | ||
Earnings per share - basic | $ 0.40 | $ 0.42 |
Earnings per diluted share: | ||
Earnings per share - diluted | $ 0.40 | $ 0.42 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Stock Appreciation Rights | ||
Earnings Per Share Disclosure [Line Items] | ||
Anti-dilutive securities | 20 | 18 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |||
Assets: | |||||
Available-for-sale securities, fair value | [1] | $ 29,891 | $ 29,044 | ||
Trading securities | 405 | 386 | |||
Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 29,287 | [2] | 28,440 | [3] | |
Trading securities | 405 | 386 | |||
Residential mortgage loans held for sale | 600 | 519 | |||
Residential mortgage loans measured at FV | 160 | [4] | 167 | [5] | |
Derivative assets | [6] | 2,126 | 1,852 | ||
Total assets | 32,578 | 31,364 | |||
Liabilities: | |||||
Derivative liabilities | [7] | 967 | 938 | ||
Short positions | [7] | 24 | 29 | ||
Total liabilities | 991 | 967 | |||
Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 1,300 | 910 | |||
Liabilities: | |||||
Derivative liabilities | 429 | 261 | |||
Foreign Exchange Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 285 | 386 | |||
Liabilities: | |||||
Derivative liabilities | 272 | 340 | |||
Equity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 308 | 262 | |||
Liabilities: | |||||
Derivative liabilities | 55 | 61 | |||
Commodity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 233 | 294 | |||
Liabilities: | |||||
Derivative liabilities | 211 | 276 | |||
U.S. Treasury and federal agencies | |||||
Assets: | |||||
Available-for-sale securities, fair value | 1,161 | 1,187 | |||
U.S. Treasury and federal agencies | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 1,161 | 1,187 | |||
Trading securities | 18 | 19 | |||
Obligations of states and political subdivisions | |||||
Assets: | |||||
Available-for-sale securities, fair value | 52 | 52 | |||
Obligations of states and political subdivisions | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 52 | 52 | |||
Trading securities | 54 | 9 | |||
Agency mortgage-backed securities | Residential mortgage backed securities | |||||
Assets: | |||||
Available-for-sale securities, fair value | 15,129 | [8] | 15,081 | [9] | |
Agency mortgage-backed securities | Residential mortgage backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 15,129 | 15,081 | |||
Trading securities | 5 | 6 | |||
Agency mortgage-backed securities | Commercial Mortgage Backed Securities [Member] | |||||
Assets: | |||||
Available-for-sale securities, fair value | 8,205 | 7,862 | |||
Agency mortgage-backed securities | Commercial Mortgage Backed Securities [Member] | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 8,205 | 7,862 | |||
Trading securities | 1 | ||||
Non-agency mortgage-backed securities | Commercial Mortgage Backed Securities [Member] | |||||
Assets: | |||||
Available-for-sale securities, fair value | 3,120 | 2,804 | |||
Non-agency mortgage-backed securities | Commercial Mortgage Backed Securities [Member] | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 3,120 | 2,804 | |||
Asset-backed securities and other debt securities | |||||
Assets: | |||||
Available-for-sale securities, fair value | 1,520 | 1,355 | |||
Asset-backed securities and other debt securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 1,520 | 1,355 | |||
Trading securities | 23 | 19 | |||
Equity securities | |||||
Assets: | |||||
Available-for-sale securities, fair value | 704 | [10] | 703 | [11] | |
Equity securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 100 | [2] | 99 | [3] | |
Trading securities | 304 | 333 | |||
Fair Value, Inputs, Level 1 | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 176 | [2],[12] | 198 | [3],[13] | |
Trading securities | 305 | [12] | 333 | [13] | |
Derivative assets | [6] | 38 | [12] | 57 | [13] |
Total assets | 519 | [12] | 588 | [13] | |
Liabilities: | |||||
Derivative liabilities | [7] | 30 | [12] | 38 | [13] |
Short positions | [7] | 15 | [12] | 22 | [13] |
Total liabilities | 45 | [12] | 60 | [13] | |
Fair Value, Inputs, Level 1 | Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 1 | [12] | 3 | [13] | |
Liabilities: | |||||
Derivative liabilities | 9 | [12] | 1 | [13] | |
Fair Value, Inputs, Level 1 | Commodity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 37 | [12] | 54 | [13] | |
Liabilities: | |||||
Derivative liabilities | 21 | [12] | 37 | [13] | |
Fair Value, Inputs, Level 1 | U.S. Treasury and federal agencies | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 77 | [12] | 100 | [13] | |
Trading securities | [12] | 1 | |||
Fair Value, Inputs, Level 1 | Equity securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 99 | [2],[12] | 98 | [3],[13] | |
Trading securities | 304 | [12] | 333 | [13] | |
Fair Value, Inputs, Level 2 | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 29,111 | [2],[12] | 28,242 | [3],[13] | |
Trading securities | 100 | [12] | 53 | [13] | |
Residential mortgage loans held for sale | 600 | [12] | 519 | [13] | |
Derivative assets | [6] | 1,751 | [12] | 1,518 | [13] |
Total assets | 31,562 | [12] | 30,332 | [13] | |
Liabilities: | |||||
Derivative liabilities | [7] | 878 | [12] | 836 | [13] |
Short positions | [7] | 9 | [12] | 7 | [13] |
Total liabilities | 887 | [12] | 843 | [13] | |
Fair Value, Inputs, Level 2 | Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 1,270 | [12] | 892 | [13] | |
Liabilities: | |||||
Derivative liabilities | 416 | [12] | 257 | [13] | |
Fair Value, Inputs, Level 2 | Foreign Exchange Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 285 | [12] | 386 | [13] | |
Liabilities: | |||||
Derivative liabilities | 272 | [12] | 340 | [13] | |
Fair Value, Inputs, Level 2 | Commodity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 196 | [12] | 240 | [13] | |
Liabilities: | |||||
Derivative liabilities | 190 | [12] | 239 | [13] | |
Fair Value, Inputs, Level 2 | U.S. Treasury and federal agencies | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 1,084 | [12] | 1,087 | [13] | |
Trading securities | 17 | [12] | 19 | [13] | |
Fair Value, Inputs, Level 2 | Obligations of states and political subdivisions | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 52 | [12] | 52 | [13] | |
Trading securities | 54 | [12] | 9 | [13] | |
Fair Value, Inputs, Level 2 | Agency mortgage-backed securities | Residential mortgage backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 15,129 | [12] | 15,081 | [13] | |
Trading securities | 5 | [12] | 6 | [13] | |
Fair Value, Inputs, Level 2 | Agency mortgage-backed securities | Commercial Mortgage Backed Securities [Member] | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 8,205 | [12] | 7,862 | [13] | |
Trading securities | [12] | 1 | |||
Fair Value, Inputs, Level 2 | Non-agency mortgage-backed securities | Commercial Mortgage Backed Securities [Member] | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 3,120 | [12] | 2,804 | [13] | |
Fair Value, Inputs, Level 2 | Asset-backed securities and other debt securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 1,520 | [12] | 1,355 | [13] | |
Trading securities | 23 | [12] | 19 | [13] | |
Fair Value, Inputs, Level 2 | Equity securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 1 | [2],[12] | 1 | [3],[13] | |
Fair Value, Inputs, Level 3 | Fair value, recurring | |||||
Assets: | |||||
Residential mortgage loans measured at FV | 160 | [4] | 167 | [5] | |
Derivative assets | [6] | 337 | 277 | ||
Total assets | 497 | 444 | |||
Liabilities: | |||||
Derivative liabilities | [7] | 59 | 64 | ||
Total liabilities | 59 | 64 | |||
Fair Value, Inputs, Level 3 | Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 29 | 15 | |||
Liabilities: | |||||
Derivative liabilities | 4 | 3 | |||
Fair Value, Inputs, Level 3 | Equity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 308 | 262 | |||
Liabilities: | |||||
Derivative liabilities | $ 55 | $ 61 | |||
[1] | Amortized cost of $28,838 and $28,678 at March 31, 2016 and December 31, 2015, respectively. | ||||
[2] | Excludes FHLB, FRB and DTCC restricted stock holdings totaling $248, $355 and $1 respectively, at March 31, 2016. | ||||
[3] | Excludes FHLB, FRB and DTCC restricted stock holdings totaling $248, $355 and $1, respectively, at December 31, 2015. | ||||
[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 Condensed Consolidated Balance Sheets. | ||||
[7] | Included in other liabilities in the Condensed Consolidated Balance Sheets. | ||||
[8] | Includes interest-only mortgage-backed securities of $41 as of March 31, 2016 recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income. | ||||
[9] | Includes interest-only mortgage-backed securities of $50 as of December 31, 2015, recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income. | ||||
[10] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $355 and $1, respectively, at March 31, 2016, that are carried at cost, and certain mutual fund and equity security holdings. | ||||
[11] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $355, and $1, respectively, at December 31, 2015, that are carried at cost, and certain mutual fund and equity security holdings | ||||
[12] | During the three months ended March 31, 2016, no assets or liabilities were transferred between Level 1 and Level 2. | ||||
[13] | During the year ended December 31, 2015, no assets or liabilities were transferred between Level 1 and Level 2. |
Assets and Liabilities Measu128
Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Federal Home Loan Bank Stock | $ 248 | $ 248 |
Federal Reserve Bank Stock | 355 | 355 |
DTCC Stock | $ 1 | $ 1 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Jun. 30, 2009 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Portfolio loans to loans held for sale | $ 3 | $ 9 | ||
Existing loans held for sale, further adjusted | 600 | $ 519 | ||
Residential loans transferred to the Bancorp's portfolio | 12 | 78 | ||
Fair value changes included in earnings for instruments for which the fair value option was elected | $ 30 | 30 | ||
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% | |||
Commercial Loans Held For Sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Existing loans held for sale, further adjusted | 1 | |||
Gain Loss On Sales Of Loans Net | 5 | |||
Other Real Estate Owned | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net impact related to fair value adjustments | $ 1 | 3 | ||
Nonrecurring Losses Included As Charge-Offs | 2 | 5 | ||
Residential Mortgage Loans | ||||
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 | ||
Interest Rate Lock Commitments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net fair value of the interest rate lock commitments | 29 | |||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 25 bp | 8 | |||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 50 bp | 15 | |||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 25 bp | 10 | |||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 50 bp | 21 | |||
Change in fair value of interest rate lock commitments, due to 10% adverse changes in the assumed loan closing rates | 3 | |||
Change in fair value of interest rate lock commitments, due to 20% adverse changes in the assumed loan closing rates | 6 | |||
Change in fair value of interest rate lock commitments, due to 10% favorable changes in the assumed loan closing rates | 3 | |||
Change in fair value of interest rate lock commitments, due to 20% favorable changes in the assumed loan closing rates | 6 | |||
Fair value measurements nonrecurring | 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 | $ 5 |
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) - Quarter to date - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | ||||
FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationCalculationRollforward | |||||
Beginning Balance | $ 380 | $ 484 | |||
Included in earnings | 91 | 90 | |||
Purchases | (1) | ||||
Settlements | (35) | (29) | |||
Transfers Into Level 3 | [1] | 3 | 23 | ||
Ending Balance | 438 | 568 | |||
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 | [2] | 78 | 74 | ||
Residential Mortgage | |||||
FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationCalculationRollforward | |||||
Beginning Balance | 167 | 108 | |||
Included in earnings | 1 | 2 | |||
Settlements | (11) | (7) | |||
Transfers Into Level 3 | [1] | 3 | 23 | ||
Ending Balance | 160 | 126 | |||
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 | [2] | 1 | 2 | ||
Interest Rate Contract | |||||
FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationCalculationRollforward | |||||
Beginning Balance | 12 | [3] | 10 | [4] | |
Included in earnings | 42 | [3] | 35 | [4] | |
Purchases | [3] | (1) | |||
Settlements | (28) | [3] | (28) | [4] | |
Ending Balance | 25 | [3] | 17 | [4] | |
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 | [2] | 29 | [3] | 19 | [4] |
Equity Contract | |||||
FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationCalculationRollforward | |||||
Beginning Balance | 201 | [3] | 366 | [4] | |
Included in earnings | 48 | [3] | 53 | [4] | |
Settlements | 4 | [3] | 6 | [4] | |
Ending Balance | 253 | [3] | 425 | [4] | |
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 | [2] | $ 48 | [3] | $ 53 | [4] |
[1] | Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. | ||||
[2] | Includes interest income and expense. | ||||
[3] | Net interest rate derivatives include derivative assets and liabilities of $29 and $4, respectively, as of March 31, 2016. Net equity derivatives include derivative assets and liabilities of $308 and $55, respectively, as of March 31, 2016. | ||||
[4] | Net interest rate derivatives include derivative assets and liabilities of $10 and $3, respectively, as of ##D . Net equity derivatives include derivative assets and liabilities of $358 and $53, respectively, as of ##D . |
Reconciliation of Assets and131
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Interest Rates | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative assets | $ 29 | $ 19 |
Derivative liabilities | 4 | 2 |
Equity Contract | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative assets | 308 | 485 |
Derivative liabilities | $ 55 | $ 60 |
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) - Fair Value, Inputs, Level 3 - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gains and losses included in earnings | $ 91 | $ 90 |
Mortgage Banking Revenue | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gains and losses included in earnings | 43 | 36 |
Corporate Banking Revenue | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gains and losses included in earnings | 1 | |
Other Noninterest Income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gains and losses included in earnings | $ 48 | $ 53 |
Total Gains and Losses Inclu133
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 | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
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 | $ 78 | $ 74 |
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 | 30 | 20 |
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 | |
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 | $ 48 | $ 53 |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Recurring Basis) (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||
Fair Value Inputs [Line Items] | ||||
Derivative instruments | $ 2,126 | $ 1,852 | ||
Residential mortgage loans | ||||
Fair Value Inputs [Line Items] | ||||
Residential mortgage loans measured at FV | 160 | $ 126 | ||
IRLCs, net | ||||
Fair Value Inputs [Line Items] | ||||
Derivative instruments | 29 | 19 | ||
Stock warrants associated with Vantiv Holding, LLC | ||||
Fair Value Inputs [Line Items] | ||||
Derivative instruments | 308 | 485 | ||
Swap associated with the sale of Visa, Inc. Class B shares | ||||
Fair Value Inputs [Line Items] | ||||
Derivative instruments | $ (55) | $ (60) | ||
Minimum | Residential mortgage loans | ||||
Fair Value Inputs [Line Items] | ||||
Interest rate risk factor | (6.00%) | (5.70%) | ||
Minimum | IRLCs, net | ||||
Fair Value Inputs [Line Items] | ||||
Loan closing rates | 5.60% | 2.30% | ||
Minimum | Stock warrants associated with Vantiv Holding, LLC | ||||
Fair Value Inputs [Line Items] | ||||
Expected term (years) | 2 years | 2 years | ||
Expected volatility | [1] | 23.00% | 22.90% | |
Minimum | 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 | Sep. 30, 2016 | ||
Maximum | Residential mortgage loans | ||||
Fair Value Inputs [Line Items] | ||||
Interest rate risk factor | 16.50% | 18.30% | ||
Credit risk factor | 80.50% | 47.90% | ||
Maximum | IRLCs, net | ||||
Fair Value Inputs [Line Items] | ||||
Loan closing rates | 94.00% | 87.60% | ||
Maximum | Stock warrants associated with Vantiv Holding, LLC | ||||
Fair Value Inputs [Line Items] | ||||
Expected term (years) | 13 years 3 months 18 days | 14 years 3 months 18 days | ||
Expected volatility | [1] | 30.40% | 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 | Mar. 31, 2021 | ||
Weighted average | Residential mortgage loans | ||||
Fair Value Inputs [Line Items] | ||||
Interest rate risk factor | 4.40% | 5.30% | ||
Credit risk factor | 1.40% | 1.20% | ||
Weighted average | IRLCs, net | ||||
Fair Value Inputs [Line Items] | ||||
Loan closing rates | 75.00% | 67.00% | ||
Weighted average | Stock warrants associated with Vantiv Holding, LLC | ||||
Fair Value Inputs [Line Items] | ||||
Expected term (years) | 5 years 10 months 24 days | 5 years 10 months 24 days | ||
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 Measu135
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | $ 1,161 | $ 1,342 |
Fair Value Measured On Nonrecurring Basis Gains Losses | (128) | (142) |
Commercial Loans Held-for-Sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 5 | 1 |
Fair Value Measured On Nonrecurring Basis Gains Losses | (2) | 4 |
Commercial and Industrial Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 347 | 366 |
Fair Value Measured On Nonrecurring Basis Gains Losses | (47) | (43) |
Commercial Mortgage Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 85 | 52 |
Fair Value Measured On Nonrecurring Basis Gains Losses | 6 | (13) |
Commercial Construction Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measured On Nonrecurring Basis Gains Losses | 2 | |
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) | |
Servicing Rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 685 | 788 |
Fair Value Measured On Nonrecurring Basis Gains Losses | (85) | (48) |
Other Real Estate Owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 27 | 36 |
Fair Value Measured On Nonrecurring Basis Gains Losses | (3) | (8) |
Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 12 | 5 |
Fair Value Measured On Nonrecurring Basis Gains Losses | 1 | (3) |
Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 39 | |
Fair Value Measured On Nonrecurring Basis Gains Losses | (30) | |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 1,161 | 1,342 |
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 | 5 | 1 |
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 | 347 | 366 |
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 | 85 | 52 |
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 | Servicing Rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | 685 | 788 |
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 | 27 | 36 |
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 | $ 12 | 5 |
Fair Value, Inputs, Level 3 | Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements | $ 39 |
Fair Values of Assets and Li136
Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Nonrecurring Basis) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Commercial Loans Held For Sale | Commercial | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | $ 5 | $ 1 |
Commercial and Industrial Loans | Commercial | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | 347 | 366 |
Commercial Mortgage Loans | Commercial | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | 85 | 52 |
Commercial construction loans | Commercial | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | 55 | |
Servicing Rights | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | 685 | 788 |
OREO Property | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | 27 | 36 |
Bank premises and equipment | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | $ 12 | 5 |
Operating lease equipment | ||
Fair Value Inputs [Line Items] | ||
Fair value measurements nonrecurring assets | $ 39 | |
Minimum | Servicing Rights | ||
Fair Value Inputs [Line Items] | ||
Prepayment speed | 0.60% | |
OAS spread (bps) | 364 | 430 |
Maximum | Servicing Rights | ||
Fair Value Inputs [Line Items] | ||
Prepayment speed | 100.00% | 100.00% |
OAS spread (bps) | 1,515 | 1,700 |
Weighted average | Commercial Loans Held For Sale | Commercial | ||
Fair Value Inputs [Line Items] | ||
Cost to sell | 10.00% | 10.00% |
Weighted average | Fixed | Servicing Rights | ||
Fair Value Inputs [Line Items] | ||
Prepayment speed | 14.10% | 10.00% |
OAS spread (bps) | 603 | 920 |
Weighted average | Adjustable | Servicing Rights | ||
Fair Value Inputs [Line Items] | ||
Prepayment speed | 27.80% | 32.20% |
OAS spread (bps) | 713 | 640 |
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) - Residential mortgage loans - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Aggregate fair value | ||
Residential mortgage loans measured at fair value | $ 760 | $ 686 |
Past due loans of 90 days or more | 1 | 2 |
Nonaccrual loans | 1 | 2 |
Aggregate unpaid principal balance | ||
Residential mortgage loans measured at fair value | 730 | 669 |
Past due loans of 90 days or more | 1 | 2 |
Nonaccrual loans | 1 | 2 |
Difference | ||
Residential mortgage loans measured at fair value | $ 30 | $ 17 |
Carrying Amounts and Estimated
Carrying Amounts and Estimated Fair Values for Certain Financial Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |||
Financial assets: | |||||||
Cash and due from banks | $ 2,298 | [1] | $ 2,540 | [1] | $ 2,920 | $ 3,091 | |
Held-to-maturity securities, amortized cost | [2] | 64 | 70 | ||||
Other short-term investments | 1,778 | 2,671 | |||||
Loans held for sale | [3] | 803 | 903 | ||||
Portfolio loans and leases, net | 92,310 | 91,310 | |||||
Other securities, fair value | [4] | 29,891 | 29,044 | ||||
Held-to-maturity securities, fair value | 64 | 70 | |||||
Loans held for sale | 600 | 519 | |||||
Financial liabilities: | |||||||
Deposits | [5] | 102,475 | 103,205 | ||||
Federal funds purchased | 134 | 151 | |||||
Other short-term borrowings | 3,523 | 1,507 | |||||
Long-term debt | [1],[6] | 15,305 | 15,810 | ||||
Residential Mortgage | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 160 | $ 126 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | |||||||
Financial assets: | |||||||
Cash and due from banks | 2,298 | 2,540 | |||||
Held-to-maturity securities, amortized cost | 64 | 70 | |||||
Other short-term investments | 1,778 | 2,671 | |||||
Loans held for sale | 203 | 384 | |||||
Unallocated Allowance For Loan And Lease Losses | (116) | (115) | |||||
Portfolio loans and leases at fair value | 92,150 | 91,143 | |||||
Financial liabilities: | |||||||
Deposits | 102,475 | 103,205 | |||||
Federal funds purchased | 134 | 151 | |||||
Other short-term borrowings | 3,523 | 1,507 | |||||
Long-term debt | 15,305 | 15,810 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | FHLB and FRB restricted stock holdings | |||||||
Financial assets: | |||||||
Other securities | 604 | 604 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial and Industrial Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 42,736 | 41,479 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Mortgage Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 6,758 | 6,840 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Construction Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 3,404 | 3,190 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Leases | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 3,916 | 3,807 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Residential Mortgage | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 13,637 | 13,449 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Home Equity | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 8,050 | 8,234 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Automobile Loan [Member] | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 11,087 | 11,453 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Credit Card Receivables [Member] | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 2,039 | 2,160 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Other Consumer Loans and Leases | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 639 | 646 | |||||
Total Fair Value | |||||||
Financial assets: | |||||||
Cash and due from banks, fair value | 2,298 | 2,540 | |||||
Held-to-maturity securities, fair value | 64 | 70 | |||||
Other short term investments, fair value | 1,778 | 2,671 | |||||
Portfolio loans and leases at fair value | 93,961 | 92,282 | |||||
Financial liabilities: | |||||||
Deposits, fair value | 102,544 | 103,219 | |||||
Federal funds purchased, fair value | 134 | 151 | |||||
Other short-term borrowings, fair value | 3,523 | 1,507 | |||||
Long term debt, fair value | 15,904 | 16,228 | |||||
Total Fair Value | Non Fair Value Option Held For Sale Loans [Member] | |||||||
Financial assets: | |||||||
Loans held for sale | 203 | 384 | |||||
Total Fair Value | FHLB and FRB restricted stock holdings | |||||||
Financial assets: | |||||||
Other securities, fair value | 604 | 604 | |||||
Total Fair Value | Commercial and Industrial Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 41,802 | ||||||
Portfolio loans and leases at fair value | 43,168 | ||||||
Total Fair Value | Commercial Mortgage Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 6,624 | 6,656 | |||||
Total Fair Value | Commercial Construction Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 3,169 | 2,918 | |||||
Total Fair Value | Commercial Leases | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 3,675 | 3,533 | |||||
Total Fair Value | Residential Mortgage | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 14,588 | 14,061 | |||||
Total Fair Value | Home Equity | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 8,855 | 8,948 | |||||
Total Fair Value | Automobile Loan [Member] | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 10,834 | 11,170 | |||||
Total Fair Value | Credit Card Receivables [Member] | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 2,432 | 2,551 | |||||
Total Fair Value | Other Consumer Loans and Leases | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 616 | 643 | |||||
Total Fair Value | Fair Value, Inputs, Level 1 | |||||||
Financial assets: | |||||||
Cash and due from banks, fair value | 2,298 | 2,540 | |||||
Other short term investments, fair value | 1,778 | 2,671 | |||||
Financial liabilities: | |||||||
Federal funds purchased, fair value | 134 | 151 | |||||
Long term debt, fair value | 15,202 | 15,603 | |||||
Total Fair Value | Fair Value, Inputs, Level 2 | |||||||
Financial liabilities: | |||||||
Deposits, fair value | 102,544 | 103,219 | |||||
Other short-term borrowings, fair value | 3,523 | 1,507 | |||||
Long term debt, fair value | 702 | 625 | |||||
Total Fair Value | Fair Value, Inputs, Level 2 | FHLB and FRB restricted stock holdings | |||||||
Financial assets: | |||||||
Other securities, fair value | 604 | 604 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | |||||||
Financial assets: | |||||||
Held-to-maturity securities, fair value | 64 | 70 | |||||
Portfolio loans and leases at fair value | 93,961 | 92,282 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Non Fair Value Option Held For Sale Loans [Member] | |||||||
Financial assets: | |||||||
Loans held for sale | 203 | 384 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial and Industrial Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 41,802 | ||||||
Portfolio loans and leases at fair value | 43,168 | ||||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Mortgage Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 6,624 | 6,656 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Construction Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 3,169 | 2,918 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Leases | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 3,675 | 3,533 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Residential Mortgage | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 14,588 | 14,061 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Home Equity | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 8,855 | 8,948 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Automobile Loan [Member] | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 10,834 | 11,170 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Credit Card Receivables [Member] | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 2,432 | 2,551 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Other Consumer Loans and Leases | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | $ 616 | $ 643 | |||||
[1] | Includes $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9. | ||||||
[2] | Fair value of $64 and $70 at March 31, 2016 and December 31, 2015, respectively. | ||||||
[3] | Includes $600 and $519 of residential mortgage loans held for sale measured at fair value at March 31, 2016 and December 31, 2015, respectively. | ||||||
[4] | Amortized cost of $28,838 and $28,678 at March 31, 2016 and December 31, 2015, respectively. | ||||||
[5] | Includes $331 and $628 of deposits held for sale at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 7. | ||||||
[6] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Condensed Consolidated Balance Sheets were adjusted to reflect the reclassification of $34 million of debt issuance costs from other assets to long-term debt. For further information refer to Note 3. |
Results of Operations and Avera
Results of Operations and Average Assets by Segment - Additional Information (Detail) | Mar. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Full-service Banking Centers | 1,241 |
Results of Operations and Av140
Results of Operations and Average Assets by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||||
Segment Reporting Information | ||||||
Net interest income | $ 903 | $ 847 | ||||
Provision for loan and lease losses | 119 | 69 | ||||
Net interest income (loss) after provision for loan and lease losses | 784 | 778 | ||||
Total noninterest income | 637 | 630 | ||||
Total noninterest expense | 986 | 923 | ||||
Income (Loss) Before Income Taxes | 435 | 485 | ||||
Applicable income tax benefit | 108 | 124 | ||||
Net income (loss) | 327 | 361 | ||||
Net income attributable to Bancorp | 327 | 361 | ||||
Dividends on preferred stock | 15 | 15 | ||||
Net income available to common shareholders | 312 | 346 | ||||
Total goodwill | 2,416 | 2,416 | $ 2,416 | |||
Total Assets | 142,430 | [1] | 140,437 | $ 141,048 | [1] | |
Commercial Banking | ||||||
Segment Reporting Information | ||||||
Net interest income | 451 | 392 | ||||
Provision for loan and lease losses | 65 | 42 | ||||
Net interest income (loss) after provision for loan and lease losses | 386 | 350 | ||||
Total noninterest income | 223 | 174 | [2] | |||
Total noninterest expense | 363 | 348 | ||||
Income (Loss) Before Income Taxes | 246 | 176 | ||||
Applicable income tax benefit | 35 | 13 | ||||
Net income (loss) | 211 | 163 | ||||
Net income attributable to Bancorp | 211 | 163 | ||||
Net income available to common shareholders | 211 | 163 | ||||
Total goodwill | 613 | 613 | ||||
Total Assets | 59,652 | 57,855 | ||||
Branch Banking | ||||||
Segment Reporting Information | ||||||
Net interest income | 426 | 377 | ||||
Provision for loan and lease losses | 34 | 42 | ||||
Net interest income (loss) after provision for loan and lease losses | 392 | 335 | ||||
Total noninterest income | 189 | [3] | 176 | [4] | ||
Total noninterest expense | 411 | 400 | ||||
Income (Loss) Before Income Taxes | 170 | 111 | ||||
Applicable income tax benefit | 60 | 39 | ||||
Net income (loss) | 110 | 72 | ||||
Net income attributable to Bancorp | 110 | 72 | ||||
Net income available to common shareholders | 110 | 72 | ||||
Total goodwill | 1,655 | 1,655 | ||||
Total Assets | 54,528 | 53,295 | ||||
Consumer Lending | ||||||
Segment Reporting Information | ||||||
Net interest income | 60 | 63 | ||||
Provision for loan and lease losses | 12 | 14 | ||||
Net interest income (loss) after provision for loan and lease losses | 48 | 49 | ||||
Total noninterest income | 83 | 129 | ||||
Total noninterest expense | 118 | 105 | ||||
Income (Loss) Before Income Taxes | 13 | 73 | ||||
Applicable income tax benefit | 5 | 26 | ||||
Net income (loss) | 8 | 47 | ||||
Net income attributable to Bancorp | 8 | 47 | ||||
Net income available to common shareholders | 8 | 47 | ||||
Total Assets | 22,475 | 22,057 | ||||
Investment Advisors | ||||||
Segment Reporting Information | ||||||
Net interest income | 43 | 29 | ||||
Provision for loan and lease losses | 1 | |||||
Net interest income (loss) after provision for loan and lease losses | 43 | 28 | ||||
Total noninterest income | 100 | 107 | ||||
Total noninterest expense | 107 | 115 | ||||
Income (Loss) Before Income Taxes | 36 | 20 | ||||
Applicable income tax benefit | 13 | 7 | ||||
Net income (loss) | 23 | 13 | ||||
Net income attributable to Bancorp | 23 | 13 | ||||
Net income available to common shareholders | 23 | 13 | ||||
Total goodwill | 148 | 148 | ||||
Total Assets | 8,900 | 10,042 | ||||
General Corporate and Other | ||||||
Segment Reporting Information | ||||||
Net interest income | (77) | (14) | ||||
Provision for loan and lease losses | 8 | (30) | ||||
Net interest income (loss) after provision for loan and lease losses | (85) | 16 | ||||
Total noninterest income | 75 | 82 | ||||
Total noninterest expense | 20 | (7) | ||||
Income (Loss) Before Income Taxes | (30) | 105 | ||||
Applicable income tax benefit | (5) | 39 | ||||
Net income (loss) | (25) | 66 | ||||
Net income attributable to Bancorp | (25) | 66 | ||||
Dividends on preferred stock | 15 | 15 | ||||
Net income available to common shareholders | (40) | 51 | ||||
Total Assets | (3,125) | (2,812) | ||||
Intersegment Elimination | ||||||
Segment Reporting Information | ||||||
Total noninterest income | (33) | [5] | (38) | [6] | ||
Total noninterest expense | $ (33) | $ (38) | ||||
[1] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Condensed Consolidated Balance Sheets were adjusted to reflect the reclassification of $34 million of debt issuance costs from other assets to long-term debt. For further information refer to Note 3. | |||||
[2] | Includes an impairment charge of $30 for operating lease equipment. For more information, refer to Note 20. | |||||
[3] | Includes an impairment charge of $2 for branches and land. For more information refer to Note 7 and Note 20. | |||||
[4] | Includes an impairment charge of $4 for branches and land. For more information, refer to Note 7 and Note 20. | |||||
[5] | Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income. | |||||
[6] | Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income. |
Results of Operations and Av141
Results of Operations and Average Assets by Segment (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information | ||
Other Asset Impairment Charges | $ (30) | |
Operating lease equipment | ||
Segment Reporting Information | ||
Other Asset Impairment Charges | 30 | |
Branch Banking | ||
Segment Reporting Information | ||
Impairment of Branches and Land | $ 2 | $ 4 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Subsequent Event | |
Gain On Branch Consolidation And Sales Plan | $ 8 |
Subsequent events | Pittsburgh Sale to First National Bank of Pennsylvania | |
Subsequent Event | |
Gain On Branch Consolidation And Sales Plan | $ 11 |
Subsequent Events Date | Apr. 22, 2016 |
Loans Sold | $ 99 |
Deposits Sold | 302 |
Premises And Equipment Sold | $ 16 |