Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Entity Listings [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000035527 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity Registrant Name | FIFTH THIRD BANCORP | ||
Entity File Number | 001-33653 | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Tax Identification Number | 31-0854434 | ||
Entity Address, Address Line One | 38 Fountain Square Plaza | ||
Entity Address, City or Town | Cincinnati | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 45263 | ||
City Area Code | 800 | ||
Local Phone Number | 972-3030 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 709,552,415 | ||
Entity Public Float | $ 18,260,843,027 | ||
Common Stock, Without Par Value | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Common Stock, Without Par Value | ||
Trading Symbol | FITB | ||
Security Exchange Name | NASDAQ | ||
Preferred stock, Series I | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | 6.625% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series I | ||
Trading Symbol | FITBI | ||
Security Exchange Name | NASDAQ | ||
Class B Preferred stock, Series A | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | 6.00% Non-Cumulative Perpetual Class B Preferred Stock, Series A | ||
Trading Symbol | FITBP | ||
Security Exchange Name | NASDAQ | ||
Preferred Stock, Series K | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | 4.95% Non-Cumulative Perpetual Preferred Stock, Series K | ||
Trading Symbol | FITBO | ||
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 3,278 | $ 2,681 |
Other short-term investments | 1,950 | 1,825 |
Available-for-sale debt and other securities | 36,028 | 32,830 |
Held-to-maturity securities | 17 | 18 |
Trading debt securities | 297 | 287 |
Equity securities | 564 | 452 |
Loans and leases held for sale | 1,400 | 607 |
Portfolio loans and leases | 109,558 | 95,265 |
ALLL | (1,202) | (1,103) |
Portfolio loans and leases, net | 108,356 | 94,162 |
Bank premises and equipment | 1,995 | 1,861 |
Operating lease equipment | 848 | 518 |
Goodwill | 4,252 | 2,478 |
Intangible assets | 201 | 40 |
Servicing rights | 993 | 938 |
Other assets | 9,190 | 7,372 |
Total Assets | 169,369 | 146,069 |
Deposits | ||
Noninterest-bearing deposits | 35,968 | 32,116 |
Interest-bearing deposits | 91,094 | 76,719 |
Total deposits | 127,062 | 108,835 |
Federal funds purchased | 260 | 1,925 |
Other short-term borrowings | 1,011 | 573 |
Accrued taxes, interest and expenses | 2,441 | 1,562 |
Other liabilities | 2,422 | 2,498 |
Long-term debt | 14,970 | 14,426 |
Total liabilities | 148,166 | 129,819 |
Equity | ||
Common stock | 2,051 | 2,051 |
Preferred stock | 1,770 | 1,331 |
Capital surplus | 3,599 | 2,873 |
Retained earnings | 18,315 | 16,578 |
Accumulated other comprehensive income (loss) | 1,192 | (112) |
Treasury stock | (5,724) | (6,471) |
Total Bancorp Shareholders' Equity | 21,203 | 16,250 |
Noncontrolling interests | 0 | 0 |
Total Equity | 21,203 | 16,250 |
Total Liabilities and Equity | $ 169,369 | $ 146,069 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other Short-term Investments | $ 1,950 | $ 1,825 |
ALLL | (1,202) | (1,103) |
Other assets | 9,190 | 7,372 |
Other liabilities | 2,422 | 2,498 |
Long-term debt | 14,970 | 14,426 |
Available-for-sale debt securities, Amortized Cost | 34,966 | 33,128 |
Held-to-maturity securities, fair value | 17 | 18 |
Bank premises and equipment held for sale | $ 27 | $ 42 |
Common stock, stated value | $ 2.22 | $ 2.22 |
Common stock, authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, outstanding | 708,915,629 | 646,630,857 |
Common stock, treasury shares | 214,976,952 | 277,261,724 |
Residential Mortgage | ||
Loans held for sale measured at FV | $ 1,264 | $ 537 |
Loans measured at FV | 183 | 179 |
Commercial | ||
ALLL | (710) | (645) |
Loans held for sale measured at FV | 0 | 7 |
Variable Interest Entity, Primary Beneficiary | ||
Other Short-term Investments | 74 | 40 |
Indirect secured consumer loans | 1,354 | 668 |
ALLL | (7) | (4) |
Other assets | 8 | 5 |
Other liabilities | 2 | 1 |
Long-term debt | $ 1,253 | $ 606 |
No Class | ||
Preferred stock, authorized | 500,000 | 500,000 |
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 |
Preferred stock, unissued | 436,000 | 446,000 |
Class B | ||
Preferred stock, authorized | 500,000 | |
Preferred stock, liquidation preference | $ 1,000 | |
Preferred stock, unissued | 300,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest Income | |||
Interest and fees on loans and leases | $ 5,051 | $ 4,078 | $ 3,478 |
Interest on securities | 1,162 | 1,080 | 996 |
Interest on other short-term investments | 41 | 25 | 15 |
Total interest income | 6,254 | 5,183 | 4,489 |
Interest Expense | |||
Interest on deposits | 892 | 538 | 277 |
Interest on federal funds purchased | 29 | 30 | 6 |
Interest on other short-term borrowings | 28 | 29 | 30 |
Interest on long-term debt | 508 | 446 | 378 |
Total interest expense | 1,457 | 1,043 | 691 |
Net Interest Income | 4,797 | 4,140 | 3,798 |
Provision for credit losses | 471 | 207 | 261 |
Net Interest Income After Provision for Credit Losses | 4,326 | 3,933 | 3,537 |
Noninterest Income: | |||
Corporate banking revenue | 570 | 438 | 353 |
Service charges on deposits | 565 | 549 | 554 |
Wealth and asset management revenue | 487 | 444 | 419 |
Card and processing revenue | 360 | 329 | 313 |
Mortgage banking net revenue | 287 | 212 | 224 |
Other noninterest income | 1,224 | 887 | 1,357 |
Securities gains (losses), net | 40 | (54) | 2 |
Securities gains (losses), net - non-qualifying hedges on mortgage servcing rights | 3 | (15) | 2 |
Total noninterest income | 3,536 | 2,790 | 3,224 |
Noninterest expense: | |||
Salaries, wages and incentives | 2,001 | 1,783 | 1,633 |
Employee benefits | 417 | 332 | 356 |
Technology and communications | 422 | 285 | 245 |
Net occupancy expense | 332 | 292 | 295 |
Card and processing expense | 130 | 123 | 129 |
Equipment expense | 129 | 123 | 117 |
Other noninterest expense | 1,229 | 1,020 | 1,007 |
Total noninterest expense | 4,660 | 3,958 | 3,782 |
Income Before Income Taxes | 3,202 | 2,765 | 2,979 |
Applicable income tax expense | 690 | 572 | 799 |
Net Income | 2,512 | 2,193 | 2,180 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 |
Net Income attributable to Bancorp | 2,512 | 2,193 | 2,180 |
Dividends on preferred stock | 93 | 75 | 75 |
Net Income Available to Common Shareholders | $ 2,419 | $ 2,118 | $ 2,105 |
Shares Disclosures | |||
Earnings per share - basic | $ 3.38 | $ 3.11 | $ 2.86 |
Earnings per share - diluted | $ 3.33 | $ 3.06 | $ 2.81 |
Average common shares outstanding - basic | 710,433,611 | 673,346,168 | 728,289,200 |
Average common shares outstanding - diluted | 720,065,498 | 685,488,498 | 740,691,433 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income | |||
Net income | $ 2,512 | $ 2,193 | $ 2,180 |
Other Comprehensive Income (Loss), Net of Tax: | |||
Unrealized holding gains (losses) on available-for-sale securities arising during the year | 1,046 | (371) | 21 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (7) | 9 | 4 |
Unrealized holding gains (losses) on cash flow hedge derivatives arising during the year | 275 | 169 | (7) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (13) | 2 | (12) |
Net actuarial gain (loss) arising during the year | (5) | 1 | 1 |
Reclassification of amounts to net periodic benefit costs | 8 | 7 | 7 |
Other comprehensive income (loss), net of tax | 1,304 | (183) | 14 |
Comprehensive income | 3,816 | 2,010 | 2,194 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income attributable to Bancorp | $ 3,816 | $ 2,010 | $ 2,194 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common Stock | Preferred Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Bancorp Shareholders' Equity | Non- Controlling Interests |
Beginning Balance at Dec. 31, 2016 | $ 16,081 | $ 2,051 | $ 1,331 | $ 2,756 | $ 13,290 | $ 59 | $ (3,433) | $ 16,054 | $ 27 |
Net income | 2,180 | 2,180 | 2,180 | ||||||
Other comprehensive income (loss), net of tax | 14 | 14 | 14 | ||||||
Cash dividends declared: | |||||||||
Common stock | (436) | (436) | (436) | ||||||
Preferred stock | (75) | (75) | (75) | ||||||
Shares acquired for treasury | (1,605) | (17) | (1,588) | (1,605) | |||||
Impact of stock transactions under stock compensation plans, net | 67 | 51 | 16 | 67 | |||||
Other | (6) | (2) | 3 | 1 | (7) | ||||
Ending Balance at Dec. 31, 2017 | 16,220 | 2,051 | 1,331 | 2,790 | 14,957 | 73 | (5,002) | 16,200 | 20 |
Impact of cumulative effect of change in accounting principles at Dec. 31, 2017 | 4 | 6 | (2) | 4 | |||||
Balance at Dec. 31, 2017 | 16,224 | 2,051 | 1,331 | 2,790 | 14,963 | 71 | (5,002) | 16,204 | 20 |
Net income | 2,193 | 2,193 | 2,193 | ||||||
Other comprehensive income (loss), net of tax | (183) | (183) | (183) | ||||||
Cash dividends declared: | |||||||||
Common stock | (499) | (499) | (499) | ||||||
Preferred stock | (75) | (75) | (75) | ||||||
Shares acquired for treasury | (1,453) | 41 | (1,494) | (1,453) | |||||
Impact of stock transactions under stock compensation plans, net | 65 | 42 | 23 | 65 | |||||
Other | (22) | (4) | 2 | (2) | (20) | ||||
Ending Balance at Dec. 31, 2018 | 16,250 | 2,051 | 1,331 | 2,873 | 16,578 | (112) | (6,471) | 16,250 | 0 |
Impact of cumulative effect of change in accounting principles at Dec. 31, 2018 | 10 | 10 | 10 | ||||||
Balance at Dec. 31, 2018 | 16,260 | 2,051 | 1,331 | 2,873 | 16,588 | (112) | (6,471) | 16,260 | 0 |
Net income | 2,512 | 2,512 | 2,512 | ||||||
Other comprehensive income (loss), net of tax | 1,304 | 1,304 | 1,304 | ||||||
Cash dividends declared: | |||||||||
Common stock | (691) | (691) | (691) | ||||||
Preferred stock | (93) | (93) | (93) | ||||||
Shares acquired for treasury | (1,763) | (1,763) | (1,763) | ||||||
Issuance of preferred stock issued by a Bancorp subsidiary | 242 | 242 | 242 | ||||||
Conversion of outstanding preferred stock issued by a Bancorp subsidiary | 0 | 197 | 197 | (197) | |||||
Impact of MB Financial, Inc. acquisition | 3,356 | 712 | 2,447 | 3,159 | 197 | ||||
Impact of stock transactions under stock compensation plans, net | 72 | 14 | 2 | 56 | 72 | ||||
Other | 4 | (3) | 7 | 4 | |||||
Ending Balance at Dec. 31, 2019 | $ 21,203 | $ 2,051 | $ 1,770 | $ 3,599 | $ 18,315 | $ 1,192 | $ (5,724) | $ 21,203 | $ 0 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common stock, per share | $ 0.94 | $ 0.74 | $ 0.60 |
Preferred stock, Series H | |||
Preferred stock, per share | 1,275 | 1,275 | 1,275 |
Preferred stock Series I | |||
Preferred stock, per share | 1,656.24 | 1,656.24 | 1,656.24 |
Preferred stock, Series J | |||
Preferred stock, per share | 1,559.42 | $ 1,225 | $ 1,225 |
Preferred Stock, Series C | |||
Preferred stock, per share | 30 | ||
Class B Preferred stock, Series A | |||
Preferred stock, per share | 20.83 | ||
Preferred Stock, Series K | |||
Preferred stock, per share | $ 357.50 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | |||
Net income | $ 2,512 | $ 2,193 | $ 2,180 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 471 | 207 | 261 |
Depreciation, amortization and accretion | 472 | 360 | 341 |
Stock-based compensation expense | 132 | 127 | 118 |
(Benefit from) provision for deferred income taxes | (246) | 30 | (252) |
Securities (gains) losses, net | (47) | 54 | (3) |
Securities (gains) losses, net - non-qualifying hedges on mortgage servicing rights | (3) | 15 | (2) |
MSR fair value adjustment | 376 | 83 | 122 |
Net gains on sales of loans and fair value adjustments on loans held for sale | (137) | (71) | (108) |
Net losses on disposition and impairment of bank premises and equipment | 23 | 43 | 0 |
Net losses (gains) on disposition and impairment of operating lease equipment | 1 | (6) | 39 |
Gain related to Vantiv Inc.'s acquisition of Worldpay Group plc. | 0 | (414) | 0 |
Proceeds from Sale of Equity Method Investments | (562) | (205) | (1,037) |
Gain on the TRA associated with Worldpay, Inc. | (346) | (20) | (44) |
Proceeds from sales of loans held for sale | 8,157 | 5,199 | 6,453 |
Loans originated or purchased for sale, net of repayments | (8,896) | (5,378) | (6,054) |
Dividends representing return on equity method investments | 66 | 12 | 46 |
Net change in: | |||
Trading and equity securities | (29) | 132 | (442) |
Other assets | 20 | 303 | (22) |
Accrued taxes, interest and expenses | (49) | 147 | (138) |
Other liabilities | (91) | 45 | 22 |
Net Cash Provided by (Used in) Operating Activities | 1,824 | 2,856 | 1,480 |
Proceeds from sales: | |||
Available-for-sale securities and other investments | 10,596 | 12,430 | 12,637 |
Loans and leases | 259 | 305 | 164 |
Bank premises and equipment | 90 | 57 | 40 |
Proceeds from repayments / maturities: | |||
Available-for-sale securities and other investments | 2,267 | 1,845 | 2,331 |
Held-to-maturity securities | 4 | 6 | 3 |
Purchases: | |||
Available-for-sale securities and other investments | (13,959) | (16,207) | (15,295) |
Bank premises and equipment | (243) | (192) | (200) |
MSRs | (26) | (82) | (109) |
Proceeds from settlement of BOLI | 28 | 16 | 14 |
Proceeds from sale and dividends representing return of equity method investments | 1,057 | 604 | 1,363 |
Net cash received (paid) on acquisitions | 1,210 | (43) | (44) |
Net change in: | |||
Federal funds sold | 35 | 0 | 0 |
Other short-term investments | (647) | 928 | 1 |
Loans and leases | (1,407) | (3,866) | (446) |
Operating lease equipment | (61) | 58 | (31) |
Net Cash (Used in) Provided by Investing Activities | (797) | (4,141) | 428 |
Net change in: | |||
Deposits | 3,742 | 5,673 | (659) |
Federal funds purchased | (1,665) | 1,751 | 42 |
Other short-term borrowings | 171 | (3,439) | 477 |
Dividends paid on common stock | (660) | (467) | (430) |
Dividends paid on preferred stock | (93) | (98) | (75) |
Proceeds from issuance of long-term debt | 3,866 | 2,438 | 2,490 |
Repayment of long-term debt | (4,212) | (2,884) | (1,969) |
Repurchase of treasury stock and related forward contract | (1,763) | (1,453) | (1,605) |
Issuance of preferred stock | 242 | 0 | 0 |
Other | (58) | (69) | (57) |
Net Cash Provided (Used in) by Financing Activities | (430) | 1,452 | (1,786) |
Increase (Decrease) in Cash and Due from Banks | 597 | 167 | 122 |
Cash and Due from Banks at Beginning of Period | 2,681 | 2,514 | 2,392 |
Cash and Due from Banks at End of Period | $ 3,278 | $ 2,681 | $ 2,514 |
Summary of Significant Accounti
Summary of Significant Accounting and Reporting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Basis of Presentation | |
Summary of Significant Accounting and Reporting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES Nature of Operations Fifth Third Bancorp, an Ohio corporation, conducts its principal lending, deposit gathering, transaction processing and service advisory activities through its banking and non-banking Basis of Presentation The Consolidated Financial Statements include the accounts of the Bancorp and its majority-owned subsidiaries and VIEs in which the Bancorp has been determined to be the primary beneficiary. Other entities, including certain joint ventures, in which the Bancorp has the ability to exercise significant influence over operating and financial policies of the investee, but upon which the Bancorp does not possess control, are accounted for by the equity method of accounting and not consolidated. The investments in those entities in which the Bancorp does not have the ability to exercise significant influence are generally carried at fair value unless the investment does not have a readily determinable fair value. The Bancorp accounts for equity investments without a readily determinable fair value using the measurement alternative to fair value, representing the cost of the investment minus any impairment recorded, if any, and plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Intercompany transactions and balances among consolidated entities have been eliminated. Certain prior period data has been reclassified to conform to current period presentation. Specifically, Fifth Third reclassified the provision for the reserve for unfunded commitments from other noninterest expense to the provision for credit losses. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Due from Banks Cash and due from banks consist of currency and coin, cash items in the process of collection and due from banks. Currency and coin includes both U.S. and foreign currency owned and held at Fifth Third offices and that is in-transit Investment Securities Debt securities are classified as held-to-maturity, available-for-sale held-to-maturity available-for-sale Available-for-sale Available-for-sale held-to-maturity non-credit Equity securities with readily determinable fair values not accounted for under the equity method are reported at fair value with unrealized gains and losses included in noninterest income in the Consolidated Statements of Income. Equity securities without readily determinable fair values are measured at cost minus impairment, if any, plus or minus changes as a result of an observable price change for the identical or similar investment of the same issuer. At each quarterly reporting period, the Bancorp performs a qualitative assessment to evaluate whether impairment indicators are present. If qualitative indicators are identified, the investment is measured at fair value with the impairment loss included in noninterest income in the Consolidated Statements of Income. The fair value of a security is determined based on quoted market prices. If quoted market prices are not available, fair value is determined based on quoted prices of similar instruments or DCF models that incorporate market inputs and assumptions including discount rates, prepayment speeds and loss rates. The premium on purchased callable debt securities is amortized to the earliest call date if the call feature meets certain criteria. Otherwise, the premium is amortized to maturity similar to the discount on the callable debt securities. Realized securities gains or losses are reported within noninterest income in the Consolidated Statements of Income. The cost of securities sold is based on the specific identification method. Portfolio Loans and Leases Basis of accounting Portfolio loans and leases are generally reported at the principal amount outstanding, net of unearned income, deferred direct loan origination fees and costs and any direct principal charge-offs. Direct loan origination fees and costs are deferred and the net amount is amortized over the estimated life of the related loans as a yield adjustment. Interest income is recognized based on the principal balance outstanding computed using the effective interest method. Loans acquired by the Bancorp through a purchase business combination are recorded at fair value as of the acquisition date. The Bancorp does not carry over the acquired company’s ALLL, nor does the Bancorp add to its existing ALLL as part of purchase accounting. Purchased loans are evaluated for evidence of credit deterioration at acquisition and recorded at their initial fair value. For loans acquired with no evidence of credit deterioration, the fair value discount or premium is amortized over the contractual life of the loan as an adjustment to yield. For loans acquired with evidence of credit deterioration, the Bancorp determines at the acquisition date the excess of the loan’s contractually required payments over all cash flows expected to be collected as an amount that should not be accreted into interest income (nonaccretable difference). The remaining amount representing the difference in the expected cash flows of acquired loans and the initial investment in the acquired loans is accreted into interest income over the remaining life of the loan or pool of loans (accretable yield). Subsequent to the acquisition date, increases in expected cash flows over those expected at the acquisition date are recognized prospectively as interest income over the remaining life of the loan. The present values of any decreases in expected cash flows resulting directly from a change in the contractual interest rate are recognized prospectively as a reduction of the accretable yield. The present values of any decreases in expected cash flows after the acquisition date as a result of credit deterioration are recognized by recording an ALLL or a direct charge-off. The Bancorp’s lease portfolio consists of sales-type, direct financing and leveraged leases. Sales-type and direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased property, less unearned income. Interest income on sales-type and direct financing leases is recognized over the term of the lease to achieve a constant periodic rate of return on the outstanding investment. Leveraged leases, entered into before January 1, 2019, are carried at the aggregate of lease payments (less nonrecourse debt payments) plus estimated residual value of the leased property, less unearned income. Interest income on leveraged leases is recognized over the term of the lease to achieve a constant rate of return on the outstanding investment in the lease, net of the related deferred income tax liability, in the years in which the net investment is positive. Leveraged lease accounting is no longer applied for leases entered into or modified after the Bancorp’s adoption of ASU 2016-02, Nonaccrual loans and leases When a loan is placed on nonaccrual status, the accrual of interest, amortization of loan premium, accretion of loan discount and amortization/accretion of deferred net direct loan origination fees or costs are discontinued and all previously accrued and unpaid interest is charged against income. Commercial loans are placed on nonaccrual status when there is a clear indication that the borrower’s cash flows may not be sufficient to meet payments as they become due. Such loans are also placed on nonaccrual status when the principal or interest is past due 90 days or more, unless the loan is both well-secured and in the process of collection. The Bancorp classifies residential mortgage loans that have principal and interest payments that have become past due 150 days as nonaccrual unless the loan is both well-secured and in the process of collection. Residential mortgage loans may stay on nonaccrual status for an extended time as the foreclosure process typically lasts longer than 180 days. Home equity loans and lines of credit are reported on nonaccrual status if principal or interest has been in default for 90 days or more unless the loan is both well-secured and in the process of collection. Home equity loans and lines of credit that have been in default for 60 days or more are also reported on nonaccrual status if the senior lien has been in default 120 days or more, unless the loan is both well secured and in the process of collection. Loans discharged in a Chapter 7 bankruptcy and not reaffirmed by the borrower are classified as collateral-dependent TDRs and placed on nonaccrual status regardless of the borrower’s payment history or capacity to repay in the future. Residential mortgage, home equity, automobile and other consumer loans that have been modified in a TDR and subsequently become past due 90 days are placed on nonaccrual status unless the loan is both well-secured and in the process of collection. Commercial and credit card loans that have been modified in a TDR are classified as nonaccrual unless such loans have sustained repayment performance of six months or more and are reasonably assured of repayment in accordance with the restructured terms. Well-secured loans are collateralized by perfected security interests in real and/or personal property for which the Bancorp estimates proceeds from the sale would be sufficient to recover the outstanding principal and accrued interest balance of the loan and pay all costs to sell the collateral. The Bancorp considers a loan in the process of collection if collection efforts or legal action is proceeding and the Bancorp expects to collect funds sufficient to bring the loan current or recover the entire outstanding principal and accrued interest balance. Nonaccrual commercial loans and nonaccrual credit card loans are generally accounted for on the cost recovery method. The Bancorp believes the cost recovery method is appropriate for nonaccrual commercial loans and nonaccrual credit card loans because the assessment of collectability of the remaining recorded investment of these loans involves a high degree of subjectivity and uncertainty due to the nature or absence of underlying collateral. Under the cost recovery method, any payments received are applied to reduce principal. Once the entire recorded investment is collected, additional payments received are treated as recoveries of amounts previously charged-off Commercial loans on nonaccrual status, including those modified in a TDR, as well as criticized commercial loans with aggregate borrower relationships exceeding $1 million, are subject to an individual review to identify charge-offs. The Bancorp does not have an established delinquency threshold for partially or fully charging off commercial loans. Residential mortgage loans, home equity loans and lines of credit and credit card loans that have principal and interest payments that have become past due 180 days are assessed for a charge-off charge-off charge-off Restructured loans and leases A loan is accounted for as a TDR if the Bancorp, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. TDRs include concessions granted under reorganization, arrangement or other provisions of the Federal Bankruptcy Act. A TDR typically involves a modification of terms such as a reduction of the stated interest rate or remaining principal amount of the loan, a reduction of accrued interest or an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan with similar risk. The Bancorp measures the impairment loss of a TDR based on the difference between the original loan’s carrying amount and the present value of expected future cash flows discounted at the original, effective yield of the loan. Except for loans discharged in a Chapter 7 bankruptcy that are not reaffirmed by the borrower, residential mortgage loans, home equity loans, automobile loans and other consumer loans modified as part of a TDR are maintained on accrual status, provided there is reasonable assurance of repayment and of performance according to the modified terms based upon a current, well-documented credit evaluation. Loans discharged in a Chapter 7 bankruptcy and not reaffirmed by the borrower are classified as collateral-dependent TDRs and placed on nonaccrual status regardless of the borrower’s payment history or capacity to repay in the future. These loans are returned to accrual status provided there is a sustained payment history of twelve months after bankruptcy and collectability is reasonably assured for all remaining contractual payments. Commercial loans and credit card loans modified as part of a TDR are maintained on accrual status provided there is a sustained payment history of six months or more prior to the modification in accordance with the modified terms and collectability is reasonably assured for all remaining contractual payments under the modified terms. TDRs of commercial loans and credit card loans that do not have a sustained payment history of six months or more in accordance with their modified terms remain on nonaccrual status until a six-month Impaired loans and leases A loan is considered to be impaired when, based on current information and events, it is probable that the Bancorp will be unable to collect all amounts due (including both principal and interest) according to the contractual terms of the loan agreement. Impaired loans generally consist of nonaccrual loans and leases, loans modified in a TDR and loans over $1 million that are currently on accrual status and not yet modified in a TDR, but for which the Bancorp has determined that it is probable that it will grant a payment concession in the near term due to the borrower’s financial difficulties. For loans modified in a TDR, the contractual terms of the loan agreement refer to the terms specified in the original loan agreement. A loan restructured in a TDR is no longer considered impaired in years after the restructuring if the restructuring agreement specifies a rate equal to or greater than the rate the Bancorp was willing to accept at the time of the restructuring for a new loan with comparable risk and the loan is not impaired based on the terms specified by the restructuring agreement. Refer to the ALLL section for discussion regarding the Bancorp’s methodology for identifying impaired loans and determination of the need for a loss accrual. Loans and Leases Held for Sale Loans and leases held for sale primarily represent conforming fixed-rate residential mortgage loans originated or acquired with the intent to sell in the secondary market and jumbo residential mortgage loans, commercial loans, other residential mortgage loans and other consumer loans that management has the intent to sell. Loans and leases held for sale may be carried at the lower of cost or fair value, or carried at fair value where the Bancorp has elected the fair value option of accounting under U.S. GAAP. The Bancorp has elected to measure certain groups of loans held for sale under the fair value option, including certain residential mortgage loans originated as held for sale and certain purchased commercial loans designated as held for sale at acquisition. For loans in which the Bancorp has not elected the fair value option, the lower of cost or fair value is determined at the individual loan level. The fair value of residential mortgage loans held for sale for which the fair value election has been made is estimated based upon mortgage-backed securities prices and spreads to those prices or, for certain ARM loans, DCF models that may incorporate the anticipated portfolio composition, credit spreads of asset-backed securities with similar collateral and market conditions. The anticipated portfolio composition includes the effects of interest rate spreads and discount rates due to loan characteristics such as the state in which the loan was originated, the loan amount and the ARM margin. These fair value marks are recorded as a component of noninterest income in mortgage banking net revenue. The Bancorp generally has commitments to sell residential mortgage loans held for sale in the secondary market. Gains or losses on sales are recognized in mortgage banking net revenue. Management’s intent to sell residential mortgage loans classified as held for sale may change over time due to such factors as changes in the overall liquidity in markets or changes in characteristics specific to certain loans held for sale. Consequently, these loans may be reclassified to loans held for investment and, thereafter, reported within the Bancorp’s residential mortgage class of portfolio loans and leases. In such cases, the residential mortgage loans will continue to be measured at fair value, which is based on mortgage-backed securities prices, interest rate risk and an internally developed credit component. Loans and leases held for sale are placed on nonaccrual status consistent with the Bancorp’s nonaccrual policy for portfolio loans and leases. Other Real Estate Owned OREO, which is included in other assets in the Consolidated Balance Sheets, represents property acquired through foreclosure or other proceedings and branch-related real estate no longer intended to be used for banking purposes. OREO is carried at the lower of cost or fair value, less costs to sell. All OREO property is periodically evaluated for impairment and decreases in carrying value are recognized as reductions in other noninterest income in the Consolidated Statements of Income. For government-guaranteed mortgage loans, upon foreclosure, a separate other receivable is recognized if certain conditions are met for the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. This receivable is also included in other assets, separate from OREO, in the Consolidated Balance Sheets. ALLL The Bancorp disaggregates its portfolio loans and leases into portfolio segments for purposes of determining the ALLL. The Bancorp’s portfolio segments include commercial, residential mortgage and consumer. The Bancorp further disaggregates its portfolio segments into classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Classes within the commercial portfolio segment include commercial and industrial, commercial mortgage owner-occupied, commercial mortgage nonowner-occupied, commercial construction and commercial leasing. The residential mortgage portfolio segment is also considered a class. Classes within the consumer portfolio segment include home equity, automobile, credit card and other consumer loans. For an analysis of the Bancorp’s ALLL by portfolio segment and credit quality information by class, refer to Note 7. The Bancorp maintains the ALLL to absorb probable loan and lease losses inherent in its portfolio segments. The ALLL is maintained at a level the Bancorp considers to be adequate and is based on ongoing quarterly assessments and evaluations of the collectability and historical loss experience of loans and leases. Credit losses are charged and recoveries are credited to the ALLL. Provisions for loan and lease losses are based on the Bancorp’s review of the historical credit loss experience and such factors that, in management’s judgment, deserve consideration under existing economic conditions in estimating probable credit losses. The Bancorp’s strategy for credit risk management includes a combination of conservative exposure limits significantly below legal lending limits and conservative underwriting, documentation and collections standards. The strategy also emphasizes diversification on a geographic, industry and customer level, regular credit examinations and quarterly management reviews of large credit exposures and loans experiencing deterioration of credit quality. The Bancorp’s methodology for determining the ALLL is based on historical loss rates, current credit grades, specific allocation on loans modified in a TDR and impaired commercial credits above specified thresholds and other qualitative adjustments. Allowances on individual commercial loans and leases, TDRs and historical loss rates are reviewed quarterly and adjusted as necessary based on changing borrower and/or collateral conditions and actual collection and charge-off Larger commercial loans and leases included within aggregate borrower relationship balances exceeding $1 million that exhibit probable or observed credit weaknesses, as well as loans that have been modified in a TDR, are subject to individual review for impairment. The Bancorp considers the current value of collateral, credit quality of any guarantees, the guarantor’s liquidity and willingness to cooperate, the loan or lease structure and other factors when evaluating whether an individual loan or lease is impaired. Other factors may include the industry and geographic region of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower and the Bancorp’s evaluation of the borrower’s management. When individual loans and leases are impaired, allowances are determined based on management’s estimate of the borrower’s ability to repay the loan or lease given the availability of collateral and other sources of cash flow, as well as an evaluation of legal options available to the Bancorp. Allowances for impaired loans and leases are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, fair value of the underlying collateral or readily observable secondary market values. The Bancorp evaluates the collectability of both principal and interest when assessing the need for a loss accrual. Historical credit loss rates are applied to commercial loans and leases that are not impaired or are impaired, but smaller than the established threshold of $1 million and thus not subject to specific allowance allocations. The loss rates are derived from migration analyses for several portfolio stratifications, which track the historical net charge-off Homogenous loans in the residential mortgage and consumer portfolio segments are not individually risk graded. Rather, standard credit scoring systems and delinquency monitoring are used to assess credit risks and allowances are established based on the expected net charge-offs. Loss rates are based on the trailing twelve-month net charge-off The Bancorp also considers qualitative factors in determining the ALLL. These include adjustments for changes in policies or procedures in underwriting, monitoring or collections, economic conditions, portfolio mix, lending and risk management personnel, results of internal audit and quality control reviews, collateral values, geographic concentrations, estimated loss emergence period and specific portfolio loans backed by enterprise valuations and private equity sponsors. The Bancorp considers home price index trends in its footprint and the volatility of collateral valuation trends when determining the collateral value qualitative factor. When evaluating the adequacy of allowances, consideration is given to regional geographic concentrations and the closely associated effect changing economic conditions have on the Bancorp’s customers. In the current year, the Bancorp has not substantively changed any material aspect to its overall approach to determining its ALLL for any of its portfolio segments. There have been no material changes in criteria or estimation techniques as compared to prior periods that impacted the determination of the current period ALLL for any of the Bancorp’s portfolio segments. Reserve for Unfunded Commitments The reserve for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities and is included in other liabilities in the Consolidated Balance Sheets. The determination of the adequacy of the reserve is based upon an evaluation of the unfunded credit facilities, including an assessment of historical commitment utilization experience, credit risk grading and historical loss rates based on credit grade migration. This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of the Bancorp’s ALLL, as previously discussed. Net adjustments to the reserve for unfunded commitments are included in provision for credit losses in the Consolidated Statements of Income. Loan Sales and Securitizations The Bancorp periodically sells loans through either securitizations or individual loan sales in accordance with its investment policies. The sold loans are removed from the Consolidated Balance Sheet and a net gain or loss is recognized in the Consolidated Financial Statements at the time of sale. The Bancorp typically isolates the loans through the use of a VIE and thus is required to assess whether the entity holding the sold or securitized loans is a VIE and whether the Bancorp is the primary beneficiary and therefore consolidator of that VIE. If the Bancorp holds the power to direct activities most significant to the economic performance of the VIE and has the obligation to absorb losses or right to receive benefits that could potentially be significant to the VIE, then the Bancorp will generally be deemed the primary beneficiary of the VIE. If the Bancorp is determined not to be the primary beneficiary of a VIE but holds a variable interest in the entity, such variable interests are accounted for under the equity method of accounting or other accounting standards as appropriate. Refer to Note 13 for further information on consolidated and non-consolidated The Bancorp’s loan sales and securitizations are generally structured with servicing retained, which often results in the recording of servicing rights. The Bancorp may also purchase servicing rights. The Bancorp has elected to measure all existing classes of its residential mortgage servicing rights portfolio at fair value with changes in the fair value of servicing rights reported in mortgage banking net revenue in the Consolidated Statements of Income in the period in which the changes occur. Servicing rights are valued using internal OAS models. Key economic assumptions used in estimating the fair value of the servicing rights include the prepayment speeds of the underlying loans, the weighted-average life, the OAS and the weighted-average coupon rate, as applicable. The primary risk of material changes to the value of the servicing rights resides in the potential volatility in the economic assumptions used, particularly the prepayment speeds. In order to assist in the assessment of the fair value of servicing rights, the Bancorp obtains external valuations of the servicing rights portfolio from third parties and participates in peer surveys that provide additional confirmation of the reasonableness of the key assumptions utilized in the internal OAS model. Fees received for servicing loans owned by investors are based on a percentage of the outstanding monthly principal balance of such loans and are included in noninterest income in the Consolidated Statements of Income as loan payments are received. Costs of servicing loans are charged to expense as incurred. Reserve for Representation and Warranty Provisions Conforming residential mortgage loans sold to unrelated third parties are generally sold with representation and warranty provisions. A contractual liability arises only in the event of a breach of these representations and warranties and, in general, only when a loss results from the breach. The Bancorp may be required to repurchase any previously sold loan or indemnify (make whole) the investor or insurer for which the representation or warranty of the Bancorp proves to be inaccurate, incomplete or misleading. The Bancorp establishes a residential mortgage repurchase reserve related to various representations and warranties that reflects management’s estimate of losses based on a combination of factors. The Bancorp’s estimation process requires management to make subjective and complex judgments about matters that are inherently uncertain, such as future demand expectations, economic factors and the specific characteristics of the loans subject to repurchase. Such factors incorporate historical investor audit and repurchase demand rates, appeals success rates, historical loss severity and any additional information obtained from the GSEs regarding future mortgage repurchase and file request criteria. At the time of a loan sale, the Bancorp records a representation and warranty reserve at the estimated fair value of the Bancorp’s guarantee and continually updates the reserve during the life of the loan as losses in excess of the reserve become probable and reasonably estimable. The provision for the estimated fair value of the representation and warranty guarantee arising from the loan sales is recorded as an adjustment to the gain on sale, which is included in other noninterest income in the Consolidated Statements of Income at the time of sale. Updates to the reserve are recorded in other noninterest expense in the Consolidated Statements of Income. Legal Contingencies 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 and significant judgment may be required in the determination of both the probability of loss and whether the amount of the loss is reasonably estimable. The Bancorp’s estimates are subjective and are based on the status of legal and regulatory proceedings, the merit of the Bancorp’s defenses and consultation with internal and external legal counsel. An accrual for a potential litigation loss is established when information related to the loss contingency indicates both that a loss is probable and that the amount of loss can be reasonably estimated. This accrual is included in other liabilities in the Consolidated Balance Sheets and is adjusted from time to time as appropriate to reflect changes in circumstances. Legal expenses are recorded in other noninterest expense in the Consolidated Statements of Income. Bank Premises and Equipment and Other Long-Lived Assets Bank premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method based on estimated useful lives of the assets for book purposes, while accelerated depreciation is used for income tax purposes. Amortization of leasehold improvements is computed using the straight-line method over the lives of the related leases or useful lives of the related assets, whichever is shorter. Whenever events or changes in circumstances dictate, the Bancorp tests its long-lived assets for impairment by determining whether the sum of the estimated undiscounted future cash flows attributable to a long-lived asset or asset group is less than the carrying amount of the long-lived asset or asset group through a probability-weighted approach. In the event the carrying amount of the long-lived asset or asset group is not recoverable, an impairment loss is measured as the amount by which the carrying amount of the long-lived asset or asset group exceeds its fair value. Maintenance, repairs and minor improvements are charged to noninterest expense in the Consolidated Statements of Income as incurred. Lessee Accounting ROU assets and lease liabilities are recognized for all leases unless the initial term of the lease is 12 months or less. Lease costs for operating leases are recognized on a straight-line basis over the lease term unless another systematic basis is more representative of the pattern of consumption. The lease term includes any renewal period that the Bancorp is reasonably certain to exercise. The Bancorp uses its incremental borrowing rate to discount the lease payments if the rate implicit in the lease is not readily determinable. Variable lease payments associated with operating leases are recognized in the period in which the obligation for payments is incurred. For finance leases, the lease liability |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
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 ($ in millions) 2019 2018 2017 Cash Payments: Interest $ 1,441 1,016 699 Income taxes 726 359 1,035 Transfers: Portfolio loans to loans held for sale 211 275 255 Loans held for sale to portfolio loans 37 95 29 Portfolio loans to OREO 29 39 34 Supplemental Disclosures: Conversion of outstanding preferred stock issued by a Bancorp subsidiary 197 - - Additions to right-of-use 76 - - Additions to right-of-use 24 - - Right-of-use 2016-02 509 - - |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2019 | |
Business Combination | |
Business Combination | 3. BUSINESS COMBINATION On March 22, 2019, Fifth Third Bancorp completed its acquisition of MB Financial, Inc. in a stock and cash transaction valued at approximately $3.6 billion. MB Financial, Inc. was headquartered in Chicago, Illinois with reported assets of approximately $20 billion and 86 branches (91 locations) as of December 31, 2018 and was the holding company of MB Financial Bank, N.A. The acquisition resulted in a combined company with a larger Chicago market presence and core deposit funding base while also building scale in a strategically important market. Under the terms of the agreement, the Bancorp acquired 100% of the common stock of MB Financial, Inc. In exchange, common shareholders of MB Financial, Inc. received 1.45 shares of Fifth Third Bancorp common stock and $5.54 in cash for each share of MB Financial, Inc. common stock, for a total value per share of $42.49, based on the $25.48 closing price of Fifth Third Bancorp’s common stock on March 21, 2019. Upon closing of the transaction, MB Financial, Inc. became a subsidiary of the Bancorp. However, MB Financial, Inc.’s 6.00% non-cumulative On June 24, 2019, MB Financial, Inc. entered into an Agreement and Plan of Merger with the Bancorp to provide for the merger of MB Financial, Inc. with and into the Bancorp, with the Bancorp as the surviving corporation. A special meeting of MB Financial, Inc.’s stockholders was held on August 23, 2019 at which the holders of MB Financial, Inc.’s common stock and preferred stock, voting together as a single class, approved the merger. In the merger, each outstanding share of MB Financial, Inc.’s preferred stock was converted into the right to receive one share of a newly created series of preferred stock of the Bancorp having substantially the same terms as the MB Financial, Inc. preferred stock. On August 26, 2019, the Bancorp issued 200,000 shares of 6.00% non-cumulative non-cumulative The acquisition of MB Financial, Inc. constituted a business combination and was accounted for under the acquisition method of accounting. Accordingly, the assets acquired, liabilities assumed and noncontrolling interest recognized were recorded at their estimated fair values as of the acquisition date. These fair value estimates are considered preliminary as of December 31, 2019. Fair value estimates, including loans and leases, intangible assets, bank premises and equipment, certain tax-related The following table reflects consideration paid and the noncontrolling interest recognized for MB Financial, Inc.’s net assets and the amounts of acquired identifiable assets and liabilities assumed at their estimated fair value as of the acquisition date: ($ in millions) Consideration paid Cash payments $ 469 Fair value of common stock issued 3,121 Stock-based awards 38 Dividend receivable from MB Financial, Inc. (20) Total consideration paid $ 3,608 Fair value of noncontrolling interest in acquiree $ 197 Net Identifiable Assets Acquired, at Fair Value: Assets Cash and due from banks $ 1,679 Federal funds sold 35 Other short-term investments 53 Available-for-sale 832 Held-to-maturity 4 Equity securities 51 Loans and leases held for sale 12 Portfolio loans and leases (a) 13,411 Bank premises and equipment (a) 266 Operating lease equipment (a) 394 Intangible assets (a) 220 Servicing rights 263 Other assets (a) 750 Total assets acquired $ 17,970 Liabilities Deposits $ 14,489 Other short-term borrowings (a) 267 Accrued taxes, interest and expenses (a) 265 Other liabilities (a) 194 Long-term debt (a) 727 Total liabilities assumed $ 15,942 Net identifiable assets acquired 2,028 Goodwill $ 1,777 (a) Fair values have been updated from the estimates reported in the March 31, 2019 quarterly report on Form 10-Q. In connection with the acquisition, the Bancorp recognized approximately $1.8 billion of goodwill, of which $15 million relates to 15-year The following is a description of the methods used to determine the estimated fair values of significant assets and liabilities presented above. Cash and due from banks and other short-term investments For financial instruments with a short-term or no stated maturity, prevailing market rates and limited credit risk, carrying amounts approximate fair value. Available-for-sale held-to-maturity Fair values for securities were based on quoted market prices, where available. If quoted market prices were not available, fair value estimates were based on observable inputs including quoted market prices for similar instruments, quoted market prices that are not in an active market or other inputs that are observable in the market. In the absence of observable inputs, fair value was estimated based on pricing models and/or DCF methodologies. Loans and leases held for sale and portfolio loans and leases Fair values for loans were based on a DCF methodology that considered factors including the type of loan and related collateral, fixed or variable interest rate, remaining term, credit quality ratings or scores, amortization status and current discount rates. Loans with similar characteristics were pooled together when applying various valuation techniques. The discount rates used for loans were based on an evaluation of current market rates for new originations of comparable loans and a market participant’s required rate of return to purchase similar assets, including adjustments for liquidity and credit quality when necessary. For PCI loans, the DCF methodology was based on the Bancorp’s estimate of contractual cash flows expected to be collected. Bank premises and equipment Fair values for bank premises and equipment were generally based on appraisals of the property values. Operating lease equipment Fair values for operating lease equipment were generally developed using the cost approach. The seller’s historical cost was adjusted by cost trend indices relevant to the asset type and vintage to arrive at a current reproduction cost. This reproduction cost was then adjusted for deterioration based on the age and typical life of each class of assets. Residual values were estimated based on analysis of the seller’s historical trends of residual value realization by asset class. Intangible assets The core deposit intangible asset represents the value of relationships with deposit customers. The fair value was estimated based on a DCF methodology that considered expected customer attrition rates, net maintenance cost of the deposit base, alternative cost of funds and the interest costs associated with customer deposits. The core deposit intangible is being amortized on an accelerated basis over its estimated useful life. For acquired operating leases where the Bancorp is the lessor, intangible assets are recognized when contract terms of the lease are more favorable than market terms as of the acquisition date. Operating lease intangibles are amortized on a straight-line basis over the remaining lease term. Servicing rights Fair values for servicing rights were estimated using internal OAS models with certain unobservable inputs, primarily prepayment speed assumptions, OAS and weighted-average lives. Other assets Fair values for ROU assets associated with real estate operating leases were based on current market rental rates for similar properties in the same area, discounted at the Bancorp’s incremental borrowing rates as of the acquisition date. Estimates of current market rental rates were generally based on third-party market rent studies performed for each significant property. Deposits The fair values for time deposits were estimated using a DCF methodology whereby the contractual remaining cash flows were discounted using market rates currently being offered for time deposits of similar maturities. For transactional deposits, carrying amounts approximate fair value. Long-term debt The fair values of long-term debt instruments were estimated based on quoted market prices for identical or similar instruments if available, or by using DCF analyses based on current incremental borrowing rates for similar types of instruments. Merger-Related Expenses Direct merger-related expenses related to the acquisition of MB Financial, Inc. were expensed as incurred by the Bancorp and amounted to $222 million and $31 million for the years ended December 31, 2019 and 2018, respectively. The following table provides a summary of merger-related expenses recorded in noninterest expense: For the years ended December 31, ($ in millions) 2019 2018 Salaries, wages and incentives $ 87 1 Employee benefits 3 - Technology and communications 71 6 Net occupancy expense 13 - Card and processing expense 1 1 Equipment expense 1 - Other noninterest expense 46 23 Total $ 222 31 Pro Forma Information The following table presents unaudited pro forma information as if the acquisition of MB Financial, Inc. had occurred on January 1, 2018. This pro forma information combines the historical condensed consolidated results of operations of Fifth Third Bancorp and MB Financial, Inc. after giving effect to certain adjustments, including purchase accounting fair value adjustments, amortization of intangibles, stock-based compensation expense and acquisition costs, as well as the related income tax effects of those adjustments. The pro forma results also reflect reclassification adjustments to noninterest income and noninterest expense to conform MB Financial, Inc.’s presentation of operating lease income and the related depreciation expense with the Bancorp’s presentation. Direct costs associated with the acquisition are included in pro forma earnings as of January 1, 2018. The pro forma information does not necessarily reflect the results of operations that would have occurred had Fifth Third Bancorp acquired MB Financial, Inc. on January 1, 2018. Furthermore, cost savings and other business synergies related to the acquisition are not reflected in the unaudited pro forma amounts. Unaudited Pro Forma Information For the years ended December 31, ($ in millions) 2019 2018 Net interest income $ 4,911 4,836 Noninterest income 3,638 3,184 Net income available to common shareholders 2,529 2,282 Acquired Loans and Leases Purchased loans are evaluated for evidence of credit deterioration at acquisition and recorded at their initial fair value. Generally, the fair value discount or premium on acquired loans and leases is amortized over the contractual life of the loan as an adjustment to yield. The following table reflects the contractually required payments receivable, cash flows expected to be collected and estimated fair value of loans identified as PCI loans on the acquisition date of MB Financial, Inc. These fair value estimates are considered preliminary as of December 31, 2019. ($ in millions) March 22, 2019 Contractually required payments including interest $ 1,139 Less: Nonaccretable difference 81 Cash flows expected to be collected 1,058 Less: Accretable yield 202 Fair value of loans acquired $ 856 A summary of activity related to accretable yield is as follows: ($ in millions) Accretable Yield Balance as of December 31, 2018 $ - Additions 202 Accretion (41) Reclassifications (to) from nonaccretable difference (14) Balance as of December 31, 2019 $ 147 As of December 31, 2019, contractual balances on the purchased PCI loans and leases totaled $764 million with a corresponding carry value of $551 million. At the MB Financial, Inc. acquisition date, contractual balances on the purchased non-PCI Bank Merger On May 3, 2019 MB Financial Bank, N.A. merged with and into Fifth Third Bank (now Fifth Third Bank, National Association), with Fifth Third Bank, National Association as the surviving entity. Fifth Third Bank, National Association is an indirect subsidiary of Fifth Third Bancorp. |
Restriction on Cash, Dividends
Restriction on Cash, Dividends and Other Capital Actions | 12 Months Ended |
Dec. 31, 2019 | |
Restriction On Cash | |
Restriction on Cash, Dividends and Other Capital Actions | 4. RESTRICTIONS ON CASH, DIVIDENDS AND OTHER CAPITAL ACTIONS Reserve Requirement The FRB, under Regulation D, requires that banks hold cash in reserve against deposit liabilities when total reservable deposit liabilities are greater than the regulatory exemption, known as the reserve requirement. The reserve requirement is calculated based on a two-week two-week Restrictions on Cash Dividends The principal source of income and funds for the Bancorp (parent company) are dividends from its subsidiaries. The dividends paid by the Bancorp’s banking subsidiary are subject to regulations and limitations prescribed by state and federal supervisory agencies. The Bancorp’s banking subsidiary paid the Bancorp’s nonbank subsidiary holding company, which in turn paid the Bancorp $2.0 billion and $1.9 billion in dividends during the years ended December 31, 2019 and 2018, respectively. Additionally, a $200 million dividend was paid by MB Financial, Inc. to the Bancorp during the year ended December 31, 2019. The Bancorp’s nonbank-subsidiaries are also limited by certain federal and state statutory provisions and regulations covering the amount of dividends that may be paid in any given year. Capital Actions During the first quarter of 2019, the FRB provided relief from certain regulatory requirements related to supervisory stress testing and company-run In June of 2019, the Bancorp announced its capital distribution capacity of approximately $2 billion for the period of July 1, 2019 through June 30, 2020. This includes the ability to execute share repurchases up to $1.24 billion as well as increase quarterly common stock dividends by up to $0.03 per share. These distributions will be governed under the FRB’s 2019 extended stress test process for BHCs with less than $250 billion of total consolidated assets. The Bancorp also entered into or settled share repurchase and open market share repurchase transactions during the years ended December 31, 2019 and 2018. For more information related to these transactions, refer to Note 25. In the second quarter of 2019, the Bancorp increased the quarterly common stock dividend to $0.24 per share. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investment Securities | |
Investment Securities | 5. INVESTMENT SECURITIES The following table provides the amortized cost, fair value and unrealized gains and losses for the major categories of the available-for-sale held-to-maturity 2019 2018 Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair ($ in millions) Cost Gains Losses Value Cost Gains Losses Value Available-for-sale U.S. Treasury and federal agencies securities $ 74 1 - 75 98 - (1) 97 Obligations of states and political subdivisions securities 18 - - 18 2 - - 2 Mortgage-backed securities: Agency residential mortgage-backed securities 13,746 388 (19) 14,115 16,403 86 (242) 16,247 Agency commercial mortgage-backed securities 15,141 564 (12) 15,693 10,770 44 (164) 10,650 Non-agency 3,242 123 - 3,365 3,305 9 (47) 3,267 Asset-backed securities and other debt securities 2,189 29 (12) 2,206 1,998 27 (10) 2,015 Other securities (a) 556 - - 556 552 - - 552 Total available-for-sale $ 34,966 1,105 (43) 36,028 33,128 166 (464) 32,830 Held-to-maturity Obligations of states and political subdivisions securities $ 15 - - 15 16 - - 16 Asset-backed securities and other debt securities 2 - - 2 2 - - 2 Total held-to-maturity $ 17 - - 17 18 - - 18 (a) Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $76 $478 $2 December 31, 2019 The following table provides the fair value of trading debt securities and equity securities as of December 31: ($ in millions) 2019 2018 Trading debt securities $ 297 287 Equity securities 564 452 its MSR non-qualifying non-qualifying The following table presents securities gains (losses) recognized in the Consolidated Statements of Income as of December 31: ($ in millions) 2019 2018 2017 Available-for-sale Realized gains $ 60 72 85 Realized losses (50 ) (82 ) (36) OTTI (1 ) - (54) Net realized gains (losses) on available-for-sale $ 9 (10 ) (5) Total trading debt securities gains (losses) $ 3 (15 ) 2 Total equity securities gains (losses) (a) $ 31 (44 ) 7 Total gains (losses) recognized in income from available-for-sale (b) $ 43 (69 ) 4 (a) Includes $26 December 31, 2019 (b) Excludes $7 December 31, 2019 At December 31, 2019 and 2018, investment securities with a fair value of $8.1 billion and $7.0 billion, respectively, were pledged to secure borrowings, The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale held-to-maturity Available-for-Sale Held-to-Maturity ($ in millions) Amortized Cost Fair Value Amortized Cost Fair Value Debt securities: (a) Less than 1 year $ 195 200 5 5 1-5 10,983 11,288 10 10 5-10 17,566 18,173 - - Over 10 years 5,666 5,811 2 2 Other securities 556 556 - - Total $ 34,966 36,028 17 17 (a) Actual maturities may differ from contractual maturities when a right to call or prepay obligations exists with or without call or prepayment penalties. The following table provides the fair value and gross unrealized losses on available-for-sale Less than 12 months 12 months or more Total ($ in millions) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized 2019 Agency residential mortgage-backed securities $ 2,159 (19) 4 - 2,163 (19) Agency commercial mortgage-backed securities 1,602 (12) - - 1,602 (12) Asset-backed securities and other debt securities 367 (3) 379 (9) 746 (12) Total $ 4,128 (34) 383 (9) 4,511 (43) 2018 U.S. Treasury and federal agencies securities $ - - 97 (1) 97 (1) Agency residential mortgage-backed securities 3,235 (21) 7,892 (221) 11,127 (242) Agency commercial mortgage-backed securities 2,022 (37) 5,260 (127) 7,282 (164) Non-agency 884 (6) 1,621 (41) 2,505 (47) Asset-backed securities and other debt securities 314 (6) 241 (4) 555 (10) Total $ 6,455 (70) 15,111 (394) 21,566 (464) available-for-sale non-rated |
Loans and Leases
Loans and Leases | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Leases Receivable | |
Loans and Leases | 6. LOANS AND LEASES The Bancorp diversifies its loan and lease portfolio by offering a variety of loan and lease products with various payment terms and rate structures. The Bancorp’s commercial loan and lease portfolio consists of lending to various industry types. Management periodically reviews the performance of its loan and lease products to evaluate whether they are performing within acceptable interest rate and credit risk levels and changes are made to underwriting policies and procedures as needed. The Bancorp acquired indirect motorcycle, powersport, recreational vehicle and marine loans in the acquisition of MB Financial, Inc. These loans are included in addition to automobile loans in the line item “indirect secured consumer loans”. 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 7. The following table provides a summary of commercial loans and leases classified by primary purpose and consumer loans classified based upon product or collateral as of December 31: ($ in millions) 2019 2018 Loans and leases held for sale: Commercial and industrial loans $ 135 67 Commercial mortgage loans 1 3 Residential mortgage loans 1,264 537 Total loans and leases held for sale $ 1,400 607 Portfolio loans and leases: Commercial and industrial loans $ 50,542 44,340 Commercial mortgage loans 10,963 6,974 Commercial construction loans 5,090 4,657 Commercial leases 3,363 3,600 Total commercial loans and leases 69,958 59,571 Residential mortgage loans 16,724 15,504 Home equity 6,083 6,402 Indirect secured consumer loans 11,538 8,976 Credit card 2,532 2,470 Other consumer loans 2,723 2,342 Total consumer loans 39,600 35,694 Total portfolio loans and leases $ 109,558 95,265 Portfolio loans and leases are recorded net of unearned income, which totaled $354 million as of December 31, 2019 and $479 million as of December 31, 2018. Additionally, portfolio loans and leases, excluding PCI loans, are recorded net of unamortized premiums and discounts, deferred direct loan origination fees and costs and fair value adjustments (associated with acquired loans or loans designated as fair value upon origination) which totaled a net premium of $249 million and $296 million as of December 31, 2019 and 2018, respectively. The Bancorp’s FHLB and FRB borrowings are generally secured by loans. The Bancorp had loans of $16.7 billion and $13.1 billion at December 31, 2019 and 2018, respectively, pledged at the FHLB, and loans of $47.3 billion and $42.6 billion at December 31, 2019 and 2018, respectively, pledged at the FRB. The following table presents a summary of the total loans and leases owned by the Bancorp and net charge-offs (recoveries) as of and for the years ended December 31: 90 Days Past Due Net Carrying Value and Still Accruing Charge-Offs (Recoveries) ($ in millions) 2019 2019 2018 2019 2018 Commercial and industrial loans $ 50,677 44,407 11 4 103 132 Commercial mortgage loans 10,964 6,977 15 2 (2) (1) Commercial construction loans 5,090 4,657 - - - - Commercial leases 3,363 3,600 - - 7 1 Residential mortgage loans 17,988 16,041 50 38 4 7 Home equity 6,083 6,402 1 - 18 12 Indirect secured consumer loans 11,538 8,976 10 12 50 40 Credit card 2,532 2,470 42 37 134 101 Other consumer loans 2,723 2,342 1 - 55 38 Total loans and leases $ 110,958 95,872 130 93 369 330 Less: Loans and leases held for sale $ 1,400 607 Total portfolio loans and leases $ 109,558 95,265 The Bancorp engages in commercial lease products primarily related to the financing of commercial equipment. Leases are classified as sales-type if the Bancorp transfers control of the underlying asset to the lessee. The Bancorp classifies leases that do not meet any of the criteria for a sales-type lease as a direct financing lease if the present value of the sum of the lease payments and any residual value guaranteed by the lessee and/or any other third party equals or exceeds substantially all of the fair value of the underlying asset and the collection of the lease payments and residual value guarantee is probable. The following table presents the components of the net investment in leases as of: ($ in millions) December 31, 2019 (a) Net investment in direct financing leases: Lease payment receivable (present value) $ 2,196 Unguaranteed residual assets (present value) 220 Net discount on acquired leases (7) Deferred selling profits - Net investment in sales-type leases: Lease payment receivable (present value) 510 Unguaranteed residual assets (present value) 15 Net discount on acquired leases - (a) Excludes $429 of leveraged leases at December 31, 2019. The following table provides the components of the commercial lease financing portfolio as of: ($ in millions) December 31, 2018 Rentals receivable, net of principal and interest on nonrecourse debt $ 3,256 Estimated residual value of leased assets 804 Initial direct cost, net of amortization 19 Gross investment in commercial lease financing 4,079 Unearned income (479) Net investment in commercial lease financing $ 3,600 Interest income recognized in the Consolidated Statements of Income for the year ended December 31, 2019 was $88 million for direct financing leases and $13 million for sales-type leases. The following table presents undiscounted cash flows for both direct financing and sales-type leases for 2020 through 2024 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease receivables as follows: As of December 31, 2019 ($ in millions) Direct Financing Leases Sales-Type Leases 2020 $ 679 121 2021 523 133 2022 428 112 2023 257 70 2024 184 63 Thereafter 273 75 Total undiscounted cash flows $ 2,344 574 Less: Difference between undiscounted cash flows and discounted cash flows 148 64 Present value of lease payments (recognized as lease receivables) $ 2,196 510 The lease residual value represents the present value of the estimated fair value of the leased equipment at the end of the lease. The Bancorp performs quarterly reviews of residual values associated with its leasing portfolio considering factors such as the subject equipment, structure of the transaction, industry, prior experience with the lessee and other factors that impact the residual value to assess for impairment. At December 31, 2019, the Bancorp maintained an allowance of $17 million to cover the inherent losses, including the potential losses related to the residual value, in the net investment in leases. Refer to Note 7 for additional information on credit quality and the ALLL. At December 31, 2018, the Bancorp maintained an allowance of $18 million to cover the losses related to the minimum lease payments. Any declines in residual value that were deemed to be other-than-temporary were recognized as a loss and included as a component of corporate banking revenue in the Consolidated Statements of Income. |
Credit Quality and the Allowanc
Credit Quality and the Allowance for Loan and Lease Losses | 12 Months Ended |
Dec. 31, 2019 | |
Credit Quality and the Allowance for Loan and Lease Losses | |
Credit Quality and the Allowance for Loan and Lease Losses | 7. CREDIT QUALITY AND THE ALLOWANCE FOR LOAN AND LEASE LOSSES The Bancorp disaggregates ALLL balances and transactions in the ALLL by portfolio segment. Credit quality related disclosures for loans and leases are further disaggregated by class. Allowance for Loan and Lease Losses The following tables summarize transactions in the ALLL by portfolio segment for the years ended December 31: Residential 2019 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 645 81 267 110 1,103 Losses charged-off (a) (127) (9) (374) - (510) Recoveries of losses previously charged-off (a) 19 5 117 - 141 Provision for (benefit from) loan and lease losses 173 (4) 288 11 468 Balance, end of period $ 710 73 298 121 1,202 (a) For the year ended December 31, 2019 $48 charged-off charged-off point-of-sale Residential 2018 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 753 89 234 120 1,196 Losses charged-off (a) (157) (13) (280) - (450) Recoveries of losses previously charged-off (a) 25 6 89 - 120 Provision for (benefit from) loan and lease losses 24 (1) 224 (10) 237 Balance, end of period $ 645 81 267 110 1,103 (a) For the year ended December 31, 2018, the Bancorp recorded $29 in both losses charged-off charged-off point-of-sale Residential 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 831 96 214 112 1,253 Losses charged-off (154) (15) (212) - (381) Recoveries of losses previously charged-off 29 8 46 - 83 Provision for loan and lease losses 66 - 186 9 261 Deconsolidation of a VIE (19) - - (1) (20) Balance, end of period $ 753 89 234 120 1,196 The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: Residential As of December 31, 2019 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 82 55 33 - 170 Collectively evaluated for impairment 628 18 265 - 911 Unallocated - - - 121 121 Total ALLL $ 710 73 298 121 1,202 Portfolio loans and leases: (b) Individually evaluated for impairment $ 413 814 302 - 1,529 Collectively evaluated for impairment 69,047 15,690 22,558 - 107,295 Purchased credit impaired 498 37 16 - 551 Total portfolio loans and leases $ 69,958 16,541 22,876 - 109,375 (a) Includes $1 December 31, 2019 (b) Excludes $183 $429 December 31, 2019 Residential As of December 31, 2018 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 42 61 38 - 141 Collectively evaluated for impairment 603 20 229 - 852 Unallocated - - - 110 110 Total ALLL $ 645 81 267 110 1,103 Portfolio loans and leases: (b) Individually evaluated for impairment $ 277 736 278 - 1,291 Collectively evaluated for impairment 59,294 14,589 19,912 - 93,795 Total portfolio loans and leases $ 59,571 15,325 20,190 - 95,086 (a) Includes $1 related to leveraged leases at December 31, 2018. (b) Excludes $179 of residential mortgage loans measured at fair value and includes $624 of leveraged leases, net of unearned income at December 31, 2018. CREDIT RISK PROFILE Commercial Portfolio Segment For purposes of analyzing historical loss rates used in the determination of the ALLL and monitoring the credit quality and risk characteristics of its commercial portfolio segment, the Bancorp disaggregates the segment into the following classes: commercial and industrial, commercial mortgage owner-occupied, commercial mortgage nonowner-occupied, commercial construction and commercial leases. To facilitate the monitoring of credit quality within the commercial portfolio segment, 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 considered uncollectible and are charged-off charged-off, The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class: Special As of December 31, 2019 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 47,671 1,423 1,406 42 50,542 Commercial mortgage owner-occupied loans 4,421 162 293 4 4,880 Commercial mortgage nonowner-occupied loans 5,866 135 82 - 6,083 Commercial construction loans 4,963 52 75 - 5,090 Commercial leases 3,222 53 88 - 3,363 Total commercial loans and leases $ 66,143 1,825 1,944 46 69,958 Special As of December 31, 2018 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 42,695 779 853 13 44,340 Commercial mortgage owner-occupied loans 3,122 23 139 - 3,284 Commercial mortgage nonowner-occupied loans 3,632 27 31 - 3,690 Commercial construction loans 4,657 - - - 4,657 Commercial leases 3,475 72 53 - 3,600 Total commercial loans and leases $ 57,581 901 1,076 13 59,571 Residential Mortgage and Consumer Portfolio Segments For purposes of monitoring the credit quality and risk characteristics of its consumer portfolio segment, the Bancorp disaggregates the segment into the following classes: home equity, indirect secured consumer loans, credit card and other consumer loans. The Bancorp’s residential mortgage portfolio segment is also a separate class. The Bancorp considers repayment performance as the best indicator of credit quality for residential mortgage and consumer loans, which includes both the delinquency status and performing versus nonperforming status of the loans. The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class, disaggregated into performing versus nonperforming status as of December 31: 2019 2018 ($ in millions) Performing Nonperforming Performing Nonperforming Residential mortgage loans (a) $ 16,450 91 15,303 22 Home equity 5,989 94 6,332 70 Indirect secured consumer loans 11,531 7 8,975 1 Credit card 2,505 27 2,444 26 Other consumer loans 2,721 2 2,341 1 Total residential mortgage and consumer loans (a) $ 39,196 221 35,395 120 (a) Excludes $183 December 31, 2019 Age Analysis of Past Due Loans and Leases The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases, by age and class: Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of December 31, 2019 ($ in millions) Leases (b)(c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 50,305 133 104 237 50,542 11 Commercial mortgage owner-occupied loans 4,853 4 23 27 4,880 9 Commercial mortgage nonowner-occupied loans 6,072 5 6 11 6,083 6 Commercial construction loans 5,089 1 - 1 5,090 - Commercial leases 3,338 11 14 25 3,363 - Residential mortgage loans (a) 16,372 27 142 169 16,541 50 Consumer loans: Home equity 5,965 61 57 118 6,083 1 Indirect secured consumer loans 11,389 132 17 149 11,538 10 Credit card 2,434 50 48 98 2,532 42 Other consumer loans 2,702 18 3 21 2,723 1 Total portfolio loans and leases (a) $ 108,519 442 414 856 109,375 130 (a) Excludes $183 December 31, 2019 (b) 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, 2019 $94 30-89 $261 $4 December 31, 2019 (c) Includes accrual and nonaccrual loans and leases. Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of December 31, 2018 ($ in millions) Leases (b)(c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 44,213 32 95 127 44,340 4 Commercial mortgage owner-occupied loans 3,277 1 6 7 3,284 2 Commercial mortgage nonowner-occupied loans 3,688 1 1 2 3,690 - Commercial construction loans 4,657 - - - 4,657 - Commercial leases 3,597 1 2 3 3,600 - Residential mortgage loans (a) 15,227 37 61 98 15,325 38 Consumer loans: Home equity 6,280 71 51 122 6,402 - Indirect secured consumer loans 8,844 119 13 132 8,976 12 Credit card 2,381 47 42 89 2,470 37 Other consumer loans 2,323 17 2 19 2,342 - Total portfolio loans and leases (a) $ 94,487 326 273 599 95,086 93 (a) Excludes $179 of residential mortgage loans measured at fair value at December 31, 2018. (b) 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, 2018, $90 of these loans were 30-89 (c) Includes accrual and nonaccrual loans and leases. Impaired Portfolio Loans and Leases Larger commercial loans and leases included within aggregate borrower relationship balances exceeding $1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment. The Bancorp also performs an individual review on loans and leases that are restructured in a TDR. The following tables summarize the Bancorp’s impaired portfolio loans and leases, by class, that were subject to individual review, which includes all portfolio loans and leases restructured in a TDR as of December 31: 2019 ($ in millions) Unpaid Recorded ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 277 215 76 Commercial mortgage owner-occupied loans 4 4 - Commercial mortgage nonowner-occupied loans 1 - - Commercial leases 26 26 6 Restructured residential mortgage loans 431 429 55 Restructured consumer loans: Home equity 127 127 20 Indirect secured consumer loans 4 4 - Credit card 47 44 13 Total impaired portfolio loans and leases with a related ALLL $ 917 849 170 With no related ALLL: Commercial loans and leases: Commercial and industrial loans $ 156 142 - Commercial mortgage owner-occupied loans 21 21 - Commercial mortgage nonowner-occupied loans 3 3 - Commercial leases 2 2 - Restructured residential mortgage loans 401 385 - Restructured consumer loans: Home equity 125 119 - Indirect secured consumer loans 10 8 - Total impaired portfolio loans and leases with no related ALLL $ 718 680 - Total impaired portfolio loans and leases $ 1,635 1,529 (a) 170 (a) Includes $23 $735 $230 $231 $79 $72 December 31, 2019 2018 ($ in millions) Unpaid Recorded ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 156 107 34 Commercial mortgage owner-occupied loans 2 2 1 Commercial mortgage nonowner-occupied loans 2 1 - Commercial leases 23 22 7 Restructured residential mortgage loans 465 462 61 Restructured consumer loans: Home equity 146 145 22 Indirect secured consumer loans 5 4 1 Credit card 47 44 15 Total impaired portfolio loans and leases with a related ALLL $ 846 787 141 With no related ALLL: Commercial loans and leases: Commercial and industrial loans $ 137 125 - Commercial mortgage owner-occupied loans 9 9 - Commercial mortgage nonowner-occupied loans 11 11 - Restructured residential mortgage loans 292 274 - Restructured consumer loans: Home equity 85 83 - Indirect secured consumer loans 2 2 - Total impaired portfolio loans and leases with no related ALLL $ 536 504 - Total impaired portfolio loans and leases $ 1,382 1,291 (a) 141 (a) Includes $60, $724 and $237, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $147, $12 and $41, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2018. The following table summarizes the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class, for the years ended December 31: 2019 2018 2017 ($ in millions) Average Interest Average Interest Average Interest Income Commercial loans and leases: Commercial and industrial loans $ 306 7 373 15 579 10 Commercial mortgage owner-occupied loans 23 - 15 - 35 - Commercial mortgage nonowner-occupied loans 8 - 24 - 61 1 Commercial leases 28 1 18 - 3 - Restructured residential mortgage loans 756 30 743 28 657 25 Restructured consumer loans: Home equity 221 11 244 12 281 12 Indirect secured consumer loans 7 - 8 - 11 - Credit card 44 4 44 5 50 4 Total average impaired portfolio loans and leases $ 1,393 53 1,469 60 1,677 52 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 loans which have not yet met the requirements to be returned to accrual status; certain restructured consumer and residential mortgage loans which are 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 December 31: ($ in millions) 2019 2018 Commercial loans and leases: Commercial and industrial loans $ 338 193 Commercial mortgage owner-occupied loans 29 11 Commercial mortgage nonowner-occupied loans 1 2 Commercial construction loans 1 - Commercial leases 28 22 Total nonaccrual portfolio commercial loans and leases 397 228 Residential mortgage loans 91 22 Consumer loans: Home equity 94 69 Indirect secured consumer loans 7 1 Credit card 27 27 Other consumer loans 2 1 Total nonaccrual portfolio consumer loans 130 98 Total nonaccrual portfolio loans and leases (a)(b) $ 618 348 OREO and other repossessed property 62 47 Total nonperforming portfolio assets (a)(b) $ 680 395 (a) Excludes $7 December 31, 2019 (b) Includes $16 December 31, 2019 $11 December 31, 2019 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 $212 million and $153 million as of December 31, 2019 and 2018, respectively. Troubled Debt Restructurings A loan is accounted for as a TDR if the Bancorp, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. TDRs include concessions granted under reorganization, arrangement or other provisions of the Federal Bankruptcy Act. 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 for information on the Bancorp’s ALLL methodology. Upon modification of a loan, the Bancorp measures the related impairment as the difference between the estimated future cash flows 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 charged-off The Bancorp had commitments to lend additional funds to borrowers whose terms have been modified in a TDR, consisting of line of credit and letter of credit commitments of $41 million and $58 million, respectively, as of December 31, 2019 compared with $24 million and $67 million, respectively, as of December 31, 2018. The following tables provide a summary of loans and leases, by class, modified in a TDR by the Bancorp during the years ended December 31: 2019 ($ in millions) (a)(b) Number of Loans (c) Recorded Investment (Decrease) Charge-offs Commercial loans and leases: Commercial and industrial loans 97 $ 223 (19 ) 5 Commercial mortgage owner-occupied loans 15 12 - - Commercial mortgage nonowner-occupied loans 1 - - - Residential mortgage loans 722 101 1 - Consumer loans: Home equity 80 4 - - Indirect secured consumer loans 100 - - - Credit card 6,041 34 8 3 Total portfolio loans and leases 7,056 $ 374 (10 ) 8 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. (b) Excludes loans classified as TDRs as a result of the Bancorp’s conformance to OCC guidance with regard to non-reaffirmed (c) Represents number of loans post-modification and excludes loans previously modified in a TDR. 2018 ($ in millions) (a) Number of Loans (b) Recorded Investment Increase (Decrease) Charge-offs Commercial loans and leases: Commercial and industrial loans 54 $ 200 1 7 Commercial mortgage owner-occupied loans 6 3 (1 ) - Commercial mortgage nonowner-occupied loans 3 - - - Residential mortgage loans 1,128 168 4 - Consumer loans: Home equity 111 7 - - Indirect secured consumer loans 84 - - - Credit card 7,483 37 9 2 Total portfolio loans and leases 8,869 $ 415 13 9 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. (b) Represents number of loans post-modification and excludes loans previously modified in a TDR. 2017 ($ in millions) (a) Number of Loans (b) Recorded Investment Increase Charge-offs Commercial loans and leases: Commercial and industrial loans 75 $ 237 (5 ) 6 Commercial mortgage owner-occupied loans 9 8 5 - Commercial mortgage nonowner-occupied loans 4 - - - Commercial leases 1 4 - - Residential mortgage loans 830 116 5 - Consumer loans: Home equity 150 10 - - Indirect secured consumer loans 102 - - - Credit card 8,085 38 8 1 Total portfolio loans and leases 9,256 $ 413 13 7 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. (b) Represents number of loans post-modification and excludes loans previously modified in a TDR. consumer TDRs). When a residential mortgage, home equity, indirect secured consumer loan 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 The following tables provide a summary of TDRs that subsequently defaulted during the years ended December 31, 2019, 2018 and 2017 and were within twelve months of the restructuring date: December 31, 2019 ($ in millions) (a)(b) Number of Contracts Recorded Investment Commercial loans and leases: Commercial and industrial loans 12 $ 20 Commercial mortgage owner-occupied loans 4 1 Commercial mortgage nonowner-occupied loans 1 - Residential mortgage loans 274 42 Consumer loans: Home equity 15 - Credit card 655 3 Total portfolio loans and leases 961 $ 66 (a) (b) non-reaffirmed December 31, 2018 ($ in millions) (a) Number of Recorded Commercial loans and leases: Commercial and industrial loans 8 $ 61 Commercial mortgage owner-occupied loans 2 - Residential mortgage loans 225 35 Consumer loans: Home equity 10 - Credit card 655 4 Total portfolio loans and leases 900 $ 100 (a) December 31, 2017 ($ in millions) (a) Number of Recorded Commercial loans and leases: Commercial and industrial loans 7 $ 17 Commercial mortgage owner-occupied loans 4 1 Residential mortgage loans 172 24 Consumer loans: Home equity 16 2 Credit card 1,633 8 Total portfolio loans and leases 1,832 $ 52 (a) |
Bank Premises and Equipment
Bank Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Bank Premises and Equipment | |
Bank Premises and Equipment | 8. BANK PREMISES AND EQUIPMENT The following table provides a summary of bank premises and equipment as of December 31: ($ in millions) Estimated Useful Life 2019 2018 Land and improvements (a) $ 639 586 Buildings (a) 1 - 30 yrs. 1,575 1,547 Equipment 2 - 20 yrs. 2,126 1,987 Leasehold improvements 1 - 30 yrs. 432 403 Construction in progress (a) 85 81 Bank premises and equipment held for sale: Land and improvements 8 25 Buildings 18 14 Equipment 1 3 Accumulated depreciation and amortization (2,889 ) (2,785 ) Total bank premises and equipment $ 1,995 1,861 (a) At December 31, 2019 $51 Depreciation and amortization expense related to bank premises and equipment, including amortization of finance lease ROU assets, was $255 million, $238 million and $234 million for the years ended December 31, 2019, 2018 and 2017, respectively. The Bancorp monitors changing customer preferences associated with the channels it uses for banking transactions to evaluate the efficiency, competitiveness and quality of the customer service experience in its consumer distribution network. As part of this ongoing assessment, the Bancorp may determine that it is no longer fully committed to maintaining full-service branches at certain of its existing banking center locations. Similarly, the Bancorp may also determine that it is no longer fully committed to building banking centers on certain parcels of land which had previously been held for future branch expansion. During the second quarter of 2018, the Bancorp adopted a plan to close approximately 100 to 125 branches over the next three years (the “2018 Branch Optimization Plan”). As of December 31, 2019, the Bancorp expects the total number of branch closures under the 2018 Branch Optimization Plan to be 126 branches of which 69 branches have already been closed, with an additional 30 branches identified for closure in 2020. The Bancorp expects the remaining branches to be closed under the 2018 Branch Optimization Plan in 2021. As a result of the MB Financial, Inc. acquisition, the Bancorp identified 46 branches in the Chicago market that it planned to close. Of these locations, 45 were closed in the third quarter of 2019 and the 46 th non-branch 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 $28 million, $45 million and $7 million for the years ended December 31, 2019, 2018 and 2017, respectively. For the year ended December 31, 2019, impairment charges included $14 million associated with Fifth Third branches in the Chicago market that have been assessed for impairment as a result of the MB Financial, Inc. acquisition. The recognized impairment losses were recorded in other noninterest income in the Consolidated Statements of Income. |
Operating Lease Equipment
Operating Lease Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Operating Lease Equipment | |
Operating Lease Equipment | 9. OPERATING LEASE EQUIPMENT Operating lease equipment was $848 million and $518 million at December 31, 2019 and 2018, respectively. Lease income relating to lease payments for operating leases was $151 million, $84 million and $96 million for the years ended December 31, 2019, 2018 and 2017, respectively. Additionally, the Bancorp received payments of $157 million related to operating leases during the year ended December 31, 2019. The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. As a result of these recoverability assessments, t The following table presents undiscounted future lease payments for operating leases for the years ending December 31: As of December 31, 2019 ($ in millions) Undiscounted Cash 2020 $ 152 2021 124 2022 94 2023 67 2024 38 Thereafter 63 Total operating lease payments $ 538 |
Lease Obligations - Lessee
Lease Obligations - Lessee | 12 Months Ended |
Dec. 31, 2019 | |
Lessee Disclosure [Abstract] | |
Lease Obligations - Lessee | 10. LEASE OBLIGATIONS - LESSEE The Bancorp leases certain banking centers, ATM sites, land for owned buildings and equipment. The Bancorp’s lease agreements typically do not contain any residual value guarantees or any material restrictive covenants. Refer to Note 1 for additional information. The following table provides a summary of lease assets and lease liabilities as of: ($ in millions) Consolidated Balance Sheets Caption December 31, 2019 Assets Operating lease right-of-use Other assets $ 473 Finance lease right-of-use Bank premises and equipment 34 Total right-of-use (a) $ 507 Liabilities Operating lease liabilities Accrued taxes, interest and expenses $ 555 Finance lease liabilities Long-term debt 35 Total lease liabilities $ 590 (a) Operating and finance lease right-of-use The following table presents the components of lease costs: ($ in millions) Consolidated Statements of Income Caption For the year ended December 31, 2019 Lease costs: Amortization of right-of-use Net occupancy and equipment expense $ 6 Interest on lease liabilities Interest on long-term debt 1 Total finance lease costs $ 7 Operating lease cost Net occupancy expense $ 96 Short-term lease cost Net occupancy expense 1 Variable lease cost Net occupancy expense 30 Sublease income Net occupancy expense (3) Total operating lease costs $ 124 Total lease costs $ 131 Gross occupancy expense for cancelable and noncancelable leases, which was included in net occupancy expense in the Consolidated Statements of Income, was $101 million for both the years ended December 31, 2018 and 2017. The Bancorp performs impairment assessments for ROU assets when events or changes in circumstances indicate that their carrying values may not be recoverable. In addition to the lease costs disclosed in the table above, the Bancorp recognized $15 million of impairment losses and termination charges for the ROU assets related to certain operating leases for the year ended December 31, 2019. The recognized losses were recorded in net occupancy expense in the Consolidated Statements of Income. The following table presents undiscounted cash flows for both operating leases and finance leases for 2020 through 2024 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities as follows: As of December 31, 2019 ($ in millions) Operating Finance Leases Total 2020 $ 90 6 96 2021 81 5 86 2022 76 5 81 2023 67 2 69 2024 58 2 60 Thereafter 280 26 306 Total undiscounted cash flows $ 652 46 698 Less: Difference between undiscounted cash flows and discounted cash flows 97 11 108 Present value of lease liabilities $ 555 35 590 The following table presents the weighted-average remaining lease term and weighted-average discount rate as of: December 31, 2019 Weighted-average remaining lease term (years): Operating leases 9.48 Finance leases 14.17 Weighted-average discount rate: Operating leases 3.19% Finance leases 4.30 The following table presents information related to lease transactions for the year ended: ($ in millions) December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: (a) Operating cash flows from operating leases $ 97 Operating cash flows from finance leases 1 Financing cash flows from finance leases 5 Gains on sale and leaseback transactions 5 (a) The cash flows related to the short-term and variable lease payments are not included in the amounts in the table as they were not included in the measurement of lease liabilities. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 11. GOODWILL Business combinations entered into by the Bancorp typically result in the recognition of goodwill. Acquisition activity includes acquisitions in the respective period in addition to purchase accounting adjustments related to previous acquisitions. On March 22, 2019 the Bancorp completed its acquisition of MB Financial, Inc. In connection with the acquisition, the Bancorp recorded approximately $1.8 billion of goodwill. The estimated fair value of assets acquired, liabilities assumed and noncontrolling interest recognized are considered preliminary as of December 31, 2019 and are subject to change for up to one year after the acquisition date as additional information becomes available. The amount of goodwill recognized and the allocation to the Bancorp’s reporting units are also considered preliminary and subject to change for up to one year from the acquisition date. The Bancorp completed its annual goodwill impairment test as of September 30, 2019 and the estimated fair values of the Commercial Banking, Branch Banking and Wealth and Asset Management reporting units exceeded their carrying values, including goodwill. Changes in the net carrying amount of goodwill, by reporting unit, for the years ended December 31, 2019 and 2018 were as follows: ($ in millions) Commercial Banking Branch Consumer Wealth and Asset Total Goodwill $ 1,363 1,655 215 177 3,410 Accumulated impairment losses (750) - (215) - (965) Net carrying amount as of December 31, 2017 $ 613 1,655 - 177 2,445 Acquisition activity 17 - - 16 33 Net carrying amount as of December 31, 2018 $ 630 1,655 - 193 2,478 Acquisition activity 1,324 391 - 62 1,777 Sale of business - - - (3) (3) Net carrying amount as of December 31, 2019 $ 1,954 2,046 - 252 4,252 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Intangible Assets | 12. INTANGIBLE ASSETS Intangible assets consist of core deposit intangibles, customer relationships, operating leases, non-compete On March 22, 2019, the Bancorp completed its acquisition of MB Financial, Inc. In connection with the acquisition, the Bancorp recorded a $195 million core deposit intangible asset with a weighted-average amortization period of 7.2 years. Additionally, the Bancorp recorded a $25 million operating lease intangible asset with a weighted-average amortization period of 1.7 years. The fair values of these intangibles are subject to change as additional information becomes available. The details of the Bancorp’s intangible assets are shown in the following table: ($ in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount As of December 31, 2019 Core deposit intangibles $ 229 (70) 159 Customer relationships 29 (6) 23 Operating leases 23 (9) 14 Non-compete 13 (11) 2 Other 4 (1) 3 Total intangible assets $ 298 (97) 201 As of December 31, 2018 Core deposit intangibles $ 34 (30) 4 Customer relationships 32 (3) 29 Non-compete 14 (11) 3 Other 7 (3) 4 Total intangible assets $ 87 (47) 40 Estimated amortization expense for the years ending December 31, 2020 through 2024 is as follows: ($ in millions) Total 2020 $ 56 2021 43 2022 34 2023 24 2024 16 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities | |
Variable Interest Entities | 13. VARIABLE INTEREST ENTITIES The Bancorp, in the normal course of business, engages in a variety of activities that involve VIEs, which are legal entities that lack sufficient equity at risk to finance their activities without additional subordinated financial support or the equity investors of the entities as a group lack any of the characteristics of a controlling interest. The Bancorp evaluates its interest in certain entities to determine if these entities meet the definition of a VIE and whether the Bancorp is the primary beneficiary and should consolidate the entity based on the variable interests it held both at inception and when there is a change in circumstances that requires a reconsideration. If the Bancorp is determined to be the primary beneficiary of a VIE, it must account for the VIE as a consolidated subsidiary. If the Bancorp is determined not to be the primary beneficiary of a VIE but holds a variable interest in the entity, such variable interests are accounted for under the equity method of accounting or other accounting standards as appropriate. Consolidated VIEs The following table provide s liabilities ($ in millions) December 31, 2019 December 31, 2018 Assets: Other short-term investments $ 74 40 Indirect secured consumer loans 1,354 668 ALLL (7 ) (4) Other assets 8 5 Total assets $ 1,429 709 Liabilities: Other liabilities $ 2 1 Long-term debt 1,253 606 Total liabilities $ 1,255 607 Automobile loan securitizations In a securitization transaction that occurred in 2019, the Bancorp transferred approximately $1.43 billion in automobile loans to a bankruptcy remote trust which was deemed to be a VIE. This trust then subsequently issued approximately $1.37 billion of asset-backed notes, of which approximately $68 million were retained by the Bancorp. Refer to Note 18 for further information. The Bancorp also has previously completed securitization transactions in which the Bancorp transferred certain consumer automobile loans to bankruptcy remote trusts which were also deemed to be VIEs. In each of these securitization transactions, the primary purposes of the VIEs were to issue asset-backed securities with varying levels of credit subordination and payment priority, as well as residual interests, and to provide the Bancorp with access to liquidity for its originated loans. The Bancorp retained residual interests in the VIEs and, therefore, has an obligation to absorb losses and a right to receive benefits from the VIEs that could potentially be significant to the VIEs. In addition, the Bancorp retained servicing rights for the underlying loans and, therefore, holds the power to direct the activities of the VIEs that most significantly impact the economic performance of the VIEs. As a result, the Bancorp concluded that it is the primary beneficiary of the VIEs and has consolidated these VIEs. The assets of the VIEs are restricted to the settlement of the asset-backed securities and other obligations of the VIEs. The third-party holders of the asset-backed notes do not have recourse to the general assets of the Bancorp. The economic performance of the VIEs is most significantly impacted by the performance of the underlying loans. The principal risks to which the VIEs are exposed include credit risk and prepayment risk. The credit and prepayment risks are managed through credit enhancements in the form of reserve accounts, overcollateralization, excess interest on the loans and the subordination of certain classes of asset-backed securities to other classes. Non-consolidated The following tables provide a summary of assets and liabilities carried on the Consolidated Balance Sheets related to non-consolidated December 31, 2019 ($ in millions) Total Total Maximum CDC investments $ 1,435 428 1,435 Private equity investments 89 - 164 Loans provided to VIEs 2,715 - 4,083 Lease pool entities 74 - 74 December 31, 2018 ($ in millions) Total Total Maximum CDC investments $ 1,198 376 1,198 Private equity investments 41 - 73 Loans provided to VIEs 2,331 - 3,617 CDC investments CDC, a wholly-owned indirect subsidiary of the Bancorp, was created to invest in projects to create affordable housing, revitalize business and residential areas and preserve historic landmarks. CDC generally co-invests 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 Consolidated Balance Sheets, and the liabilities related to the unfunded commitments, which are included in other liabilities in the Consolidated Balance Sheets, are included in the previous tables for all periods presented. The Bancorp has no other liquidity arrangements or obligations to purchase assets of the VIEs that would expose the Bancorp to a loss. In certain arrangements, the general partner/managing member of the VIE has guaranteed a level of projected tax credits to be received by the limited partners/investor members, thereby minimizing a portion of the Bancorp’s risk. At December 31, 2019 and 2018, the Bancorp’s CDC investments included $1.2 billion and $1.1 billion of investments in affordable housing tax credits recognized in other assets in the Consolidated Balance Sheets, respectively. The unfunded commitments related to these investments were $428 million and $374 million at December 31, 2019 and 2018, respectively. The unfunded commitments as of December 31, 2019 are expected to be funded from 2020 to 2035. The Bancorp has accounted for all of its qualifying LIHTC investments using the proportional amortization method of accounting. The following table summarizes the impact to the Consolidated Statements of Income related to these investments: For the years ended December 31 ($ in Consolidated Statements of (a) 2019 2018 2017 Proportional amortization Applicable income tax expense $ 140 154 223 Tax credits and other benefits Applicable income tax expense (163) (192) (220) (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during the years ended December 31, 2019, Private equity investments The Bancorp invests as a limited partner in private equity investments 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 investments. The funds finance primarily all of their activities from the partners’ capital contributions and investment returns. The Bancorp has determined that it is not the primary beneficiary of the funds because it does not have the obligation to absorb the funds’ expected losses or the right to receive the funds’ expected residual returns that could potentially be significant to the funds and lacks the power to direct the activities that most significantly impact the economic performance of the funds. The Bancorp, as a limited partner, does not have substantive participating or substantive kick-out The Bancorp is exposed to losses arising from the negative performance of the underlying investments in the private equity investments. As a limited partner, the Bancorp’s maximum exposure to loss is limited to the carrying amounts of the investments plus unfunded commitments. The carrying amounts of these investments, which are included in other assets in the Consolidated Balance Sheets, are presented in previous tables. Also, at December 31, 2019 and 2018, the Bancorp’s unfunded commitment amounts to the private equity funds were $75 million and $32 million, respectively. As part of previous commitments, the Bancorp made capital contributions to private equity investments of $12 million and $7 million during the years ended December 31, 2019 and 2018, respectively. The Bancorp did not recognize OTTI associated with certain nonconforming investments affected by the Volcker Rule during the year ended December 31, 2019, and recognized $8 million and $1 million for the years ended 2018 and 2017, respectively. Loans provided to VIEs The Bancorp has provided funding to certain unconsolidated VIEs sponsored by third parties. These VIEs are generally established to finance certain consumer and small business loans originated by third parties. The entities are primarily funded through the issuance of a loan from the Bancorp or a syndication through which the Bancorp is involved. The sponsor/administrator of the entities is responsible for servicing the underlying assets in the VIEs. Because the sponsor/administrator, not the Bancorp, holds the servicing responsibilities, which include the establishment and employment of default mitigation policies and procedures, the Bancorp does not hold the power to direct the activities that most significantly impact the economic performance of the entity and, therefore, is not the primary beneficiary. The principal risk to which these entities are exposed is credit risk related to the underlying assets. The Bancorp’s maximum exposure to loss is equal to the carrying amounts of the loans and unfunded commitments to the VIEs. The Bancorp’s outstanding loans to these VIEs are included in commercial loans in Note 6. As of December 31, 2019 and 2018, the Bancorp’s unfunded commitments to these entities were $1.4 billion and $1.3 billion, respectively. The loans and unfunded commitments to these VIEs are included in the Bancorp’s overall analysis of the ALLL and reserve for unfunded commitments, respectively. The Bancorp does not provide any implicit or explicit liquidity guarantees or principal value guarantees to these VIEs. Lease pool entities As a result of the acquisition of MB Financial, Inc., the Bancorp co-invested day-to-day pre-defined pre-defined The lease pool entities are primarily subject to risk of losses on the lease residuals purchased. The Bancorp has determined that it is not the primary beneficiary of these VIEs because it does not have the power to direct the activities that most significantly impact the economic performance of the entities. This power is held by the leasing company, who as managing member controls the servicing of the leases and collection of the proceeds on the residual interests. |
Sales of Receivables and Servic
Sales of Receivables and Servicing Rights | 12 Months Ended |
Dec. 31, 2019 | |
Activity Related to Mortgage Banking Net Revenue [Abstract] | |
Sales of Receivables and Servicing Rights | 14. SALES OF RECEIVABLES AND SERVICING RIGHTS Residential Mortgage Loan Sales The Bancorp sold fixed and adjustable-rate residential mortgage loans during the years ended December 31, 2019, 2018 and 2017. In those sales, the Bancorp obtained servicing responsibilities and provided certain standard representations and warranties, however the investors have no recourse to the Bancorp’s other assets for failure of debtors to pay when due. The Bancorp receives servicing fees based on a percentage of the outstanding balance. The Bancorp identifies classes of servicing assets based on financial asset type and interest rates. Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Consolidated Statements of Income, for the years ended December 31 is as follows: ($ in millions) 2019 2018 2017 Residential mortgage loan sales (a) $ 7,781 5,078 6,369 Origination fees and gains on loan sales 175 100 138 Gross mortgage servicing fees 267 216 206 (a) Represents the unpaid principal balance at the time of the sale. Servicing Rights The Bancorp measures all of its servicing rights at fair value with changes in fair value reported in mortgage banking net revenue in the Consolidated Statements of Income. The following table presents changes in the servicing rights related to residential mortgage loans for the years ended December 31: ($ in millions) 2019 2018 Balance, beginning of period $ 938 858 Servicing rights originated 142 81 Servicing rights purchased 26 82 Servicing rights obtained in acquisition 263 - Changes in fair value: Due to changes in inputs or assumptions (a) (203 ) 42 Other changes in fair value (b) (173 ) (125 ) Balance, end of period $ 993 938 (a) Primarily reflects changes in prepayment speed and OAS assumptions which are updated based on market interest rates. (b) Primarily reflects changes due to collection of contractual cash flows and the passage of time. The Bancorp maintains a non-qualifying available-for-sale The interest income, mark-to-market The following table presents activity related to valuations of the MSR portfolio and the impact of the non-qualifying ($ in millions) 2019 2018 2017 Securities gains (losses), net - non-qualifying $ 3 (15) 2 Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (a) 221 (21) 2 MSR fair value adjustment due to changes in inputs or assumptions (a) (203 ) 42 (1 ) (a) Included in mortgage banking net revenue in the Consolidated Statements of Income. 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, securitization, or purchase resulting from transactions completed during the years ended December 31 were as follows: 2019 2018 Rate Weighted- Prepayment OAS Weighted- Prepayment OAS Residential mortgage loans: Servicing rights Fixed 5.9 12.6 % 530 6.6 10.5 % 522 Servicing rights Adjustable - - - 2.6 30.3 647 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 December 31, 2019 and 2018, the Bancorp serviced $80.7 billion and $63.2 billion, respectively, of residential mortgage loans for other investors. The value of MSRs that continue to be held by the Bancorp is subject to credit, prepayment and interest rate risks on the sold financial assets. At December 31, 2019, the sensitivity of the current fair value of residual cash flows to immediate 10%, 20% and 50% adverse changes in prepayment speed assumptions and immediate 10% and 20% adverse changes in OAS are as follows: Prepayment Speed Assumption OAS Assumption ($ in millions) (a) Rate Fair Weighted- Impact of Adverse Change OAS (bps) Impact of Adverse Change Rate 10% 20% 50% 10% 20% Residential mortgage loans: Servicing rights Fixed $ 983 5.3 13.0 % $ (36) (69 ) (158) 602 $ (21 ) (40) Servicing rights Adjustable 10 3.6 22.6 (1) (1 ) (3) 921 - - (a) The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial. These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on these variations in the assumptions typically cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. The Bancorp believes variations of these levels are reasonably possible; however, there is the potential that adverse changes in key assumptions could be even greater. Also, in the previous table, the effect of a variation in a particular assumption on the fair value of the interests that continue to be held by the Bancorp is calculated without changing any other assumption; in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which might magnify or counteract these sensitivities. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 15. DERIVATIVE FINANCIAL INSTRUMENTS The Bancorp maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce certain risks related to interest rate, prepayment and foreign currency volatility. Additionally, the Bancorp holds derivative instruments for the benefit of its commercial customers and for other business purposes. The Bancorp does not enter into unhedged speculative derivative positions. The Bancorp’s interest rate risk management strategy involves modifying the repricing characteristics of certain financial instruments so that changes in interest rates do not adversely affect the Bancorp’s net interest margin and cash flows. Derivative instruments that the Bancorp may use as part of its interest rate risk management strategy include interest rate swaps, interest rate floors, interest rate caps, forward contracts, forward starting interest rate swaps, options, swaptions and TBA securities. Interest rate swap contracts are exchanges of interest payments, such as fixed-rate payments for floating-rate payments, based on a stated notional amount and maturity date. Interest rate floors protect against declining rates, while interest rate caps protect against rising interest rates. Forward contracts are contracts in which the buyer agrees to purchase, and the seller agrees to make delivery of, a specific financial instrument at a predetermined price or yield. Options provide the purchaser with the right, but not the obligation, to purchase or sell a contracted item during a specified period at an agreed upon price. Swaptions are financial instruments granting the owner the right, but not the obligation, to enter into or cancel a swap. Prepayment volatility arises mostly from changes in fair value of the largely fixed-rate MSR portfolio, mortgage loans and mortgage-backed securities. The Bancorp may enter into various free-standing derivatives (principal-only swaps, interest rate swaptions, interest rate floors, mortgage options, TBA securities and interest rate swaps) to economically hedge prepayment volatility. Principal-only swaps are total return swaps based on changes in the value of the underlying mortgage principal-only trust. Foreign currency volatility occurs as the Bancorp enters into certain loans denominated in foreign currencies. Derivative instruments that the Bancorp may use to economically hedge these foreign denominated loans include foreign exchange swaps and forward contracts. The Bancorp also enters into derivative contracts (including foreign exchange contracts, commodity contracts and interest rate contracts) for the benefit of commercial customers and other business purposes. The Bancorp economically hedges significant exposures related to these free-standing derivatives by entering into offsetting third-party contracts with approved, reputable and independent counterparties with substantially matching terms and currencies. Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. The Bancorp’s exposure is limited to the replacement value of the contracts rather than the notional, principal or contract amounts. Credit risk is minimized through credit approvals, limits, counterparty collateral and monitoring procedures. The fair value of derivative instruments is presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Derivative instruments with a positive fair value are reported in other assets in the Consolidated Balance Sheets while derivative instruments with a negative fair value are reported in other liabilities in the Consolidated Balance Sheets. Cash collateral payables and receivables associated with the derivative instruments are not added to or netted against the fair value amounts with the exception of certain variation margin payments that are considered legal settlements of the derivative contracts. For derivative contracts cleared through certain central clearing parties who have modified their rules to treat variation margin payments as settlements, the variation margin payments are applied to net the fair value of the respective derivative contracts. The Bancorp’s derivative 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 December 31, 2019 and 2018, the balance of collateral held by the Bancorp for derivative assets was $894 million and $481 million, respectively. For derivative contracts cleared through certain central clearing parties who have modified their rules to treat variation margin payments as settlement of the derivative contract, the payments for variation margin of $623 million and $249 million were applied to reduce the respective derivative contracts and were also not included in the total amount of collateral held as of December 31, 2019 and 2018, respectively. The credit component negatively impacting the fair value of derivative assets associated with customer accommodation contracts was $17 million and $3 million as of December 31, 2019 and 2018, respectively. In measuring the fair value of derivative liabilities, the Bancorp considers its own credit risk, taking into consideration collateral maintenance requirements of certain derivative counterparties and the duration of instruments with counterparties that do not require collateral maintenance. When necessary, the Bancorp posts collateral primarily in the form of cash and securities to offset changes in fair value of the derivatives, including changes in fair value due to the Bancorp’s credit risk. As of December 31, 2019 and 2018, the balance of collateral posted by the Bancorp for derivative liabilities was $347 million and $551 million, respectively. Additionally, $488 million and $23 million of variation margin payments were applied to the respective derivative contracts to reduce the Bancorp’s derivative liabilities as of December 31, 2019 and 2018, respectively, and were also not included in the total amount of collateral posted. Certain of the Bancorp’s derivative liabilities contain credit-risk related contingent features that could result in the requirement to post additional collateral upon the occurrence of specified events. As of December 31, 2019 and 2018, the fair value of the additional collateral that could be required to be posted as a result of the credit-risk related contingent features being triggered was immaterial to the Bancorp’s Consolidated Financial Statements. The Bancorp holds certain derivative instruments that qualify for hedge accounting treatment and are designated as either fair value hedges or cash flow hedges. Derivative instruments that do not qualify for hedge accounting treatment, or for which hedge accounting is not established, are held as free-standing derivatives. All customer accommodation derivatives are held as free-standing derivatives. The following tables reflect the notional amounts and fair values for all derivative instruments included in the Consolidated Balance Sheets as of: Fair Value December 31, 2019 ($ in millions) Notional Derivative Derivative Derivatives Designated as Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 2,705 393 - Total fair value hedges 393 - Cash flow hedges: Interest rate floors related to C&I loans 3,000 115 - Interest rate swaps related to C&I loans 8,000 - 2 Total cash flow hedges 115 2 Total derivatives designated as qualifying hedging instruments 508 2 Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSR portfolio 6,420 131 2 Forward contracts related to residential mortgage loans held for sale 2,901 1 5 Swap associated with the sale of Visa, Inc. Class B Shares 3,082 - 163 Foreign exchange contracts 195 - 5 Total free-standing derivatives - risk management and other business purposes 132 175 Free-standing derivatives - customer accommodation: Interest rate contracts (a) 73,327 579 148 Interest rate lock commitments 907 18 - Commodity contracts 8,525 271 270 TBA securities 50 - - Foreign exchange contracts 14,144 165 146 Total free-standing derivatives - customer accommodation 1,033 564 Total derivatives not designated as qualifying hedging instruments 1,165 739 Total $ 1,673 741 (a) Derivative assets and liabilities are presented net of variation margin of $40 and $493, respectively. Fair Value December 31, 2018 ($ in millions) Notional Derivative Derivative Derivatives Designated as Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 3,455 262 2 Total fair value hedges 262 2 Cash flow hedges: Interest rate floors related to C&I loans 3,000 69 - Interest rate swaps related to C&I loans 8,000 15 27 Total cash flow hedges 84 27 Total derivatives designated as qualifying hedging instruments 346 29 Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSR portfolio 10,045 40 14 Forward contracts related to residential mortgage loans held for sale 926 - 8 Swap associated with the sale of Visa, Inc. Class B Shares 2,174 - 125 Foreign exchange contracts 133 4 - Total free-standing derivatives - risk management and other business purposes 44 147 Free-standing derivatives - customer accommodation: Interest rate contracts 55,012 262 278 Interest rate lock commitments 407 7 - Commodity contracts 6,511 307 278 TBA securities 18 - - Foreign exchange contracts 13,205 148 142 Total free-standing derivatives - customer accommodation 724 698 Total derivatives not designated as qualifying hedging instruments 768 845 Total $ 1,114 874 Fair Value Hedges The Bancorp may enter into interest rate swaps to convert its fixed-rate funding to floating-rate. Decisions to convert fixed-rate funding to floating are made primarily through consideration of the asset/liability mix of the Bancorp, the desired asset/liability sensitivity and interest rate levels. As of December 31, 2019, certain interest rate swaps met the criteria required to qualify for the shortcut method of accounting that permits the assumption of perfect offset. For all designated fair value hedges of interest rate risk as of December 31, 2019 that were not accounted for under the shortcut method of accounting, the Bancorp performed an assessment of hedge effectiveness using regression analysis with changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability attributable to the hedged risk recorded in the same income statement line in current period net income. The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Consolidated Statements of Income: For the years ended December 31 ($ in millions) Consolidated Statements of 2019 2018 2017 Change in fair value of interest rate swaps hedging long-term debt Interest on long-term $ 152 (36) (33) Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term (147) 41 31 The following amounts were recorded in the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of: ($ in millions) Consolidated Balance Sheets Caption December 31, 2019 Carrying amount of the hedged items Long-term debt $ 3,093 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items Long-term debt 402 Cash Flow Hedges The Bancorp may enter into interest rate swaps to convert floating-rate assets and liabilities to fixed rates or to hedge certain forecasted transactions for the variability in cash flows attributable to the contractually specified interest rate. The assets or liabilities may be grouped in circumstances where they share the same risk exposure that the Bancorp desires to hedge. The Bancorp may also enter into interest rate caps and floors to limit cash flow variability of floating-rate assets and liabilities. As of December 31, 2019, hedges designated as cash flow hedges were assessed for effectiveness using either regression analysis (quantitative approach) or a qualitative approach. The entire change in the fair value of the interest rate swap included in the assessment of hedge effectiveness is recorded in AOCI and reclassified from AOCI to current period earnings when the hedged item affects earnings. As of December 31, 2019, the maximum length of time over which the Bancorp is hedging its exposure to the variability in future cash flows is 60 months. Reclassified gains and losses on interest rate contracts related to commercial and industrial loans are recorded within interest income in the Consolidated Statements of Income. As of December 31, 2019 and 2018, $422 million of net deferred gains, net of tax and $160 million of net deferred gains, net of tax, respectively, on cash flow hedges were recorded in AOCI in the Consolidated Balance Sheets. As of December 31, 2019, $101 million in net unrealized losses, net of tax, recorded in AOCI are expected to be reclassified into earnings during the next twelve months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, During the years ended 2019 and 2018, there were no gains or losses reclassified from AOCI into earnings associated with the discontinuance of cash flow hedges because it was probable that the original forecasted transaction would no longer occur by the end of the originally specified time period or within the additional period of time as defined by U.S. GAAP. The following table presents the pre-tax For the years ended December 31 ($ in millions) 2019 2018 2017 Amount of pre-tax $ 348 214 (11) Amount of pre-tax 16 (2) 19 Free-Standing Derivative Instruments – Risk Management and Other Business Purposes As part of its overall risk management strategy relative to its mortgage banking activity, the Bancorp may enter into various free-standing derivatives (principal-only swaps, interest rate swaptions, interest rate floors, mortgage options, TBA securities and interest rate swaps) to economically hedge changes in fair value of its largely fixed-rate MSR portfolio. Principal-only swaps hedge the 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 Consolidated Statements of Income. In conjunction with the sale of Visa, Inc. Class B Shares in 2009, the Bancorp entered into a total return swap in which the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Class B Shares into Class A Shares. This total return swap is accounted for as a free-standing derivative. Refer to Note 27 for further discussion of significant inputs and assumptions used in the valuation of this instrument. The net gains (losses) recorded in the Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: For the years ended December 31 ($ in millions) Consolidated Statements of 2019 2018 2017 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ 4 (8 ) (17) Interest rate contracts related to MSR portfolio Mortgage banking net revenue 221 (21 ) 2 Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income (7) 10 (7) Equity contracts: Stock warrant Other noninterest income - - (1) Swap associated with sale of Visa, Inc. Class B Shares Other noninterest income (107) (59 ) (80) Free-Standing Derivative Instruments – Customer Accommodation The majority of the free-standing derivative instruments the Bancorp enters into are for the benefit of its commercial customers. These derivative contracts are not designated against specific assets or liabilities on the Consolidated Balance Sheets or to forecasted transactions and, therefore, do not qualify for hedge accounting. These instruments include foreign exchange derivative contracts entered into for the benefit of commercial customers involved in international trade to hedge their exposure to foreign currency fluctuations and commodity contracts to hedge such items as natural gas and various other derivative contracts. The Bancorp may economically hedge significant exposures related to these derivative contracts entered into for the benefit of customers by entering into offsetting contracts with approved, reputable, independent counterparties with substantially matching terms. The Bancorp hedges its interest rate exposure on commercial customer transactions by executing offsetting swap agreements with primary dealers. Revaluation gains and losses on interest rate, foreign exchange, commodity and other commercial customer derivative contracts are recorded as a component of corporate banking revenue or other noninterest income in the Consolidated Statements of Income. The Bancorp enters into risk participation agreements, under which the Bancorp assumes credit exposure relating to certain underlying interest rate derivative contracts. The Bancorp only enters into these risk participation agreements in instances in which the Bancorp has participated in the loan that the underlying interest rate derivative contract was designed to hedge. The Bancorp will make payments under these agreements if a customer defaults on its obligation to perform under the terms of the underlying interest rate derivative contract. As of December 31, 2019 and 2018, the total notional amount of the risk participation agreements was $3.9 billion and $4.0 billion, respectively, and the fair value was a liability of $8 million, at both December 31, 2019 and 2018, which is included in other liabilities in the Consolidated Balance Sheets. As of December 31, 2019, the risk participation agreements had a weighted-average remaining life of 3.6 years. The Bancorp’s maximum exposure in the risk participation agreements is contingent on the fair value of the underlying interest rate derivative contracts in an asset position at the time of default. The Bancorp monitors the credit risk associated with the underlying customers in the risk participation agreements through the same risk grading system currently utilized for establishing loss reserves in its loan and lease portfolio. Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table: At December 31 ($ in millions) 2019 2018 Pass $ 3,841 3,919 Special mention 86 79 Substandard 16 4 Total $ 3,943 4,002 The net gains (losses) recorded in the Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: For the years ended December 31 ($ in millions) Consolidated Statements of 2019 2018 2017 Interest rate contracts: Interest rate contracts for customers (contract revenue) Corporate banking revenue $ 40 32 21 Interest rate contracts for customers (credit losses) Other noninterest expense - - (5) Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense (15 ) - 2 Interest rate lock commitments Mortgage banking net revenue 144 70 93 Commodity contracts: Commodity contracts for customers (contract revenue) Corporate banking revenue 8 9 6 Commodity contracts for customers (credit losses) Other noninterest expense - - 1 Commodity contracts for customers (credit portion of fair value adjustment) Other noninterest expense 1 (1 ) - Foreign exchange contracts: Foreign exchange contracts for customers (contract revenue) Corporate banking revenue 49 55 48 Foreign exchange contracts for customers (contract revenue) Other noninterest income 12 14 - Foreign exchange contracts for customers (credit losses) Other noninterest expense - - 2 Foreign exchange contracts for customers (credit portion of fair value adjustment) Other noninterest expense - 1 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 The Bancorp’s policy is to present its derivative assets and derivative liabilities on the Consolidated Balance Sheets on a gross basis, even when provisions allowing for setoff are in place. However, for derivative contracts cleared through certain central clearing parties who have modified their rules to treat variation margin payments as settlements, the fair value of the respective derivative contracts are reported net of the variation margin payments. Collateral amounts included in the tables below consist primarily of cash and highly-rated government-backed securities and do not include variation margin payments for derivative contracts with legal rights of setoff for both periods shown. The following tables provide a summary of offsetting derivative financial instruments: Gross Amount (a) Gross Amounts Not Offset in the As of December 31, 2019 ($ in millions) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 1,655 (417 ) (504) 734 Total assets 1,655 (417 ) (504) 734 Liabilities: Derivatives 741 (417 ) (97) 227 Total liabilities $ 741 (417 ) (97) 227 (a) (b) Gross Amount (a) Gross Amounts Not Offset in the As of December 31, 2018 ($ in millions) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 1,107 (410 ) (348) 349 Total assets 1,107 (410 ) (348) 349 Liabilities: Derivatives 874 (410 ) (123) 341 Total liabilities $ 874 (410 ) (123) 341 (a) Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements. (b) Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Other Assets | 16. OTHER ASSETS The following table provides the components of other assets included in the Consolidated Balance Sheets as of December 31: ($ in millions) 2019 2018 Accounts receivable and drafts-in-process $ 2,278 1,963 Bank owned life insurance 1,960 1,760 Partnership investments 1,729 1,390 Derivative instruments 1,673 1,114 Operating lease right-of-use 473 - Accrued interest and fees receivable 424 438 Worldpay, Inc. TRA receivable 345 - Prepaid expenses 101 93 OREO and other repossessed personal property 64 48 Income tax receivable 32 56 Investment in Worldpay Holding, LLC - 420 Other 111 90 Total other assets $ 9,190 7,372 |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Short-Term Borrowings | |
Short-Term Borrowings | 17. SHORT-TERM BORROWINGS Borrowings with original maturities of one year or less are classified as short-term and include federal funds purchased and other short-term borrowings. Federal funds purchased are excess balances in reserve accounts held at the FRB that the Bancorp purchased from other member banks on an overnight basis. Other short-term borrowings include securities sold under repurchase agreements, derivative collateral, FHLB advances and other borrowings with original maturities of one year or less. The following table summarizes short-term borrowings and weighted-average rates: 2019 2018 ($ in millions) Amount Rate Amount Rate As of December 31: Federal funds purchased $ 260 1.49% $ 1,925 2.40% Other short-term borrowings 1,011 1.24 573 1.95 Average for the years ended December 31: Federal funds purchased $ 1,267 2.26% $ 1,509 1.97% Other short-term borrowings 1,046 2.67 1,611 1.82 Maximum month-end Federal funds purchased $ 2,693 $ 2,684 Other short-term borrowings 4,046 6,313 The following table presents a summary of the Bancorp’s other short-term borrowings as of December 31: ($ in millions) 2019 2018 Securities sold under repurchase agreements $ 469 302 Derivative collateral 542 271 Total other short-term borrowings $ 1,011 573 The Bancorp’s securities sold under repurchase agreements are accounted for as secured borrowings and are collateralized by securities included in available-for-sale As of both December 31, 2019 and 2018, all securities sold under repurchase agreements were secured by agency residential mortgage-backed securities and the repurchase agreements have an overnight remaining contractual maturity. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Long-Term Debt | |
Long-Term Debt | 18. LONG-TERM DEBT The following table is a summary of the Bancorp’s long-term borrowings at December 31: ($ in millions) Maturity Interest Rate 2019 2018 Parent Company Senior: Fixed-rate notes 2019 2.30 % $ - 500 Fixed-rate notes 2020 2.875 % 1,099 1,098 Floating-rate notes (b) 2021 2.37 % 250 250 Fixed-rate notes 2022 2.60 % 699 698 Fixed-rate notes 2022 3.50 % 499 498 Fixed-rate notes 2024 3.65 % 1,493 - Fixed-rate notes 2025 2.375 % 746 - Fixed-rate notes 2028 3.95 % 646 646 Subordinated: (a) Fixed-rate notes 2024 4.30 % 748 747 Fixed-rate notes 2038 8.25 % 1,333 1,238 Subsidiaries Senior: Fixed-rate notes 2019 2.375 % - 850 Fixed-rate notes 2019 2.30 % - 750 Fixed-rate notes 2019 1.625 % - 743 Floating-rate notes (c) 2019 3.412 % - 250 Fixed-rate notes 2020 2.20 % 752 742 Floating-rate notes (b) 2020 2.186 % 300 300 Fixed-rate notes 2021 2.25 % 1,249 1,248 Fixed-rate notes 2021 2.875 % 848 847 Fixed-rate notes 2021 3.35 % 508 502 Floating-rate notes (b) 2021 2.376 % 299 299 Floating-rate notes (b) 2022 2.549 % 299 - Fixed-rate notes 2025 3.95 % 797 764 Subordinated: (a) Fixed-rate bank notes 2026 3.85 % 748 747 Fixed-rate bank notes 2027 4.00 % 171 - Junior subordinated: Floating-rate debentures (b) 2035 3.31 % - 53 52 FHLB advances 2020 - 0.05 % - 91 22 Notes associated with consolidated VIEs: Automobile loan securitizations: Fixed-rate notes 2022 - 1.80 % - 1,147 568 Floating-rate notes (b) 2022 1.91 % 42 11 Other 2020 - 2040 Varies 153 56 Total $ 14,970 14,426 (a) In aggregate, $2.7 billion December 31, 2019 (b) These rates reflect the floating rates as of December 31, 2019. (c) These rates reflect the floating rates as of December 31, 2018. The Bancorp pays down long-term debt in accordance with contractual terms over maturity periods summarized in the above table. The aggregate annual maturities of long-term debt obligations (based on final maturity dates) as of December 31, 2019 are presented in the following table: ($ in millions) Parent Subsidiaries Total 2020 $ 1,099 1,073 2,172 2021 250 2,923 3,173 2022 1,198 900 2,098 2023 - 514 514 2024 2,241 98 2,339 Thereafter 2,725 1,949 4,674 Total $ 7,513 7,457 14,970 At December 31, 2019, the Bancorp’s long-term borrowings consisted of outstanding principal balances of $14.6 billion, net discounts of $18 million, debt issuance costs of $33 million and additions for mark-to-market At December 31, 2018, the Bancorp’s long-term borrowings consisted of outstanding principal balances of $14.2 billion, net discounts of $20 million, debt issuance costs of $30 million and additions for mark-to-market For further information on a subsequent event related to long-term debt, refer to Note 33. Parent Company Long-Term Borrowings Senior notes On March 7, 2012, the Bancorp issued and sold $500 million of senior notes to third-party investors and entered into a Supplemental Indenture dated March 7, 2012 with the Trustee, which modified the existing Indenture for Senior Debt Securities dated April 30, 2008. The Supplemental Indenture and the Indenture define the rights of the senior notes and that they are represented by a Global Security dated as of March 7, 2012. The senior notes bear a fixed-rate of interest of 3.50% per annum. The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amounts of the notes will be due upon maturity on March 15, 2022. These fixed-rate senior notes will be redeemable by the Bancorp, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On July 27, 2015, the Bancorp issued and sold $1.1 billion of senior notes to third-party investors. The senior notes bear a fixed-rate of interest of 2.875% per annum. The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amounts of the notes is due upon maturity on July 27, 2020. These fixed-rate senior notes will be redeemable by the Bancorp, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On June 15, 2017, the Bancorp issued and sold $700 million of senior notes to third-party investors. The senior notes bear a fixed-rate of interest of 2.60% per annum. The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amounts of the notes is due upon maturity on June 15, 2022. These fixed-rate senior notes will be redeemable by the Bancorp, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On March 14, 2018, the Bancorp issued and sold $650 million of senior notes to third-party investors. The senior notes bear a fixed-rate of interest of 3.95% per annum. The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amounts of the notes is due upon maturity on March 14, 2028. These fixed-rate senior notes will be redeemable by the Bancorp, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On June 5, 2018, the Bancorp issued and sold $250 million of senior notes to third-party investors. The senior notes bear a floating-rate of three-month LIBOR plus 47 bps. The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amounts of the notes is due upon maturity on June 4, 2021. These floating-rate senior notes will be redeemable by the Bancorp, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On January 25, 2019, the Bancorp issued and sold $1.5 billion of senior notes to third-party investors. The senior notes bear a fixed-rate of interest of 3.65% per annum. The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amounts of the notes is due upon maturity on January 25, 2024. These fixed-rate senior notes will be redeemable by the Bancorp, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On October 28, 2019, the Bancorp issued and sold $750 million of senior notes to third-party investors. The senior notes bear a fixed-rate of interest of 2.375% per annum. The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amounts of the notes is due upon maturity on January 28, 2025. These notes will be redeemable at the Bancorp’s option, in whole or in part, at any time or from time to time, on or after April 25, 2020, and prior to December 29, 2024, in each case at a redemption price, plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date, equal to the greater of (i) 100% of the aggregate principal amount of the notes being redeemed on that redemption date; and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the notes being redeemed that would be due if the notes to be redeemed matured on December 29, 2024 discounted to the redemption date on a semi-annual basis at the applicable treasury rate plus 15 bps. Additionally, these notes will be redeemable by the Bancorp, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest thereon to, but excluding, the redemption date. Subordinated debt The Bancorp has entered into interest rate swaps to convert part of its subordinated fixed-rate notes due in 2038 to floating-rate. Of the $1.0 billion in 8.25% subordinated fixed-rate notes due in 2038, $705 million were subsequently hedged to floating-rate and paid a rate of 4.96% at December 31, 2019. On November 20, 2013, the Bancorp issued and sold $750 million of 4.30% unsecured subordinated fixed-rate notes due on January 16, 2024. These fixed-rate notes will be redeemable by the Bancorp, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. Subsidiary Long-Term Borrowings Senior and subordinated debt Medium-term senior notes and subordinated bank notes with maturities ranging from one year to 30 years can be issued by the Bancorp’s banking subsidiary. Under the Bancorp’s banking subsidiary’s global bank note program, the Bank’s capacity to issue its senior and subordinated unsecured bank notes is $25.0 billion. As of December 31, 2019, $19.3 billion was available for future issuance under the global bank note program. On September 5, 2014, the Bank issued and sold, under its bank notes program, $850 million of 2.875% unsecured senior fixed-rate bank notes due on October 1, 2021. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On March 15, 2016, the Bank issued and sold, under its bank notes program, $750 million of 3.85% subordinated fixed-rate notes 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. On June 14, 2016, the Bank issued and sold, under its bank notes program, $1.3 billion of 2.25% unsecured senior fixed-rate notes due on June 14, 2021. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On October 30, 2017, the Bank issued and sold, under its bank notes program, $1.1 billion in aggregate principal amount of unsecured senior bank notes due on October 30, 2020. The bank notes consisted of $750 million of 2.20% senior fixed-rate notes and $300 million of senior floating-rate notes at three-month LIBOR plus 25 bps. The Bancorp entered into an interest rate swap to convert the fixed-rate notes to a floating-rate, which resulted in an effective interest rate of three-month LIBOR plus 24 bps. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On July 26, 2018 the Bank issued and sold, under its bank notes program, $1.55 billion in aggregate principal amount of unsecured senior bank notes. The bank notes consisted of $500 million of 3.35% senior fixed-rate notes, with a maturity of three years, due on July 26, 2021; $300 million of senior floating-rate notes at three-month LIBOR plus 44 bps, with a maturity of three years, due on July 26, 2021; and $750 million of 3.95% senior fixed-rate notes, with a maturity of seven years, due July 28, 2025. The Bank entered into interest rate swaps to convert the fixed-rate notes due in 2021 and 2025 to a floating-rate, which resulted in an effective interest rate of one-month On February 1, 2019, the Bank issued and sold, under its bank notes program, $300 million in unsecured senior floating-rate bank notes due on February 1, 2022. Interest on the floating-rate notes is three-month LIBOR plus 64 As a result of the MB Financial, Inc. acquisition, the Bank assumed $175 million of 4.00% subordinated fixed-rate notes due on December 1, 2027. These bank notes will be redeemable by the Bank, in whole or in part, on any interest payment date on or after December 1, 2022 at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. From December 1, 2022 until maturity, the bank notes pay interest quarterly on the first day of March, June, September and December. Junior subordinated debt The junior subordinated floating-rate debentures due in 2035 were assumed by the Bancorp’s direct nonbank subsidiary holding company as part of the acquisition of First Charter in June 2008. The obligation was issued to First Charter Capital Trust I and II. The notes of First Charter Capital Trust I and II pay a floating rate at three-month LIBOR plus 169 bps and 142 bps, respectively. The Bancorp’s nonbank subsidiary holding company has fully and unconditionally guaranteed all obligations under the acquired TruPS issued by First Charter Capital Trust I and II. FHLB advances At December 31, 2019, FHLB advances have rates ranging from 0.05% to 6.87%, with interest payable monthly. The Bancorp has pledged $17.6 billion of certain residential mortgage loans and securities to secure its borrowing capacity at the Federal Home Loan Bank which is partially utilized to fund $91 million in FHLB advances that are outstanding. The FHLB advances mature as follows: $2 million in 2020, $2 million in 2021, $1 million in 2022, $72 million in 2023, an immaterial amount in 2024, and $14 million thereafter. Notes associated with consolidated VIEs As previously discussed in Note 13, the Bancorp was determined to be the primary beneficiary of various VIEs associated with certain automobile loan securitizations. Third-party holders of this debt do not have recourse to the general assets of the Bancorp. In a securitization transaction that occurred in 2019, the Bancorp transferred approximately $1.43 billion in automobile loans to a bankruptcy remote trust which was deemed to be a VIE. This trust then subsequently issued approximately $1.37 billion of asset-backed notes, of which approximately $68 million were retained by the Bancorp. Approximately $940 million of outstanding notes from the 2019 securitization transaction are included in long-term debt in the Consolidated Balance Sheets as of December 31, 2019. Additionally, in prior years the Bancorp completed securitization transactions in which the Bancorp transferred certain consumer automobile loans to bankruptcy remote trusts which were also deemed to be VIEs. As such, approximately $249 million of outstanding notes related to these VIEs were included in long-term debt in the Consolidated Balance Sheets as of December 31, 2019. |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Guarantees | 12 Months Ended |
Dec. 31, 2019 | |
Commitments, Contingent Liabilities and Guarantees | |
Commitments, Contingent Liabilities and Guarantees | 19. COMMITMENTS, CONTINGENT LIABILITIES AND GUARANTEES The Bancorp, in the normal course of business, enters into financial instruments and various agreements to meet the financing needs of its customers. The Bancorp also enters into certain transactions and agreements to manage its interest rate and prepayment risks, provide funding, equipment and locations for its operations and invest in its communities. These instruments and agreements involve, to varying degrees, elements of credit risk, counterparty risk and market risk in excess of the amounts recognized in the Consolidated Balance Sheets. The creditworthiness of counterparties for all instruments and agreements is evaluated on a case-by-case Commitments The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of December 31: ($ in millions) 2019 2018 Commitments to extend credit $ 75,696 70,415 Letters of credit 2,137 2,041 Forward contracts related to residential mortgage loans held for sale 2,901 926 Purchase obligations 113 126 Capital commitments for private equity investments 75 32 Capital expenditures 84 45 Commitments to extend credit Commitments to extend credit are agreements to lend, typically having fixed expiration dates or other termination clauses that may require payment of a fee. Since many of the commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. The Bancorp is exposed to credit risk in the event of nonperformance by the counterparty for the amount of the contract. Risk ratings of outstanding commitments to extend credit under this risk rating system are summarized in the following table as of December 31: ($ in millions) 2019 2018 Pass $ 74,654 69,928 Special mention 633 271 Substandard 408 216 Doubtful 1 - Total commitments to extend credit $ 75,696 70,415 Letters of credit Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of December 31, 2019: ($ in millions) Less than 1 year (a) $ 1,022 1 - 5 years (a) 1,110 Over 5 years 5 Total letters of credit $ 2,137 (a) Includes $2 and $2 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 - 5 years, respectively. Risk ratings of letters of credit under this risk rating system are summarized in the following table as of December 31: ($ in millions) 2019 2018 Pass $ 2,005 1,905 Special mention 20 10 Substandard 111 126 Doubtful 1 - Total letters of credit $ 2,137 2,041 At December 31, 2019 and 2018, the Bancorp had outstanding letters of credit that were supporting certain securities issued as VRDNs. The Bancorp facilitates financing for its commercial customers, which consist of companies and municipalities, by marketing the VRDNs to investors. The VRDNs pay interest to holders at a rate of interest that fluctuates based upon market demand. The VRDNs generally have long-term maturity dates, but can be tendered by the holder for purchase at par value upon proper advance notice. When the VRDNs are tendered, a remarketing agent generally finds another investor to purchase the VRDNs to keep the securities outstanding in the market. As of December 31, 2019 and 2018, total VRDNs in which the Bancorp was the remarketing agent or were supported by a Bancorp letter of credit were $449 million and $487 million, respectively, of which FTS acted as the remarketing agent to issuers on $445 million and $481 million, respectively. As remarketing agent, FTS is responsible for actively remarketing VRDNs to other investors when they have been tendered. If another investor is not identified, FTS may choose to purchase the VRDNs into inventory at its discretion while it continues to remarket them. If FTS purchases the VRDNs into inventory, it can subsequently tender back the VRDNs to the issuer’s trustee with proper advance notice. The Bancorp issued letters of credit, as a credit enhancement, to $187 million and $256 million of the VRDNs remarketed by FTS, in addition to $3 million and $6 million in VRDNs remarketed by third parties at December 31, 2019 and 2018, respectively. These letters of credit are included in the total letters of credit balance provided in the previous table. The Bancorp held $3 million and $9 million of these VRDNs in its portfolio and classified them as trading securities at December 31, 2019 and 2018, respectively. Forward contracts related to residential mortgage loans held for sale 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. Other commitments 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 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 20 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, indemnify or make whole the investor or insurer for which the representation or warranty of the Bancorp proves to be inaccurate, incomplete or misleading. For more information on how the Bancorp establishes the residential mortgage repurchase reserve, refer to Note 1. As of both December 31, 2019 and 2018, the Bancorp maintained reserves related to loans sold with representation and warranty provisions totaling $6 million included in other liabilities in the Consolidated Balance Sheets. The Bancorp uses the best information available when estimating its mortgage representation and warranty reserve; however, the estimation process is inherently uncertain and imprecise and, accordingly, losses in excess of the amounts reserved as of December 31, 2019, 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 $11 million in excess of amounts reserved. This estimate was derived by modifying the key assumptions to reflect management’s judgment regarding reasonably possible adverse changes to those assumptions. The actual repurchase losses could vary significantly from the recorded mortgage representation and warranty reserve or this estimate of reasonably possible losses, depending on the outcome of various factors, including those previously discussed. During both the years ended December 31, 2019 and 2018, the Bancorp paid an immaterial amount in the form of make whole payments and repurchased $25 million and $18 million, respectively, in outstanding principal of loans to satisfy investor demands. Total repurchase demand requests during the years ended December 31, 2019 and 2018 were $45 million and $19 million, respectively. Total outstanding repurchase demand inventory was $6 million and $1 million at December 31, 2019 and 2018, respectively. The following table summarizes activity in the reserve for representation and warranty provisions for the years ended December 31: ($ in millions) 2019 2018 Balance, beginning of period $ 6 9 Net reductions to the reserve - (3) Balance, end of period $ 6 6 The following tables provide a rollforward of unresolved claims by claimant type for the years ended December 31: GSE Private Label 2019 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 9 $ 1 1 $ - New demands 258 45 8 1 Loan paydowns/payoffs (3 ) - - - Resolved demands (237 ) (40) (8 ) (1) Balance, end of period 27 $ 6 1 $ - GSE Private Label 2018 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 6 $ 1 1 $ - New demands 121 19 - - Resolved demands (118 ) (19) - - Balance, end of period 9 $ 1 1 $ - Margin accounts FTS, an indirect wholly-owned subsidiary of the Bancorp, guarantees the collection of all margin account balances held by its brokerage clearing agent for the benefit of its customers. FTS is responsible for payment to its brokerage clearing agent for any loss, liability, damage, cost or expense incurred as a result of customers failing to comply with margin or margin maintenance calls on all margin accounts. The margin account balance held by the brokerage clearing agent was $12 million and $13 million at December 31, 2019 and 2018, 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 December 31, 2019 and 2018. 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 by-laws pre-IPO In conjunction with the IPO, the Bancorp received 10.1 million of Visa’s Class B common shares (the “Class B Shares”) based on the Bancorp’s membership percentage in Visa prior to the IPO. The Class B Shares are not transferable (other than to another member bank) until the later of the third anniversary of the IPO closing or the date which the Covered Litigation has been resolved; therefore, the Bancorp’s Class B Shares were classified in other assets and accounted for at their carryover basis of $0. Visa deposited $3 billion of the proceeds from the IPO into a litigation escrow account, established for the purpose of funding judgments in, or settlements of, the Covered Litigation. Since then, when Visa’s litigation committee determined that the escrow account was insufficient; Visa issued additional Class A Shares and deposited the proceeds from the sale of the Class A Shares into the litigation escrow account. When Visa funded the litigation escrow account, the Class B Shares were subjected to dilution through an adjustment in the conversion rate of Class B Shares into Class A Shares. In 2009, the Bancorp completed the sale of Visa, Inc. Class B Shares and entered into a total return swap in which the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Class B Shares into Class A Shares. The swap terminates on the later of the third anniversary of Visa’s IPO or the date on which the Covered Litigation is settled. Refer to Note 29 for additional information on the valuation of the swap. The counterparty to the swap as a result of its ownership of the Class B Shares will be impacted by dilutive adjustments to the conversion rate of the Class B Shares into Class A Shares caused by any Covered Litigation losses in excess of the litigation escrow account. If actual judgments in, or settlements of, the Covered Litigation significantly exceed current expectations, then additional funding by Visa of the litigation escrow account and the resulting dilution of the Class B Shares could result in a scenario where the Bancorp’s ultimate exposure associated with the Covered Litigation (the “Visa Litigation Exposure”) exceeds the value of the Class B Shares owned by the swap counterparty (the “Class B Value”). In the event the Bancorp concludes that it is probable that the Visa Litigation Exposure exceeds the Class B Value, the Bancorp would record a litigation reserve liability and a corresponding amount of other noninterest expense for the amount of the excess. Any such litigation reserve liability would be separate and distinct from the fair value derivative liability associated with the total return swap. As of the date of the Bancorp’s sale of the Visa Class B Shares and through December 31, 2019, the Bancorp has concluded that it is not probable that the Visa Litigation Exposure will exceed the Class B Value. Period ($ in millions) Visa Bancorp Cash Q2 2010 $ 500 20 Q4 2010 800 35 Q2 2011 400 19 Q1 2012 1,565 75 Q3 2012 150 6 Q3 2014 450 18 Q2 2018 600 26 Q3 2019 300 12 |
Legal and Regulatory Proceeding
Legal and Regulatory Proceedings | 12 Months Ended |
Dec. 31, 2019 | |
Legal And Regulatory Proceedings | |
Legal and Regulatory Proceedings | 20. LEGAL AND REGULATORY PROCEEDINGS Litigation Visa/MasterCard Merchant Interchange Litigation In April 2006, the Bancorp was added as a defendant in a consolidated antitrust class action lawsuit originally filed against Visa ® ® 05-MD-1720). On December 13, 2019, the Court entered an order granting final approval for the settlement. The settlement does not resolve the claims of the separate proposed plaintiffs’ class seeking injunctive relief or the claims of merchants who have opted out of the proposed class settlement and are pursuing, or may in the future decide to pursue, private lawsuits. The ultimate outcome in this matter, including the timing of resolution, therefore remains uncertain. Refer to Note 19 for further information. Klopfenstein v. Fifth Third Bank On August 3, 2012, William Klopfenstein and Adam McKinney filed a lawsuit against Fifth Third Bank in the United States District Court for the Northern District of Ohio (Klopfenstein et al. v. Fifth Third Bank), alleging that the 120% APR that Fifth Third disclosed on its Early Access program was misleading. Early Access is a deposit-advance program offered to eligible customers with checking accounts. The plaintiffs sought to represent a nationwide class of customers who used the Early Access program and repaid their cash advances within 30 days. On October 31, 2012, the case was transferred to the United States District Court for the Southern District of Ohio. In 2013, four similar putative class 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 Access Cash Advance Litigation (Case No. 1:12-CV-00851). pre- Helton v. Fifth Third Bank On August 31, 2015, trust beneficiaries filed an action against Fifth Third Bank, as trustee, in the Probate Court for Hamilton County, Ohio (Helen Clarke Helton, et al. v. Fifth Third Bank, Case No. 2015003814). The plaintiffs alleged breach of the duty to diversify, breach of the duty of impartiality, breach of trust/fiduciary duty, and unjust enrichment, based on Fifth Third’s alleged failure to diversify assets held in two trusts for the plaintiffs’ benefit. The lawsuit sought over $800 million in alleged damages, attorney’s fees, removal of Fifth Third as trustee, and injunctive relief. Fifth Third denied all liability. On April 20, 2018, the Court denied plaintiffs’ motion for summary judgment and granted summary judgment to Fifth Third, dismissing the case in its entirety. On December 18, 2019, the Ohio Court of Appeals affirmed the Probate Court’s dismissal of all of plaintiffs’ claims based upon allegations of Fifth Third’s alleged failure to diversify assets held in two trusts for Plaintiffs’ benefit. The appeals court reversed summary judgment on one claim related to Fifth Third’s alleged unjust enrichment through its receipt of certain fees in managing the trusts. The Court of Appeals remanded the case to the Probate Court for further consideration of the lone surviving claim, which comprises a small fraction of the damages originally sought by plaintiffs in the lawsuit. Upsher-Smith Laboratories, Inc. v. Fifth Third Bank On February 12, 2016, Upsher-Smith Laboratories, Inc. (“Upsher-Smith”) filed suit against Fifth Third Bank in the Fourth Judicial District, Hennepin County, Minnesota, alleging that Fifth Third improperly implemented foreign exchange transactions requested by plaintiff’s authorized employee who allegedly was the victim of fraud by a third party. Plaintiff asserted claims for breach of contract and the implied covenant of good faith and fair dealing and for alleged failure to comply with Article 4A-202 16-cv-00556). Other litigation 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 or may become involved in information-gathering requests, reviews, investigations and proceedings (both formal and informal) by various governmental regulatory agencies and law enforcement authorities, including but not limited to the FRB, OCC, CFPB, SEC, FINRA, U.S. Department of Justice, etc., as well as state and other governmental authorities and self-regulatory bodies regarding their respective businesses. For example, the CFPB staff has notified Fifth Third that it intends to file an enforcement action in relation to alleged unauthorized account openings. Fifth Third believes that the facts do not warrant an enforcement proceeding and intends to defend itself vigorously if such an action should be filed. The impact of this potential enforcement action has been reflected in our reasonably possible losses. Additional matters will likely arise from time to time. Any of these matters may result in material adverse consequences or reputational harm to the Bancorp, its affiliates and/or their respective directors, officers and other personnel, including adverse judgments, findings, settlements, fines, penalties, orders, injunctions or other actions, amendments and/or restatements of the Bancorp’s SEC filings and/or financial statements, as applicable, and/or determinations of material weaknesses in our disclosure controls and procedures. Investigations by regulatory authorities may from time to time result in civil or criminal referrals to law enforcement. Additionally, in some cases, regulatory authorities may take supervisory actions that are considered to be confidential supervisory information which may not be publicly disclosed. Reasonably Possible Losses in Excess of Accruals The Bancorp and its subsidiaries are parties to numerous claims and lawsuits as well as threatened or potential actions or claims concerning matters arising from the conduct of its business activities. The outcome of claims or litigation and the timing of ultimate resolution are inherently difficult to predict. The following factors, among others, contribute to this lack of predictability: claims often include significant legal uncertainties, damages alleged by plaintiffs are often unspecified or overstated, discovery may not have started or may not be complete and material facts may be disputed or unsubstantiated. As a result of these factors, the Bancorp is not always able to provide an estimate of the range of reasonably possible outcomes for each claim. An accrual for a potential litigation loss is established when information related to the loss contingency indicates both that a loss is probable and that the amount of loss can be reasonably estimated. Any such accrual is adjusted from time to time thereafter as appropriate to reflect changes in circumstances. The Bancorp also determines, when possible (due to the uncertainties described above), estimates of reasonably possible losses or ranges of reasonably possible losses, in excess of amounts accrued. Under U.S. GAAP, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight.” Thus, references to the upper end of the range of reasonably possible loss for cases in which the Bancorp is able to estimate a range of reasonably possible loss mean the upper end of the range of loss for cases for which the Bancorp believes the risk of loss is more than slight. For matters where the Bancorp is able to estimate such possible losses or ranges of possible losses, the Bancorp currently estimates that it is reasonably possible that it could incur losses related to legal and regulatory proceedings, including known contemplated enforcement actions and Fifth Third’s intended response to such actions, in an aggregate amount up to approximately $56 million in excess of amounts accrued, with it also being reasonably possible that no losses will be incurred in these matters. The estimates included in this amount are based on the Bancorp’s analysis of currently available information, and as new information is obtained the Bancorp may change its estimates. For these matters and others where an unfavorable outcome is reasonably possible but not probable, there may be a range of possible losses in excess of the established accrual that cannot be estimated. Based on information currently available, advice of counsel, available insurance coverage and established accruals, the Bancorp believes that the eventual outcome of the actions against the Bancorp and/or its subsidiaries, including the matters described above, will not, individually or in the aggregate, have a material adverse effect on the Bancorp’s consolidated financial position. However, in the event of unexpected future developments, it is possible that the ultimate resolution of those matters, if unfavorable, may be material to the Bancorp’s results of operations for any particular period, depending, in part, upon the size of the loss or liability imposed and the operating results for the applicable period. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions | |
Related Party Transactions | 21. RELATED PARTY TRANSACTIONS The Bancorp maintains written policies and procedures covering related party transactions with principal shareholders, directors and executives of the Bancorp. These procedures cover transactions such as employee-stock purchase loans, personal lines of credit, residential secured loans, overdrafts, letters of credit and increases in indebtedness. Such transactions are subject to the Bancorp’s normal underwriting and approval procedures. Prior to approving a loan to a related party, Compliance Risk Management must review and determine whether the transaction requires approval from or a post notification to the Bancorp’s Board of Directors. At December 31, 2019 and 2018, certain directors, executive officers, principal holders of Bancorp common stock and their related interests were indebted, including undrawn commitments to lend, to the Bancorp’s banking subsidiary. The following table summarizes the Bancorp’s lending activities with its principal shareholders, directors, executives and their related interests at December 31: ($ in millions) 2019 2018 Commitments to lend, net of participations: Directors and their affiliated companies $ 736 700 Executive officers 5 6 Total $ 741 706 Outstanding balance on loans, net of participations and undrawn commitments $ 49 10 The commitments to lend are in the form of loans and guarantees for various business and personal interests. This indebtedness was incurred in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated parties. This indebtedness does not involve more than the normal risk of repayment or present other features unfavorable to the Bancorp. Worldpay, Inc. and Worldpay Holding, LLC On June 30, 2009, the Bancorp completed the sale of a majority interest in its processing business, Vantiv Holding, LLC (now Worldpay Holding, LLC). Advent International acquired an approximate 51% interest in Worldpay Holding, LLC for cash and a warrant. The Bancorp retained the remaining approximate 49% interest in Worldpay Holding, LLC. During the first quarter of 2012, Vantiv, Inc. (now Worldpay, Inc.) priced an IPO of its shares and contributed the net proceeds to Worldpay Holding, LLC for additional ownership interests. As a result of this offering, the Bancorp’s ownership of Worldpay Holding, LLC was reduced to approximately 39%. The impact of the capital contributions to Worldpay Holding, LLC and the resulting dilution in the Bancorp’s interest resulted in a gain of $115 million recognized by the Bancorp in the first quarter of 2012. In conjunction with Worldpay, Inc.’s IPO, the Bancorp entered into two TRAs with Worldpay, Inc. Refer to Note 1 for further information. The Bancorp completed transactions that impacted the Bancorp’s ownership interest in Worldpay, Inc. from the time of the initial IPO in the first quarter of 2012 through the first quarter of 2019. On March 18, 2019, the Bancorp exchanged its remaining 10,252,826 Class B Units of Worldpay Holding, LLC for 10,252,826 shares of Class A common stock of Worldpay, Inc., and subsequently sold those shares. As a result of this transaction, the Bancorp recognized a gain of $562 million in other noninterest income during the first quarter of 2019. As a result of the sale, as of January 1, 2020, Worldpay Holding, LLC and Worldpay, Inc. are no longer considered related parties of the Bancorp as the Bancorp no longer beneficially owns any of Worldpay, Inc.’s equity securities. The following table provides a summary of the transactions that impacted the Bancorp’s ownership interest in Worldpay Holding, LLC after the initial IPO: ($ in millions) Gain on Transactions Remaining Ownership Percentage Q4 2012 $ 157 33.1 % Q2 2013 242 27.7 Q3 2013 85 25.1 Q2 2014 125 22.8 Q4 2015 331 18.3 Q3 2017 1,037 8.6 Q1 2018 414 4.9 Q2 2018 205 3.3 Q1 2019 562 - The Bancorp recognized $2 million, $1 million and $47 million, respectively, in other noninterest income as part of its equity method investment in Worldpay Holding, LLC for the years ended December 31, 2019, 2018 and 2017 and received cash distributions totaling $1 million, $3 million and $19 million during the years ended December 31, 2019, 2018 and 2017, respectively. During the fourth quarter of 2015, the Bancorp entered into an agreement with Worldpay, Inc. under which a portion of its TRA with Worldpay, Inc. was terminated and settled in full for a cash payment of approximately $49 million from Worldpay, Inc. Under the agreement, the Bancorp sold certain TRA cash flows it expected to receive from 2017 to 2030, totaling to a then estimated $140 million. Approximately half of the sold TRA cash flows related to 2025 and later. This sale did not impact the TRA payment recognized during the fourth quarter of 2015. During the third quarter of 2016, the Bancorp entered into an agreement with Worldpay, Inc. under which a portion of its TRA with Worldpay, Inc. was terminated and settled in full for consideration of a cash payment in the amount of $116 million from Worldpay, Inc. Under the agreement, the Bancorp terminated and settled certain TRA cash flows it expected to receive in the years 2019 to 2035, totaling to a then estimated $331 million. The Bancorp recognized a gain of $116 million in other noninterest income in the Consolidated Statements of Income from this settlement. Additionally, the agreement provides that Worldpay, Inc. may be obligated to pay up to a total of approximately $171 million to the Bancorp to terminate and settle certain remaining TRA cash flows, totaling to a then estimated $394 million, upon the exercise of certain call options by Worldpay, Inc. or certain put options by the Bancorp. In 2016, the Bancorp recognized a gain of $164 million in other noninterest income in the Consolidated Statements of Income associated with these options. The Bancorp received $63 million and $108 million in settlement for the call options and put options exercised during 2017 and 2018, respectively. This agreement did not impact the TRA payment recognized in the fourth quarter of 2017. During the fourth quarter of 2019, the Bancorp entered into an agreement with Fidelity National Information Services, Inc. and Worldpay, Inc. under which Worldpay, Inc. may be obligated to pay up to approximately $366 million to the Bancorp to terminate and settle certain remaining TRA cash flows, totaling an estimated $720 million, upon the exercise of certain call options by Worldpay, Inc. or certain put options by the Bancorp. If exercised, certain of the obligations would be settled with four quarterly payments beginning in April 2020, a second set of the obligations would be settled with four quarterly payments beginning in April 2022, and a third set of the obligations would be settled with four quarterly payments beginning in April 2023. In 2019, the Bancorp recognized a gain of approximately $345 million in other noninterest income associated with these options. This agreement did not impact the TRA payment recognized in the fourth quarter of 2019. In addition to the impact of the TRA agreement discussed above, the Bancorp recognized $1 million, $20 million and $44 million in other noninterest income in the Consolidated Statements of Income associated with the TRA during the years ended December 31, 2019, 2018 and 2017, respectively. The following table provides the estimated cash flows expected to be received subsequent to December 31, 2019 associated with the TRA for the years ending December 31, 2020 and thereafter: ($ in millions) Cash Flows to be Received from Put/Call Options Exercised in the First Quarter of 2020 Cash Flows to be Received from Put/Call Options Expected to be Exercised Estimated Cash Flows to be Received not Subject to Put/Call Option (a) 2020 $ 31 1 2021 11 73 2022 139 44 2023 150 45 2024 35 22 2025 11 Total $ 42 324 196 (a) The 2020 cash flow of $1 million was agreed upon with Worldpay, Inc. and recognized as a gain in other noninterest income during the fourth quarter of 2019 with payment received by the Bancorp in January 2020. The remaining estimated cash flows in this column will be recognized in future periods when the related uncertainties are resolved. The Bancorp and Worldpay Holding, LLC have various agreements in place covering services including interchange clearing, settlement and sponsorship. Worldpay Holding, LLC paid the Bancorp $87 million, $75 million and $68 million for these services for the years ended December 31, 2019, 2018 and 2017, respectively. In addition to the previously mentioned services, the Bancorp previously entered into an agreement under which Worldpay Holding, LLC will provide processing services to the Bancorp. The total amount of fees relating to the processing services provided to the Bancorp by Worldpay Holding, LLC totaled $77 million, $74 million and $72 million for the years ended December 31, 2019, 2018 and 2017, respectively. These fees are primarily reported as a component of card and processing expense in the Consolidated Statements of Income. As part of the initial sale, Worldpay Holding, LLC assumed loans totaling $1.25 billion owed to the Bancorp, which were refinanced in 2010 into a larger syndicated loan structure that included the Bancorp. There was no outstanding carrying value of loans and unused line of credit to Worldpay Holding, LLC as of December 31, 2019. The outstanding carrying value of loans and unused line of credit to Worldpay Holding, LLC was $187 million and $74 million at December 31, 2018, respectively. Interest income relating to the loans was $2 million, $7 million and $5 million for the years ended December 31, 2019, 2018 and 2017, respectively, and is included in interest and fees on loans and leases in the Consolidated Statements of Income. SLK Global Solutions Private Limited As of December 31, 2019, the Bancorp owns 100% of Fifth Third Mauritius Holdings Limited, which owns 49% of SLK Global Solutions Private Limited, and accounts for this investment under the equity method of accounting. The Bancorp recognized $3 million and $2 million in other noninterest income in the Consolidated Statements of Income as part of its equity method investment in SLK Global Solutions Private Limited for the years ended December 31, 2019 and 2018, respectively. The Bancorp received cash distributions of $1 million during the year ended December 31, 2019 and did not receive cash distributions during the year ended December 31, 2018. The Bancorp’s investment in SLK Global Solutions Private Limited was $26 million and $23 million at December 31, 2019 and 2018, respectively. The Bancorp paid SLK Global Solutions Private Limited $22 million, $21 million and $21 million for their process and software services during the years ended December 31, 2019, 2018 and 2017, respectively, which are included in other noninterest expense in the Consolidated Statements of Income. CDC investments The Bancorp’s subsidiary, CDC, has equity investments in entities in which the Bancorp had $12 million and $83 million of loans outstanding at December 31, 2019 and 2018, respectively, and unfunded commitment balances of $21 million and $80 million at December 31, 2019 and 2018, respectively. The Bancorp held $116 million and $77 million of deposits for these entities at December 31, 2019 and 2018, respectively. For further information on CDC investments, refer to Note 13. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | 22. INCOME TAXES The Bancorp and its subsidiaries file a consolidated federal income tax return. The following is a summary of applicable income taxes included in the Consolidated Statements of Income for the years ended December 31: ($ in millions) 2019 2018 2017 Current income tax expense (benefit): U.S. Federal income taxes $ 788 463 986 State and local income taxes 148 71 68 Foreign income taxes - 8 (3) Total current income tax expense 936 542 1,051 Deferred income tax (benefit) expense: U.S. Federal income taxes (212) 24 (254) State and local income taxes (35) 4 2 Foreign income taxes 1 2 - Total deferred income tax (benefit) expense (246) 30 (252) Applicable income tax expense $ 690 572 799 The following is a reconciliation between the federal statutory corporate tax rate and the Bancorp’s effective tax rate for the years ended December 31: 2019 2018 2017 Statutory tax rate 21.0 % 21.0 35.0 Increase (decrease) resulting from: State taxes, net of federal benefit 2.8 2.1 1.5 Tax-exempt (1.2 ) (0.8 ) (1.1 ) LIHTC investment and other tax benefits (5.0 ) (6.8 ) (6.9 ) LIHTC investment proportional amortization 4.4 5.6 7.4 Other tax credits (0.2 ) (0.1 ) (0.4 ) U.S. tax legislation impact on deferred taxes - - (8.5 ) Other, net (0.2 ) (0.3 ) (0.2 ) Effective tax rate 21.6 % 20.7 26.8 Other tax credits in the rate reconciliation table include New Markets, Rehabilitation Investment and Qualified Zone Academy Bond tax credits. Tax-exempt tax-exempt On December 22, 2017, the U.S. government enacted comprehensive tax legislation known as the TCJA. The TCJA made broad and complex changes to the U.S. tax code including, but not limited to, reducing the federal statutory corporate tax rate from 35 percent to 21 percent beginning after December 31, 2017. U.S. GAAP requires the Bancorp to recognize the tax effects of changes in tax laws and rates on its deferred taxes in the period in which the law was enacted. As a result, for the year ended December 31, 2017, the Bancorp remeasured its deferred tax assets and liabilities and recognized an income tax benefit of approximately $253 million. The following table provides a reconciliation of the beginning and ending amounts of the Bancorp’s unrecognized tax benefits: ($ in millions) 2019 2018 2017 Unrecognized tax benefits at January 1 $ 55 34 24 Gross increases for tax positions taken during prior period 25 20 17 Gross decreases for tax positions taken during prior period (3) (1) (1) Gross increases for tax positions taken during current period 6 8 3 Settlements with taxing authorities (9) (5) (7) Lapse of applicable statute of limitations (9) (1) (2) Unrecognized tax benefits at December 31 (a) $ 65 55 34 (a) With the exception of $6 2019 The Bancorp’s unrecognized tax benefits as of December 31, 2019, 2018 and 2017 primarily relate to state income tax exposures from taking tax positions where the Bancorp believes it is likely that, upon examination, a state will take a position contrary to the position taken by the Bancorp. While it is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of the Bancorp’s uncertain tax positions could increase or decrease during the next twelve months, the Bancorp believes it is unlikely that its unrecognized tax benefits will change by a material amount during the next twelve months. Deferred income taxes are comprised of the following items at December 31: ($ in millions) 2019 2018 Deferred tax assets: Allowance for loan and lease losses $ 252 232 Deferred compensation 103 79 Other comprehensive income - 42 Reserve for unfunded commitments 30 28 Reserves 32 28 State net operating loss carryforwards 9 7 Other 154 112 Total deferred tax assets $ 580 528 Deferred tax liabilities: Lease financing $ 650 599 Investments in joint ventures and partnership interests 25 131 MSRs and related economic hedges 144 107 State deferred taxes 47 73 Bank premises and equipment 73 60 Other comprehensive income 352 - Other 127 102 Total deferred tax liabilities $ 1,418 1,072 Total net deferred tax liability $ (838) (544) At December 31, 2019 and 2018, the Bancorp recorded deferred tax assets of $9 million and $7 million, respectively, related to state net operating loss carryforwards. The deferred tax assets relating to state net operating losses are presented net of specific valuation allowances of $17 million and $25 million at December 31, 2019 and 2018, respectively. If these carryforwards are not utilized, they will expire in varying amounts through 2038 The Bancorp has determined that a valuation allowance is not needed against the remaining deferred tax assets as of December 31, 2019 or 2018. The Bancorp considered all of the positive and negative evidence available to determine whether it is more likely than not that the deferred tax assets will ultimately be realized and, based upon that evidence, the Bancorp believes it is more likely than not that the deferred tax assets recorded at December 31, 2019 and 2018 will ultimately be realized. The Bancorp reached this conclusion as it is expected that the Bancorp’s remaining deferred tax assets will be realized through the reversal of its existing taxable temporary differences and its projected future taxable income. The IRS has concluded its examination of the Bancorp’s 2015 federal income tax return and is currently examining the Bancorp’s 2016 federal income tax return. The statute of limitations for the Bancorp’s federal income tax returns remains open for tax years 2016-2019. On occasion, as various state and local taxing jurisdictions examine the returns of the Bancorp and its subsidiaries, the Bancorp may agree to extend the statute of limitations for a reasonable period of time. Otherwise, the statutes of limitations for state income tax returns remain open only for tax years in accordance with each state’s statutes. Any interest and penalties incurred in connection with income taxes are recorded as a component of income tax expense in the Consolidated Financial Statements. During the years ended December 31, 2019, 2018 and 2017, the Bancorp recognized $1 million, $1 million and $2 million, respectively, of interest expense in connection with income taxes. At December 31, 2019 and 2018, the Bancorp had accrued interest liabilities, net of the related tax benefits, of $4 million and $3 million, respectively. No material liabilities were recorded for penalties related to income taxes. Retained earnings at December 31, 2019 and 2018 included $157 million in allocations of earnings for bad debt deductions of former thrift subsidiaries for which no income tax has been provided. Under current tax law, if certain of the Bancorp’s subsidiaries use these bad debt reserves for purposes other than to absorb bad debt losses, they will be subject to federal income tax at the current corporate tax rate. |
Retirement and Benefit Plans
Retirement and Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement and Benefit Plans | |
Retirement and Benefit Plans | 23. RETIREMENT AND BENEFIT PLANS The Bancorp’s qualified defined benefit plan’s benefits were frozen in 1998, except for grandfathered employees. The Bancorp’s other defined benefit retirement plans consist of non-qualified as-needed qualified defined benefit plan in the following tables (“the Plan”). The Bancorp recognizes the overfunded and underfunded status of the Plan as an asset and liability, respectively, in the Consolidated Balance Sheets. The overfunded and underfunded amounts recognized in other assets and accrued taxes, interest and expense, respectively, on the Consolidated Balance Sheets were as follows as of December 31: ($ in millions) 2019 2018 Prepaid benefit cost $ - 1 Accrued benefit liability (19 ) (18 ) Net underfunded status $ (19 ) (17 ) The following tables summarize the defined benefit retirement plans as of and for the years ended December 31: Plans with an overfunded status (a) ($ in millions) 2019 2018 Fair value of plan assets at January 1 $ - 185 Actual return on assets - (6 ) Settlement - (9 ) Benefits paid - (6 ) Fair value of plan assets at December 31 $ - 164 Projected benefit obligation at January 1 $ - 188 Interest cost - 6 Settlement - (9 ) Actuarial gain - (16 ) Benefits paid - (6 ) Projected benefit obligation at December 31 $ - 163 Overfunded projected benefit obligation at December 31 $ - 1 Accumulated benefit obligation at December 31 (b) $ - 163 (a) The Bancorp’s qualified defined benefit plan had an underfunded status at December 31, 2019 (b) Since the Plan’s benefits are frozen, the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at December 31, 2018. Plans with an underfunded status ($ in millions) 2019 2018 Fair value of plan assets at January 1 $ 164 - Actual return on assets 26 - Contributions 2 3 Settlement (9 ) - Benefits paid (8 ) (3 ) Fair value of plan assets at December 31 $ 175 - Projected benefit obligation at January 1 $ 181 21 Interest cost 7 1 Settlement (9 ) - Actuarial loss (gain) 23 (1 ) Benefits paid (8 ) (3 ) Projected benefit obligation at December 31 $ 194 18 Underfunded projected benefit obligation at December 31 $ (19 ) (18 ) Accumulated benefit obligation at December 31 (a) $ 194 18 (a) Since the Plan’s benefits are frozen, the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at both December 31, 2019 The estimated net actuarial loss for the Plan that will be amortized from AOCI into net periodic benefit cost during 2020 is $6 million. The estimated net prior service cost for the Plan that will be amortized from AOCI into net periodic benefit cost during 2020 is immaterial to the Consolidated Financial Statements. The following table summarizes net periodic benefit cost and other changes in the Plan’s assets and benefit obligations recognized in OCI for the years ended December 31: ($ in millions) 2019 2018 2017 Components of net periodic benefit cost: Interest cost $ 7 7 8 Expected return on assets (8 ) (11 ) (10 ) Amortization of net actuarial loss 6 6 7 Settlement 3 3 4 Net periodic benefit cost $ 8 5 9 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial loss (gain) $ 5 (1 ) (1 ) Amortization of net actuarial loss (6 ) (6 ) (7 ) Settlement (3 ) (3 ) (4 ) Total recognized in other comprehensive income (4 ) (10 ) (12 ) Total recognized in net periodic benefit cost and other comprehensive income $ 4 (5 ) (3 ) Fair Value Measurements of Plan Assets The following tables summarize Plan assets measured at fair value on a recurring basis as of December 31: Fair Value Measurements Using (a) 2019 ($ in millions) Level 1 (c) Level 2 (c) Level 3 Total Fair Value Cash equivalents $ 14 - - 14 Mutual and exchange-traded funds 76 - - 76 Debt securities: U.S. Treasury and federal agencies securities 57 6 - 63 Mortgage-backed securities: Non-agency - 1 - 1 Asset-backed securities and other debt securities (b) - 21 - 21 Total debt securities $ 57 28 - 85 Total Plan assets $ 147 28 - 175 (a) For further information on fair value hierarchy levels, refer to Note 1. (b) Includes corporate bonds. (c) During the year ended December 31, 2019, no assets or liabilities were transferred between Level 1 and Level 2. Fair Value Measurements Using (a) 2018 ($ in millions) Level 1 (d) Level 2 (d) Level 3 Total Fair Value Cash equivalents $ 25 - - 25 Mutual and exchange-traded funds 46 - - 46 Debt securities: U.S. Treasury and federal agencies securities 43 3 - 46 Mortgage-backed securities: Non-agency - 1 - 1 Asset-backed securities and other debt securities (b) - 18 - 18 Total debt securities $ 43 22 - 65 Total Plan assets, excluding collective funds $ 114 22 - 136 Collective funds (NAV) (c) 28 Total Plan assets $ 164 (a) For further information on fair value hierarchy levels, refer to Note 1. (b) Includes corporate bonds. (c) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the fair value of Plan assets presented elsewhere within this footnote. (d) During the year ended December 31, 2018, no assets or liabilities were transferred between Level 1 and Level 2. The following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. Cash equivalents Cash equivalents are comprised of money market mutual funds that invest in short-term money market instruments that are issued and payable in U.S. dollars. The Plan measures its cash equivalent funds that are exchange-traded using the fund’s quoted price, which is in an active market. Therefore, these investments are classified within Level 1 of the valuation hierarchy. Mutual and exchange-traded funds The Plan measures its mutual and exchange-traded funds, which are registered with the SEC, using the funds’ quoted prices which are available in an active market. Therefore, these investments are classified within Level 1 of the valuation hierarchy. The mutual and exchange-traded funds held by the Plan are open-ended funds and are required to publicly publish their NAV on a daily basis. The funds are also required to transact and use the daily NAV as a basis for transactions. Therefore, the NAV reflects the fair value of the Plan’s investment. Debt securities Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities. If quoted market prices are not available, 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 agency securities, non-agency Collective funds Investments in collective funds are valued based upon the investee’s NAV or its equivalent as a practical expedient. NAV is determined by the fund’s management by dividing the fund’s net assets at fair value by the number of units outstanding at the valuation date. Investments valued using NAV as a practical expedient are not classified within the fair value hierarchy. Plan Assumptions The Plan’s assumptions are evaluated annually and are updated as necessary. The discount rate assumption reflects the yield on a portfolio of high quality fixed-income instruments that have a similar duration to the Plan’s liabilities. The expected long-term rate of return assumption reflects the average return expected on the assets invested to provide for the Plan’s liabilities. In determining the expected long-term rate of return, the Bancorp evaluated actuarial and economic inputs, including long-term inflation rate assumptions and broad equity and bond indices long-term return projections, as well as actual long-term historical plan performance. The following table summarizes the weighted-average plan assumptions for the years ended December 31: 2019 2018 2017 For measuring benefit obligations at year end: (a) Discount rate 3.05 % 4.10 3.47 For measuring net periodic benefit cost: (a) Discount rate 4.10 3.47 3.97 Expected return on plan assets 5.50 6.00 6.00 (a) Since the Plan’s benefits were frozen, except for grandfathered employees, the rate of compensation increase is no longer applicable beginning in 2014 since minimal grandfathered employees are still accruing benefits. Lowering both the expected rate of return on the plan assets and the discount rate by 0.25% would have increased the 2019 pension expense by approximately $1 million. Based on the actuarial assumptions, the Bancorp expects to contribute $2 million to the Plan in 2020. Estimated pension benefit payments are $16 million for 2020, $17 million for each of the years 2021 through 2023 and $16 million for 2024. The total estimated payments for the years 2025 through 2029 is $70 million. Investment Policies and Strategies The Bancorp’s policy for the investment of Plan assets is to employ investment strategies that achieve a range of weighted-average target asset allocations relating to equity securities, fixed-income securities (including U.S. Treasury and federal agencies securities, mortgage-backed securities, asset-backed securities, corporate bonds and municipal bonds), alternative strategies (including traditional mutual funds, precious metals and commodities) and cash. The following table provides the Bancorp’s targeted and actual weighted-average asset allocations by asset category for the years ended December 31: Targeted Range (b) 2019 2018 Equity securities (a) 0-55 19 67 Fixed-income securities 50-100 59 23 Alternative strategies 0-5 - 3 Cash or cash equivalents 0-100 22 7 Total 100 % 100 (a) Includes mutual and exchange-traded funds. (b) These reflect the targeted ranges for the year ended December 31, 2019. Plan Management’s objective is to maintain a fully-funded status of the qualified defined benefit plan while also minimizing the risk of excess assets. During 2018, Plan Management revised the investment policy to shift from a return-seeking strategy, with a high level of tolerance to volatility, to a low-risk Permitted asset classes of the Plan include cash and cash equivalents, fixed-income (domestic and non-U.S. non-U.S., Fifth Third Bank, National Association, as Trustee, is expected to manage Plan assets in a manner consistent with the Plan agreement and other regulatory, federal and state laws. As of December 31, 2019 and 2018, $175 million and $164 million, respectively, of Plan assets were managed by Fifth Third Bank, National Association. The Fifth Third Bank Pension, 401(k) and Medical Plan Committee (the “Committee”) is the plan administrator. The Trustee is required to provide to the Committee monthly and quarterly reports covering a list of Plan assets, portfolio performance, transactions and asset allocation. The Trustee is also required to keep the Committee apprised of any material changes in the Trustee’s outlook and recommended investment policy. There were no fees paid by the Plan for investment management, accounting or administrative services provided by the Trustee. Plan assets are not expected to be returned to the Bancorp during 2020. Other Information on Retirement and Benefit Plans The Bancorp has a qualified defined contribution savings plan that allows participants to make voluntary 401(k) contributions on a pre-tax The Bancorp did not make profit sharing contributions during both the years ended December 31, 2018 and 2017. In addition, the Bancorp has a non-qualified non-qualified |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | 24. ACCUMULATED OTHER COMPREHENSIVE INCOME The tables below present the activity of the components of OCI and AOCI for the years ended December 31: Total OCI Total AOCI 2019 ($ in millions) Pre-tax Tax Net Beginning Net Ending Unrealized holding gains on available-for-sale $ 1,369 (323 ) 1,046 Reclassification adjustment for net gains on available-for-sale (9 ) 2 (7 ) Net unrealized gains on available-for-sale 1,360 (321 ) 1,039 (227 ) 1,039 812 Unrealized holding gains on cash flow hedge derivatives arising during the year 348 (73 ) 275 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (16 ) 3 (13 ) Net unrealized gains on cash flow hedge derivatives 332 (70 ) 262 160 262 422 Net actuarial loss arising during the year (5 ) - (5 ) Reclassification of amounts to net periodic benefit costs 9 (1 ) 8 Defined benefit pension plans, net 4 (1 ) 3 (45 ) 3 (42 ) Total $ 1,696 (392 ) 1,304 (112 ) 1,304 1,192 Total OCI Total AOCI 2018 ($ in millions) Pre-tax Tax Net Beginning Net Ending Unrealized holding losses on available-for-sale $ (483 ) 112 (371 ) Reclassification adjustment for net losses on available-for-sale 11 (2 ) 9 Net unrealized losses on available-for-sale (472 ) 110 (362 ) 135 (362 ) (227 ) Unrealized holding gains on cash flow hedge derivatives arising during the year 214 (45 ) 169 Reclassification adjustment for net losses on cash flow hedge derivatives included in net income 2 - 2 Net unrealized gains on cash flow hedge derivatives 216 (45 ) 171 (11 ) 171 160 Net actuarial gain arising during the year 1 - 1 Reclassification of amounts to net periodic benefit costs 9 (2 ) 7 Defined benefit pension plans, net 10 (2 ) 8 (53 ) 8 (45 ) Total $ (246 ) 63 (183 ) 71 (183 ) (112 ) Total OCI Total AOCI 2017 ($ in millions) Pre-tax Tax Net Beginning Net Ending Unrealized holding gains on available-for-sale $ 14 7 21 Reclassification adjustment for net losses on available-for-sale 3 1 4 Net unrealized gains on available-for-sale 17 8 25 101 25 126 Unrealized holding losses on cash flow hedge derivatives arising during the year (11 ) 4 (7 ) Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (19 ) 7 (12 ) Net unrealized losses on cash flow hedge derivatives (30 ) 11 (19 ) 10 (19 ) (9 ) Net actuarial gain arising during the year 1 - 1 Reclassification of amounts to net periodic benefit costs 11 (4 ) 7 Defined benefit pension plans, net 12 (4 ) 8 (52 ) 8 (44 ) Total $ (1 ) 15 14 59 14 73 The table below presents reclassifications out of AOCI for the years ended December 31: Components of AOCI: ($ in millions) Consolidated Statements of Income Caption 2019 2018 2017 Net unrealized gains (losses) on available-for-sale (b) Net gains (losses) included in net income Securities gains (losses), net $ 9 (11 ) (3) Income before income taxes 9 (11 ) (3) Applicable income tax expense (2 ) 2 (1) Net income 7 (9 ) (4) Net unrealized gains (losses) on cash flow hedge derivatives: (b) Interest rate contracts related to C&I loans Interest and fees on loans and leases 16 (2 ) 19 Income before income taxes 16 (2 ) 19 Applicable income tax expense (3 ) - (7) Net income 13 (2 ) 12 Net periodic benefit costs: (b) Amortization of net actuarial loss Employee benefits expense (a) (6 ) (6 ) (7) Settlements Employee benefits expense (a) (3 ) (3 ) (4) Income before income taxes (9 ) (9 ) (11) Applicable income tax expense 1 2 4 Net income (8 ) (7 ) (7) Total reclassifications for the period Net income $ 12 (18 ) 1 (a) This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 23 for information on the computation of net periodic benefit cost. (b) Amounts in parentheses indicate reductions to net income. |
Common, Preferred and Treasury
Common, Preferred and Treasury Stock | 12 Months Ended |
Dec. 31, 2019 | |
Common, Preferred and Treasury Stock | |
Common, Preferred and Treasury Stock | 25. COMMON, PREFERRED AND TREASURY STOCK The table presents a summary of the share activity within common, preferred and treasury stock for the years ended: Common Stock Preferred Stock Treasury Stock ($ in millions, except share data) Value Shares Value Shares Value Shares December 31, 2016 $ 2,051 923,892,581 $ 1,331 54,000 $ (3,433) 173,413,282 Shares acquired for treasury - - - - (1,588) 58,493,506 Impact of stock transactions under stock compensation plans, net - - - - 16 (1,693,503) Other - - - - 3 (125,597) December 31, 2017 $ 2,051 923,892,581 $ 1,331 54,000 $ (5,002) 230,087,688 Shares acquired for treasury - - - - (1,494) 49,967,134 Impact of stock transactions under stock compensation plans, net - - - - 23 (2,698,451) Other - - - - 2 (94,647) December 31, 2018 $ 2,051 923,892,581 $ 1,331 54,000 $ (6,471) 277,261,724 Shares acquired for treasury - - - - (1,763) 64,601,891 Issuance of preferred shares, Series K - - 242 10,000 - - Conversion of outstanding preferred stock issued by a Bancorp subsidiary - - 197 200,000 - - Impact of MB Financial, Inc. acquisition - - - - 2,447 (122,848,442) Impact of stock transactions under stock compensation plans, net - - - - 56 (4,258,132) Other - - - - 7 219,911 December 31, 2019 $ 2,051 923,892,581 $ 1,770 264,000 $ (5,724) 214,976,952 Preferred Stock—Series K On September 17, 2019, the Bancorp issued, in a registered public offering 10,000,000 depositary shares, representing 10,000 shares of 4.95% non-cumulative Preferred Stock—Class B, Series A On August 26, 2019, the Bancorp issued 200,000 shares of 6.00% non-cumulative non-cumulative Preferred Stock—Series J On June 5, 2014, the Bancorp issued, in a registered public offering, 300,000 depositary shares, representing 12,000 shares of 4.90% fixed to floating-rate non-cumulative Preferred Stock—Series I On December 9, 2013, the Bancorp issued, in a registered public offering, 18,000,000 depositary shares, representing 18,000 shares of 6.625% fixed to floating-rate non-cumulative Preferred Stock—Series H On May 16, 2013, the Bancorp issued, in a registered public offering, 600,000 depositary shares, representing 24,000 shares of 5.10% fixed to floating-rate non-cumulative Treasury Stock In June of 2019, the Board of Directors authorized the Bancorp to repurchase up to 100 million common shares in the open market or in privately negotiated transactions and to utilize any derivative or similar instrument to effect share repurchase transactions. This share repurchase authorization replaced the Board’s previous authorization from February of 2018. On June 28, 2017, the Bancorp announced the results of its capital plan submitted to the FRB as part of the 2017 CCAR. The FRB indicated to the Bancorp that it did not object to the potential repurchase of $1.161 billion of common shares with the additional ability to repurchase common shares in an amount equal to any after-tax On June 28, 2018, the Bancorp announced the results of its capital plan submitted to the FRB as part of the 2018 CCAR. The FRB indicated to the Bancorp that it did not object to the potential repurchase of $1.651 billion of common shares with the additional ability to repurchase common shares in an amount equal to any after-tax On May 21, 2018, the Bancorp announced the planned acquisition of MB Financial, Inc. As a result of this transaction, the FRB required the Bancorp to resubmit its CCAR plan recognizing the pro forma impact of the combined Fifth Third/MB Financial, Inc. post-merger entity. On October 5, 2018, Fifth Third resubmitted its capital plan to the FRB. On December 27, 2018, the FRB indicated to the Bancorp that it did not object to the resubmitted capital plan. The resubmitted capital plan called for no change to the originally submitted total capital actions over the 2018 CCAR approval horizon (the third quarter of 2018 through the second quarter of 2019). However, the share repurchase authority increased from $1.651 billion to $1.81 billion as a result of after-tax During the first quarter of 2019, the FRB provided relief from certain regulatory requirements related to supervisory stress testing and company-run In June of 2019, the Bancorp announced its capital distribution capacity of approximately $2 billion for the period of July 1, 2019 through June 30, 2020. This includes the ability to execute share repurchases up to $1.24 billion as well as increase quarterly common stock dividends by up to $0.03 per share. These distributions will be governed under the FRB’s 2019 extended stress test process for BHCs with less than $250 billion of total consolidated assets. The Bancorp entered into a number of accelerated share repurchase transactions during the years ended December 31, 2019 and 2018. As part of these transactions, the Bancorp entered into forward contracts in which the final number of shares delivered at settlement was based generally on a discount to the average daily volume weighted-average price of the Bancorp’s common stock during the term of these repurchase agreements. The accelerated share repurchases were treated as two separate transactions: (i) the repurchase of treasury shares on the repurchase date and (ii) a forward contract indexed to the Bancorp’s common stock. The following table presents a summary of the Bancorp’s accelerated share repurchase transactions that were entered into or settled during the years ended December 31, 2019 and 2018: Shares Repurchased on Shares Received from Total Shares Repurchase Date Amount ($ in millions) Repurchase Date Forward Contract Repurchased Settlement Date December 19, 2017 273 7,727,273 824,367 8,551,640 March 19, 2018 February 12, 2018 318 8,691,318 1,015,731 9,707,049 March 26, 2018 May 25, 2018 235 6,402,244 1,172,122 7,574,366 June 15, 2018 March 27, 2019 (a) 913 31,779,280 2,026,584 33,805,864 June 28, 2019 April 29, 2019 (b) 200 6,015,570 1,217,805 7,233,375 May 23, 2019 - May 24, 2019 August 7, 2019 100 3,150,482 694,238 3,844,720 August 16, 2019 August 9, 2019 (b) 200 6,405,426 1,475,487 7,880,913 August 28, 2019 October 25, 2019 300 9,020,163 1,149,121 10,169,284 December 17, 2019 (a) This accelerated share repurchase transaction consisted of two supplemental confirmations each with a notional amount of $456.5 million. (b) This accelerated share repurchase transaction consisted of two supplemental confirmations each with a notional amount of $100 million. Open Market Share Repurchase Transactions Between July 20, 2018 and August 2, 2018, the Bancorp repurchased 16,945,020 shares, or approximately $500 million, of its outstanding common stock through open market repurchase transactions, which settled between July 24, 2018 and August 6, 2018. Between October 24, 2018 and November 9, 2018, the Bancorp repurchased 14,916,332 shares, or approximately $400 million, of its outstanding common stock through open market repurchase transactions, which settled between October 26, 2018 and November 14, 2018. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation | |
Stock-Based Compensation | 26. STOCK-BASED COMPENSATION Stock-based awards are eligible for issuance under the Bancorp’s Incentive Compensation Plan to executives, directors and key employees of the Bancorp and its subsidiaries. The 2019 Incentive Compensation Plan was approved by shareholders on April 16, 2019 and authorized the issuance of up to 40 million shares, as equity compensation and provides for SARs, RSAs, RSUs, stock options, performance share or unit awards, dividend or dividend equivalent rights and stock awards. As of December 31, 2019, there were 39.5 million shares available for future issuance. Based on total stock-based awards outstanding (including SARs, RSAs, RSUs, stock options and PSAs) and shares remaining for future grants under the 2019 Incentive Compensation Plan, the potential dilution to which the Bancorp’s shareholders of common stock are exposed due to the potential that stock-based compensation will be awarded to executives, directors or key employees of the Bancorp and its subsidiaries is 10%. SARs, RSAs, RSUs, stock options and PSAs outstanding represent 5% of the Bancorp’s issued shares at December 31, 2019. All of the Bancorp’s stock-based awards are to be settled with stock. The Bancorp has historically used treasury stock to settle stock-based awards, when available. SARs, issued at fair value based on the closing price of the Bancorp’s common stock on the date of grant, have up to ten year terms and vest and become exercisable ratably over a three or four-year period of continued employment. The Bancorp does not grant discounted SARs or stock options, re-price If this threshold is not met in any one of the three years during the performance period, one-third Under the terms of the merger agreement with MB Financial, Inc., the Bancorp granted stock-based awards to replace those awards previously granted by MB Financial, Inc. that were outstanding as of the date of the merger. The replacement awards included RSAs, RSUs, and stock options. Approximately 1.65 replacement awards were granted to replace each outstanding MB Financial, Inc. award and the strike prices of replacement stock options were also adjusted to reflect this exchange ratio. Otherwise, the replacement awards were granted with substantially the same terms as the MB Financial, Inc. awards that were being replaced, including vesting and expiration dates. The fair value of the awards being replaced and the replacement awards were measured as of the date of the merger. The portion of the fair value of the awards being replaced which was attributable to pre-combination Stock-based compensation expense was $132 million, $127 million and $118 million for the years ended December 31, 2019, 2018 and 2017, respectively, and is included in salaries, wages and incentives in the Consolidated Statements of Income. The total related income tax benefit recognized was $27 million, $27 million and $41 million for the years ended December 31, 2019, 2018 and 2017, respectively. Stock Appreciation Rights The Bancorp uses assumptions, which are evaluated and revised as necessary, in estimating the grant-date fair value of each SAR grant. The weighted-average assumptions were as follows for the years ended December 31: 2019 2018 2017 Expected life (in years) 7 7 6 Expected volatility 32 % 35 37 Expected dividend yield 3.3 1.9 2.1 Risk-free interest rate 2.6 2.6 2.1 The expected life is generally derived from historical exercise patterns and represents the amount of time that SARs granted are expected to be outstanding. The expected volatility is based on a combination of historical and implied volatilities of the Bancorp’s common stock. The expected dividend yield is based on annual dividends divided by the Bancorp’s stock price. Annual dividends are based on projected dividends, estimated using an expected long-term dividend payout ratio, over the estimated life of the awards. The risk-free interest rate for periods within the contractual life of the SARs is based on the U.S. Treasury yield curve in effect at the time of grant. The grant-date fair value of SARs is measured using the Black-Scholes option-pricing model. The weighted-average grant-date fair value of SARs granted was $7.38, $11.33 and $8.55 per share for the years ended December 31, 2019, 2018 and 2017, respectively. The total grant-date fair value of SARs that vested during the years ended December 31, 2019, 2018 and 2017 was $20 million, $26 million and $29 million, respectively. At December 31, 2019, there was $7 million of stock-based compensation expense related to outstanding SARs not yet recognized. The expense is expected to be recognized over an estimated remaining weighted-average period at December 31, 2019 of 1.1 years. 2019 2018 2017 SARs (in thousands, except per share data) Number of Weighted- Number of Weighted- Number of Weighted- Outstanding at January 1 26,196 $ 17.30 31,929 $ 17.22 40,041 $ 18.30 Granted 399 26.72 272 33.15 3,672 26.52 Exercised (4,829) 13.34 (5,058) 16.96 (6,953) 16.00 Forfeited or expired (317) 23.47 (947) 20.93 (4,831) 35.08 Outstanding at December 31 21,449 $ 18.38 26,196 $ 17.30 31,929 $ 17.22 Exercisable at December 31 18,249 $ 17.50 20,132 $ 15.90 21,403 $ 15.30 The following table summarizes outstanding and exercisable SARs by grant price per share at December 31, 2019: Outstanding SARs Exercisable SARs SARs (in thousands, except per share data) Number of Weighted- Weighted- Number of Weighted- Weighted- $10.01-$20.00 15,944 $ 16.12 3.7 14,694 $ 16.00 3.5 $20.01-$30.00 5,236 24.50 6.1 3,464 23.44 5.3 $30.01-$40.00 269 33.15 8.0 91 33.15 7.9 All SARs 21,449 $ 18.38 4.4 18,249 $ 17.50 3.9 Restricted Stock Awards The total grant-date fair value of RSAs that were released during the years ended December 31, 2019, 2018 and 2017 was $16 million, $27 million and $39 million, respectively. At December 31, 2019, 2019 2018 2017 RSAs (in thousands, except per share data) Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Outstanding at January 1 868 $ 19.18 2,321 $ 19.72 4,638 $ 19.44 Granted - - - - 7 21.14 Assumed 11 25.48 - - - - Released (867 ) 18.91 (1,347 ) 20.09 (2,063 ) 19.10 Forfeited (12 ) 19.01 (106 ) 19.40 (261 ) 19.75 Outstanding at December 31 - $ 25.48 868 $ 19.18 2,321 $ 19.72 Restricted Stock Units The total grant-date fair value of RSUs that were released during the years ended December 31, 2019, 2018 and 2017 was $73 million, $42 million and $21 million, respectively. 2019 2018 2017 RSUs (in thousands, except per unit data) Units Weighted-Average Units Weighted-Average Units Weighted-Average Outstanding at January 1 8,020 $ 27.04 6,986 $ 22.25 5,086 $ 17.84 Granted 4,375 26.68 3,674 32.84 3,652 26.71 Assumed 1,476 25.48 - - - - Released (2,951 ) 24.76 (1,977 ) 21.15 (1,194 ) 17.64 Forfeited (914 ) 27.41 (663 ) 26.45 (558 ) 21.02 Outstanding at December 31 10,006 $ 27.30 8,020 $ 27.04 6,986 $ 22.25 The following table summarizes outstanding RSUs by grant-date fair value per unit at December 31, 2019: Outstanding RSUs RSUs (in thousands) Units Weighted-Average $15.01-$20.00 870 0.7 $20.01-$25.00 243 0.5 $25.01-$30.00 6,477 1.2 $30.01-$35.00 2,416 1.6 All RSUs 10,006 1.2 Stock Options There were no stock options granted during the years ended December 31, 2019, 2018 and 2017, except for replacement stock option awards assumed 23%-29%, 2.34%-2.51%, 2.2-2.8. 2019 2018 2017 Stock Options (in thousands, except per share data) Number of Weighted-Average Number of Weighted-Average Number of Weighted-Average Outstanding at January 1 - $ - 2 $ 16.50 25 $ 19.17 Assumed 2,120 19.34 - - - - Exercised (660) 17.36 (1) 8.59 (18) 14.05 Forfeited or expired (79) 22.18 (1) 24.41 (5) 40.98 Outstanding at December 31 1,381 $ 20.15 - $ - 2 $ 16.50 Exercisable at December 31 1,162 $ 19.17 - $ - 2 $ 16.50 The following table summarizes outstanding and exercisable stock options by exercise price per share at December 31, 2019: Outstanding Stock Options Exercisable Stock Options Stock Options (in thousands, except per share data) Number of Weighted- Weighted- Number of Weighted- Weighted- Under $10.00 9 $ 8.62 6.7 7 $ 8.52 6.7 $10.01-$20.00 884 17.04 3.5 811 16.91 3.3 $20.01-$30.00 488 25.98 4.4 344 26.14 2.7 All stock options 1,381 $ 20.15 3.8 1,162 $ 19.17 3.2 Other Stock-Based Compensation PSAs are payable contingent upon the Bancorp achieving certain predefined performance targets over the three-year measurement period and ranges from zero shares to approximately 1 million shares. The performance targets are based on the Bancorp’s performance relative to a defined peer group. PSAs use a performance-based metric based on return on tangible common equity in relation to peers. During the years ended December 31, 2019, 2018 and 2017, 328,068, 279,568 and 407,069 PSAs, respectively, were granted by the Bancorp. These awards were granted at a weighted-average grant-date fair value of $26.72, $33.15 and $26.52 per unit during the years ended December 31, 2019, 2018 and 2017, respectively. The Bancorp sponsors an employee stock purchase plan that allows qualifying employees to purchase shares of the Bancorp’s common stock with a 15% match. |
Other Noninterest Income and Ot
Other Noninterest Income and Other Noninterest Expense | 12 Months Ended |
Dec. 31, 2019 | |
Other Noninterest Income | |
Other Noninterest Income and Other Noninterest Expense | 27. OTHER NONINTEREST INCOME AND OTHER NONINTEREST EXPENSE The following table presents the major components of other noninterest income and other noninterest expense for the years ended December 31: ($ in millions) 2019 2018 2017 Other noninterest income: Gain on sale of Worldpay, Inc. shares $ 562 205 1,037 Income from the TRA associated with Worldpay, Inc. 346 20 44 Operating lease income 151 84 96 Private equity investment income 65 63 36 BOLI income 60 56 52 Cardholder fees 58 56 54 Consumer loan and lease fees 23 23 23 Banking center income 22 21 20 Insurance income 19 20 8 Net gains (losses) on loan sales 3 2 (2) Equity method income from interest in Worldpay Holding, LLC 2 1 47 Loss on swap associated with the sale of Visa, Inc. Class B Shares (107) (59) (80) Net losses on disposition and impairment of bank premises and equipment (23) (43) - Loss on sale of business (4) - - Gain related to Vantiv, Inc.’s acquisition of Worldpay Group plc. - 414 - Other, net 47 24 22 Total other noninterest income $ 1,224 887 1,357 Other noninterest expense: Marketing $ 162 147 114 Loan and lease 142 112 102 Operating lease 124 76 87 Losses and adjustments 102 61 59 FDIC insurance and other taxes 81 119 127 Professional service fees 70 67 83 Data processing 70 57 58 Travel 68 52 46 Intangible amortization 45 5 2 Postal and courier 38 35 42 Donations 30 21 28 Recruitment and education 28 32 35 Supplies 14 13 14 Insurance 14 13 12 Loss (gain) on partnership investments 2 (4) 14 Other, net 239 214 184 Total other noninterest expense $ 1,229 1,020 1,007 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share | |
Earnings Per Share | 28. EARNINGS PER SHARE The following table provides the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share for the years ended December 31: 2019 2018 2017 ($ in millions, except per share data) Income Average Per Share Income Average Per Share Income Average Per Share Earnings Per Share: Net income available to common shareholders $ 2,419 2,118 2,105 Less: Income allocated to participating securities 21 23 23 Net income allocated to common shareholders $ 2,398 710 3.38 2,095 673 3.11 2,082 728 2.86 Earnings Per Diluted Share: Net income available to common shareholders $ 2,419 2,118 2,105 Effect of dilutive securities: Stock-based awards - 10 - 12 - 13 Net income available to common shareholders 2,419 2,118 2,105 Less: Income allocated to participating securities 21 23 23 Net income allocated to common shareholders plus assumed conversions $ 2,398 720 3.33 2,095 685 3.06 2,082 741 2.81 Shares are excluded from the computation of earnings per diluted share when their inclusion has an anti-dilutive effect on earnings per share. The diluted earnings per share computation for the years ended December 31, 2019, 2018 and 2017 excludes 2 million, 3 million and 4 million, respectively, of SARs. The diluted earnings per share computation for the years ended December 31, 2019 and 2017 excludes an immaterial amount of stock options because their inclusion would have been anti-dilutive. The diluted earnings per share computation for the year ended December 31, 2017 excludes the impact of the forward contract related to the December 19, 2017 accelerated share repurchase transaction. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurements | |
Fair Value Measurements | 29. FAIR VALUE MEASUREMENTS The Bancorp measures certain financial assets and liabilities at fair value in accordance with U.S. GAAP, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. For more information regarding the fair value hierarchy and how the Bancorp measures fair value, refer to Note 1. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables summarize assets and liabilities measured at fair value on a recurring basis as of: Fair Value Measurements Using December 31, 2019 ($ in millions) Level 1 (c) Level 2 (c) Level 3 Total Fair Value Assets: Available-for-sale U.S. Treasury and federal agency securities $ 75 - - 75 Obligations of states and political subdivisions securities - 18 - 18 Mortgage-backed securities: Agency residential mortgage-backed securities - 14,115 - 14,115 Agency commercial mortgage-backed securities - 15,693 - 15,693 Non-agency - 3,365 - 3,365 Asset-backed securities and other debt securities - 2,206 - 2,206 Available-for-sale (a) 75 35,397 - 35,472 Trading debt securities: U.S. Treasury and federal agency securities 2 - - 2 Obligations of states and political subdivisions securities - 9 - 9 Agency residential mortgage-backed securities - 55 - 55 Asset-backed securities and other debt securities - 231 - 231 Trading debt securities 2 295 - 297 Equity securities 554 10 - 564 Residential mortgage loans held for sale - 1,264 - 1,264 Residential mortgage loans (b) - - 183 183 Servicing rights - - 993 993 Derivative assets: Interest rate contracts 1 1,218 18 1,237 Foreign exchange contracts - 165 - 165 Commodity contracts 37 234 - 271 Derivative assets (d) 38 1,617 18 1,673 Total assets $ 669 38,583 1,194 40,446 Liabilities: Derivative liabilities: Interest rate contracts $ 5 144 8 157 Foreign exchange contracts - 151 - 151 Equity contracts - - 163 163 Commodity contracts 17 253 - 270 Derivative liabilities (e) 22 548 171 741 Short positions (e) 49 100 - 149 Total liabilities $ 71 648 171 890 (a) Excludes FHLB, FRB and DTCC restricted stock holdings totaling $76 $478 $2 December 31, 2019 (b) Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. (c) During the year ended December 31, 2019 (d) Included in other assets in the Consolidated Balance Sheets. (e) Included in other liabilities in the Consolidated Balance Sheets. Fair Value Measurements Using December 31, 2018 ($ in millions) Level 1 (c) Level 2 (c) Level 3 Total Fair Value Assets: Available-for-sale U.S. Treasury and federal agency securities $ 97 - - 97 Obligations of states and political subdivisions securities - 2 - 2 Mortgage-backed securities: Agency residential mortgage-backed securities - 16,247 - 16,247 Agency commercial mortgage-backed securities - 10,650 - 10,650 Non-agency - 3,267 - 3,267 Asset-backed securities and other debt securities - 2,015 - 2,015 Available-for-sale (a) 97 32,181 - 32,278 Trading debt securities: U.S. Treasury and federal agency securities - 16 - 16 Obligations of states and political subdivisions securities - 35 - 35 Agency residential mortgage-backed securities - 68 - 68 Asset-backed securities and other debt securities - 168 - 168 Trading debt securities - 287 - 287 Equity securities 452 - - 452 Residential mortgage loans held for sale - 537 - 537 Residential mortgage loans (b) - - 179 179 Commercial loans held for sale - 7 - 7 Servicing rights - - 938 938 Derivative assets: Interest rate contracts - 648 7 655 Foreign exchange contracts - 152 - 152 Commodity contracts 93 214 - 307 Derivative assets (d) 93 1,014 7 1,114 Total assets $ 642 34,026 1,124 35,792 Liabilities: Derivative liabilities: Interest rate contracts $ 8 313 8 329 Foreign exchange contracts - 142 - 142 Equity contracts - - 125 125 Commodity contracts 19 259 - 278 Derivative liabilities (e) 27 714 133 874 Short positions (e) 110 28 - 138 Total liabilities $ 137 742 133 1,012 (a) Excludes FHLB, FRB and DTCC restricted stock holdings totaling $184, $366 and $2, respectively, at December 31, 2018. (b) Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. (c) During the year ended December 31, 2018, no assets or liabilities were transferred between Level 1 and Level 2. (d) Included in other assets in the Consolidated Balance Sheets. (e) Included in other liabilities in the Consolidated Balance Sheets. The following is a description of the valuation methodologies used for significant instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. Available-for-sale Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities and equity securities. If quoted market prices are not available, then fair values are estimated using pricing models, quoted prices of securities with similar characteristics or DCFs. Level 2 securities may include federal agency securities, obligations of states and political subdivisions securities, agency residential mortgage-backed securities, agency and non-agency 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. Commercial loans held for sale For commercial loans held for sale for which the fair value election has been made, fair value is estimated based upon quoted prices of identical or similar assets in an active market, which are reviewed and approved by the Market Risk department, which reports to the Bancorp’s Chief Risk Officer. These loans are generally valued using a market approach based on observable prices and are classified within Level 2 of the valuation hierarchy. Servicing rights MSRs do not trade in an active, open market with readily observable prices. While sales of MSRs do occur, the precise terms and conditions typically are not readily available. Accordingly, the Bancorp estimates the fair value of MSRs using internal OAS models with certain unobservable inputs, primarily prepayment speed assumptions, OAS and weighted-average lives, resulting in a classification within Level 3 of the valuation hierarchy. Refer to Note 14 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 quarterly 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. Derivatives Exchange-traded derivatives valued using quoted prices and certain over-the-counter Derivatives that are valued based upon models with significant unobservable market parameters are classified within Level 3 of the valuation hierarchy. During the years ended December 31, 2019 and 2018, derivatives classified as Level 3, which are valued using models containing unobservable inputs, consisted primarily of a total return swap associated with the Bancorp’s sale of Visa, Inc. Class B Shares. Level 3 derivatives also include IRLCs, which utilize internally generated loan closing rate assumptions as a significant unobservable input in the valuation process. Under the terms of the total return swap, the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Visa, Inc. Class B Shares into Class A Shares. Additionally, the Bancorp will make a quarterly payment based on Visa’s stock price and the conversion rate of the Visa, Inc. Class B Shares into Class A Shares until the date on which the Covered Litigation is settled. The fair value of the total return swap was calculated using a DCF model based on unobservable inputs consisting of management’s estimate of the probability of certain litigation scenarios, the timing of the resolution of the Covered Litigation and Visa litigation loss estimates in excess, or shortfall, of the Bancorp’s proportional share of escrow funds. An increase in the loss estimate or a delay in the resolution of the Covered Litigation would result in an increase in the fair value of the derivative liability; conversely, a decrease in the loss estimate or an acceleration of the resolution of the Covered Litigation would result in a decrease in the fair value of the derivative liability. The Accounting and Treasury departments, both of which report to the Bancorp’s Chief Financial Officer, determined the valuation methodology for the total return swap. Accounting and Treasury review the changes in fair value on a quarterly basis for reasonableness based on Visa stock price changes, litigation contingencies, and escrow funding. The net asset fair value of the IRLCs at December 31, 2019 was $18 million. Immediate decreases in current interest rates of 25 bps and 50 bps would result in increases in the fair value of the IRLCs of approximately $12 million and $22 million, respectively. Immediate increases of current interest rates of 25 bps and 50 bps would result in decreases in the fair value of the IRLCs of approximately $13 million and $28 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 $2 million and $4 million, respectively, and the increase in fair value due to immediate 10% and 20% favorable changes in the assumed loan closing rates would be approximately $2 million and $4 million, respectively. These sensitivities are hypothetical and should be used with caution, as changes in fair value based on a variation in assumptions typically cannot be extrapolated because the relationship of the change in assumptions to the change in fair value may not be linear. The Consumer Line of Business Finance department, which reports to the Bancorp’s Chief Financial Officer, and the aforementioned Secondary Marketing department are responsible for determining the valuation methodology for IRLCs. Secondary Marketing, in conjunction with a third-party valuation provider, periodically review loan closing rate assumptions and recent loan sales to determine if adjustments are needed for current market conditions not reflected in historical data. Short positions Where quoted prices are available in an active market, short positions are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated using pricing models, quoted prices of securities with similar characteristics or DCFs and therefore are classified within Level 2 of the valuation hierarchy. The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Mortgage Servicing Derivatives, Equity Total For the year ended December 31, 2019 ($ in millions) Loans Rights Net (a) Derivatives Fair Value Balance, beginning of period $ 179 938 (1) (125) 991 Total (losses) gains (realized/unrealized): Included in earnings (1) (376) 145 (107) (339) Purchases/originations - 431 (3) - 428 Settlements (31) - (131) 69 (93) Transfers into Level 3 (b) 36 - - - 36 Balance, end of period $ 183 993 10 (163) 1,023 The amount of total (losses) gains for the period (c) $ (1) (250) 20 (107) (338) (a) Net interest rate derivatives include derivative assets and liabilities of $18 $8 December 31, 2019 (b) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. (c) Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Mortgage Servicing Derivatives, Equity Total For the year ended December 31, 2018 ($ in millions) Loans Rights Net (a) Derivatives Fair Value Balance, beginning of period $ 137 858 3 (137) 861 Total (losses) gains (realized/unrealized): Included in earnings (3) (83) 72 (59) (73) Purchases/originations - 163 (5) - 158 Settlements (19) - (71) 71 (19) Transfers into Level 3 (b) 64 - - - 64 Balance, end of period $ 179 938 (1) (125) 991 The amount of total (losses) gains for the period (c) $ (3) (4) 9 (59) (57) (a) Net interest rate derivatives include derivative assets and liabilities of $7 and $8, respectively, as of December 31, 2018. (b) Includes certain residential mortgage loans held for sale that were transferred to held for investment. (c) Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Mortgage Servicing Derivatives, Derivatives, Total For the year ended December 31, 2017 ($ in millions) Loans Rights Net (a) Net Fair Value Balance, beginning of period $ 143 744 8 (91) 804 Total (losses) gains (realized/unrealized): Included in earnings 1 (122) 94 (80) (107) Purchases/originations - 236 (2) - 234 Settlements (23) - (97) 34 (86) Transfers into Level 3 (b) 16 - - - 16 Balance, end of period $ 137 858 3 (137) 861 The amount of total (losses) gains for the period (c) $ 1 (122) 10 (80) (191) (a) Net interest rate derivatives include derivative assets and liabilities of $8 and $5, respectively, as of December 31, 2017. (b) Includes certain residential mortgage loans held for sale that were transferred to held for investment. (c) Includes interest income and expense. The total gains and losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Consolidated Statements of Income for the years ended December 31, 2019, 2018 and 2017 as follows: ($ in millions) 2019 2018 2017 Mortgage banking net revenue $ (235 ) (16 ) (29) Corporate banking revenue 3 2 2 Other noninterest income (107 ) (59 ) (80) Total losses $ (339 ) (73 ) (107) The total gains and losses included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at December 31, 2019, 2018 and 2017 were recorded in the Consolidated Statements of Income as follows: ($ in millions) 2019 2018 2017 Mortgage banking net revenue $ (233 ) - (113) Corporate banking revenue 2 2 2 Other noninterest income (107 ) (59 ) (80) Total losses $ (338 ) (57 ) (191) The following tables present information as of December 31, 2019 and 2018 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 December 31, 2019 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted- Average Residential mortgage loans $ 183 Loss rate model Interest rate risk factor (9.2) - (0.2)% Credit risk factor 0 - 26.5% 0.5% Servicing rights 993 DCF Prepayment speed 0.5 - 97.0% (Fixed) 13.0% (Adjustable) 22.6% OAS (bps) 507 1,513 (Fixed) 602 921 IRLCs, net 18 DCF Loan closing rates 7.3 - 97.1% 81.7% Swap associated with the sale of Visa, Inc. Class B Shares (163) DCF Timing of the resolution Q1 2022 - Q4 2023 Q3 2022 As of December 31, 2018 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted- Average Residential mortgage loans $ 179 Loss rate model Interest rate risk factor (13.2) - 0.5% Credit risk factor 0 - 39.9% 0.7% Servicing rights 938 DCF Prepayment speed 0.5 - 100% (Fixed) 10.2% (Adjustable) 23.0% OAS (bps) 441 1,513 (Fixed) 534 (Adjustable) 863 IRLCs, net 7 DCF Loan closing rates 9.5 - 96.7% 86.0% Swap associated with the sale of Visa, Inc. Class B Shares (125) DCF Timing of the resolution Q1 2021 Q4 2023 Q4 2021 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of December 31, 2019 and 2018 and for which a nonrecurring fair value adjustment was recorded during the years ended December 31, 2019 and 2018, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period. Fair Value Measurements Using Total (Losses) Gains As of December 31, 2019 ($ in Level 1 Level 2 Level 3 Total For the year ended December 31, 2019 Commercial and industrial loans $ - - 169 169 (96) Commercial mortgage loans - - 12 12 - Commercial leases - - 20 20 (6) OREO - - 13 13 (6) Bank premises and equipment - - 27 27 (27) Operating lease equipment - - 6 6 (3) Private equity investments - 11 2 13 8 Total $ - 11 249 260 (130) Fair Value Measurements Using Total (Losses) Gains As of December 31, 2018 ($ in millions) Level 1 Level 2 Level 3 Total For the year ended December 31, 2018 Commercial loans held for sale $ - - 16 16 (3) Commercial and industrial loans - - 93 93 (41) Commercial mortgage loans - - 2 2 7 Commercial leases - - 14 14 (11) OREO - - 20 20 (7) Bank premises and equipment - - 32 32 (45) Operating lease equipment - - - - (2) Private equity investments - 67 3 70 43 Other assets - - 2 2 (8) Total $ - 67 182 249 (67) The following tables present information as of December 31, 2019 and 2018 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 December 31, 2019 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Weighted-Average Commercial and industrial loans $ 169 Appraised value Collateral value NM NM Commercial mortgage loans 12 Appraised value Collateral value NM NM Commercial leases 20 Appraised value Collateral value NM NM OREO 13 Appraised value Appraised value NM NM Bank premises and equipment 27 Appraised value Appraised value NM NM Operating lease equipment 6 Appraised value Appraised value NM NM Private equity investments 2 Comparable company analysis Market comparable transactions NM NM As of December 31, 2018 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Weighted-Average Commercial loans held for sale $ 16 Appraised value Appraised value Costs to sell NM NM NM 10.0 % Commercial and industrial loans 93 Appraised value Collateral value NM NM Commercial mortgage loans 2 Appraised value Collateral value NM NM Commercial leases 14 Appraised value Collateral value NM NM OREO 20 Appraised value Appraised value NM NM Bank premises and equipment 32 Appraised value Appraised value NM NM Operating lease equipment - Appraised value Appraised value NM NM Private equity investments - Liquidity discount applied to fund’s NAV Liquidity discount 0 - 12.9 % 3 Comparable company analysis Market comparable transactions NM NM Other assets 2 Appraised value Appraised value NM NM Portfolio commercial loans and leases During the years ended December 31, 2019 and 2018, the Bancorp recorded nonrecurring impairment adjustments to certain commercial and industrial loans, commercial mortgage loans and commercial leases held for investment. Larger commercial loans included within aggregate borrower relationship balances exceeding $1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment. The Bancorp considers the current value of collateral, credit quality of any guarantees, the guarantor’s liquidity and willingness to cooperate, the loan structure and other factors when evaluating whether an individual loan is impaired. When the loan is collateral dependent, the fair value of the loan is generally based on the fair value of the underlying collateral supporting the loan and therefore these loans were classified within Level 3 of the valuation hierarchy. 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 reviewing the fair value estimates for commercial loans held for investment. OREO During the years ended December 31, 2019 and 2018, 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 were primarily due to declines in real estate values of the properties recorded in OREO. For the years ended December 31, 2019 and 2018, these losses include $3 million and $4 million, respectively, recorded as charge-offs, on new OREO properties transferred from loans during the respective periods and $3 million for both periods recorded as negative fair value adjustments on OREO in other noninterest expense in the 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 is solely responsible for managing the appraisal process and evaluating the appraisals for commercial properties transferred to OREO. All appraisals on commercial OREO properties are updated on at least an annual basis. The Real Estate Valuation department reviews the BPO data and internal market information to determine the initial charge-off Bank premises and equipment The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. These properties were written down to their lower of cost or market values. At least annually thereafter, the Bancorp will review these properties for market fluctuations. The fair value amounts were generally based on appraisals of the property values, resulting in a classification within Level 3 of the valuation hierarchy. Enterprise Workplace Services, which reports to the Bancorp’s Chief Human Resources Officer, in conjunction with Accounting, are responsible for preparing and reviewing the fair value estimates for bank premises and equipment. For further information on bank premises and equipment refer to Note 8. Operating lease equipment and other assets 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. When evaluating 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 asset under review. As part of this ongoing assessment, the Bancorp determined that the carrying values 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 value amounts were generally based on appraised values of the assets, resulting in a classification within Level 3 of the valuation hierarchy. The Equipment Finance department, which reports to the Bancorp’s Head of Commercial Banking, is responsible for preparing and reviewing the fair value estimates for operating lease equipment . Private equity investments The Bancorp accounts for its private equity investments using the measurement alternative to fair value, except for those accounted for under the equity method of accounting. Under the measurement alternative, the Bancorp carries each investment at its cost basis minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The Bancorp recognized gains of $13 million and $64 million during the years ended December 31, 2019 and 2018, respectively, resulting from observable price changes. The carrying value of the Bancorp’s private equity investments still held as of December 31, 2019 includes a cumulative $47 million of positive adjustments as a result of observable price changes since January 1, 2018. Because these adjustments are based on observable transactions in inactive markets, they are classified in Level 2 of the fair value hierarchy. For private equity investments which are accounted for using the measurement alternative to fair value, the Bancorp qualitatively evaluates each investment quarterly to determine if impairment may exist. If necessary, the Bancorp then measures impairment by estimating the value of its investment and comparing that to the investment’s carrying value, whether or not the Bancorp considers the impairment to be temporary. These valuations are typically developed using a DCF method, but other methods may be used if more appropriate for the circumstances. These valuations are based on unobservable inputs and therefore are classified in Level 3 of the fair value hierarchy. The Bancorp recognized impairment charges of $5 million and $12 million during the years ended December 31, 2019 and 2018, respectively. The carrying value of the Bancorp’s private equity investments still held as of December 31, 2019 includes a cumulative $17 million of impairment charges recognized since adoption of the measurement alternative to fair value on January 1, 2018. The Bancorp did not recognize any OTTI during the year ended December 31, 2019 and recognized $10 million of OTTI primarily associated with certain nonconforming investments affected by the Volcker Rule during the year ended December 31, 2018. The Bancorp performed nonrecurring fair value measurements on a fund by fund basis to determine whether OTTI existed. The Bancorp estimated the fair value of the funds by applying an estimated market discount to the reported NAV of the fund or through a discounted cash flow analysis. Because the length of time until the investment will become redeemable is generally not certain, these funds were classified within Level 3 of the valuation hierarchy. An adverse change in the reported NAVs or estimated market discounts, where applicable, would result in a decrease in the fair value estimate. Fair Value Option The Bancorp elected to measure certain residential mortgage and commercial loans held for sale under the fair value option as allowed under U.S. GAAP. Electing to measure residential mortgage loans held for sale at fair value reduces certain timing differences and better matches changes in the value of these assets with changes in the value of derivatives used as economic hedges for these assets. Electing to measure certain commercial loans held for sale at fair value reduces certain timing differences and better reflects changes in fair value of these assets that are expected to be sold in the short term. Management’s intent to sell residential mortgage or commercial loans classified as held for sale may change over time due to such factors as changes in the overall liquidity in markets or changes in characteristics specific to certain loans held for sale. Consequently, these loans may be reclassified to loans held for investment and maintained in the Bancorp’s loan portfolio. In such cases, the loans will continue to be measured at fair value. These gains are reported in mortgage banking net revenue in the Consolidated Statements of Income. The Bancorp did not hold any commercial loans held for sale at December 31, 2019 for which the fair value option was elected. Fair value changes recognized in earnings for commercial loans held at December 31, 2018 for which the fair value option was elected included gains of an immaterial amount. Valuation adjustments related to instrument-specific credit risk for residential mortgage loans measured at fair value negatively impacted the fair value of those loans by $1 million at both December 31, 2019 and 2018. Valuation adjustments related to instrument-specific credit risk for commercial loans measured at fair value had an immaterial impact on the fair value of those loans at December 31, 2018. Interest on loans measured at fair value is accrued as it is earned using the effective interest method and is reported as interest income in the Consolidated Statements of Income. The following table summarizes the difference between the fair value and the unpaid principal balance for residential mortgage loans and commercial loans measured at fair value as of: ($ in millions) Aggregate Aggregate Unpaid Difference December 31, 2019 Residential mortgage loans measured at fair value $ 1, |
Regulatory Capital Requirements
Regulatory Capital Requirements and Capital Ratios | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Capital Requirements and Capital Ratios | |
Regulatory Capital Requirements and Capital Ratios | 30. REGULATORY CAPITAL REQUIREMENTS AND CAPITAL RATIOS The Board of Governors of the Federal Reserve System issued capital adequacy guidelines pursuant to which it assesses the adequacy of capital in examining and supervising a BHC. These guidelines include quantitative measures that assign risk weightings to assets and off-balance The regulatory capital requirements were revised by the Banking Agencies with the Basel III Final Rule which was effective for the Bancorp on January 1, 2015. It established quantitative measures defining minimum regulatory capital requirements as well as the measure of “well-capitalized” status. Additionally, the Banking Agencies issued similar guidelines for minimum regulatory capital requirements and “well-capitalized” measurements for banking subsidiaries. PRESCRIBED CAPITAL RATIOS Minimum Well-Capitalized CET1 capital: Fifth Third Bancorp 4.50 % N/A Fifth Third Bank, National Association 4.50 6.50 Tier I risk-based capital: Fifth Third Bancorp 6.00 6.00 Fifth Third Bank, National Association 6.00 8.00 Total risk-based capital: Fifth Third Bancorp 8.00 10.00 Fifth Third Bank, National Association 8.00 10.00 Tier I leverage: Fifth Third Bancorp 4.00 N/A Fifth Third Bank, National Association 4.00 5.00 Failure to meet the minimum capital requirements or falling below the “well-capitalized” measure can initiate certain actions by regulators that could have a direct material effect on the Consolidated Financial Statements of the Bancorp. Additionally, the Basel III Final Rule includes a capital conservation buffer requirement of 2.5% in addition to the minimum capital requirements of the CET1, Tier I capital and Total risk-based capital ratios in order to avoid limitations on capital distributions and discretionary bonus payments to executive officers. The Bancorp and its banking subsidiary, Fifth Third Bank, National Association, had CET1 capital, Tier I risk-based capital, Total risk-based capital and Tier I leverage ratios above the “well-capitalized” levels at both December 31, 2019 and 2018. To continue to qualify for financial holding company status pursuant to the Gramm-Leach-Bliley Act of 1999, the Bancorp’s banking subsidiary must, among other things, maintain “well-capitalized” capital ratios. In addition, the Bancorp exceeded the “capital conservation buffer” ratio for all periods presented . The following table presents capital and risk-based capital and leverage ratios for the Bancorp and its banking subsidiary at December 31: 2019 2018 ($ in millions) Amount Ratio Amount Ratio CET1 capital: Fifth Third Bancorp $ 13,847 9.75 % $ 12,534 10.24 % Fifth Third Bank, National Association 16,704 11.86 14,435 11.93 Tier I risk-based capital: Fifth Third Bancorp 15,616 10.99 13,864 11.32 Fifth Third Bank, National Association 16,704 11.86 14,435 11.93 Total risk-based capital: Fifth Third Bancorp 19,661 13.84 17,723 14.48 Fifth Third Bank, National Association 18,968 13.46 16,427 13.57 Tier I leverage: (a) Fifth Third Bancorp 15,616 9.54 13,864 9.72 Fifth Third Bank, National Association 16,704 10.36 14,435 10.27 (a) Quarterly average assets are a component of the Tier I leverage ratio and for this purpose do not include goodwill and any other intangible assets and other investments that the Banking Agencies determines should be deducted from Tier I capital. |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Parent Company Financial Statements | |
Parent Company Financial Statements | 31. PARENT COMPANY FINANCIAL STATEMENTS Condensed Statements of Income (Parent Company Only) For the years ended December 31 ($ in millions) 2019 2018 2017 Income Dividends from subsidiaries: Consolidated nonbank subsidiaries (a) $ 2,155 1,890 2,343 Securities gains, net 2 - - Interest on loans to subsidiaries 24 24 21 Total income 2,181 1,914 2,364 Expenses Interest 267 211 176 Other 65 34 42 Total expenses 332 245 218 Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries 1,849 1,669 2,146 Applicable income tax benefit (69 ) (50 ) (68) Income Before Change in Undistributed Earnings of Subsidiaries 1,918 1,719 2,214 Equity in undistributed earnings 594 474 (34) Net Income Attributable to Bancorp $ 2,512 2,193 2,180 Other Comprehensive Income - - - Comprehensive Income Attributable to Bancorp $ 2,512 2,193 2,180 a) The Bancorp’s indirect banking subsidiary paid dividends to the Bancorp’s direct nonbank subsidiary holding company of $2.0 billion December 31, 2019 $200 million December 31, 2019 Condensed Balance Sheets (Parent Company Only) As of December 31 ($ in millions) 2019 2018 Assets Cash $ 118 120 Short-term investments 4,723 3,642 Equity securities 49 - Loans to subsidiaries: Nonbank subsidiaries 444 571 Total loans to subsidiaries 444 571 Investment in subsidiaries: Nonbank subsidiaries 23,779 17,921 Total investment in subsidiaries 23,779 17,921 Goodwill 80 80 Other assets 379 268 Total Assets $ 29,572 22,602 Liabilities Other short-term borrowings $ 359 253 Accrued expenses and other liabilities 497 424 Long-term debt (external) 7,513 5,675 Total Liabilities $ 8,369 6,352 Equity Common stock $ 2,051 2,051 Preferred stock 1,770 1,331 Capital surplus 3,599 2,873 Retained earnings 18,315 16,578 Accumulated other comprehensive income (loss) 1,192 (112) Treasury stock (5,724) (6,471) Noncontrolling interests - - Total Equity 21,203 16,250 Total Liabilities and Equity $ 29,572 22,602 Condensed Statements of Cash Flows (Parent Company Only) For the years ended December 31 ($ in millions) 2019 2018 2017 Operating Activities Net income $ 2,512 2,193 2,180 Adjustments to reconcile net income to net cash provided by operating activities: (Benefit from) provision for deferred income taxes (11) 3 2 Securities gains, net (2) - - Equity in undistributed earnings (594) (474) 34 Net change in: Equity securities (49) - - Other assets (80) 61 37 Accrued expenses and other liabilities 134 (116) (15) Net Cash Provided by Operating Activities 1,910 1,667 2,238 Investing Activities Net change in: Short-term investments (1,081) (149) (419) Loans to subsidiaries 127 272 126 Net cash paid on acquisition (469) - - Net Cash (Used in) Provided by Investing Activities (1,423) 123 (293) Financing Activities Net change in other short-term borrowings 106 (62) (29) Dividends paid on common stock (660) (467) (430) Dividends paid on preferred stock (93) (98) (75) Proceeds from issuance of long-term debt 2,235 895 697 Repayment of long-term debt (500) (500) (500) Issuance of preferred stock 242 - - Repurchase of treasury stock and related forward contract (1,763) (1,453) (1,605) Other, net (56) (65) (53) Net Cash Used in Financing Activities (489) (1,750) (1,995) (Decrease) Increase in Cash (2) 40 (50) Cash at Beginning of Period 120 80 130 Cash at End of Period $ 118 120 80 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2019 | |
Business Segments | |
Business Segments | 32. BUSINESS SEGMENTS The Bancorp reports on four business segments: Commercial Banking, Branch Banking, Consumer Lending and Wealth and Asset Management. Results of the Bancorp’s business segments are presented based on its management structure and management accounting practices. The structure and accounting practices are specific to the Bancorp; therefore, the financial results of the Bancorp’s business segments are not necessarily comparable with similar information for other financial institutions. The Bancorp refines its methodologies from time to time as management’s accounting practices and businesses change. The Bancorp manages interest rate risk centrally at the corporate level. By employing an FTP methodology, the business segments are insulated from most benchmark interest rate volatility, enabling them to focus on serving customers through the origination of loans and acceptance of deposits. The FTP methodology assigns charge and credit rates to classes of assets and liabilities, respectively, based on the estimated amount and timing of the cash flows for each transaction. Assigning the FTP rate based on matching the duration of cash flows allocates interest income and interest expense to each business segment so its resulting net interest income is insulated from future changes in benchmark interest rates. The Bancorp’s FTP methodology also allocates the contribution to net interest income of the asset-generating and deposit-providing businesses on a duration-adjusted basis to better attribute the driver of the performance. As the asset and liability durations are not perfectly matched, the residual impact of the FTP methodology is captured in General Corporate and Other. The charge and credit rates are determined using the FTP rate curve, which is based on an estimate of Fifth Third’s marginal borrowing cost in the wholesale funding markets. The FTP curve is constructed using the U.S. swap curve, brokered CD pricing and unsecured debt pricing. The Bancorp adjusts the FTP charge and credit rates as dictated by changes in interest rates for various interest-earning assets and interest-bearing liabilities and by the review of behavioral assumptions, such as prepayment rates on interest-earning assets and the estimated durations for indeterminate-lived deposits. Key assumptions, including the credit rates provided for deposit accounts, are reviewed annually. Credit rates for deposit products and charge rates for loan products may be reset more frequently in response to changes in market conditions. The credit rates for several deposit products were reset January 1, 2019 to reflect the current market rates and updated market assumptions. These rates were generally higher than those in place during 2018, thus net interest income for deposit-providing business segments was positively impacted during 2019. 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 business segments during 2019. The Bancorp’s methodology for allocating provision for credit losses expense to the business segments includes charges or benefits associated with changes in criticized commercial loan levels in addition to actual net charge-offs experienced by the loans and leases owned by each business segment. Provision for credit losses expense attributable to loan and lease growth and changes in ALLL factors is captured in General Corporate and Other. The financial results of the business segments include allocations for shared services and headquarters expenses. Additionally, the business segments form synergies by taking advantage of cross-sell opportunities and funding operations by accessing the capital markets as a collective unit. The following is a description of each of the Bancorp’s business segments and the products and services they provide to their respective client bases. Commercial Banking Branch Banking Consumer Lending Wealth and Asset Management not-for-profit non-profits, The following tables present the results of operations and assets by business segment for the years ended December 31: 2019 ($ in millions) Commercial Branch Consumer Wealth and Asset General Eliminations Total Net interest income $ 2,360 2,371 325 182 (441 ) - 4,797 Provision for credit losses 183 224 49 - 15 - 471 Net interest income after provision for credit losses 2,177 2,147 276 182 (456 ) - 4,326 Noninterest income: Corporate banking revenue 565 (c) 4 - 1 - - 570 Service charges on deposits 308 260 - 1 (4 ) - 565 Wealth and asset management revenue 3 158 - 469 - (143) (a) 487 Card and processing revenue 66 285 - 3 6 - 360 Mortgage banking net revenue - 6 279 2 - - 287 Other noninterest income (b) 245 89 14 13 863 - 1,224 Securities gains, net - - - - 40 - 40 Securities gains, net - non-qualifying - - 3 - - - 3 Total noninterest income 1,187 802 296 489 905 (143 ) 3,536 Noninterest expense: Salaries, wages and incentives 406 489 158 185 763 - 2,001 Employee benefits 60 112 38 32 175 - 417 Technology and communications 11 4 8 1 398 - 422 Net occupancy expense (e) 28 173 10 13 108 - 332 Card and processing expense 8 123 - 1 (2 ) - 130 Equipment expense 25 48 - 1 55 - 129 Other noninterest expense 1,083 911 241 296 (1,159 ) (143 ) 1,229 Total noninterest expense 1,621 1,860 455 529 338 (143 ) 4,660 Income before income taxes 1,743 1,089 117 142 111 - 3,202 Applicable income tax expense 319 229 25 30 87 - 690 Net income 1,424 860 92 112 24 - 2,512 Total goodwill $ 1,954 2,046 - 252 - - 4,252 Total assets $ 74,570 69,413 26,555 10,500 (11,669) (d) - 169,369 (a) Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Consolidated Statements of Income. (b) Includes impairment charges of $28 (c) Includes impairment charges of $3 (d) Includes bank premises and equipment of $27 (e) Includes impairment losses and termination charges of $ 15 2018 ($ in millions) Commercial Branch Consumer Wealth and Asset General Eliminations Total Net interest income $ 1,713 2,034 237 182 (26 ) - 4,140 Provision for (benefit from) credit losses (26 ) 171 42 12 8 - 207 Net interest income after provision for credit losses 1,739 1,863 195 170 (34 ) - 3,933 Noninterest income: Corporate banking revenue 432 (c) 5 - 2 (1 ) - 438 Service charges on deposits 273 275 - 1 - - 549 Wealth and asset management revenue 3 150 - 429 - (138) (a) 444 Card and processing revenue 58 266 - 5 - - 329 Mortgage banking net revenue - 5 206 1 - - 212 Other noninterest income (b) 151 53 14 18 651 - 887 Securities losses, net - - - - (54 ) - (54) Securities losses, net - non-qualifying - - (15 ) - - - (15) Total noninterest income 917 754 205 456 596 (138 ) 2,790 Noninterest expense: Salaries, wages and incentives 300 438 156 173 716 - 1,783 Employee benefits 44 98 36 29 125 - 332 Technology and communications 7 5 5 1 267 - 285 Net occupancy expense 26 175 10 12 69 - 292 Card and processing expense 4 121 - - (2 ) - 123 Equipment expense 23 50 - 1 49 - 123 Other noninterest expense 859 841 195 288 (1,025 ) (138 ) 1,020 Total noninterest expense 1,263 1,728 402 504 199 (138 ) 3,958 Income (loss) before income taxes 1,393 889 (2 ) 122 363 - 2,765 Applicable income tax expense (benefit) 254 187 (1 ) 25 107 - 572 Net income (loss) 1,139 702 (1 ) 97 256 - 2,193 Total goodwill $ 630 1,655 - 193 - - 2,478 Total assets $ 61,630 61,040 22,044 10,337 (8,982) (d) - 146,069 (a) Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Consolidated Statements of Income. (b) Includes impairment charges of $45 for branches and land. For more information, refer to Note 8 and Note 29. (c) Includes impairment charges of $4 for operating lease equipment. For more information, refer to Note 9 and Note 29. (d) Includes bank premises and equipment of $42 classified as held for sale. For more information, refer to Note 8. 2017 ($ in millions) Commercial Branch Consumer Wealth and Asset General Eliminations Total Net interest income $ 1,652 1,782 240 154 (30 ) - 3,798 Provision for credit losses 38 153 40 6 24 - 261 Net interest income after provision for credit losses 1,614 1,629 200 148 (54 ) - 3,537 Noninterest income: Corporate banking revenue 348 (c) 5 - 1 (1 ) - 353 Service charges on deposits 287 265 - 1 1 - 554 Wealth and asset management revenue 3 141 - 407 - (132) (a) 419 Card and processing revenue 57 251 - 5 - - 313 Mortgage banking net revenue - 6 217 1 - - 224 Other noninterest income (b) 143 88 18 4 1,104 - 1,357 Securities gains, net - - - - 2 - 2 Securities gains, net - non-qualifying - - 2 - - - 2 Total noninterest income 838 756 237 419 1,106 (132 ) 3,224 Noninterest expense: Salaries, wages and incentives 252 425 152 154 650 - 1,633 Employee benefits 42 101 37 27 149 - 356 Technology and communications 9 4 2 - 230 - 245 Net occupancy expense 26 176 10 11 72 - 295 Card and processing expense 3 127 - - (1 ) - 129 Equipment expense 18 52 - - 47 - 117 Other noninterest expense 884 796 210 276 (1,027 ) (132 ) 1,007 Total noninterest expense 1,234 1,681 411 468 120 (132 ) 3,782 Income before income taxes 1,218 704 26 99 932 - 2,979 Applicable income tax expense 391 249 9 34 116 - 799 Net income 827 455 17 65 816 - 2,180 Total goodwill $ 613 1,655 - 177 - - 2,445 Total assets $ 58,456 57,931 22,218 9,494 (6,018) (d) - 142,081 (a) Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Consolidated Statements of Income. (b) Includes impairment charges of $7 for branches and land. For more information, refer to Note 8. (c) Includes impairment charges of $52 for operating lease equipment. For more information, refer to Note 9. (d) Includes bank premises and equipment of $27 classified as held for sale. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 33. SUBSEQUENT EVENT On January 31, 2020, the Bank issued and sold, under its bank notes program, $1.25 billion in aggregate principal amount of senior fixed-rate notes. The bank notes consisted of $650 million of 1.80% senior fixed-rate notes, with a maturity of three years, due on January 30, 2023; and $600 million of 2.25% senior fixed-rate notes, with a maturity of seven years, due on February 1, 2027. On or after the date that is 30 days before the maturity date, the 1.80% senior fixed-rate notes will be redeemable, in whole or in part, at any time and from time to time, at the Bank’s option at a redemption price equal to 100% of the aggregate principal amount of the 1.80% senior fixed-rate notes being redeemed, plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date. The 2.25% senior fixed-rate notes will be redeemable at the Bank’s option, in whole or in part, at any time or from time to time, on or after July 31, 2020, and prior to January 4, 2027 (the “Applicable Par Call Date”), in each case at a redemption price, plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date, equal to the greater of: (a) 100% of the aggregate principal amount of the 2.25% senior fixed-rate notes being redeemed on that redemption date; and (b) the sum of the present values of the remaining scheduled payments of principal and interest on the 2.25% senior fixed-rate notes being redeemed that would be due if the 2.25% senior fixed-rate notes to be redeemed matured on the Applicable Par Call Date (not including any portion of such payments of interest accrued to the redemption date) discounted to the redemption date on a semi-annual basis (assuming a 360-day 30-day |
Summary of Significant Accoun_2
Summary of Significant Accounting and Reporting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting and Reporting Policies | |
Nature of Operations | Nature of Operations Fifth Third Bancorp, an Ohio corporation, conducts its principal lending, deposit gathering, transaction processing and service advisory activities through its banking and non-banking |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements include the accounts of the Bancorp and its majority-owned subsidiaries and VIEs in which the Bancorp has been determined to be the primary beneficiary. Other entities, including certain joint ventures, in which the Bancorp has the ability to exercise significant influence over operating and financial policies of the investee, but upon which the Bancorp does not possess control, are accounted for by the equity method of accounting and not consolidated. The investments in those entities in which the Bancorp does not have the ability to exercise significant influence are generally carried at fair value unless the investment does not have a readily determinable fair value. The Bancorp accounts for equity investments without a readily determinable fair value using the measurement alternative to fair value, representing the cost of the investment minus any impairment recorded, if any, and plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Intercompany transactions and balances among consolidated entities have been eliminated. Certain prior period data has been reclassified to conform to current period presentation. Specifically, Fifth Third reclassified the provision for the reserve for unfunded commitments from other noninterest expense to the provision for credit losses. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Due from Banks | Cash and Due from Banks Cash and due from banks consist of currency and coin, cash items in the process of collection and due from banks. Currency and coin includes both U.S. and foreign currency owned and held at Fifth Third offices and that is in-transit |
Investment Securities | Investment Securities Debt securities are classified as held-to-maturity, available-for-sale held-to-maturity available-for-sale Available-for-sale Available-for-sale held-to-maturity non-credit Equity securities with readily determinable fair values not accounted for under the equity method are reported at fair value with unrealized gains and losses included in noninterest income in the Consolidated Statements of Income. Equity securities without readily determinable fair values are measured at cost minus impairment, if any, plus or minus changes as a result of an observable price change for the identical or similar investment of the same issuer. At each quarterly reporting period, the Bancorp performs a qualitative assessment to evaluate whether impairment indicators are present. If qualitative indicators are identified, the investment is measured at fair value with the impairment loss included in noninterest income in the Consolidated Statements of Income. The fair value of a security is determined based on quoted market prices. If quoted market prices are not available, fair value is determined based on quoted prices of similar instruments or DCF models that incorporate market inputs and assumptions including discount rates, prepayment speeds and loss rates. The premium on purchased callable debt securities is amortized to the earliest call date if the call feature meets certain criteria. Otherwise, the premium is amortized to maturity similar to the discount on the callable debt securities. Realized securities gains or losses are reported within noninterest income in the Consolidated Statements of Income. The cost of securities sold is based on the specific identification method. |
Portfolio Loans and Leases | Portfolio Loans and Leases Basis of accounting Portfolio loans and leases are generally reported at the principal amount outstanding, net of unearned income, deferred direct loan origination fees and costs and any direct principal charge-offs. Direct loan origination fees and costs are deferred and the net amount is amortized over the estimated life of the related loans as a yield adjustment. Interest income is recognized based on the principal balance outstanding computed using the effective interest method. Loans acquired by the Bancorp through a purchase business combination are recorded at fair value as of the acquisition date. The Bancorp does not carry over the acquired company’s ALLL, nor does the Bancorp add to its existing ALLL as part of purchase accounting. Purchased loans are evaluated for evidence of credit deterioration at acquisition and recorded at their initial fair value. For loans acquired with no evidence of credit deterioration, the fair value discount or premium is amortized over the contractual life of the loan as an adjustment to yield. For loans acquired with evidence of credit deterioration, the Bancorp determines at the acquisition date the excess of the loan’s contractually required payments over all cash flows expected to be collected as an amount that should not be accreted into interest income (nonaccretable difference). The remaining amount representing the difference in the expected cash flows of acquired loans and the initial investment in the acquired loans is accreted into interest income over the remaining life of the loan or pool of loans (accretable yield). Subsequent to the acquisition date, increases in expected cash flows over those expected at the acquisition date are recognized prospectively as interest income over the remaining life of the loan. The present values of any decreases in expected cash flows resulting directly from a change in the contractual interest rate are recognized prospectively as a reduction of the accretable yield. The present values of any decreases in expected cash flows after the acquisition date as a result of credit deterioration are recognized by recording an ALLL or a direct charge-off. The Bancorp’s lease portfolio consists of sales-type, direct financing and leveraged leases. Sales-type and direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased property, less unearned income. Interest income on sales-type and direct financing leases is recognized over the term of the lease to achieve a constant periodic rate of return on the outstanding investment. Leveraged leases, entered into before January 1, 2019, are carried at the aggregate of lease payments (less nonrecourse debt payments) plus estimated residual value of the leased property, less unearned income. Interest income on leveraged leases is recognized over the term of the lease to achieve a constant rate of return on the outstanding investment in the lease, net of the related deferred income tax liability, in the years in which the net investment is positive. Leveraged lease accounting is no longer applied for leases entered into or modified after the Bancorp’s adoption of ASU 2016-02, |
Nonaccrual Loans and Leases | Nonaccrual loans and leases When a loan is placed on nonaccrual status, the accrual of interest, amortization of loan premium, accretion of loan discount and amortization/accretion of deferred net direct loan origination fees or costs are discontinued and all previously accrued and unpaid interest is charged against income. Commercial loans are placed on nonaccrual status when there is a clear indication that the borrower’s cash flows may not be sufficient to meet payments as they become due. Such loans are also placed on nonaccrual status when the principal or interest is past due 90 days or more, unless the loan is both well-secured and in the process of collection. The Bancorp classifies residential mortgage loans that have principal and interest payments that have become past due 150 days as nonaccrual unless the loan is both well-secured and in the process of collection. Residential mortgage loans may stay on nonaccrual status for an extended time as the foreclosure process typically lasts longer than 180 days. Home equity loans and lines of credit are reported on nonaccrual status if principal or interest has been in default for 90 days or more unless the loan is both well-secured and in the process of collection. Home equity loans and lines of credit that have been in default for 60 days or more are also reported on nonaccrual status if the senior lien has been in default 120 days or more, unless the loan is both well secured and in the process of collection. Loans discharged in a Chapter 7 bankruptcy and not reaffirmed by the borrower are classified as collateral-dependent TDRs and placed on nonaccrual status regardless of the borrower’s payment history or capacity to repay in the future. Residential mortgage, home equity, automobile and other consumer loans that have been modified in a TDR and subsequently become past due 90 days are placed on nonaccrual status unless the loan is both well-secured and in the process of collection. Commercial and credit card loans that have been modified in a TDR are classified as nonaccrual unless such loans have sustained repayment performance of six months or more and are reasonably assured of repayment in accordance with the restructured terms. Well-secured loans are collateralized by perfected security interests in real and/or personal property for which the Bancorp estimates proceeds from the sale would be sufficient to recover the outstanding principal and accrued interest balance of the loan and pay all costs to sell the collateral. The Bancorp considers a loan in the process of collection if collection efforts or legal action is proceeding and the Bancorp expects to collect funds sufficient to bring the loan current or recover the entire outstanding principal and accrued interest balance. Nonaccrual commercial loans and nonaccrual credit card loans are generally accounted for on the cost recovery method. The Bancorp believes the cost recovery method is appropriate for nonaccrual commercial loans and nonaccrual credit card loans because the assessment of collectability of the remaining recorded investment of these loans involves a high degree of subjectivity and uncertainty due to the nature or absence of underlying collateral. Under the cost recovery method, any payments received are applied to reduce principal. Once the entire recorded investment is collected, additional payments received are treated as recoveries of amounts previously charged-off Commercial loans on nonaccrual status, including those modified in a TDR, as well as criticized commercial loans with aggregate borrower relationships exceeding $1 million, are subject to an individual review to identify charge-offs. The Bancorp does not have an established delinquency threshold for partially or fully charging off commercial loans. Residential mortgage loans, home equity loans and lines of credit and credit card loans that have principal and interest payments that have become past due 180 days are assessed for a charge-off charge-off charge-off |
Restructured Loans and Leases | Restructured loans and leases A loan is accounted for as a TDR if the Bancorp, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. TDRs include concessions granted under reorganization, arrangement or other provisions of the Federal Bankruptcy Act. A TDR typically involves a modification of terms such as a reduction of the stated interest rate or remaining principal amount of the loan, a reduction of accrued interest or an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan with similar risk. The Bancorp measures the impairment loss of a TDR based on the difference between the original loan’s carrying amount and the present value of expected future cash flows discounted at the original, effective yield of the loan. Except for loans discharged in a Chapter 7 bankruptcy that are not reaffirmed by the borrower, residential mortgage loans, home equity loans, automobile loans and other consumer loans modified as part of a TDR are maintained on accrual status, provided there is reasonable assurance of repayment and of performance according to the modified terms based upon a current, well-documented credit evaluation. Loans discharged in a Chapter 7 bankruptcy and not reaffirmed by the borrower are classified as collateral-dependent TDRs and placed on nonaccrual status regardless of the borrower’s payment history or capacity to repay in the future. These loans are returned to accrual status provided there is a sustained payment history of twelve months after bankruptcy and collectability is reasonably assured for all remaining contractual payments. Commercial loans and credit card loans modified as part of a TDR are maintained on accrual status provided there is a sustained payment history of six months or more prior to the modification in accordance with the modified terms and collectability is reasonably assured for all remaining contractual payments under the modified terms. TDRs of commercial loans and credit card loans that do not have a sustained payment history of six months or more in accordance with their modified terms remain on nonaccrual status until a six-month |
Impaired Loans and Leases | Impaired loans and leases A loan is considered to be impaired when, based on current information and events, it is probable that the Bancorp will be unable to collect all amounts due (including both principal and interest) according to the contractual terms of the loan agreement. Impaired loans generally consist of nonaccrual loans and leases, loans modified in a TDR and loans over $1 million that are currently on accrual status and not yet modified in a TDR, but for which the Bancorp has determined that it is probable that it will grant a payment concession in the near term due to the borrower’s financial difficulties. For loans modified in a TDR, the contractual terms of the loan agreement refer to the terms specified in the original loan agreement. A loan restructured in a TDR is no longer considered impaired in years after the restructuring if the restructuring agreement specifies a rate equal to or greater than the rate the Bancorp was willing to accept at the time of the restructuring for a new loan with comparable risk and the loan is not impaired based on the terms specified by the restructuring agreement. Refer to the ALLL section for discussion regarding the Bancorp’s methodology for identifying impaired loans and determination of the need for a loss accrual. |
Loans and Leases Held for Sale | Loans and Leases Held for Sale Loans and leases held for sale primarily represent conforming fixed-rate residential mortgage loans originated or acquired with the intent to sell in the secondary market and jumbo residential mortgage loans, commercial loans, other residential mortgage loans and other consumer loans that management has the intent to sell. Loans and leases held for sale may be carried at the lower of cost or fair value, or carried at fair value where the Bancorp has elected the fair value option of accounting under U.S. GAAP. The Bancorp has elected to measure certain groups of loans held for sale under the fair value option, including certain residential mortgage loans originated as held for sale and certain purchased commercial loans designated as held for sale at acquisition. For loans in which the Bancorp has not elected the fair value option, the lower of cost or fair value is determined at the individual loan level. The fair value of residential mortgage loans held for sale for which the fair value election has been made is estimated based upon mortgage-backed securities prices and spreads to those prices or, for certain ARM loans, DCF models that may incorporate the anticipated portfolio composition, credit spreads of asset-backed securities with similar collateral and market conditions. The anticipated portfolio composition includes the effects of interest rate spreads and discount rates due to loan characteristics such as the state in which the loan was originated, the loan amount and the ARM margin. These fair value marks are recorded as a component of noninterest income in mortgage banking net revenue. The Bancorp generally has commitments to sell residential mortgage loans held for sale in the secondary market. Gains or losses on sales are recognized in mortgage banking net revenue. Management’s intent to sell residential mortgage loans classified as held for sale may change over time due to such factors as changes in the overall liquidity in markets or changes in characteristics specific to certain loans held for sale. Consequently, these loans may be reclassified to loans held for investment and, thereafter, reported within the Bancorp’s residential mortgage class of portfolio loans and leases. In such cases, the residential mortgage loans will continue to be measured at fair value, which is based on mortgage-backed securities prices, interest rate risk and an internally developed credit component. Loans and leases held for sale are placed on nonaccrual status consistent with the Bancorp’s nonaccrual policy for portfolio loans and leases. |
Other Real Estate Owned | Other Real Estate Owned OREO, which is included in other assets in the Consolidated Balance Sheets, represents property acquired through foreclosure or other proceedings and branch-related real estate no longer intended to be used for banking purposes. OREO is carried at the lower of cost or fair value, less costs to sell. All OREO property is periodically evaluated for impairment and decreases in carrying value are recognized as reductions in other noninterest income in the Consolidated Statements of Income. For government-guaranteed mortgage loans, upon foreclosure, a separate other receivable is recognized if certain conditions are met for the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. This receivable is also included in other assets, separate from OREO, in the Consolidated Balance Sheets. |
Allowance for Loans and Leases | ALLL The Bancorp disaggregates its portfolio loans and leases into portfolio segments for purposes of determining the ALLL. The Bancorp’s portfolio segments include commercial, residential mortgage and consumer. The Bancorp further disaggregates its portfolio segments into classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Classes within the commercial portfolio segment include commercial and industrial, commercial mortgage owner-occupied, commercial mortgage nonowner-occupied, commercial construction and commercial leasing. The residential mortgage portfolio segment is also considered a class. Classes within the consumer portfolio segment include home equity, automobile, credit card and other consumer loans. For an analysis of the Bancorp’s ALLL by portfolio segment and credit quality information by class, refer to Note 7. The Bancorp maintains the ALLL to absorb probable loan and lease losses inherent in its portfolio segments. The ALLL is maintained at a level the Bancorp considers to be adequate and is based on ongoing quarterly assessments and evaluations of the collectability and historical loss experience of loans and leases. Credit losses are charged and recoveries are credited to the ALLL. Provisions for loan and lease losses are based on the Bancorp’s review of the historical credit loss experience and such factors that, in management’s judgment, deserve consideration under existing economic conditions in estimating probable credit losses. The Bancorp’s strategy for credit risk management includes a combination of conservative exposure limits significantly below legal lending limits and conservative underwriting, documentation and collections standards. The strategy also emphasizes diversification on a geographic, industry and customer level, regular credit examinations and quarterly management reviews of large credit exposures and loans experiencing deterioration of credit quality. The Bancorp’s methodology for determining the ALLL is based on historical loss rates, current credit grades, specific allocation on loans modified in a TDR and impaired commercial credits above specified thresholds and other qualitative adjustments. Allowances on individual commercial loans and leases, TDRs and historical loss rates are reviewed quarterly and adjusted as necessary based on changing borrower and/or collateral conditions and actual collection and charge-off Larger commercial loans and leases included within aggregate borrower relationship balances exceeding $1 million that exhibit probable or observed credit weaknesses, as well as loans that have been modified in a TDR, are subject to individual review for impairment. The Bancorp considers the current value of collateral, credit quality of any guarantees, the guarantor’s liquidity and willingness to cooperate, the loan or lease structure and other factors when evaluating whether an individual loan or lease is impaired. Other factors may include the industry and geographic region of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower and the Bancorp’s evaluation of the borrower’s management. When individual loans and leases are impaired, allowances are determined based on management’s estimate of the borrower’s ability to repay the loan or lease given the availability of collateral and other sources of cash flow, as well as an evaluation of legal options available to the Bancorp. Allowances for impaired loans and leases are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, fair value of the underlying collateral or readily observable secondary market values. The Bancorp evaluates the collectability of both principal and interest when assessing the need for a loss accrual. Historical credit loss rates are applied to commercial loans and leases that are not impaired or are impaired, but smaller than the established threshold of $1 million and thus not subject to specific allowance allocations. The loss rates are derived from migration analyses for several portfolio stratifications, which track the historical net charge-off Homogenous loans in the residential mortgage and consumer portfolio segments are not individually risk graded. Rather, standard credit scoring systems and delinquency monitoring are used to assess credit risks and allowances are established based on the expected net charge-offs. Loss rates are based on the trailing twelve-month net charge-off The Bancorp also considers qualitative factors in determining the ALLL. These include adjustments for changes in policies or procedures in underwriting, monitoring or collections, economic conditions, portfolio mix, lending and risk management personnel, results of internal audit and quality control reviews, collateral values, geographic concentrations, estimated loss emergence period and specific portfolio loans backed by enterprise valuations and private equity sponsors. The Bancorp considers home price index trends in its footprint and the volatility of collateral valuation trends when determining the collateral value qualitative factor. When evaluating the adequacy of allowances, consideration is given to regional geographic concentrations and the closely associated effect changing economic conditions have on the Bancorp’s customers. In the current year, the Bancorp has not substantively changed any material aspect to its overall approach to determining its ALLL for any of its portfolio segments. There have been no material changes in criteria or estimation techniques as compared to prior periods that impacted the determination of the current period ALLL for any of the Bancorp’s portfolio segments. |
Reserve for Unfunded Commitments | Reserve for Unfunded Commitments The reserve for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities and is included in other liabilities in the Consolidated Balance Sheets. The determination of the adequacy of the reserve is based upon an evaluation of the unfunded credit facilities, including an assessment of historical commitment utilization experience, credit risk grading and historical loss rates based on credit grade migration. This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of the Bancorp’s ALLL, as previously discussed. Net adjustments to the reserve for unfunded commitments are included in provision for credit losses in the Consolidated Statements of Income. |
Loan Sales and Securitizations | Loan Sales and Securitizations The Bancorp periodically sells loans through either securitizations or individual loan sales in accordance with its investment policies. The sold loans are removed from the Consolidated Balance Sheet and a net gain or loss is recognized in the Consolidated Financial Statements at the time of sale. The Bancorp typically isolates the loans through the use of a VIE and thus is required to assess whether the entity holding the sold or securitized loans is a VIE and whether the Bancorp is the primary beneficiary and therefore consolidator of that VIE. If the Bancorp holds the power to direct activities most significant to the economic performance of the VIE and has the obligation to absorb losses or right to receive benefits that could potentially be significant to the VIE, then the Bancorp will generally be deemed the primary beneficiary of the VIE. If the Bancorp is determined not to be the primary beneficiary of a VIE but holds a variable interest in the entity, such variable interests are accounted for under the equity method of accounting or other accounting standards as appropriate. Refer to Note 13 for further information on consolidated and non-consolidated The Bancorp’s loan sales and securitizations are generally structured with servicing retained, which often results in the recording of servicing rights. The Bancorp may also purchase servicing rights. The Bancorp has elected to measure all existing classes of its residential mortgage servicing rights portfolio at fair value with changes in the fair value of servicing rights reported in mortgage banking net revenue in the Consolidated Statements of Income in the period in which the changes occur. Servicing rights are valued using internal OAS models. Key economic assumptions used in estimating the fair value of the servicing rights include the prepayment speeds of the underlying loans, the weighted-average life, the OAS and the weighted-average coupon rate, as applicable. The primary risk of material changes to the value of the servicing rights resides in the potential volatility in the economic assumptions used, particularly the prepayment speeds. In order to assist in the assessment of the fair value of servicing rights, the Bancorp obtains external valuations of the servicing rights portfolio from third parties and participates in peer surveys that provide additional confirmation of the reasonableness of the key assumptions utilized in the internal OAS model. Fees received for servicing loans owned by investors are based on a percentage of the outstanding monthly principal balance of such loans and are included in noninterest income in the Consolidated Statements of Income as loan payments are received. Costs of servicing loans are charged to expense as incurred. |
Reserve For Representation And Warranty Provisions | Reserve for Representation and Warranty Provisions Conforming residential mortgage loans sold to unrelated third parties are generally sold with representation and warranty provisions. A contractual liability arises only in the event of a breach of these representations and warranties and, in general, only when a loss results from the breach. The Bancorp may be required to repurchase any previously sold loan or indemnify (make whole) the investor or insurer for which the representation or warranty of the Bancorp proves to be inaccurate, incomplete or misleading. The Bancorp establishes a residential mortgage repurchase reserve related to various representations and warranties that reflects management’s estimate of losses based on a combination of factors. The Bancorp’s estimation process requires management to make subjective and complex judgments about matters that are inherently uncertain, such as future demand expectations, economic factors and the specific characteristics of the loans subject to repurchase. Such factors incorporate historical investor audit and repurchase demand rates, appeals success rates, historical loss severity and any additional information obtained from the GSEs regarding future mortgage repurchase and file request criteria. At the time of a loan sale, the Bancorp records a representation and warranty reserve at the estimated fair value of the Bancorp’s guarantee and continually updates the reserve during the life of the loan as losses in excess of the reserve become probable and reasonably estimable. The provision for the estimated fair value of the representation and warranty guarantee arising from the loan sales is recorded as an adjustment to the gain on sale, which is included in other noninterest income in the Consolidated Statements of Income at the time of sale. Updates to the reserve are recorded in other noninterest expense in the Consolidated Statements of Income. |
Legal Contingencies | Legal Contingencies 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 and significant judgment may be required in the determination of both the probability of loss and whether the amount of the loss is reasonably estimable. The Bancorp’s estimates are subjective and are based on the status of legal and regulatory proceedings, the merit of the Bancorp’s defenses and consultation with internal and external legal counsel. An accrual for a potential litigation loss is established when information related to the loss contingency indicates both that a loss is probable and that the amount of loss can be reasonably estimated. This accrual is included in other liabilities in the Consolidated Balance Sheets and is adjusted from time to time as appropriate to reflect changes in circumstances. Legal expenses are recorded in other noninterest expense in the Consolidated Statements of Income. |
Bank Premises and Equipment and Other Long-Lived Assets | Bank Premises and Equipment and Other Long-Lived Assets Bank premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method based on estimated useful lives of the assets for book purposes, while accelerated depreciation is used for income tax purposes. Amortization of leasehold improvements is computed using the straight-line method over the lives of the related leases or useful lives of the related assets, whichever is shorter. Whenever events or changes in circumstances dictate, the Bancorp tests its long-lived assets for impairment by determining whether the sum of the estimated undiscounted future cash flows attributable to a long-lived asset or asset group is less than the carrying amount of the long-lived asset or asset group through a probability-weighted approach. In the event the carrying amount of the long-lived asset or asset group is not recoverable, an impairment loss is measured as the amount by which the carrying amount of the long-lived asset or asset group exceeds its fair value. Maintenance, repairs and minor improvements are charged to noninterest expense in the Consolidated Statements of Income as incurred. |
Lessee Accounting | Lessee Accounting ROU assets and lease liabilities are recognized for all leases unless the initial term of the lease is 12 months or less. Lease costs for operating leases are recognized on a straight-line basis over the lease term unless another systematic basis is more representative of the pattern of consumption. The lease term includes any renewal period that the Bancorp is reasonably certain to exercise. The Bancorp uses its incremental borrowing rate to discount the lease payments if the rate implicit in the lease is not readily determinable. Variable lease payments associated with operating leases are recognized in the period in which the obligation for payments is incurred. For finance leases, the lease liability is measured using the effective interest method such that the liability is increased for interest based on the discount rate that is implicit in the lease or the Bancorp’s incremental borrowing rate if the implicit rate cannot be readily determined, offset by a decrease in the liability resulting from the periodic lease payments. The ROU asset associated with the finance lease is amortized on a straight-line basis unless there is another systematic and rational basis that better reflects how the benefits of the underlying assets are consumed over the lease term. The period over which the ROU asset is amortized is generally the lesser of the remaining lease term or the remaining useful life of the leased asset. Variable lease payments associated with finance leases are recognized in the period in which the obligation for those payments is incurred. When the lease liability is remeasured to reflect changes to the lease payments as a result of a lease modification, the ROU asset is adjusted for the amount of the lease liability remeasurement. If a lease modification reduces the scope of a lease, the ROU asset would be reduced proportionately based on the change in the lease liability and the difference between the lease liability adjustment and the resulting ROU asset adjustment would be recognized as a gain or loss in the Consolidated Statements of Income. Additionally, the amortization of the ROU asset is adjusted prospectively from the date of remeasurement. The Bancorp performs impairment assessments for ROU assets when events or changes in circumstances indicate that their carrying values may not be recoverable. Any impairment loss is recognized in net occupancy expense. Refer to the Bank Premises and Equipment and Other Long-Lived Assets section of this note for further information. |
Derivative Financial Instruments | Derivative Financial Instruments The Bancorp accounts for its derivatives as either assets or liabilities measured at fair value through adjustments to AOCI and/or current earnings, as appropriate. On the date the Bancorp enters into a derivative contract, the Bancorp designates the derivative instrument as either a fair value hedge, cash flow hedge or as a free-standing derivative instrument. For a fair value hedge, changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability attributable to the hedged risk are recorded in current period net income. For a cash flow hedge, changes in the fair value of the derivative instrument are recorded in AOCI and subsequently reclassified to net income in the same period(s) that the hedged transaction impacts net income. For free-standing derivative instruments, changes in fair values are reported in current period net income. When entering into a hedge transaction, the Bancorp formally documents the relationship between the hedging instrument and the hedged item, as well as the risk management objective and strategy for undertaking the hedge transaction before the end of the quarter in which the transaction is consummated. This process includes linking the derivative instrument designated as a fair value or cash flow hedge to a specific asset or liability on the balance sheet or to specific forecasted transactions and the risk being hedged, along with a formal assessment at the inception of the hedge as to the effectiveness of the derivative instrument in offsetting changes in fair values or cash flows of the hedged item. The Bancorp continues to assess hedge effectiveness on an ongoing basis using either a qualitative or a quantitative assessment (regression analysis). Additionally, the Bancorp may also utilize the shortcut method to evaluate hedge effectiveness for certain qualifying hedges with matched terms that permit the assumption of perfect offset. If the shortcut method is no longer appropriate, the Bancorp would apply the long-haul method identified at inception of the hedging transaction for assessing hedge effectiveness as long as the hedge is highly effective. If it is determined that the derivative instrument is not highly effective as a hedge, hedge accounting is discontinued. |
Tax Receivable Agreements | Tax Receivable Agreements In conjunction with Vantiv, Inc.’s (now Worldpay, Inc.) IPO in 2012, the Bancorp entered into two TRAs with Worldpay, Inc. The TRAs provide for payments by Worldpay, Inc. to the Bancorp of 85% of the cash savings actually realized as a result of the increase in tax basis that results from the historical or future purchase of equity in Vantiv Holding, LLC (now Worldpay Holding, LLC) from the Bancorp or from the exchange of equity units in Worldpay Holding, LLC for cash or Class A Stock, as well as any tax benefits attributable to payments made under the TRA. Any actual increase in tax basis, as well as the amount and timing of any payments made under the TRA depend on a number of uncertain factors, the most significant of which is the realization of the tax benefits by Worldpay, Inc., which depends on the amount and timing of Worldpay, Inc.’s reportable taxable income. One of the TRAs has been settled and terminated and the Bancorp accounts for the remaining TRA as a gain contingency and recognizes income when all uncertainties surrounding the realization of such amounts are resolved. |
Investments in Qualified Affordable Housing Policy | Investments in Qualified Affordable Housing Projects The Bancorp invests in projects to create affordable housing, revitalize business and residential areas and preserve historic landmarks. These investments are classified as other assets on the Bancorp’s Consolidated Balance Sheets. Investments in affordable housing projects that qualify for LIHTC are accounted for using the proportional amortization method. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the tax credits and other benefits received and recognized as a component of applicable income tax expense in the Consolidated Statements of Income. Investments which do not meet the qualification criteria for the proportional amortization method are accounted for using the equity method of accounting with impairment associated with the investments recognized in other noninterest expense in the Consolidated Statements of Income. |
Income Taxes | Income Taxes The Bancorp accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for expected future tax consequences. Under the asset and liability method, deferred tax assets and liabilities are determined by applying the federal and state tax rates to the differences between financial statement carrying amounts and the corresponding tax bases of assets and liabilities. Deferred tax assets are also recorded for any tax attributes, such as tax credits and net operating loss carryforwards. The net balances of deferred tax assets and liabilities are reported in other assets and accrued taxes, interest and expenses in the Consolidated Balance Sheets. Any effect of a change in federal or state tax rates on deferred tax assets and liabilities is recognized in income tax expense in the period that includes the enactment date. The Bancorp reflects the expected amount of income tax to be paid or refunded during the year as current income tax expense or benefit. Accrued taxes represent the net expected amount due to and/or from taxing jurisdictions and are reported in accrued taxes, interest and expenses in the Consolidated Balance Sheets. The Bancorp evaluates the realization of deferred tax assets based on all positive and negative evidence available at the balance sheet date. Realization of deferred tax assets is based on the Bancorp’s judgment about relevant factors affecting their realization, including the taxable income within any applicable carryback periods, future projected taxable income, the reversal of taxable temporary differences and tax-planning more-likely-than-not Income tax benefits from uncertain tax positions are recognized in the financial statements only if the Bancorp believes that it is more-likely-than-not likely-than-not |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Earnings per diluted share is computed by dividing adjusted net income available to common shareholders by the weighted-average number of shares of common stock and common stock equivalents outstanding during the period. Dilutive common stock equivalents represent the exercise of dilutive stock-based awards and the dilutive effect of the settlement of outstanding forward contracts. The Bancorp calculates earnings per share pursuant to the two-class two-class two-class |
Goodwill | Goodwill Business combinations entered into by the Bancorp typically include the acquisition of goodwill. Goodwill is required to be tested for impairment at the Bancorp’s reporting unit level on an annual basis, which for the Bancorp is September 30, and more frequently if events or circumstances indicate that there may be impairment. The Bancorp has determined that its business segments qualify as reporting units under U.S. GAAP. Impairment exists when a reporting unit’s carrying amount of goodwill exceeds its implied fair value. In testing goodwill for impairment, U.S. GAAP permits the Bancorp to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In this qualitative assessment, the Bancorp evaluates events and circumstances which may include, but are not limited to, the general economic environment, banking industry and market conditions, the overall financial performance of the Bancorp, the performance of the Bancorp’s common stock, the key financial performance metrics of the Bancorp’s reporting units and events affecting the reporting units. If, after assessing the totality of events and circumstances, the Bancorp determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step The fair value of a reporting unit is the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. As none of the Bancorp’s reporting units are publicly traded, individual reporting unit fair value determinations cannot be directly correlated to the Bancorp’s stock price. To determine the fair value of a reporting unit, the Bancorp employs an income-based approach, utilizing the reporting unit’s forecasted cash flows (including a terminal value approach to estimate cash flows beyond the final year of the forecast) and the reporting unit’s estimated cost of equity as the discount rate. Additionally, the Bancorp determines its market capitalization based on the average of the closing price of the Bancorp’s stock during the month including the measurement date, incorporating an additional control premium, and compares this market-based fair value measurement to the aggregate fair value of the Bancorp’s reporting units in order to corroborate the results of the income approach. When required to perform Step 2, the Bancorp compares the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount exceeds the implied fair value, an impairment loss equal to that excess amount is recognized. A recognized impairment loss cannot exceed the carrying amount of that goodwill and cannot be reversed in future periods even if the fair value of the reporting unit subsequently recovers. During Step 2, the Bancorp determines the implied fair value of goodwill for a reporting unit by assigning the fair value of the reporting unit to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. The excess of the fair value of the reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. This assignment process is only performed for purposes of testing goodwill for impairment. The Bancorp does not adjust the carrying values of recognized assets or liabilities (other than goodwill, if appropriate), nor does it recognize previously unrecognized intangible assets in the Consolidated Financial Statements as a result of this assignment process. Refer to Note 11 for further information regarding the Bancorp’s goodwill. |
Fair Value of Financial Instruments | Fair Value Measurements The Bancorp measures certain financial assets and liabilities at fair value in accordance with U.S. GAAP, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Bancorp employs various valuation approaches to measure fair value including the market, income and cost approaches. The market approach uses prices or relevant information generated by market transactions involving identical or comparable assets or liabilities. The income approach involves discounting future amounts to a single present amount and is based on current market expectations about those future amounts. The cost approach is based on the amount that currently would be required to replace the service capacity of the asset. U.S. GAAP establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument’s fair value measurement. The three levels within the fair value hierarchy are described as follows: Level 1 Level 2 Level 3 The Bancorp’s fair value measurements involve various valuation techniques and models, which involve inputs that are observable, when available. Valuation techniques and parameters used for measuring assets and liabilities are reviewed and validated by the Bancorp on a quarterly basis. Additionally, the Bancorp monitors the fair values of significant assets and liabilities using a variety of methods including the evaluation of pricing runs and exception reports based on certain analytical criteria, comparison to previous trades and overall review and assessments for reasonableness. The Bancorp may, as a practical expedient, measure the fair value of certain investments on the basis of the net asset value per share of the investment, or its equivalent. Any investments which are valued using this practical expedient are not classified in the fair value hierarchy. Refer to Note 29 for further information on fair value measurements. |
Stock-Based Compensation | Stock-Based Compensation The Bancorp recognizes compensation expense for the grant-date fair value of stock-based awards that are expected to vest over the requisite service period. All awards, both those with cliff vesting and graded vesting, are expensed on a straight-line basis. Awards to employees that meet eligible retirement status are expensed immediately. As compensation expense is recognized, a deferred tax asset is recorded that represents an estimate of the future tax deduction from exercise or release of restrictions. At the time awards are exercised, cancelled, expire or restrictions are released, the Bancorp recognizes an adjustment to income tax expense for the difference between the previously estimated tax deduction and the actual tax deduction realized. For further information on the Bancorp’s stock-based compensation plans, refer to Note 26. |
Pension Plans | Pension Plans The Bancorp uses an expected long-term rate of return applied to the fair market value of assets as of the beginning of the year and the expected cash flow during the year for calculating the expected investment return on all pension plan assets. Amortization of the net gain or loss resulting from experience different from that assumed and from changes in assumptions (excluding asset gains and losses not yet reflected in market-related value) is included as a component of net periodic benefit cost. If, as of the beginning of the year, that net gain or loss exceeds 10% of the greater of the projected benefit obligation and the market-related value of plan assets, the amortization is that excess divided by the average remaining service period of participating employees expected to receive benefits under the plan. The Bancorp uses a third-party actuary to compute the remaining service period of participating employees. This period reflects expected turnover, pre-retirement |
Revenue Recognition | Revenue Recognition The Bancorp generally measures revenue based on the amount of consideration the Bancorp expects to be entitled for the transfer of goods or services to a customer, then recognizes this revenue when or as the Bancorp satisfies its performance obligations under the contract, except in transactions where U.S. GAAP provides other applicable guidance. When the amount of consideration is variable, the Bancorp will only recognize revenue to the extent that it is probable that the cumulative amount recognized will not be subject to a significant reversal in the future. Substantially all of the Bancorp’s contracts with customers have expected durations of one year or less and payments are typically due when or as the services are rendered or shortly thereafter. When third parties are involved in providing goods or services to customers, the Bancorp recognizes revenue on a gross basis when it has control over those goods or services prior to transfer to the customer; otherwise, revenue is recognized for the net amount of any fee or commission. The Bancorp excludes sales taxes from the recognition of revenue and recognizes the incremental costs of obtaining contracts as an expense if the period of amortization for those costs would be one year or less. The Bancorp’s interest income is derived from loans and leases, securities and other short-term investments. The Bancorp recognizes interest income in accordance with the applicable guidance in U.S. GAAP for these assets. Refer to the Portfolio Loans and Leases and Investment Securities sections of this footnote for further information. The following provides additional information about the components of noninterest income: ● Service charges on deposits consist primarily of treasury management fees for commercial clients, monthly service charges on consumer deposit accounts, transaction-based fees (such as overdraft fees and wire transfer fees), and other deposit account-related charges. The Bancorp’s performance obligations for treasury management fees and consumer deposit account service charges are typically satisfied over time while performance obligations for transaction-based fees are typically satisfied at a point in time. Revenues are recognized on an accrual basis when or as the services are provided to the customer, net of applicable discounts, waivers and reversals. Payments are typically collected from customers directly from the related deposit account at the time the transaction is processed and/or at the end of the customer’s statement cycle (typically monthly). ● Wealth and asset management revenue consists primarily of service fees for investment management, custody, and trust administration services provided to commercial and consumer clients. The Bancorp’s performance obligations for these services are generally satisfied over time and revenues are recognized monthly based on the fee structure outlined in individual contracts. Transaction prices are most commonly based on the market value of assets under management or care and/or a fee per transaction processed. The Bancorp offers certain services, like tax return preparation, for which the performance obligations are satisfied and revenue is recognized at a point in time, when the services are performed. Wealth and asset management revenue also includes trailing commissions received from investments and annuities held in customer accounts, which are recognized in revenue when the Bancorp determines that it has satisfied its performance obligations and has sufficient information to estimate the amount of the commissions to which it expects to be entitled. ● Corporate banking revenue consists primarily of service fees and other income related to loans and leases to commercial clients, underwriting revenue recognized by the Bancorp’s broker-dealer subsidiary and fees for other services provided to commercial clients. Revenue related to loans and leases is recognized in accordance with the Bancorp’s policies for portfolio loans and leases. Underwriting revenue is generally recognized on the trade date, which is when the Bancorp’s performance obligations are satisfied. ● Card and processing revenue consists primarily of ATM fees and interchange fees earned when the Bancorp’s credit and debit cards are processed through card association networks. The Bancorp’s performance obligations are generally complete when the transactions generating the fees are processed. Revenue is recognized on an accrual basis as such services are performed, net of certain costs not controlled by the Bancorp (primarily interchange fees charged by credit card associations and expenses of certain transaction-based rewards programs offered to customers). ● Mortgage banking net revenue consists primarily of origination fees and gains on loan sales, mortgage servicing fees and the impact of MSRs. Refer to the Loans and Leases Held for Sale and Loan Sales and Securitizations sections of this footnote for further information. ● Other noninterest income includes income from operating leases, certain fees derived from loans and leases, BOLI income, gains and losses on other assets, and other miscellaneous revenues and gains. |
Other | Other Securities and other property held by Fifth Third Wealth and Asset Management, a division of the Bancorp’s banking subsidiary, in a fiduciary or agency capacity are not included in the Consolidated Balance Sheets because such items are not assets of the subsidiaries. The Bancorp purchases life insurance policies on the lives of certain directors, officers and employees and is the owner and beneficiary of the policies. The Bancorp invests in these policies, known as BOLI, to provide an efficient form of funding for long-term retirement and other employee benefits costs. Certain BOLI policies have a stable value agreement through either a large, well-rated bank or multi-national insurance carrier that provides limited cash surrender value protection from declines in the value of each policy’s underlying investments. The Bancorp records these BOLI policies within other assets in the Consolidated Balance Sheets at each policy’s respective cash surrender value, with changes recorded in other noninterest income in the Consolidated Statements of Income. Intangible assets consist of core deposit intangibles, customer relationships, operating leases, non-compete Securities sold under repurchase agreements are accounted for as secured borrowings and included in other short-term borrowings in the Consolidated Balance Sheets at the amounts at which the securities were sold plus accrued interest. Acquisitions of treasury stock are carried at cost. Reissuance of shares in treasury for acquisitions, exercises of stock-based awards or other corporate purposes is recorded based on the specific identification method. Advertising costs are generally expensed as incurred. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow | |
Noncash Investing and Financing Activities | Cash payments related to interest and income taxes in addition to non-cash ($ in millions) 2019 2018 2017 Cash Payments: Interest $ 1,441 1,016 699 Income taxes 726 359 1,035 Transfers: Portfolio loans to loans held for sale 211 275 255 Loans held for sale to portfolio loans 37 95 29 Portfolio loans to OREO 29 39 34 Supplemental Disclosures: Conversion of outstanding preferred stock issued by a Bancorp subsidiary 197 - - Additions to right-of-use 76 - - Additions to right-of-use 24 - - Right-of-use 2016-02 509 - - |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combination | |
Consideration paid, noncontrolling interest recognized, and acquired identifiable assets and liabilities | The following table reflects consideration paid and the noncontrolling interest recognized for MB Financial, Inc.’s net assets and the amounts of acquired identifiable assets and liabilities assumed at their estimated fair value as of the acquisition date: ($ in millions) Consideration paid Cash payments $ 469 Fair value of common stock issued 3,121 Stock-based awards 38 Dividend receivable from MB Financial, Inc. (20) Total consideration paid $ 3,608 Fair value of noncontrolling interest in acquiree $ 197 Net Identifiable Assets Acquired, at Fair Value: Assets Cash and due from banks $ 1,679 Federal funds sold 35 Other short-term investments 53 Available-for-sale 832 Held-to-maturity 4 Equity securities 51 Loans and leases held for sale 12 Portfolio loans and leases (a) 13,411 Bank premises and equipment (a) 266 Operating lease equipment (a) 394 Intangible assets (a) 220 Servicing rights 263 Other assets (a) 750 Total assets acquired $ 17,970 Liabilities Deposits $ 14,489 Other short-term borrowings (a) 267 Accrued taxes, interest and expenses (a) 265 Other liabilities (a) 194 Long-term debt (a) 727 Total liabilities assumed $ 15,942 Net identifiable assets acquired 2,028 Goodwill $ 1,777 (a) Fair values have been updated from the estimates reported in the March 31, 2019 quarterly report on Form 10-Q. |
Merger-related expenses | The following table provides a summary of merger-related expenses recorded in noninterest expense: For the years ended December 31, ($ in millions) 2019 2018 Salaries, wages and incentives $ 87 1 Employee benefits 3 - Technology and communications 71 6 Net occupancy expense 13 - Card and processing expense 1 1 Equipment expense 1 - Other noninterest expense 46 23 Total $ 222 31 |
Unaudited pro forma | The following table presents unaudited pro forma information as if the acquisition of MB Financial, Inc. had occurred on January 1, 2018. Unaudited Pro Forma Information For the years ended December 31, ($ in millions) 2019 2018 Net interest income $ 4,911 4,836 Noninterest income 3,638 3,184 Net income available to common shareholders 2,529 2,282 |
Acquired loans and leases | The following table reflects the contractually required payments receivable, cash flows expected to be collected and estimated fair value of loans identified as PCI loans on the acquisition date of MB Financial, Inc. These fair value estimates are considered preliminary as of December 31, 2019. ($ in millions) March 22, 2019 Contractually required payments including interest $ 1,139 Less: Nonaccretable difference 81 Cash flows expected to be collected 1,058 Less: Accretable yield 202 Fair value of loans acquired $ 856 A summary of activity related to accretable yield is as follows: ($ in millions) Accretable Yield Balance as of December 31, 2018 $ - Additions 202 Accretion (41) Reclassifications (to) from nonaccretable difference (14) Balance as of December 31, 2019 $ 147 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investment Securities | |
Investment Securities | The following table provides the amortized cost, fair value and unrealized gains and losses for the major categories of the available-for-sale held-to-maturity 2019 2018 Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair ($ in millions) Cost Gains Losses Value Cost Gains Losses Value Available-for-sale U.S. Treasury and federal agencies securities $ 74 1 - 75 98 - (1) 97 Obligations of states and political subdivisions securities 18 - - 18 2 - - 2 Mortgage-backed securities: Agency residential mortgage-backed securities 13,746 388 (19) 14,115 16,403 86 (242) 16,247 Agency commercial mortgage-backed securities 15,141 564 (12) 15,693 10,770 44 (164) 10,650 Non-agency 3,242 123 - 3,365 3,305 9 (47) 3,267 Asset-backed securities and other debt securities 2,189 29 (12) 2,206 1,998 27 (10) 2,015 Other securities (a) 556 - - 556 552 - - 552 Total available-for-sale $ 34,966 1,105 (43) 36,028 33,128 166 (464) 32,830 Held-to-maturity Obligations of states and political subdivisions securities $ 15 - - 15 16 - - 16 Asset-backed securities and other debt securities 2 - - 2 2 - - 2 Total held-to-maturity $ 17 - - 17 18 - - 18 (a) Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $76 $478 $2 December 31, 2019 The following table provides the fair value of trading debt securities and equity securities as of December 31: ($ in millions) 2019 2018 Trading debt securities $ 297 287 Equity securities 564 452 |
Realized Gains and Losses Recognized in Income from Investment Securities | The following table presents securities gains (losses) recognized in the Consolidated Statements of Income as of December 31: ($ in millions) 2019 2018 2017 Available-for-sale Realized gains $ 60 72 85 Realized losses (50 ) (82 ) (36) OTTI (1 ) - (54) Net realized gains (losses) on available-for-sale $ 9 (10 ) (5) Total trading debt securities gains (losses) $ 3 (15 ) 2 Total equity securities gains (losses) (a) $ 31 (44 ) 7 Total gains (losses) recognized in income from available-for-sale (b) $ 43 (69 ) 4 (a) Includes $26 December 31, 2019 (b) Excludes $7 December 31, 2019 |
Amortized Cost and Fair Value of Available-for-Sale Debt and Other and Held-to-Maturity Securities | The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale held-to-maturity Available-for-Sale Held-to-Maturity ($ in millions) Amortized Cost Fair Value Amortized Cost Fair Value Debt securities: (a) Less than 1 year $ 195 200 5 5 1-5 10,983 11,288 10 10 5-10 17,566 18,173 - - Over 10 years 5,666 5,811 2 2 Other securities 556 556 - - Total $ 34,966 36,028 17 17 (a) Actual maturities may differ from contractual maturities when a right to call or prepay obligations exists with or without call or prepayment penalties. |
Fair Value and Gross Unrealized Loss of Securities Available for Sale | The following table provides the fair value and gross unrealized losses on available-for-sale Less than 12 months 12 months or more Total ($ in millions) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized 2019 Agency residential mortgage-backed securities $ 2,159 (19) 4 - 2,163 (19) Agency commercial mortgage-backed securities 1,602 (12) - - 1,602 (12) Asset-backed securities and other debt securities 367 (3) 379 (9) 746 (12) Total $ 4,128 (34) 383 (9) 4,511 (43) 2018 U.S. Treasury and federal agencies securities $ - - 97 (1) 97 (1) Agency residential mortgage-backed securities 3,235 (21) 7,892 (221) 11,127 (242) Agency commercial mortgage-backed securities 2,022 (37) 5,260 (127) 7,282 (164) Non-agency 884 (6) 1,621 (41) 2,505 (47) Asset-backed securities and other debt securities 314 (6) 241 (4) 555 (10) Total $ 6,455 (70) 15,111 (394) 21,566 (464) |
Loans and Leases (Tables)
Loans and Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 classified based upon product or collateral as of December 31: ($ in millions) 2019 2018 Loans and leases held for sale: Commercial and industrial loans $ 135 67 Commercial mortgage loans 1 3 Residential mortgage loans 1,264 537 Total loans and leases held for sale $ 1,400 607 Portfolio loans and leases: Commercial and industrial loans $ 50,542 44,340 Commercial mortgage loans 10,963 6,974 Commercial construction loans 5,090 4,657 Commercial leases 3,363 3,600 Total commercial loans and leases 69,958 59,571 Residential mortgage loans 16,724 15,504 Home equity 6,083 6,402 Indirect secured consumer loans 11,538 8,976 Credit card 2,532 2,470 Other consumer loans 2,723 2,342 Total consumer loans 39,600 35,694 Total portfolio loans and leases $ 109,558 95,265 |
Total Loans And Leases Owned By The Bancorp | The following table presents a summary of the total loans and leases owned by the Bancorp and net charge-offs (recoveries) as of and for the years ended December 31: 90 Days Past Due Net Carrying Value and Still Accruing Charge-Offs (Recoveries) ($ in millions) 2019 2019 2018 2019 2018 Commercial and industrial loans $ 50,677 44,407 11 4 103 132 Commercial mortgage loans 10,964 6,977 15 2 (2) (1) Commercial construction loans 5,090 4,657 - - - - Commercial leases 3,363 3,600 - - 7 1 Residential mortgage loans 17,988 16,041 50 38 4 7 Home equity 6,083 6,402 1 - 18 12 Indirect secured consumer loans 11,538 8,976 10 12 50 40 Credit card 2,532 2,470 42 37 134 101 Other consumer loans 2,723 2,342 1 - 55 38 Total loans and leases $ 110,958 95,872 130 93 369 330 Less: Loans and leases held for sale $ 1,400 607 Total portfolio loans and leases $ 109,558 95,265 |
Investment in Lease Financing | The following table presents the components of the net investment in leases as of: ($ in millions) December 31, 2019 (a) Net investment in direct financing leases: Lease payment receivable (present value) $ 2,196 Unguaranteed residual assets (present value) 220 Net discount on acquired leases (7) Deferred selling profits - Net investment in sales-type leases: Lease payment receivable (present value) 510 Unguaranteed residual assets (present value) 15 Net discount on acquired leases - (a) Excludes $429 of leveraged leases at December 31, 2019. The following table provides the components of the commercial lease financing portfolio as of: ($ in millions) December 31, 2018 Rentals receivable, net of principal and interest on nonrecourse debt $ 3,256 Estimated residual value of leased assets 804 Initial direct cost, net of amortization 19 Gross investment in commercial lease financing 4,079 Unearned income (479) Net investment in commercial lease financing $ 3,600 |
Schedule Of Future Minimum Lease Payments For Commercial Leases Table Text Block | The following table presents undiscounted cash flows for both direct financing and sales-type leases for 2020 through 2024 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease receivables as follows: As of December 31, 2019 ($ in millions) Direct Financing Leases Sales-Type Leases 2020 $ 679 121 2021 523 133 2022 428 112 2023 257 70 2024 184 63 Thereafter 273 75 Total undiscounted cash flows $ 2,344 574 Less: Difference between undiscounted cash flows and discounted cash flows 148 64 Present value of lease payments (recognized as lease receivables) $ 2,196 510 |
Credit Quality and the Allowa_2
Credit Quality and the Allowance for Loan and Lease Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Leases Receivable | |
Summary of Transactions in the ALLL | The following tables summarize transactions in the ALLL by portfolio segment for the years ended December 31: Residential 2019 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 645 81 267 110 1,103 Losses charged-off (a) (127) (9) (374) - (510) Recoveries of losses previously charged-off (a) 19 5 117 - 141 Provision for (benefit from) loan and lease losses 173 (4) 288 11 468 Balance, end of period $ 710 73 298 121 1,202 (a) For the year ended December 31, 2019 $48 charged-off charged-off point-of-sale Residential 2018 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 753 89 234 120 1,196 Losses charged-off (a) (157) (13) (280) - (450) Recoveries of losses previously charged-off (a) 25 6 89 - 120 Provision for (benefit from) loan and lease losses 24 (1) 224 (10) 237 Balance, end of period $ 645 81 267 110 1,103 (a) For the year ended December 31, 2018, the Bancorp recorded $29 in both losses charged-off charged-off point-of-sale Residential 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 831 96 214 112 1,253 Losses charged-off (154) (15) (212) - (381) Recoveries of losses previously charged-off 29 8 46 - 83 Provision for loan and lease losses 66 - 186 9 261 Deconsolidation of a VIE (19) - - (1) (20) Balance, end of period $ 753 89 234 120 1,196 |
Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment | The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: Residential As of December 31, 2019 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 82 55 33 - 170 Collectively evaluated for impairment 628 18 265 - 911 Unallocated - - - 121 121 Total ALLL $ 710 73 298 121 1,202 Portfolio loans and leases: (b) Individually evaluated for impairment $ 413 814 302 - 1,529 Collectively evaluated for impairment 69,047 15,690 22,558 - 107,295 Purchased credit impaired 498 37 16 - 551 Total portfolio loans and leases $ 69,958 16,541 22,876 - 109,375 (a) Includes $1 December 31, 2019 (b) Excludes $183 $429 December 31, 2019 Residential As of December 31, 2018 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 42 61 38 - 141 Collectively evaluated for impairment 603 20 229 - 852 Unallocated - - - 110 110 Total ALLL $ 645 81 267 110 1,103 Portfolio loans and leases: (b) Individually evaluated for impairment $ 277 736 278 - 1,291 Collectively evaluated for impairment 59,294 14,589 19,912 - 93,795 Total portfolio loans and leases $ 59,571 15,325 20,190 - 95,086 (a) Includes $1 related to leveraged leases at December 31, 2018. (b) Excludes $179 of residential mortgage loans measured at fair value and includes $624 of leveraged leases, net of unearned income at December 31, 2018. |
Loan and leases balances by credit quality indicator | The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class: Special As of December 31, 2019 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 47,671 1,423 1,406 42 50,542 Commercial mortgage owner-occupied loans 4,421 162 293 4 4,880 Commercial mortgage nonowner-occupied loans 5,866 135 82 - 6,083 Commercial construction loans 4,963 52 75 - 5,090 Commercial leases 3,222 53 88 - 3,363 Total commercial loans and leases $ 66,143 1,825 1,944 46 69,958 Special As of December 31, 2018 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 42,695 779 853 13 44,340 Commercial mortgage owner-occupied loans 3,122 23 139 - 3,284 Commercial mortgage nonowner-occupied loans 3,632 27 31 - 3,690 Commercial construction loans 4,657 - - - 4,657 Commercial leases 3,475 72 53 - 3,600 Total commercial loans and leases $ 57,581 901 1,076 13 59,571 The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class, disaggregated into performing versus nonperforming status as of December 31: 2019 2018 ($ in millions) Performing Nonperforming Performing Nonperforming Residential mortgage loans (a) $ 16,450 91 15,303 22 Home equity 5,989 94 6,332 70 Indirect secured consumer loans 11,531 7 8,975 1 Credit card 2,505 27 2,444 26 Other consumer loans 2,721 2 2,341 1 Total residential mortgage and consumer loans (a) $ 39,196 221 35,395 120 (a) Excludes $183 December 31, 2019 |
Summary by Age and Class of the Recorded Investment in Delinquencies Included in the Bancorp's Portfolio of Loans and Leases | Age Analysis of Past Due Loans and Leases The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases, by age and class: Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of December 31, 2019 ($ in millions) Leases (b)(c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 50,305 133 104 237 50,542 11 Commercial mortgage owner-occupied loans 4,853 4 23 27 4,880 9 Commercial mortgage nonowner-occupied loans 6,072 5 6 11 6,083 6 Commercial construction loans 5,089 1 - 1 5,090 - Commercial leases 3,338 11 14 25 3,363 - Residential mortgage loans (a) 16,372 27 142 169 16,541 50 Consumer loans: Home equity 5,965 61 57 118 6,083 1 Indirect secured consumer loans 11,389 132 17 149 11,538 10 Credit card 2,434 50 48 98 2,532 42 Other consumer loans 2,702 18 3 21 2,723 1 Total portfolio loans and leases (a) $ 108,519 442 414 856 109,375 130 (a) Excludes $183 December 31, 2019 (b) 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, 2019 $94 30-89 $261 $4 December 31, 2019 (c) Includes accrual and nonaccrual loans and leases. Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of December 31, 2018 ($ in millions) Leases (b)(c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 44,213 32 95 127 44,340 4 Commercial mortgage owner-occupied loans 3,277 1 6 7 3,284 2 Commercial mortgage nonowner-occupied loans 3,688 1 1 2 3,690 - Commercial construction loans 4,657 - - - 4,657 - Commercial leases 3,597 1 2 3 3,600 - Residential mortgage loans (a) 15,227 37 61 98 15,325 38 Consumer loans: Home equity 6,280 71 51 122 6,402 - Indirect secured consumer loans 8,844 119 13 132 8,976 12 Credit card 2,381 47 42 89 2,470 37 Other consumer loans 2,323 17 2 19 2,342 - Total portfolio loans and leases (a) $ 94,487 326 273 599 95,086 93 (a) Excludes $179 of residential mortgage loans measured at fair value at December 31, 2018. (b) 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, 2018, $90 of these loans were 30-89 (c) Includes accrual and nonaccrual loans and leases. |
Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class | The following tables summarize the Bancorp’s impaired portfolio loans and leases, by class, that were subject to individual review, which includes all portfolio loans and leases restructured in a TDR as of December 31: 2019 ($ in millions) Unpaid Recorded ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 277 215 76 Commercial mortgage owner-occupied loans 4 4 - Commercial mortgage nonowner-occupied loans 1 - - Commercial leases 26 26 6 Restructured residential mortgage loans 431 429 55 Restructured consumer loans: Home equity 127 127 20 Indirect secured consumer loans 4 4 - Credit card 47 44 13 Total impaired portfolio loans and leases with a related ALLL $ 917 849 170 With no related ALLL: Commercial loans and leases: Commercial and industrial loans $ 156 142 - Commercial mortgage owner-occupied loans 21 21 - Commercial mortgage nonowner-occupied loans 3 3 - Commercial leases 2 2 - Restructured residential mortgage loans 401 385 - Restructured consumer loans: Home equity 125 119 - Indirect secured consumer loans 10 8 - Total impaired portfolio loans and leases with no related ALLL $ 718 680 - Total impaired portfolio loans and leases $ 1,635 1,529 (a) 170 (a) Includes $23 $735 $230 $231 $79 $72 December 31, 2019 2018 ($ in millions) Unpaid Recorded ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 156 107 34 Commercial mortgage owner-occupied loans 2 2 1 Commercial mortgage nonowner-occupied loans 2 1 - Commercial leases 23 22 7 Restructured residential mortgage loans 465 462 61 Restructured consumer loans: Home equity 146 145 22 Indirect secured consumer loans 5 4 1 Credit card 47 44 15 Total impaired portfolio loans and leases with a related ALLL $ 846 787 141 With no related ALLL: Commercial loans and leases: Commercial and industrial loans $ 137 125 - Commercial mortgage owner-occupied loans 9 9 - Commercial mortgage nonowner-occupied loans 11 11 - Restructured residential mortgage loans 292 274 - Restructured consumer loans: Home equity 85 83 - Indirect secured consumer loans 2 2 - Total impaired portfolio loans and leases with no related ALLL $ 536 504 - Total impaired portfolio loans and leases $ 1,382 1,291 (a) 141 (a) Includes $60, $724 and $237, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $147, $12 and $41, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2018. The following table summarizes the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class, for the years ended December 31: 2019 2018 2017 ($ in millions) Average Interest Average Interest Average Interest Income Commercial loans and leases: Commercial and industrial loans $ 306 7 373 15 579 10 Commercial mortgage owner-occupied loans 23 - 15 - 35 - Commercial mortgage nonowner-occupied loans 8 - 24 - 61 1 Commercial leases 28 1 18 - 3 - Restructured residential mortgage loans 756 30 743 28 657 25 Restructured consumer loans: Home equity 221 11 244 12 281 12 Indirect secured consumer loans 7 - 8 - 11 - Credit card 44 4 44 5 50 4 Total average impaired portfolio loans and leases $ 1,393 53 1,469 60 1,677 52 |
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 loans which have not yet met the requirements to be returned to accrual status; certain restructured consumer and residential mortgage loans which are 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 December 31: ($ in millions) 2019 2018 Commercial loans and leases: Commercial and industrial loans $ 338 193 Commercial mortgage owner-occupied loans 29 11 Commercial mortgage nonowner-occupied loans 1 2 Commercial construction loans 1 - Commercial leases 28 22 Total nonaccrual portfolio commercial loans and leases 397 228 Residential mortgage loans 91 22 Consumer loans: Home equity 94 69 Indirect secured consumer loans 7 1 Credit card 27 27 Other consumer loans 2 1 Total nonaccrual portfolio consumer loans 130 98 Total nonaccrual portfolio loans and leases (a)(b) $ 618 348 OREO and other repossessed property 62 47 Total nonperforming portfolio assets (a)(b) $ 680 395 (a) Excludes $7 December 31, 2019 (b) Includes $16 December 31, 2019 $11 December 31, 2019 |
Summary of Loans Modified in a TDR | The following tables provide a summary of loans and leases, by class, modified in a TDR by the Bancorp during the years ended December 31: 2019 ($ in millions) (a)(b) Number of Loans (c) Recorded Investment (Decrease) Charge-offs Commercial loans and leases: Commercial and industrial loans 97 $ 223 (19 ) 5 Commercial mortgage owner-occupied loans 15 12 - - Commercial mortgage nonowner-occupied loans 1 - - - Residential mortgage loans 722 101 1 - Consumer loans: Home equity 80 4 - - Indirect secured consumer loans 100 - - - Credit card 6,041 34 8 3 Total portfolio loans and leases 7,056 $ 374 (10 ) 8 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. (b) Excludes loans classified as TDRs as a result of the Bancorp’s conformance to OCC guidance with regard to non-reaffirmed (c) Represents number of loans post-modification and excludes loans previously modified in a TDR. 2018 ($ in millions) (a) Number of Loans (b) Recorded Investment Increase (Decrease) Charge-offs Commercial loans and leases: Commercial and industrial loans 54 $ 200 1 7 Commercial mortgage owner-occupied loans 6 3 (1 ) - Commercial mortgage nonowner-occupied loans 3 - - - Residential mortgage loans 1,128 168 4 - Consumer loans: Home equity 111 7 - - Indirect secured consumer loans 84 - - - Credit card 7,483 37 9 2 Total portfolio loans and leases 8,869 $ 415 13 9 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. (b) Represents number of loans post-modification and excludes loans previously modified in a TDR. 2017 ($ in millions) (a) Number of Loans (b) Recorded Investment Increase Charge-offs Commercial loans and leases: Commercial and industrial loans 75 $ 237 (5 ) 6 Commercial mortgage owner-occupied loans 9 8 5 - Commercial mortgage nonowner-occupied loans 4 - - - Commercial leases 1 4 - - Residential mortgage loans 830 116 5 - Consumer loans: Home equity 150 10 - - Indirect secured consumer loans 102 - - - Credit card 8,085 38 8 1 Total portfolio loans and leases 9,256 $ 413 13 7 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. (b) 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 years ended December 31, 2019, 2018 and 2017 and were within twelve months of the restructuring date: December 31, 2019 ($ in millions) (a)(b) Number of Contracts Recorded Investment Commercial loans and leases: Commercial and industrial loans 12 $ 20 Commercial mortgage owner-occupied loans 4 1 Commercial mortgage nonowner-occupied loans 1 - Residential mortgage loans 274 42 Consumer loans: Home equity 15 - Credit card 655 3 Total portfolio loans and leases 961 $ 66 (a) (b) non-reaffirmed December 31, 2018 ($ in millions) (a) Number of Recorded Commercial loans and leases: Commercial and industrial loans 8 $ 61 Commercial mortgage owner-occupied loans 2 - Residential mortgage loans 225 35 Consumer loans: Home equity 10 - Credit card 655 4 Total portfolio loans and leases 900 $ 100 (a) December 31, 2017 ($ in millions) (a) Number of Recorded Commercial loans and leases: Commercial and industrial loans 7 $ 17 Commercial mortgage owner-occupied loans 4 1 Residential mortgage loans 172 24 Consumer loans: Home equity 16 2 Credit card 1,633 8 Total portfolio loans and leases 1,832 $ 52 (a) |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Bank Premises and Equipment | |
Bank Premises and Equipment | The following table provides a summary of bank premises and equipment as of December 31: ($ in millions) Estimated Useful Life 2019 2018 Land and improvements (a) $ 639 586 Buildings (a) 1 - 30 yrs. 1,575 1,547 Equipment 2 - 20 yrs. 2,126 1,987 Leasehold improvements 1 - 30 yrs. 432 403 Construction in progress (a) 85 81 Bank premises and equipment held for sale: Land and improvements 8 25 Buildings 18 14 Equipment 1 3 Accumulated depreciation and amortization (2,889 ) (2,785 ) Total bank premises and equipment $ 1,995 1,861 (a) At December 31, 2019 $51 |
Operating Lease Equipment (Tabl
Operating Lease Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases Operating [Abstract] | |
Undiscounted Future Lease Payments of Operating Leases | The following table presents undiscounted future lease payments for operating leases for the years ending December 31: As of December 31, 2019 ($ in millions) Undiscounted Cash 2020 $ 152 2021 124 2022 94 2023 67 2024 38 Thereafter 63 Total operating lease payments $ 538 |
Lease Obligations - Lessee (Tab
Lease Obligations - Lessee (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Lessee Disclosure [Abstract] | |
Lease Assets and Lease Liabilities | The following table provides a summary of lease assets and lease liabilities as of: ($ in millions) Consolidated Balance Sheets Caption December 31, 2019 Assets Operating lease right-of-use Other assets $ 473 Finance lease right-of-use Bank premises and equipment 34 Total right-of-use (a) $ 507 Liabilities Operating lease liabilities Accrued taxes, interest and expenses $ 555 Finance lease liabilities Long-term debt 35 Total lease liabilities $ 590 (a) Operating and finance lease right-of-use |
Components of Lease Costs | The following table presents the components of lease costs: ($ in millions) Consolidated Statements of Income Caption For the year ended December 31, 2019 Lease costs: Amortization of right-of-use Net occupancy and equipment expense $ 6 Interest on lease liabilities Interest on long-term debt 1 Total finance lease costs $ 7 Operating lease cost Net occupancy expense $ 96 Short-term lease cost Net occupancy expense 1 Variable lease cost Net occupancy expense 30 Sublease income Net occupancy expense (3) Total operating lease costs $ 124 Total lease costs $ 131 |
Undiscounted Cash Flows for Operating and Finance Leases | The following table presents undiscounted cash flows for both operating leases and finance leases for 2020 through 2024 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities as follows: As of December 31, 2019 ($ in millions) Operating Finance Leases Total 2020 $ 90 6 96 2021 81 5 86 2022 76 5 81 2023 67 2 69 2024 58 2 60 Thereafter 280 26 306 Total undiscounted cash flows $ 652 46 698 Less: Difference between undiscounted cash flows and discounted cash flows 97 11 108 Present value of lease liabilities $ 555 35 590 |
Lease Obligations, Other Information | The following table presents the weighted-average remaining lease term and weighted-average discount rate as of: December 31, 2019 Weighted-average remaining lease term (years): Operating leases 9.48 Finance leases 14.17 Weighted-average discount rate: Operating leases 3.19% Finance leases 4.30 The following table presents information related to lease transactions for the year ended: ($ in millions) December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: (a) Operating cash flows from operating leases $ 97 Operating cash flows from finance leases 1 Financing cash flows from finance leases 5 Gains on sale and leaseback transactions 5 (a) The cash flows related to the short-term and variable lease payments are not included in the amounts in the table as they were not included in the measurement of lease liabilities. |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Net Carrying Amount of Goodwill by Reporting Segment | Changes in the net carrying amount of goodwill, by reporting unit, for the years ended December 31, 2019 and 2018 were as follows: ($ in millions) Commercial Banking Branch Consumer Wealth and Asset Total Goodwill $ 1,363 1,655 215 177 3,410 Accumulated impairment losses (750) - (215) - (965) Net carrying amount as of December 31, 2017 $ 613 1,655 - 177 2,445 Acquisition activity 17 - - 16 33 Net carrying amount as of December 31, 2018 $ 630 1,655 - 193 2,478 Acquisition activity 1,324 391 - 62 1,777 Sale of business - - - (3) (3) Net carrying amount as of December 31, 2019 $ 1,954 2,046 - 252 4,252 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets | |
Intangible Assets | The details of the Bancorp’s intangible assets are shown in the following table: ($ in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount As of December 31, 2019 Core deposit intangibles $ 229 (70) 159 Customer relationships 29 (6) 23 Operating leases 23 (9) 14 Non-compete 13 (11) 2 Other 4 (1) 3 Total intangible assets $ 298 (97) 201 As of December 31, 2018 Core deposit intangibles $ 34 (30) 4 Customer relationships 32 (3) 29 Non-compete 14 (11) 3 Other 7 (3) 4 Total intangible assets $ 87 (47) 40 |
Estimated Amortization Expense | Estimated amortization expense for the years ending December 31, 2020 through 2024 is as follows: ($ in millions) Total 2020 $ 56 2021 43 2022 34 2023 24 2024 16 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities | |
Consolidation of variable interest entities disclosure | The following table provide s liabilities ($ in millions) December 31, 2019 December 31, 2018 Assets: Other short-term investments $ 74 40 Indirect secured consumer loans 1,354 668 ALLL (7 ) (4) Other assets 8 5 Total assets $ 1,429 709 Liabilities: Other liabilities $ 2 1 Long-term debt 1,253 606 Total liabilities $ 1,255 607 |
Assets and liabilities related to non-consolidated VIEs and maximum exposure to losses | Non-consolidated The following tables provide a summary of assets and liabilities carried on the Consolidated Balance Sheets related to non-consolidated December 31, 2019 ($ in millions) Total Total Maximum CDC investments $ 1,435 428 1,435 Private equity investments 89 - 164 Loans provided to VIEs 2,715 - 4,083 Lease pool entities 74 - 74 December 31, 2018 ($ in millions) Total Total Maximum CDC investments $ 1,198 376 1,198 Private equity investments 41 - 73 Loans provided to VIEs 2,331 - 3,617 |
Investments in qualified affordable housing tax credits | The Bancorp has accounted for all of its qualifying LIHTC investments using the proportional amortization method of accounting. The following table summarizes the impact to the Consolidated Statements of Income related to these investments: For the years ended December 31 ($ in Consolidated Statements of (a) 2019 2018 2017 Proportional amortization Applicable income tax expense $ 140 154 223 Tax credits and other benefits Applicable income tax expense (163) (192) (220) (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during the years ended December 31, 2019, |
Sales of Receivables and Serv_2
Sales of Receivables and Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Activity Related to Mortgage Banking Net Revenue | Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Consolidated Statements of Income, for the years ended December 31 is as follows: ($ in millions) 2019 2018 2017 Residential mortgage loan sales (a) $ 7,781 5,078 6,369 Origination fees and gains on loan sales 175 100 138 Gross mortgage servicing fees 267 216 206 (a) Represents the unpaid principal balance at the time of the sale. |
Changes in the servicing assets | The following table presents changes in the servicing rights related to residential mortgage loans for the years ended December 31: ($ in millions) 2019 2018 Balance, beginning of period $ 938 858 Servicing rights originated 142 81 Servicing rights purchased 26 82 Servicing rights obtained in acquisition 263 - Changes in fair value: Due to changes in inputs or assumptions (a) (203 ) 42 Other changes in fair value (b) (173 ) (125 ) Balance, end of period $ 993 938 (a) Primarily reflects changes in prepayment speed and OAS assumptions which are updated based on market interest rates. (b) Primarily reflects changes due to collection of contractual cash flows and the passage of time. |
Activity related to the MSR Portfolio | The following table presents activity related to valuations of the MSR portfolio and the impact of the non-qualifying ($ in millions) 2019 2018 2017 Securities gains (losses), net - non-qualifying $ 3 (15) 2 Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (a) 221 (21) 2 MSR fair value adjustment due to changes in inputs or assumptions (a) (203 ) 42 (1 ) (a) Included in mortgage banking net revenue in the Consolidated Statements of Income. |
Servicing Assets and Residual Interests Economic Assumptions | 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, securitization, or purchase resulting from transactions completed during the years ended December 31 were as follows: 2019 2018 Rate Weighted- Prepayment OAS Weighted- Prepayment OAS Residential mortgage loans: Servicing rights Fixed 5.9 12.6 % 530 6.6 10.5 % 522 Servicing rights Adjustable - - - 2.6 30.3 647 |
Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions | At December 31, 2019, the sensitivity of the current fair value of residual cash flows to immediate 10%, 20% and 50% adverse changes in prepayment speed assumptions and immediate 10% and 20% adverse changes in OAS are as follows: Prepayment Speed Assumption OAS Assumption ($ in millions) (a) Rate Fair Weighted- Impact of Adverse Change OAS (bps) Impact of Adverse Change Rate 10% 20% 50% 10% 20% Residential mortgage loans: Servicing rights Fixed $ 983 5.3 13.0 % $ (36) (69 ) (158) 602 $ (21 ) (40) Servicing rights Adjustable 10 3.6 22.6 (1) (1 ) (3) 921 - - (a) The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Financial Instruments | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following tables reflect the notional amounts and fair values for all derivative instruments included in the Consolidated Balance Sheets as of: Fair Value December 31, 2019 ($ in millions) Notional Derivative Derivative Derivatives Designated as Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 2,705 393 - Total fair value hedges 393 - Cash flow hedges: Interest rate floors related to C&I loans 3,000 115 - Interest rate swaps related to C&I loans 8,000 - 2 Total cash flow hedges 115 2 Total derivatives designated as qualifying hedging instruments 508 2 Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSR portfolio 6,420 131 2 Forward contracts related to residential mortgage loans held for sale 2,901 1 5 Swap associated with the sale of Visa, Inc. Class B Shares 3,082 - 163 Foreign exchange contracts 195 - 5 Total free-standing derivatives - risk management and other business purposes 132 175 Free-standing derivatives - customer accommodation: Interest rate contracts (a) 73,327 579 148 Interest rate lock commitments 907 18 - Commodity contracts 8,525 271 270 TBA securities 50 - - Foreign exchange contracts 14,144 165 146 Total free-standing derivatives - customer accommodation 1,033 564 Total derivatives not designated as qualifying hedging instruments 1,165 739 Total $ 1,673 741 (a) Derivative assets and liabilities are presented net of variation margin of $40 and $493, respectively. Fair Value December 31, 2018 ($ in millions) Notional Derivative Derivative Derivatives Designated as Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 3,455 262 2 Total fair value hedges 262 2 Cash flow hedges: Interest rate floors related to C&I loans 3,000 69 - Interest rate swaps related to C&I loans 8,000 15 27 Total cash flow hedges 84 27 Total derivatives designated as qualifying hedging instruments 346 29 Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSR portfolio 10,045 40 14 Forward contracts related to residential mortgage loans held for sale 926 - 8 Swap associated with the sale of Visa, Inc. Class B Shares 2,174 - 125 Foreign exchange contracts 133 4 - Total free-standing derivatives - risk management and other business purposes 44 147 Free-standing derivatives - customer accommodation: Interest rate contracts 55,012 262 278 Interest rate lock commitments 407 7 - Commodity contracts 6,511 307 278 TBA securities 18 - - Foreign exchange contracts 13,205 148 142 Total free-standing derivatives - customer accommodation 724 698 Total derivatives not designated as qualifying hedging instruments 768 845 Total $ 1,114 874 |
Net Gains (Losses) Recognized in the Income Statement Related to Derivatives in Fair Value Hedging Relationships | The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Consolidated Statements of Income: For the years ended December 31 ($ in millions) Consolidated Statements of 2019 2018 2017 Change in fair value of interest rate swaps hedging long-term debt Interest on long-term $ 152 (36) (33) Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term (147) 41 31 The following amounts were recorded in the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of: ($ in millions) Consolidated Balance Sheets Caption December 31, 2019 Carrying amount of the hedged items Long-term debt $ 3,093 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items Long-term debt 402 |
Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges | The following table presents the pre-tax For the years ended December 31 ($ in millions) 2019 2018 2017 Amount of pre-tax $ 348 214 (11) Amount of pre-tax 16 (2) 19 |
Schedule of Price Risk Derivatives | The net gains (losses) recorded in the Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: For the years ended December 31 ($ in millions) Consolidated Statements of 2019 2018 2017 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ 4 (8 ) (17) Interest rate contracts related to MSR portfolio Mortgage banking net revenue 221 (21 ) 2 Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income (7) 10 (7) Equity contracts: Stock warrant Other noninterest income - - (1) Swap associated with sale of Visa, Inc. Class B Shares Other noninterest income (107) (59 ) (80) |
Risk Ratings of the Notional Amount of Risk Participation Agreements | Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table: At December 31 ($ in millions) 2019 2018 Pass $ 3,841 3,919 Special mention 86 79 Substandard 16 4 Total $ 3,943 4,002 |
Net Gains (Losses) Recognized in the Income Statement Related to Free-Standing Derivative Instruments Used For Customer Accomodation | The net gains (losses) recorded in the Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: For the years ended December 31 ($ in millions) Consolidated Statements of 2019 2018 2017 Interest rate contracts: Interest rate contracts for customers (contract revenue) Corporate banking revenue $ 40 32 21 Interest rate contracts for customers (credit losses) Other noninterest expense - - (5) Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense (15 ) - 2 Interest rate lock commitments Mortgage banking net revenue 144 70 93 Commodity contracts: Commodity contracts for customers (contract revenue) Corporate banking revenue 8 9 6 Commodity contracts for customers (credit losses) Other noninterest expense - - 1 Commodity contracts for customers (credit portion of fair value adjustment) Other noninterest expense 1 (1 ) - Foreign exchange contracts: Foreign exchange contracts for customers (contract revenue) Corporate banking revenue 49 55 48 Foreign exchange contracts for customers (contract revenue) Other noninterest income 12 14 - Foreign exchange contracts for customers (credit losses) Other noninterest expense - - 2 Foreign exchange contracts for customers (credit portion of fair value adjustment) Other noninterest expense - 1 1 |
Offsetting Derivative Financial Instruments | The following tables provide a summary of offsetting derivative financial instruments: Gross Amount (a) Gross Amounts Not Offset in the As of December 31, 2019 ($ in millions) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 1,655 (417 ) (504) 734 Total assets 1,655 (417 ) (504) 734 Liabilities: Derivatives 741 (417 ) (97) 227 Total liabilities $ 741 (417 ) (97) 227 (a) (b) Gross Amount (a) Gross Amounts Not Offset in the As of December 31, 2018 ($ in millions) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 1,107 (410 ) (348) 349 Total assets 1,107 (410 ) (348) 349 Liabilities: Derivatives 874 (410 ) (123) 341 Total liabilities $ 874 (410 ) (123) 341 (a) Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements. (b) Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Other Assets Disclosure | The following table provides the components of other assets included in the Consolidated Balance Sheets as of December 31: ($ in millions) 2019 2018 Accounts receivable and drafts-in-process $ 2,278 1,963 Bank owned life insurance 1,960 1,760 Partnership investments 1,729 1,390 Derivative instruments 1,673 1,114 Operating lease right-of-use 473 - Accrued interest and fees receivable 424 438 Worldpay, Inc. TRA receivable 345 - Prepaid expenses 101 93 OREO and other repossessed personal property 64 48 Income tax receivable 32 56 Investment in Worldpay Holding, LLC - 420 Other 111 90 Total other assets $ 9,190 7,372 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Short-Term Borrowings | |
Summary of Short-Term Borrowings and Weighted-Average Rates | The following table summarizes short-term borrowings and weighted-average rates: 2019 2018 ($ in millions) Amount Rate Amount Rate As of December 31: Federal funds purchased $ 260 1.49% $ 1,925 2.40% Other short-term borrowings 1,011 1.24 573 1.95 Average for the years ended December 31: Federal funds purchased $ 1,267 2.26% $ 1,509 1.97% Other short-term borrowings 1,046 2.67 1,611 1.82 Maximum month-end Federal funds purchased $ 2,693 $ 2,684 Other short-term borrowings 4,046 6,313 |
Summary of Other Short-Term Borrowings | The following table presents a summary of the Bancorp’s other short-term borrowings as of December 31: ($ in millions) 2019 2018 Securities sold under repurchase agreements $ 469 302 Derivative collateral 542 271 Total other short-term borrowings $ 1,011 573 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-Term Debt | |
Summary of the Bancorp's Long-Term Borrowings | The following table is a summary of the Bancorp’s long-term borrowings at December 31: ($ in millions) Maturity Interest Rate 2019 2018 Parent Company Senior: Fixed-rate notes 2019 2.30 % $ - 500 Fixed-rate notes 2020 2.875 % 1,099 1,098 Floating-rate notes (b) 2021 2.37 % 250 250 Fixed-rate notes 2022 2.60 % 699 698 Fixed-rate notes 2022 3.50 % 499 498 Fixed-rate notes 2024 3.65 % 1,493 - Fixed-rate notes 2025 2.375 % 746 - Fixed-rate notes 2028 3.95 % 646 646 Subordinated: (a) Fixed-rate notes 2024 4.30 % 748 747 Fixed-rate notes 2038 8.25 % 1,333 1,238 Subsidiaries Senior: Fixed-rate notes 2019 2.375 % - 850 Fixed-rate notes 2019 2.30 % - 750 Fixed-rate notes 2019 1.625 % - 743 Floating-rate notes (c) 2019 3.412 % - 250 Fixed-rate notes 2020 2.20 % 752 742 Floating-rate notes (b) 2020 2.186 % 300 300 Fixed-rate notes 2021 2.25 % 1,249 1,248 Fixed-rate notes 2021 2.875 % 848 847 Fixed-rate notes 2021 3.35 % 508 502 Floating-rate notes (b) 2021 2.376 % 299 299 Floating-rate notes (b) 2022 2.549 % 299 - Fixed-rate notes 2025 3.95 % 797 764 Subordinated: (a) Fixed-rate bank notes 2026 3.85 % 748 747 Fixed-rate bank notes 2027 4.00 % 171 - Junior subordinated: Floating-rate debentures (b) 2035 3.31 % - 53 52 FHLB advances 2020 - 0.05 % - 91 22 Notes associated with consolidated VIEs: Automobile loan securitizations: Fixed-rate notes 2022 - 1.80 % - 1,147 568 Floating-rate notes (b) 2022 1.91 % 42 11 Other 2020 - 2040 Varies 153 56 Total $ 14,970 14,426 (a) In aggregate, $2.7 billion December 31, 2019 (b) These rates reflect the floating rates as of December 31, 2019. (c) These rates reflect the floating rates as of December 31, 2018. |
Schedule Of Long Term Debt Maturities | The Bancorp pays down long-term debt in accordance with contractual terms over maturity periods summarized in the above table. The aggregate annual maturities of long-term debt obligations (based on final maturity dates) as of December 31, 2019 are presented in the following table: ($ in millions) Parent Subsidiaries Total 2020 $ 1,099 1,073 2,172 2021 250 2,923 3,173 2022 1,198 900 2,098 2023 - 514 514 2024 2,241 98 2,339 Thereafter 2,725 1,949 4,674 Total $ 7,513 7,457 14,970 |
Commitments, Contingent Liabi_2
Commitments, Contingent Liabilities and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments, Contingent Liabilities and Guarantees | |
Summary of Significant Commitments | The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of December 31: ($ in millions) 2019 2018 Commitments to extend credit $ 75,696 70,415 Letters of credit 2,137 2,041 Forward contracts related to residential mortgage loans held for sale 2,901 926 Purchase obligations 113 126 Capital commitments for private equity investments 75 32 Capital expenditures 84 45 |
Credit Risk Associated With Commitments | Risk ratings of outstanding commitments to extend credit under this risk rating system are summarized in the following table as of December 31: ($ in millions) 2019 2018 Pass $ 74,654 69,928 Special mention 633 271 Substandard 408 216 Doubtful 1 - Total commitments to extend credit $ 75,696 70,415 |
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 December 31, 2019: ($ in millions) Less than 1 year (a) $ 1,022 1 - 5 years (a) 1,110 Over 5 years 5 Total letters of credit $ 2,137 (a) Includes $2 and $2 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 - 5 years, respectively. |
Credit Risk associated with Letters of Credit | Risk ratings of letters of credit under this risk rating system are summarized in the following table as of December 31: ($ in millions) 2019 2018 Pass $ 2,005 1,905 Special mention 20 10 Substandard 111 126 Doubtful 1 - Total letters of credit $ 2,137 2,041 |
Activity in Reserve for Representation and Warranty Provisions | The following table summarizes activity in the reserve for representation and warranty provisions for the years ended December 31: ($ in millions) 2019 2018 Balance, beginning of period $ 6 9 Net reductions to the reserve - (3) Balance, end of period $ 6 6 |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The following tables provide a rollforward of unresolved claims by claimant type for the years ended December 31: GSE Private Label 2019 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 9 $ 1 1 $ - New demands 258 45 8 1 Loan paydowns/payoffs (3 ) - - - Resolved demands (237 ) (40) (8 ) (1) Balance, end of period 27 $ 6 1 $ - GSE Private Label 2018 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 6 $ 1 1 $ - New demands 121 19 - - Resolved demands (118 ) (19) - - Balance, end of period 9 $ 1 1 $ - |
Visa Funding and Bancorp Cash Payments | After the Bancorp’s sale of the Class B Shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further dilutive adjustments to the conversion of Class B Shares into Class A Shares, and along with other terms of the total return swap, required the Bancorp to make cash payments in varying amounts to the swap counterparty as follows: Period ($ in millions) Visa Bancorp Cash Q2 2010 $ 500 20 Q4 2010 800 35 Q2 2011 400 19 Q1 2012 1,565 75 Q3 2012 150 6 Q3 2014 450 18 Q2 2018 600 26 Q3 2019 300 12 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions | |
Summary of the Bancorp's Activities with its Principal Shareholders, Directors and Executives | The following table summarizes the Bancorp’s lending activities with its principal shareholders, directors, executives and their related interests at December 31: ($ in millions) 2019 2018 Commitments to lend, net of participations: Directors and their affiliated companies $ 736 700 Executive officers 5 6 Total $ 741 706 Outstanding balance on loans, net of participations and undrawn commitments $ 49 10 |
Summary of Related Party Sales Transactions | The following table provides a summary of the transactions that impacted the Bancorp’s ownership interest in Worldpay Holding, LLC after the initial IPO: ($ in millions) Gain on Transactions Remaining Ownership Percentage Q4 2012 $ 157 33.1 % Q2 2013 242 27.7 Q3 2013 85 25.1 Q2 2014 125 22.8 Q4 2015 331 18.3 Q3 2017 1,037 8.6 Q1 2018 414 4.9 Q2 2018 205 3.3 Q1 2019 562 - |
Summary of Estimated Cash Flows to be Received from the TRA | The following table provides the estimated cash flows expected to be received subsequent to December 31, 2019 associated with the TRA for the years ending December 31, 2020 and thereafter: ($ in millions) Cash Flows to be Received from Put/Call Options Exercised in the First Quarter of 2020 Cash Flows to be Received from Put/Call Options Expected to be Exercised Estimated Cash Flows to be Received not Subject to Put/Call Option (a) 2020 $ 31 1 2021 11 73 2022 139 44 2023 150 45 2024 35 22 2025 11 Total $ 42 324 196 (a) The 2020 cash flow of $1 million was agreed upon with Worldpay, Inc. and recognized as a gain in other noninterest income during the fourth quarter of 2019 with payment received by the Bancorp in January 2020. The remaining estimated cash flows in this column will be recognized in future periods when the related uncertainties are resolved. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Applicable Income Taxes Included in the Consolidated Statements Of Income | The Bancorp and its subsidiaries file a consolidated federal income tax return. The following is a summary of applicable income taxes included in the Consolidated Statements of Income for the years ended December 31: ($ in millions) 2019 2018 2017 Current income tax expense (benefit): U.S. Federal income taxes $ 788 463 986 State and local income taxes 148 71 68 Foreign income taxes - 8 (3) Total current income tax expense 936 542 1,051 Deferred income tax (benefit) expense: U.S. Federal income taxes (212) 24 (254) State and local income taxes (35) 4 2 Foreign income taxes 1 2 - Total deferred income tax (benefit) expense (246) 30 (252) Applicable income tax expense $ 690 572 799 |
Reconciliation Between the Statutory U.S. Income Tax Rate and the Bancorp's Effective Tax Rate | The following is a reconciliation between the federal statutory corporate tax rate and the Bancorp’s effective tax rate for the years ended December 31: 2019 2018 2017 Statutory tax rate 21.0 % 21.0 35.0 Increase (decrease) resulting from: State taxes, net of federal benefit 2.8 2.1 1.5 Tax-exempt (1.2 ) (0.8 ) (1.1 ) LIHTC investment and other tax benefits (5.0 ) (6.8 ) (6.9 ) LIHTC investment proportional amortization 4.4 5.6 7.4 Other tax credits (0.2 ) (0.1 ) (0.4 ) U.S. tax legislation impact on deferred taxes - - (8.5 ) Other, net (0.2 ) (0.3 ) (0.2 ) Effective tax rate 21.6 % 20.7 26.8 |
Reconciliation of the Beginning and Ending Amounts of the Bancorp's Unrecognized Tax Benefits | The following table provides a reconciliation of the beginning and ending amounts of the Bancorp’s unrecognized tax benefits: ($ in millions) 2019 2018 2017 Unrecognized tax benefits at January 1 $ 55 34 24 Gross increases for tax positions taken during prior period 25 20 17 Gross decreases for tax positions taken during prior period (3) (1) (1) Gross increases for tax positions taken during current period 6 8 3 Settlements with taxing authorities (9) (5) (7) Lapse of applicable statute of limitations (9) (1) (2) Unrecognized tax benefits at December 31 (a) $ 65 55 34 (a) With the exception of $6 2019 |
Deferred Income Taxes Included in Other Assets in the Consolidated Balance Sheets | Deferred income taxes are comprised of the following items at December 31: ($ in millions) 2019 2018 Deferred tax assets: Allowance for loan and lease losses $ 252 232 Deferred compensation 103 79 Other comprehensive income - 42 Reserve for unfunded commitments 30 28 Reserves 32 28 State net operating loss carryforwards 9 7 Other 154 112 Total deferred tax assets $ 580 528 Deferred tax liabilities: Lease financing $ 650 599 Investments in joint ventures and partnership interests 25 131 MSRs and related economic hedges 144 107 State deferred taxes 47 73 Bank premises and equipment 73 60 Other comprehensive income 352 - Other 127 102 Total deferred tax liabilities $ 1,418 1,072 Total net deferred tax liability $ (838) (544) |
Retirement and Benefit Plans (T
Retirement and Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement and Benefit Plans | |
Schedule of Overfunded and Underfunded Amounts on Balance Sheet | The overfunded and underfunded amounts recognized in other assets and accrued taxes, interest and expense, respectively, on the Consolidated Balance Sheets were as follows as of December 31: ($ in millions) 2019 2018 Prepaid benefit cost $ - 1 Accrued benefit liability (19 ) (18 ) Net underfunded status $ (19 ) (17 ) |
Defined Benefit Retirement Plans with an Overfunded Status | The following tables summarize the defined benefit retirement plans as of and for the years ended December 31: Plans with an overfunded status (a) ($ in millions) 2019 2018 Fair value of plan assets at January 1 $ - 185 Actual return on assets - (6 ) Settlement - (9 ) Benefits paid - (6 ) Fair value of plan assets at December 31 $ - 164 Projected benefit obligation at January 1 $ - 188 Interest cost - 6 Settlement - (9 ) Actuarial gain - (16 ) Benefits paid - (6 ) Projected benefit obligation at December 31 $ - 163 Overfunded projected benefit obligation at December 31 $ - 1 Accumulated benefit obligation at December 31 (b) $ - 163 (a) The Bancorp’s qualified defined benefit plan had an underfunded status at December 31, 2019 (b) Since the Plan’s benefits are frozen, the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at December 31, 2018. |
Defined Benefit Retirement Plans with an Underfunded Status | Plans with an underfunded status ($ in millions) 2019 2018 Fair value of plan assets at January 1 $ 164 - Actual return on assets 26 - Contributions 2 3 Settlement (9 ) - Benefits paid (8 ) (3 ) Fair value of plan assets at December 31 $ 175 - Projected benefit obligation at January 1 $ 181 21 Interest cost 7 1 Settlement (9 ) - Actuarial loss (gain) 23 (1 ) Benefits paid (8 ) (3 ) Projected benefit obligation at December 31 $ 194 18 Underfunded projected benefit obligation at December 31 $ (19 ) (18 ) Accumulated benefit obligation at December 31 (a) $ 194 18 (a) Since the Plan’s benefits are frozen, the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at both December 31, 2019 |
Net Periodic Benefit Cost and Other Changes In Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | The following table summarizes net periodic benefit cost and other changes in the Plan’s assets and benefit obligations recognized in OCI for the years ended December 31: ($ in millions) 2019 2018 2017 Components of net periodic benefit cost: Interest cost $ 7 7 8 Expected return on assets (8 ) (11 ) (10 ) Amortization of net actuarial loss 6 6 7 Settlement 3 3 4 Net periodic benefit cost $ 8 5 9 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial loss (gain) $ 5 (1 ) (1 ) Amortization of net actuarial loss (6 ) (6 ) (7 ) Settlement (3 ) (3 ) (4 ) Total recognized in other comprehensive income (4 ) (10 ) (12 ) Total recognized in net periodic benefit cost and other comprehensive income $ 4 (5 ) (3 ) |
Plan Assets Measured at Fair Value on a Recurring Basis | The following tables summarize Plan assets measured at fair value on a recurring basis as of December 31: Fair Value Measurements Using (a) 2019 ($ in millions) Level 1 (c) Level 2 (c) Level 3 Total Fair Value Cash equivalents $ 14 - - 14 Mutual and exchange-traded funds 76 - - 76 Debt securities: U.S. Treasury and federal agencies securities 57 6 - 63 Mortgage-backed securities: Non-agency - 1 - 1 Asset-backed securities and other debt securities (b) - 21 - 21 Total debt securities $ 57 28 - 85 Total Plan assets $ 147 28 - 175 (a) For further information on fair value hierarchy levels, refer to Note 1. (b) Includes corporate bonds. (c) During the year ended December 31, 2019, no assets or liabilities were transferred between Level 1 and Level 2. Fair Value Measurements Using (a) 2018 ($ in millions) Level 1 (d) Level 2 (d) Level 3 Total Fair Value Cash equivalents $ 25 - - 25 Mutual and exchange-traded funds 46 - - 46 Debt securities: U.S. Treasury and federal agencies securities 43 3 - 46 Mortgage-backed securities: Non-agency - 1 - 1 Asset-backed securities and other debt securities (b) - 18 - 18 Total debt securities $ 43 22 - 65 Total Plan assets, excluding collective funds $ 114 22 - 136 Collective funds (NAV) (c) 28 Total Plan assets $ 164 (a) For further information on fair value hierarchy levels, refer to Note 1. (b) Includes corporate bonds. (c) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the fair value of Plan assets presented elsewhere within this footnote. (d) During the year ended December 31, 2018, no assets or liabilities were transferred between Level 1 and Level 2. |
Plan Assumptions | The following table summarizes the weighted-average plan assumptions for the years ended December 31: 2019 2018 2017 For measuring benefit obligations at year end: (a) Discount rate 3.05 % 4.10 3.47 For measuring net periodic benefit cost: (a) Discount rate 4.10 3.47 3.97 Expected return on plan assets 5.50 6.00 6.00 (a) Since the Plan’s benefits were frozen, except for grandfathered employees, the rate of compensation increase is no longer applicable beginning in 2014 since minimal grandfathered employees are still accruing benefits. |
Weighted Average Allocation of Plan Assets | The following table provides the Bancorp’s targeted and actual weighted-average asset allocations by asset category for the years ended December 31: Targeted Range (b) 2019 2018 Equity securities (a) 0-55 19 67 Fixed-income securities 50-100 59 23 Alternative strategies 0-5 - 3 Cash or cash equivalents 0-100 22 7 Total 100 % 100 (a) Includes mutual and exchange-traded funds. (b) These reflect the targeted ranges for the year ended December 31, 2019. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 years ended December 31: Total OCI Total AOCI 2019 ($ in millions) Pre-tax Tax Net Beginning Net Ending Unrealized holding gains on available-for-sale $ 1,369 (323 ) 1,046 Reclassification adjustment for net gains on available-for-sale (9 ) 2 (7 ) Net unrealized gains on available-for-sale 1,360 (321 ) 1,039 (227 ) 1,039 812 Unrealized holding gains on cash flow hedge derivatives arising during the year 348 (73 ) 275 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (16 ) 3 (13 ) Net unrealized gains on cash flow hedge derivatives 332 (70 ) 262 160 262 422 Net actuarial loss arising during the year (5 ) - (5 ) Reclassification of amounts to net periodic benefit costs 9 (1 ) 8 Defined benefit pension plans, net 4 (1 ) 3 (45 ) 3 (42 ) Total $ 1,696 (392 ) 1,304 (112 ) 1,304 1,192 Total OCI Total AOCI 2018 ($ in millions) Pre-tax Tax Net Beginning Net Ending Unrealized holding losses on available-for-sale $ (483 ) 112 (371 ) Reclassification adjustment for net losses on available-for-sale 11 (2 ) 9 Net unrealized losses on available-for-sale (472 ) 110 (362 ) 135 (362 ) (227 ) Unrealized holding gains on cash flow hedge derivatives arising during the year 214 (45 ) 169 Reclassification adjustment for net losses on cash flow hedge derivatives included in net income 2 - 2 Net unrealized gains on cash flow hedge derivatives 216 (45 ) 171 (11 ) 171 160 Net actuarial gain arising during the year 1 - 1 Reclassification of amounts to net periodic benefit costs 9 (2 ) 7 Defined benefit pension plans, net 10 (2 ) 8 (53 ) 8 (45 ) Total $ (246 ) 63 (183 ) 71 (183 ) (112 ) Total OCI Total AOCI 2017 ($ in millions) Pre-tax Tax Net Beginning Net Ending Unrealized holding gains on available-for-sale $ 14 7 21 Reclassification adjustment for net losses on available-for-sale 3 1 4 Net unrealized gains on available-for-sale 17 8 25 101 25 126 Unrealized holding losses on cash flow hedge derivatives arising during the year (11 ) 4 (7 ) Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (19 ) 7 (12 ) Net unrealized losses on cash flow hedge derivatives (30 ) 11 (19 ) 10 (19 ) (9 ) Net actuarial gain arising during the year 1 - 1 Reclassification of amounts to net periodic benefit costs 11 (4 ) 7 Defined benefit pension plans, net 12 (4 ) 8 (52 ) 8 (44 ) Total $ (1 ) 15 14 59 14 73 |
Reclassification Out of Accumulated Other Comprehensive Income to Net Income | The table below presents reclassifications out of AOCI for the years ended December 31: Components of AOCI: ($ in millions) Consolidated Statements of Income Caption 2019 2018 2017 Net unrealized gains (losses) on available-for-sale (b) Net gains (losses) included in net income Securities gains (losses), net $ 9 (11 ) (3) Income before income taxes 9 (11 ) (3) Applicable income tax expense (2 ) 2 (1) Net income 7 (9 ) (4) Net unrealized gains (losses) on cash flow hedge derivatives: (b) Interest rate contracts related to C&I loans Interest and fees on loans and leases 16 (2 ) 19 Income before income taxes 16 (2 ) 19 Applicable income tax expense (3 ) - (7) Net income 13 (2 ) 12 Net periodic benefit costs: (b) Amortization of net actuarial loss Employee benefits expense (a) (6 ) (6 ) (7) Settlements Employee benefits expense (a) (3 ) (3 ) (4) Income before income taxes (9 ) (9 ) (11) Applicable income tax expense 1 2 4 Net income (8 ) (7 ) (7) Total reclassifications for the period Net income $ 12 (18 ) 1 (a) This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 23 for information on the computation of net periodic benefit cost. (b) Amounts in parentheses indicate reductions to net income. |
Common, Preferred and Treasur_2
Common, Preferred and Treasury Stock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Share Activity Within Common, Preferred and Treasury Stock | The table presents a summary of the share activity within common, preferred and treasury stock for the years ended: Common Stock Preferred Stock Treasury Stock ($ in millions, except share data) Value Shares Value Shares Value Shares December 31, 2016 $ 2,051 923,892,581 $ 1,331 54,000 $ (3,433) 173,413,282 Shares acquired for treasury - - - - (1,588) 58,493,506 Impact of stock transactions under stock compensation plans, net - - - - 16 (1,693,503) Other - - - - 3 (125,597) December 31, 2017 $ 2,051 923,892,581 $ 1,331 54,000 $ (5,002) 230,087,688 Shares acquired for treasury - - - - (1,494) 49,967,134 Impact of stock transactions under stock compensation plans, net - - - - 23 (2,698,451) Other - - - - 2 (94,647) December 31, 2018 $ 2,051 923,892,581 $ 1,331 54,000 $ (6,471) 277,261,724 Shares acquired for treasury - - - - (1,763) 64,601,891 Issuance of preferred shares, Series K - - 242 10,000 - - Conversion of outstanding preferred stock issued by a Bancorp subsidiary - - 197 200,000 - - Impact of MB Financial, Inc. acquisition - - - - 2,447 (122,848,442) Impact of stock transactions under stock compensation plans, net - - - - 56 (4,258,132) Other - - - - 7 219,911 December 31, 2019 $ 2,051 923,892,581 $ 1,770 264,000 $ (5,724) 214,976,952 |
Summary of the Bancorp's Accelerated Share Repurchase Transactions | The following table presents a summary of the Bancorp’s accelerated share repurchase transactions that were entered into or settled during the years ended December 31, 2019 and 2018: Shares Repurchased on Shares Received from Total Shares Repurchase Date Amount ($ in millions) Repurchase Date Forward Contract Repurchased Settlement Date December 19, 2017 273 7,727,273 824,367 8,551,640 March 19, 2018 February 12, 2018 318 8,691,318 1,015,731 9,707,049 March 26, 2018 May 25, 2018 235 6,402,244 1,172,122 7,574,366 June 15, 2018 March 27, 2019 (a) 913 31,779,280 2,026,584 33,805,864 June 28, 2019 April 29, 2019 (b) 200 6,015,570 1,217,805 7,233,375 May 23, 2019 - May 24, 2019 August 7, 2019 100 3,150,482 694,238 3,844,720 August 16, 2019 August 9, 2019 (b) 200 6,405,426 1,475,487 7,880,913 August 28, 2019 October 25, 2019 300 9,020,163 1,149,121 10,169,284 December 17, 2019 (a) This accelerated share repurchase transaction consisted of two supplemental confirmations each with a notional amount of $456.5 million. (b) This accelerated share repurchase transaction consisted of two supplemental confirmations each with a notional amount of $100 million. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation | |
Schedule of Share-based Payment Award, Stock Appreciation Rights, Valuation Assumptions | The weighted-average assumptions were as follows for the years ended December 31: 2019 2018 2017 Expected life (in years) 7 7 6 Expected volatility 32 % 35 37 Expected dividend yield 3.3 1.9 2.1 Risk-free interest rate 2.6 2.6 2.1 |
Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity | 2019 2018 2017 SARs (in thousands, except per share data) Number of Weighted- Number of Weighted- Number of Weighted- Outstanding at January 1 26,196 $ 17.30 31,929 $ 17.22 40,041 $ 18.30 Granted 399 26.72 272 33.15 3,672 26.52 Exercised (4,829) 13.34 (5,058) 16.96 (6,953) 16.00 Forfeited or expired (317) 23.47 (947) 20.93 (4,831) 35.08 Outstanding at December 31 21,449 $ 18.38 26,196 $ 17.30 31,929 $ 17.22 Exercisable at December 31 18,249 $ 17.50 20,132 $ 15.90 21,403 $ 15.30 |
Outstanding and Exercisable SARs by Grant Price | The following table summarizes outstanding and exercisable SARs by grant price per share at December 31, 2019: Outstanding SARs Exercisable SARs SARs (in thousands, except per share data) Number of Weighted- Weighted- Number of Weighted- Weighted- $10.01-$20.00 15,944 $ 16.12 3.7 14,694 $ 16.00 3.5 $20.01-$30.00 5,236 24.50 6.1 3,464 23.44 5.3 $30.01-$40.00 269 33.15 8.0 91 33.15 7.9 All SARs 21,449 $ 18.38 4.4 18,249 $ 17.50 3.9 |
Schedule of Share-Based Compensation, RSAs | 2019 2018 2017 RSAs (in thousands, except per share data) Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Outstanding at January 1 868 $ 19.18 2,321 $ 19.72 4,638 $ 19.44 Granted - - - - 7 21.14 Assumed 11 25.48 - - - - Released (867 ) 18.91 (1,347 ) 20.09 (2,063 ) 19.10 Forfeited (12 ) 19.01 (106 ) 19.40 (261 ) 19.75 Outstanding at December 31 - $ 25.48 868 $ 19.18 2,321 $ 19.72 |
Schedule of Share-Based Compensation, RSUs | 2019 2018 2017 RSUs (in thousands, except per unit data) Units Weighted-Average Units Weighted-Average Units Weighted-Average Outstanding at January 1 8,020 $ 27.04 6,986 $ 22.25 5,086 $ 17.84 Granted 4,375 26.68 3,674 32.84 3,652 26.71 Assumed 1,476 25.48 - - - - Released (2,951 ) 24.76 (1,977 ) 21.15 (1,194 ) 17.64 Forfeited (914 ) 27.41 (663 ) 26.45 (558 ) 21.02 Outstanding at December 31 10,006 $ 27.30 8,020 $ 27.04 6,986 $ 22.25 |
Unvested RSUs by Grant-Date Fair Value | The following table summarizes outstanding RSUs by grant-date fair value per unit at December 31, 2019: Outstanding RSUs RSUs (in thousands) Units Weighted-Average $15.01-$20.00 870 0.7 $20.01-$25.00 243 0.5 $25.01-$30.00 6,477 1.2 $30.01-$35.00 2,416 1.6 All RSUs 10,006 1.2 |
Schedule of Share-based Compensation, Stock Options, Activity | 2019 2018 2017 Stock Options (in thousands, except per share data) Number of Weighted-Average Number of Weighted-Average Number of Weighted-Average Outstanding at January 1 - $ - 2 $ 16.50 25 $ 19.17 Assumed 2,120 19.34 - - - - Exercised (660) 17.36 (1) 8.59 (18) 14.05 Forfeited or expired (79) 22.18 (1) 24.41 (5) 40.98 Outstanding at December 31 1,381 $ 20.15 - $ - 2 $ 16.50 Exercisable at December 31 1,162 $ 19.17 - $ - 2 $ 16.50 |
Schedule of Outstanding And Exercisable Stock Options Exercise Price | The following table summarizes outstanding and exercisable stock options by exercise price per share at December 31, 2019: Outstanding Stock Options Exercisable Stock Options Stock Options (in thousands, except per share data) Number of Weighted- Weighted- Number of Weighted- Weighted- Under $10.00 9 $ 8.62 6.7 7 $ 8.52 6.7 $10.01-$20.00 884 17.04 3.5 811 16.91 3.3 $20.01-$30.00 488 25.98 4.4 344 26.14 2.7 All stock options 1,381 $ 20.15 3.8 1,162 $ 19.17 3.2 |
Other Noninterest Income and _2
Other Noninterest Income and Other Noninterest Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noninterest Income [Abstract] | |
Other Noninterest Income and Other Noninterest Expense | The following table presents the major components of other noninterest income and other noninterest expense for the years ended December 31: ($ in millions) 2019 2018 2017 Other noninterest income: Gain on sale of Worldpay, Inc. shares $ 562 205 1,037 Income from the TRA associated with Worldpay, Inc. 346 20 44 Operating lease income 151 84 96 Private equity investment income 65 63 36 BOLI income 60 56 52 Cardholder fees 58 56 54 Consumer loan and lease fees 23 23 23 Banking center income 22 21 20 Insurance income 19 20 8 Net gains (losses) on loan sales 3 2 (2) Equity method income from interest in Worldpay Holding, LLC 2 1 47 Loss on swap associated with the sale of Visa, Inc. Class B Shares (107) (59) (80) Net losses on disposition and impairment of bank premises and equipment (23) (43) - Loss on sale of business (4) - - Gain related to Vantiv, Inc.’s acquisition of Worldpay Group plc. - 414 - Other, net 47 24 22 Total other noninterest income $ 1,224 887 1,357 Other noninterest expense: Marketing $ 162 147 114 Loan and lease 142 112 102 Operating lease 124 76 87 Losses and adjustments 102 61 59 FDIC insurance and other taxes 81 119 127 Professional service fees 70 67 83 Data processing 70 57 58 Travel 68 52 46 Intangible amortization 45 5 2 Postal and courier 38 35 42 Donations 30 21 28 Recruitment and education 28 32 35 Supplies 14 13 14 Insurance 14 13 12 Loss (gain) on partnership investments 2 (4) 14 Other, net 239 214 184 Total other noninterest expense $ 1,229 1,020 1,007 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share | |
Schedule Of Earnings Per Share Basic And Diluted | The following table provides the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share for the years ended December 31: 2019 2018 2017 ($ in millions, except per share data) Income Average Per Share Income Average Per Share Income Average Per Share Earnings Per Share: Net income available to common shareholders $ 2,419 2,118 2,105 Less: Income allocated to participating securities 21 23 23 Net income allocated to common shareholders $ 2,398 710 3.38 2,095 673 3.11 2,082 728 2.86 Earnings Per Diluted Share: Net income available to common shareholders $ 2,419 2,118 2,105 Effect of dilutive securities: Stock-based awards - 10 - 12 - 13 Net income available to common shareholders 2,419 2,118 2,105 Less: Income allocated to participating securities 21 23 23 Net income allocated to common shareholders plus assumed conversions $ 2,398 720 3.33 2,095 685 3.06 2,082 741 2.81 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 as of: Fair Value Measurements Using December 31, 2019 ($ in millions) Level 1 (c) Level 2 (c) Level 3 Total Fair Value Assets: Available-for-sale U.S. Treasury and federal agency securities $ 75 - - 75 Obligations of states and political subdivisions securities - 18 - 18 Mortgage-backed securities: Agency residential mortgage-backed securities - 14,115 - 14,115 Agency commercial mortgage-backed securities - 15,693 - 15,693 Non-agency - 3,365 - 3,365 Asset-backed securities and other debt securities - 2,206 - 2,206 Available-for-sale (a) 75 35,397 - 35,472 Trading debt securities: U.S. Treasury and federal agency securities 2 - - 2 Obligations of states and political subdivisions securities - 9 - 9 Agency residential mortgage-backed securities - 55 - 55 Asset-backed securities and other debt securities - 231 - 231 Trading debt securities 2 295 - 297 Equity securities 554 10 - 564 Residential mortgage loans held for sale - 1,264 - 1,264 Residential mortgage loans (b) - - 183 183 Servicing rights - - 993 993 Derivative assets: Interest rate contracts 1 1,218 18 1,237 Foreign exchange contracts - 165 - 165 Commodity contracts 37 234 - 271 Derivative assets (d) 38 1,617 18 1,673 Total assets $ 669 38,583 1,194 40,446 Liabilities: Derivative liabilities: Interest rate contracts $ 5 144 8 157 Foreign exchange contracts - 151 - 151 Equity contracts - - 163 163 Commodity contracts 17 253 - 270 Derivative liabilities (e) 22 548 171 741 Short positions (e) 49 100 - 149 Total liabilities $ 71 648 171 890 (a) Excludes FHLB, FRB and DTCC restricted stock holdings totaling $76 $478 $2 December 31, 2019 (b) Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. (c) During the year ended December 31, 2019 (d) Included in other assets in the Consolidated Balance Sheets. (e) Included in other liabilities in the Consolidated Balance Sheets. Fair Value Measurements Using December 31, 2018 ($ in millions) Level 1 (c) Level 2 (c) Level 3 Total Fair Value Assets: Available-for-sale U.S. Treasury and federal agency securities $ 97 - - 97 Obligations of states and political subdivisions securities - 2 - 2 Mortgage-backed securities: Agency residential mortgage-backed securities - 16,247 - 16,247 Agency commercial mortgage-backed securities - 10,650 - 10,650 Non-agency - 3,267 - 3,267 Asset-backed securities and other debt securities - 2,015 - 2,015 Available-for-sale (a) 97 32,181 - 32,278 Trading debt securities: U.S. Treasury and federal agency securities - 16 - 16 Obligations of states and political subdivisions securities - 35 - 35 Agency residential mortgage-backed securities - 68 - 68 Asset-backed securities and other debt securities - 168 - 168 Trading debt securities - 287 - 287 Equity securities 452 - - 452 Residential mortgage loans held for sale - 537 - 537 Residential mortgage loans (b) - - 179 179 Commercial loans held for sale - 7 - 7 Servicing rights - - 938 938 Derivative assets: Interest rate contracts - 648 7 655 Foreign exchange contracts - 152 - 152 Commodity contracts 93 214 - 307 Derivative assets (d) 93 1,014 7 1,114 Total assets $ 642 34,026 1,124 35,792 Liabilities: Derivative liabilities: Interest rate contracts $ 8 313 8 329 Foreign exchange contracts - 142 - 142 Equity contracts - - 125 125 Commodity contracts 19 259 - 278 Derivative liabilities (e) 27 714 133 874 Short positions (e) 110 28 - 138 Total liabilities $ 137 742 133 1,012 (a) Excludes FHLB, FRB and DTCC restricted stock holdings totaling $184, $366 and $2, respectively, at December 31, 2018. (b) Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. (c) During the year ended December 31, 2018, no assets or liabilities were transferred between Level 1 and Level 2. (d) Included in other assets in the Consolidated Balance Sheets. (e) Included in other liabilities in the Consolidated Balance Sheets. |
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Mortgage Servicing Derivatives, Equity Total For the year ended December 31, 2019 ($ in millions) Loans Rights Net (a) Derivatives Fair Value Balance, beginning of period $ 179 938 (1) (125) 991 Total (losses) gains (realized/unrealized): Included in earnings (1) (376) 145 (107) (339) Purchases/originations - 431 (3) - 428 Settlements (31) - (131) 69 (93) Transfers into Level 3 (b) 36 - - - 36 Balance, end of period $ 183 993 10 (163) 1,023 The amount of total (losses) gains for the period (c) $ (1) (250) 20 (107) (338) (a) Net interest rate derivatives include derivative assets and liabilities of $18 $8 December 31, 2019 (b) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. (c) Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Mortgage Servicing Derivatives, Equity Total For the year ended December 31, 2018 ($ in millions) Loans Rights Net (a) Derivatives Fair Value Balance, beginning of period $ 137 858 3 (137) 861 Total (losses) gains (realized/unrealized): Included in earnings (3) (83) 72 (59) (73) Purchases/originations - 163 (5) - 158 Settlements (19) - (71) 71 (19) Transfers into Level 3 (b) 64 - - - 64 Balance, end of period $ 179 938 (1) (125) 991 The amount of total (losses) gains for the period (c) $ (3) (4) 9 (59) (57) (a) Net interest rate derivatives include derivative assets and liabilities of $7 and $8, respectively, as of December 31, 2018. (b) Includes certain residential mortgage loans held for sale that were transferred to held for investment. (c) Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Mortgage Servicing Derivatives, Derivatives, Total For the year ended December 31, 2017 ($ in millions) Loans Rights Net (a) Net Fair Value Balance, beginning of period $ 143 744 8 (91) 804 Total (losses) gains (realized/unrealized): Included in earnings 1 (122) 94 (80) (107) Purchases/originations - 236 (2) - 234 Settlements (23) - (97) 34 (86) Transfers into Level 3 (b) 16 - - - 16 Balance, end of period $ 137 858 3 (137) 861 The amount of total (losses) gains for the period (c) $ 1 (122) 10 (80) (191) (a) Net interest rate derivatives include derivative assets and liabilities of $8 and $5, respectively, as of December 31, 2017. (b) Includes certain residential mortgage loans held for sale that were transferred to held for investment. (c) Includes interest income and expense. |
Total Gains and Losses Included in Earnings for Assets and Liabilites Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The total gains and losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Consolidated Statements of Income for the years ended December 31, 2019, 2018 and 2017 as follows: ($ in millions) 2019 2018 2017 Mortgage banking net revenue $ (235 ) (16 ) (29) Corporate banking revenue 3 2 2 Other noninterest income (107 ) (59 ) (80) Total losses $ (339 ) (73 ) (107) The total gains and losses included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at December 31, 2019, 2018 and 2017 were recorded in the Consolidated Statements of Income as follows: ($ in millions) 2019 2018 2017 Mortgage banking net revenue $ (233 ) - (113) Corporate banking revenue 2 2 2 Other noninterest income (107 ) (59 ) (80) Total losses $ (338 ) (57 ) (191) |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of December 31, 2019 and 2018 and for which a nonrecurring fair value adjustment was recorded during the years ended December 31, 2019 and 2018, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period. Fair Value Measurements Using Total (Losses) Gains As of December 31, 2019 ($ in Level 1 Level 2 Level 3 Total For the year ended December 31, 2019 Commercial and industrial loans $ - - 169 169 (96) Commercial mortgage loans - - 12 12 - Commercial leases - - 20 20 (6) OREO - - 13 13 (6) Bank premises and equipment - - 27 27 (27) Operating lease equipment - - 6 6 (3) Private equity investments - 11 2 13 8 Total $ - 11 249 260 (130) Fair Value Measurements Using Total (Losses) Gains As of December 31, 2018 ($ in millions) Level 1 Level 2 Level 3 Total For the year ended December 31, 2018 Commercial loans held for sale $ - - 16 16 (3) Commercial and industrial loans - - 93 93 (41) Commercial mortgage loans - - 2 2 7 Commercial leases - - 14 14 (11) OREO - - 20 20 (7) Bank premises and equipment - - 32 32 (45) Operating lease equipment - - - - (2) Private equity investments - 67 3 70 43 Other assets - - 2 2 (8) Total $ - 67 182 249 (67) |
Quantitative Information About Significant Unobservable Level 3 Fair Value Measurement Inputs | The following tables present information as of December 31, 2019 and 2018 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 December 31, 2019 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted- Average Residential mortgage loans $ 183 Loss rate model Interest rate risk factor (9.2) - (0.2)% Credit risk factor 0 - 26.5% 0.5% Servicing rights 993 DCF Prepayment speed 0.5 - 97.0% (Fixed) 13.0% (Adjustable) 22.6% OAS (bps) 507 1,513 (Fixed) 602 921 IRLCs, net 18 DCF Loan closing rates 7.3 - 97.1% 81.7% Swap associated with the sale of Visa, Inc. Class B Shares (163) DCF Timing of the resolution Q1 2022 - Q4 2023 Q3 2022 As of December 31, 2018 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted- Average Residential mortgage loans $ 179 Loss rate model Interest rate risk factor (13.2) - 0.5% Credit risk factor 0 - 39.9% 0.7% Servicing rights 938 DCF Prepayment speed 0.5 - 100% (Fixed) 10.2% (Adjustable) 23.0% OAS (bps) 441 1,513 (Fixed) 534 (Adjustable) 863 IRLCs, net 7 DCF Loan closing rates 9.5 - 96.7% 86.0% Swap associated with the sale of Visa, Inc. Class B Shares (125) DCF Timing of the resolution Q1 2021 Q4 2023 Q4 2021 The following tables present information as of December 31, 2019 and 2018 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 December 31, 2019 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Weighted-Average Commercial and industrial loans $ 169 Appraised value Collateral value NM NM Commercial mortgage loans 12 Appraised value Collateral value NM NM Commercial leases 20 Appraised value Collateral value NM NM OREO 13 Appraised value Appraised value NM NM Bank premises and equipment 27 Appraised value Appraised value NM NM Operating lease equipment 6 Appraised value Appraised value NM NM Private equity investments 2 Comparable company analysis Market comparable transactions NM NM As of December 31, 2018 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Weighted-Average Commercial loans held for sale $ 16 Appraised value Appraised value Costs to sell NM NM NM 10.0 % Commercial and industrial loans 93 Appraised value Collateral value NM NM Commercial mortgage loans 2 Appraised value Collateral value NM NM Commercial leases 14 Appraised value Collateral value NM NM OREO 20 Appraised value Appraised value NM NM Bank premises and equipment 32 Appraised value Appraised value NM NM Operating lease equipment - Appraised value Appraised value NM NM Private equity investments - Liquidity discount applied to fund’s NAV Liquidity discount 0 - 12.9 % 3 Comparable company analysis Market comparable transactions NM NM Other assets 2 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 unpaid principal balance for residential mortgage loans and commercial loans measured at fair value as of: ($ in millions) Aggregate Aggregate Unpaid Difference December 31, 2019 Residential mortgage loans measured at fair value $ 1,447 1,410 37 Past due loans of 90 days or more 2 2 - Nonaccrual loans 1 1 - December 31, 2018 Residential mortgage loans measured at fair value $ 716 696 20 Past due loans of 90 days or more 2 2 - Nonaccrual loans 2 2 - Commercial loans measured at fair value 7 7 - |
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 December 31, 2019 ($ in millions) Amount Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and due from banks $ 3,278 3,278 - - 3,278 Other short-term investments 1,950 1,950 - - 1,950 Other securities 556 - 556 - 556 Held-to-maturity 17 - - 17 17 Loans and leases held for sale 136 - - 136 136 Portfolio loans and leases: Commercial and industrial loans 49,981 - - 51,128 51,128 Commercial mortgage loans 10,876 - - 10,823 10,823 Commercial construction loans 5,045 - - 5,249 5,249 Commercial leases 3,346 - - 3,133 3,133 Residential mortgage loans 16,468 - - 17,509 17,509 Home equity 6,046 - - 6,315 6,315 Indirect secured consumer loans 11,485 - - 11,331 11,331 Credit card 2,364 - - 2,774 2,774 Other consumer loans 2,683 - - 2,866 2,866 Unallocated ALLL (121 ) - - - - Total portfolio loans and leases, net $ 108,173 - - 111,128 111,128 Financial liabilities: Deposits $ 127,062 - 127,059 - 127,059 Federal funds purchased 260 260 - - 260 Other short-term borrowings 1,011 - 1,011 - 1,011 Long-term debt 14,970 15,244 700 - 15,944 Net Carrying Fair Value Measurements Using Total As of December 31, 2018 ($ in millions) Amount Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and due from banks $ 2,681 2,681 - - 2,681 Other short-term investments 1,825 1,825 - - 1,825 Other securities 552 - 552 - 552 Held-to-maturity 18 - - 18 18 Loans and leases held for sale 63 - - 63 63 Portfolio loans and leases: Commercial and industrial loans 43,825 - - 44,668 44,668 Commercial mortgage loans 6,894 - - 6,851 6,851 Commercial construction loans 4,625 - - 4,688 4,688 Commercial leases 3,582 - - 3,180 3,180 Residential mortgage loans 15,244 - - 15,688 15,688 Home equity 6,366 - - 6,719 6,719 Indirect secured consumer loans 8,934 - - 8,717 8,717 Credit card 2,314 - - 2,759 2,759 Other consumer loans 2,309 - - 2,428 2,428 Unallocated ALLL (110 ) - - - - Total portfolio loans and leases, net $ 93,983 - - 95,698 95,698 Financial liabilities: Deposits $ 108,835 - 108,782 - 108,782 Federal funds purchased 1,925 1,925 - - 1,925 Other short-term borrowings 573 - 573 - 573 Long-term debt 14,426 14,287 445 - 14,732 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements and Capital Ratios (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Capital Requirements and Capital Ratios | |
Capital and Risk-Based Capital and Leverage Ratios for the Bancorp and its Significant Subsidiary Banks | PRESCRIBED CAPITAL RATIOS Minimum Well-Capitalized CET1 capital: Fifth Third Bancorp 4.50 % N/A Fifth Third Bank, National Association 4.50 6.50 Tier I risk-based capital: Fifth Third Bancorp 6.00 6.00 Fifth Third Bank, National Association 6.00 8.00 Total risk-based capital: Fifth Third Bancorp 8.00 10.00 Fifth Third Bank, National Association 8.00 10.00 Tier I leverage: Fifth Third Bancorp 4.00 N/A Fifth Third Bank, National Association 4.00 5.00 The following table presents capital and risk-based capital and leverage ratios for the Bancorp and its banking subsidiary at December 31: 2019 2018 ($ in millions) Amount Ratio Amount Ratio CET1 capital: Fifth Third Bancorp $ 13,847 9.75 % $ 12,534 10.24 % Fifth Third Bank, National Association 16,704 11.86 14,435 11.93 Tier I risk-based capital: Fifth Third Bancorp 15,616 10.99 13,864 11.32 Fifth Third Bank, National Association 16,704 11.86 14,435 11.93 Total risk-based capital: Fifth Third Bancorp 19,661 13.84 17,723 14.48 Fifth Third Bank, National Association 18,968 13.46 16,427 13.57 Tier I leverage: (a) Fifth Third Bancorp 15,616 9.54 13,864 9.72 Fifth Third Bank, National Association 16,704 10.36 14,435 10.27 (a) Quarterly average assets are a component of the Tier I leverage ratio and for this purpose do not include goodwill and any other intangible assets and other investments that the Banking Agencies determines should be deducted from Tier I capital. |
Parent Company Financial Stat_2
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Parent Company Financial Statements | |
Condensed Statements of Income (Parent Company Only) | Condensed Statements of Income (Parent Company Only) For the years ended December 31 ($ in millions) 2019 2018 2017 Income Dividends from subsidiaries: Consolidated nonbank subsidiaries (a) $ 2,155 1,890 2,343 Securities gains, net 2 - - Interest on loans to subsidiaries 24 24 21 Total income 2,181 1,914 2,364 Expenses Interest 267 211 176 Other 65 34 42 Total expenses 332 245 218 Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries 1,849 1,669 2,146 Applicable income tax benefit (69 ) (50 ) (68) Income Before Change in Undistributed Earnings of Subsidiaries 1,918 1,719 2,214 Equity in undistributed earnings 594 474 (34) Net Income Attributable to Bancorp $ 2,512 2,193 2,180 Other Comprehensive Income - - - Comprehensive Income Attributable to Bancorp $ 2,512 2,193 2,180 a) The Bancorp’s indirect banking subsidiary paid dividends to the Bancorp’s direct nonbank subsidiary holding company of $2.0 billion December 31, 2019 $200 million December 31, 2019 |
Condensed Balance Sheets (Parent Company Only) | Condensed Balance Sheets (Parent Company Only) As of December 31 ($ in millions) 2019 2018 Assets Cash $ 118 120 Short-term investments 4,723 3,642 Equity securities 49 - Loans to subsidiaries: Nonbank subsidiaries 444 571 Total loans to subsidiaries 444 571 Investment in subsidiaries: Nonbank subsidiaries 23,779 17,921 Total investment in subsidiaries 23,779 17,921 Goodwill 80 80 Other assets 379 268 Total Assets $ 29,572 22,602 Liabilities Other short-term borrowings $ 359 253 Accrued expenses and other liabilities 497 424 Long-term debt (external) 7,513 5,675 Total Liabilities $ 8,369 6,352 Equity Common stock $ 2,051 2,051 Preferred stock 1,770 1,331 Capital surplus 3,599 2,873 Retained earnings 18,315 16,578 Accumulated other comprehensive income (loss) 1,192 (112) Treasury stock (5,724) (6,471) Noncontrolling interests - - Total Equity 21,203 16,250 Total Liabilities and Equity $ 29,572 22,602 |
Condensed Statements of Cash Flows (Parent Company Only) | Condensed Statements of Cash Flows (Parent Company Only) For the years ended December 31 ($ in millions) 2019 2018 2017 Operating Activities Net income $ 2,512 2,193 2,180 Adjustments to reconcile net income to net cash provided by operating activities: (Benefit from) provision for deferred income taxes (11) 3 2 Securities gains, net (2) - - Equity in undistributed earnings (594) (474) 34 Net change in: Equity securities (49) - - Other assets (80) 61 37 Accrued expenses and other liabilities 134 (116) (15) Net Cash Provided by Operating Activities 1,910 1,667 2,238 Investing Activities Net change in: Short-term investments (1,081) (149) (419) Loans to subsidiaries 127 272 126 Net cash paid on acquisition (469) - - Net Cash (Used in) Provided by Investing Activities (1,423) 123 (293) Financing Activities Net change in other short-term borrowings 106 (62) (29) Dividends paid on common stock (660) (467) (430) Dividends paid on preferred stock (93) (98) (75) Proceeds from issuance of long-term debt 2,235 895 697 Repayment of long-term debt (500) (500) (500) Issuance of preferred stock 242 - - Repurchase of treasury stock and related forward contract (1,763) (1,453) (1,605) Other, net (56) (65) (53) Net Cash Used in Financing Activities (489) (1,750) (1,995) (Decrease) Increase in Cash (2) 40 (50) Cash at Beginning of Period 120 80 130 Cash at End of Period $ 118 120 80 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Segments | |
Results of Operations and Assets by Segment | The following tables present the results of operations and assets by business segment for the years ended December 31: 2019 ($ in millions) Commercial Branch Consumer Wealth and Asset General Eliminations Total Net interest income $ 2,360 2,371 325 182 (441 ) - 4,797 Provision for credit losses 183 224 49 - 15 - 471 Net interest income after provision for credit losses 2,177 2,147 276 182 (456 ) - 4,326 Noninterest income: Corporate banking revenue 565 (c) 4 - 1 - - 570 Service charges on deposits 308 260 - 1 (4 ) - 565 Wealth and asset management revenue 3 158 - 469 - (143) (a) 487 Card and processing revenue 66 285 - 3 6 - 360 Mortgage banking net revenue - 6 279 2 - - 287 Other noninterest income (b) 245 89 14 13 863 - 1,224 Securities gains, net - - - - 40 - 40 Securities gains, net - non-qualifying - - 3 - - - 3 Total noninterest income 1,187 802 296 489 905 (143 ) 3,536 Noninterest expense: Salaries, wages and incentives 406 489 158 185 763 - 2,001 Employee benefits 60 112 38 32 175 - 417 Technology and communications 11 4 8 1 398 - 422 Net occupancy expense (e) 28 173 10 13 108 - 332 Card and processing expense 8 123 - 1 (2 ) - 130 Equipment expense 25 48 - 1 55 - 129 Other noninterest expense 1,083 911 241 296 (1,159 ) (143 ) 1,229 Total noninterest expense 1,621 1,860 455 529 338 (143 ) 4,660 Income before income taxes 1,743 1,089 117 142 111 - 3,202 Applicable income tax expense 319 229 25 30 87 - 690 Net income 1,424 860 92 112 24 - 2,512 Total goodwill $ 1,954 2,046 - 252 - - 4,252 Total assets $ 74,570 69,413 26,555 10,500 (11,669) (d) - 169,369 (a) Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Consolidated Statements of Income. (b) Includes impairment charges of $28 (c) Includes impairment charges of $3 (d) Includes bank premises and equipment of $27 (e) Includes impairment losses and termination charges of $ 15 2018 ($ in millions) Commercial Branch Consumer Wealth and Asset General Eliminations Total Net interest income $ 1,713 2,034 237 182 (26 ) - 4,140 Provision for (benefit from) credit losses (26 ) 171 42 12 8 - 207 Net interest income after provision for credit losses 1,739 1,863 195 170 (34 ) - 3,933 Noninterest income: Corporate banking revenue 432 (c) 5 - 2 (1 ) - 438 Service charges on deposits 273 275 - 1 - - 549 Wealth and asset management revenue 3 150 - 429 - (138) (a) 444 Card and processing revenue 58 266 - 5 - - 329 Mortgage banking net revenue - 5 206 1 - - 212 Other noninterest income (b) 151 53 14 18 651 - 887 Securities losses, net - - - - (54 ) - (54) Securities losses, net - non-qualifying - - (15 ) - - - (15) Total noninterest income 917 754 205 456 596 (138 ) 2,790 Noninterest expense: Salaries, wages and incentives 300 438 156 173 716 - 1,783 Employee benefits 44 98 36 29 125 - 332 Technology and communications 7 5 5 1 267 - 285 Net occupancy expense 26 175 10 12 69 - 292 Card and processing expense 4 121 - - (2 ) - 123 Equipment expense 23 50 - 1 49 - 123 Other noninterest expense 859 841 195 288 (1,025 ) (138 ) 1,020 Total noninterest expense 1,263 1,728 402 504 199 (138 ) 3,958 Income (loss) before income taxes 1,393 889 (2 ) 122 363 - 2,765 Applicable income tax expense (benefit) 254 187 (1 ) 25 107 - 572 Net income (loss) 1,139 702 (1 ) 97 256 - 2,193 Total goodwill $ 630 1,655 - 193 - - 2,478 Total assets $ 61,630 61,040 22,044 10,337 (8,982) (d) - 146,069 (a) Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Consolidated Statements of Income. (b) Includes impairment charges of $45 for branches and land. For more information, refer to Note 8 and Note 29. (c) Includes impairment charges of $4 for operating lease equipment. For more information, refer to Note 9 and Note 29. (d) Includes bank premises and equipment of $42 classified as held for sale. For more information, refer to Note 8. 2017 ($ in millions) Commercial Branch Consumer Wealth and Asset General Eliminations Total Net interest income $ 1,652 1,782 240 154 (30 ) - 3,798 Provision for credit losses 38 153 40 6 24 - 261 Net interest income after provision for credit losses 1,614 1,629 200 148 (54 ) - 3,537 Noninterest income: Corporate banking revenue 348 (c) 5 - 1 (1 ) - 353 Service charges on deposits 287 265 - 1 1 - 554 Wealth and asset management revenue 3 141 - 407 - (132) (a) 419 Card and processing revenue 57 251 - 5 - - 313 Mortgage banking net revenue - 6 217 1 - - 224 Other noninterest income (b) 143 88 18 4 1,104 - 1,357 Securities gains, net - - - - 2 - 2 Securities gains, net - non-qualifying - - 2 - - - 2 Total noninterest income 838 756 237 419 1,106 (132 ) 3,224 Noninterest expense: Salaries, wages and incentives 252 425 152 154 650 - 1,633 Employee benefits 42 101 37 27 149 - 356 Technology and communications 9 4 2 - 230 - 245 Net occupancy expense 26 176 10 11 72 - 295 Card and processing expense 3 127 - - (1 ) - 129 Equipment expense 18 52 - - 47 - 117 Other noninterest expense 884 796 210 276 (1,027 ) (132 ) 1,007 Total noninterest expense 1,234 1,681 411 468 120 (132 ) 3,782 Income before income taxes 1,218 704 26 99 932 - 2,979 Applicable income tax expense 391 249 9 34 116 - 799 Net income 827 455 17 65 816 - 2,180 Total goodwill $ 613 1,655 - 177 - - 2,445 Total assets $ 58,456 57,931 22,218 9,494 (6,018) (d) - 142,081 (a) Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Consolidated Statements of Income. (b) Includes impairment charges of $7 for branches and land. For more information, refer to Note 8. (c) Includes impairment charges of $52 for operating lease equipment. For more information, refer to Note 9. (d) Includes bank premises and equipment of $27 classified as held for sale. |
Summary of Significant Policies
Summary of Significant Policies (Summary of Significant Accounting and Reporting Policies - Additional Information) (Detail) - USD ($) $ in Millions | Jan. 01, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Significant Accounting Policies | |||||
Established threshold nonaccrual commercial loans | $ 1 | ||||
Established threshold impaired loans on accrual status | 1 | ||||
Larger commercial loans, subject to impairment review | 1 | ||||
Established threshold commercial loans not subject to specific allowance calculations | 1 | ||||
Impact of cumulative effect of change in accounting principles | $ 10 | $ 4 | |||
Operating lease right-of-use assets | 473 | $ 0 | |||
Leases | |||||
Significant Accounting Policies | |||||
Impact of cumulative effect of change in accounting principles | $ 10 | ||||
ASU 2016-13 | Subsequent Event | |||||
Significant Accounting Policies | |||||
Increase in reserve for unfunded credit commitments | $ 650 | ||||
Increase in purchased financial assets with credit deterioration | $ 30 | ||||
ASU 2016-02 | |||||
Significant Accounting Policies | |||||
Operating lease right-of-use assets | $ 509 |
Supplemental Cash Flow (Noncash
Supplemental Cash Flow (Noncash Investing and Financing Activities) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Payments: | |||
Interest | $ 1,441 | $ 1,016 | $ 699 |
Income taxes | 726 | 359 | 1,035 |
Transfers: | |||
Portfolio loans to loans held for sale | 211 | 275 | 255 |
Loans held for sale to portfolio loans | 37 | 95 | 29 |
Portfolio loans to OREO | 29 | 39 | 34 |
Supplemental Disclosures: | |||
Conversion of outstanding preferred stock issued by a Bancorp subsidiary | 197 | 0 | 0 |
Additions to right-of-use assets under operating leases | 76 | 0 | 0 |
Additions to right-of-use assets under finance leases | 24 | 0 | 0 |
Right-of-use assets recognized at adoption of ASU 2016-02 | $ 509 | $ 0 | $ 0 |
Business Combination - Addition
Business Combination - Additional Information (Detail) $ / shares in Units, $ in Millions | Mar. 22, 2019USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 26, 2019$ / sharesshares | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 |
Business Acquisition [Line Items] | |||||||||
Total Assets | $ 169,369 | $ 146,069 | |||||||
Percentage of common stock acquired | 0.00% | 3.30% | 4.90% | 8.60% | |||||
Full-service Banking Centers | 1,149 | ||||||||
Total noninterest expense | $ 4,660 | 3,958 | $ 3,782 | ||||||
Class B Preferred stock, Series A | |||||||||
Business Acquisition [Line Items] | |||||||||
Preferred stock, issued | shares | 200,000 | ||||||||
Preferred stock, liquidation preference | $ / shares | $ 1,000 | ||||||||
Fixed dividend rate | 6.00% | ||||||||
Class C Preferred stock | |||||||||
Business Acquisition [Line Items] | |||||||||
Fixed dividend rate | 6.00% | ||||||||
MB Financial, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Total consideration paid | $ 3,600 | 3,608 | |||||||
Total Assets | $ 20,000 | ||||||||
Percentage of common stock acquired | 100.00% | ||||||||
Full-service Banking Centers | 86 | ||||||||
Fair value of noncontrolling interest in acquiree | $ 197 | 197 | |||||||
Goodwill | 1,800 | 1,777 | |||||||
Tax deductible goodwill | 15 | ||||||||
Total noninterest expense | 222 | $ 31 | |||||||
Contractual balances on the purchased non credit impaired loans and leases | 12,700 | ||||||||
Fair value of the purchased non credit impaired loans and leases | $ 12,500 | ||||||||
Fair value for PCI | 551 | ||||||||
Cash consideration transferred per share | $ / shares | $ 5.54 | ||||||||
Share consideration transferred | shares | 1.45 | ||||||||
Total value per share | $ / shares | $ 42.49 | ||||||||
Closing price of common stock | $ / shares | $ 25.48 | ||||||||
Contractual balances on PCI | $ 764 | ||||||||
Locations | 91 | ||||||||
Percentage of voting equity interest | 95.00% | ||||||||
Tax deductible goodwill, period | 15 years |
Business Combination - Acquired
Business Combination - Acquired Identifiable Assets and Liabilities Assumed (Detail) - MB Financial, Inc. - USD ($) $ in Millions | Mar. 22, 2019 | Dec. 31, 2019 |
Consideration paid | ||
Cash payments | $ 469 | |
Fair value of common stock issued | 3,121 | |
Stock-based awards | 38 | |
Dividend receivable from MB Financial, Inc. | (20) | |
Total consideration paid | $ 3,600 | 3,608 |
Fair value of noncontrolling interest in acquiree | 197 | 197 |
Assets | ||
Cash and due from banks | 1,679 | |
Federal funds sold | 35 | |
Other short-term investments | 53 | |
Available-for-sale debt and other securities | 832 | |
Held-to-maturity securities | 4 | |
Equity securities | 51 | |
Loans and leases held for sale | 12 | |
Portfolio loans and leases | 13,411 | |
Bank premises and equipment | 266 | |
Operating lease equipment | 394 | |
Intangible assets | 220 | |
Servicing rights | 263 | |
Other assets | 750 | |
Total assets acquired | 17,970 | |
Liabilities | ||
Deposits | 14,489 | |
Other short-term borrowings | 267 | |
Accrued taxes, interest and expenses | 265 | |
Other liabilities | 194 | |
Long-term debt | 727 | |
Total liabilities assumed | 15,942 | |
Net identifiable assets acquired | 2,028 | |
Goodwill | $ 1,800 | $ 1,777 |
Business Combination - Merger-R
Business Combination - Merger-Related Expenses (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||
Salaries, wages and incentives | $ 2,001 | $ 1,783 | $ 1,633 |
Employee benefits | 417 | 332 | 356 |
Technology and communications | 422 | 285 | 245 |
Net occupancy expense | 332 | 292 | 295 |
Card and processing expense | 130 | 123 | 129 |
Equipment expense | 129 | 123 | 117 |
Other noninterest expense | 1,229 | 1,020 | 1,007 |
Total noninterest expense | 4,660 | 3,958 | $ 3,782 |
MB Financial, Inc. | |||
Business Acquisition [Line Items] | |||
Salaries, wages and incentives | 87 | 1 | |
Employee benefits | 3 | 0 | |
Technology and communications | 71 | 6 | |
Net occupancy expense | 13 | 0 | |
Card and processing expense | 1 | 1 | |
Equipment expense | 1 | 0 | |
Other noninterest expense | 46 | 23 | |
Total noninterest expense | $ 222 | $ 31 |
Business Combination - Unaudite
Business Combination - Unaudited Pro Forma (Detail) - MB Financial, Inc. - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Unaudited pro forma net income available to common shareholders | $ 2,529 | $ 2,282 |
Net Interest Income [Member] | ||
Business Acquisition [Line Items] | ||
Unaudited pro forma revenue | 4,911 | 4,836 |
Non Interest Income [Member] | ||
Business Acquisition [Line Items] | ||
Unaudited pro forma revenue | $ 3,638 | $ 3,184 |
Business Combination - Loans Id
Business Combination - Loans Identified as PCI Loans At Acquisition (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 22, 2019 | Dec. 31, 2018 |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Acquired During Period [Abstract] | |||
Contractually required payments including interest | $ 1,139 | ||
Less: Nonaccretable difference | 81 | ||
Cash flows expected to be collected | 1,058 | ||
Less: Accretable yield | $ 147 | 202 | $ 0 |
Fair value of loans acquired | $ 856 |
Business Combination - Accretab
Business Combination - Accretable Yield Rollforward (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Accretable yield, Balance as of December 31, 2018 | $ 0 |
Additions | 202 |
Accretion | (41) |
Reclassifications (to) from nonaccretable difference | (14) |
Accretable yield, Balance as of December 31, 2019 | $ 147 |
Restrictions (Restrictions on C
Restrictions (Restrictions on Cash, Dividends and Other Capital Actions- Additional Information) (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Banking Subsidiary Reserve Requirement | $ 1,700 | $ 1,500 | |||
Dividend Received From Nonbank Companies And Related Subsidiaries | 2,000 | 1,900 | |||
BHC Stress Test Threshold | $ 250,000 | 250,000 | |||
Stock Repurchase Authorization Amount | 1,240 | $ 1,240 | 1,651 | 1,810 | $ 1,161 |
Capital Distribution | $ 2,000 | ||||
Change in Dividend per share | $ 0.03 | $ 0.24 | |||
MB Financial, Inc. | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Dividend Received From Nonbank Companies And Related Subsidiaries | 200 | ||||
Yearly Average | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Banking Subsidiary Reserve Requirement | $ 1,700 | $ 1,500 |
Investment Securities (Investme
Investment Securities (Investment Securities) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investment Holdings | ||
Available-for-sale debt securities, fair value | $ 36,028 | $ 32,830 |
Available-for-sale debt securities, unrealized losses | (43) | (464) |
Available-for-sale debt securities, unrealized gains | 1,105 | 166 |
Available-for-sale debt securities, Amortized Cost | 34,966 | 33,128 |
Held-to-maturity securities, fair value | 17 | 18 |
Held-to-maturity, unrealized losses | 0 | 0 |
Held-to-maturity, unrealized gains | 0 | 0 |
Held-to-maturity securities, amortized cost | 17 | 18 |
Trading debt securities, fair value | 297 | 287 |
Equity securities, fair value | 564 | 452 |
U.S. Treasury and federal agencies | ||
Investment Holdings | ||
Available-for-sale debt securities, fair value | 75 | 97 |
Available-for-sale debt securities, unrealized losses | 0 | (1) |
Available-for-sale debt securities, unrealized gains | 1 | 0 |
Available-for-sale debt securities, Amortized Cost | 74 | 98 |
Obligations of states and political subdivisions | ||
Investment Holdings | ||
Available-for-sale debt securities, fair value | 18 | 2 |
Available-for-sale debt securities, unrealized losses | 0 | 0 |
Available-for-sale debt securities, unrealized gains | 0 | 0 |
Available-for-sale debt securities, Amortized Cost | 18 | 2 |
Held-to-maturity securities, fair value | 15 | 16 |
Held-to-maturity, unrealized losses | 0 | 0 |
Held-to-maturity, unrealized gains | 0 | 0 |
Held-to-maturity securities, amortized cost | 15 | 16 |
Asset-backed securities and other debt securities | ||
Investment Holdings | ||
Available-for-sale debt securities, fair value | 2,206 | 2,015 |
Available-for-sale debt securities, unrealized losses | (12) | (10) |
Available-for-sale debt securities, unrealized gains | 29 | 27 |
Available-for-sale debt securities, Amortized Cost | 2,189 | 1,998 |
Held-to-maturity securities, fair value | 2 | 2 |
Held-to-maturity, unrealized losses | 0 | 0 |
Held-to-maturity, unrealized gains | 0 | 0 |
Held-to-maturity securities, amortized cost | 2 | 2 |
Other securities | ||
Investment Holdings | ||
Available-for-sale debt securities, fair value | 556 | 552 |
Available-for-sale debt securities, unrealized losses | 0 | 0 |
Available-for-sale debt securities, unrealized gains | 0 | 0 |
Available-for-sale debt securities, Amortized Cost | 556 | 552 |
Residential mortgage backed securities | Agency mortgage-backed securities | ||
Investment Holdings | ||
Available-for-sale debt securities, fair value | 14,115 | 16,247 |
Available-for-sale debt securities, unrealized losses | (19) | (242) |
Available-for-sale debt securities, unrealized gains | 388 | 86 |
Available-for-sale debt securities, Amortized Cost | 13,746 | 16,403 |
Commercial mortgage-backed securities | Agency mortgage-backed securities | ||
Investment Holdings | ||
Available-for-sale debt securities, fair value | 15,693 | 10,650 |
Available-for-sale debt securities, unrealized losses | (12) | (164) |
Available-for-sale debt securities, unrealized gains | 564 | 44 |
Available-for-sale debt securities, Amortized Cost | 15,141 | 10,770 |
Commercial mortgage-backed securities | Non-agency mortgage-backed securities | ||
Investment Holdings | ||
Available-for-sale debt securities, fair value | 3,365 | 3,267 |
Available-for-sale debt securities, unrealized losses | 0 | (47) |
Available-for-sale debt securities, unrealized gains | 123 | 9 |
Available-for-sale debt securities, Amortized Cost | $ 3,242 | $ 3,305 |
Investment Securities (Invest_2
Investment Securities (Investment Securities) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure - Availablefor Sale And Held to Maturity Securities [Abstract] | ||
FHLB, restricted stock holdings | $ 76 | $ 184 |
FRB, restricted stock holdings | 478 | 366 |
DTCC, restricted stock holdings | $ 2 | $ 2 |
Investment Securities (Gains an
Investment Securities (Gains and Losses Recognized in Income from Securities) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Securities | ||||
Available-for-sale debt and other securities, realized gains | $ 60 | $ 72 | $ 85 | |
Available-for-sale debt and other securities, realized losses | (50) | (82) | (36) | |
OTTI | (1) | 0 | (54) | |
Net realized gains (losses) on available-for-sale debt and other securities | 9 | (10) | (5) | |
Total trading debt securities gains (losses) | 3 | (15) | 2 | |
Total equity securities gains (losses) | [1] | 31 | (44) | 7 |
Total available for sale debt and other, trading debt and equity securities gains (losses) recognized in income | [2] | $ 43 | $ (69) | $ 4 |
[1] | Includes $26 of net unrealized gains, $45 of net unrealized losses and $5 of net unrealized gains for the years ended December 31, 2019, 2018 and 2017, respectively. | |||
[2] | Excludes $7 of net securities gains for the year ended December 31, 2019 and an insignificant amount of net securities gains (losses) for both the years ended December 31, 2018 and 2017 included in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income related to securities held by FTS to facilitate the timely execution of customer transactions. |
Investment Securities (Gains _2
Investment Securities (Gains and Losses Recognized in Income from Securities) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investment Holdings | |||
Equity securities unrealized gains (losses) | $ 26 | $ (45) | $ 5 |
Corporate Banking | |||
Investment Holdings | |||
Securities Gain losses | $ 7 |
Investment Securities (Securiti
Investment Securities (Securities - Additional Information) (Detail) - USD ($) $ in Billions | Dec. 31, 2019 | Dec. 31, 2018 |
Investment Holdings | ||
Securities with a fair value, pledged as collateral | $ 8.1 | $ 7 |
Investment Securities (Fair Val
Investment Securities (Fair Value and Gross Unrealized Losses on Available-for-Sale Debt Securities) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | $ 4,128 | $ 6,455 |
Less than 12 months Unrealized Losses | (34) | (70) |
12 months or more Fair Value | 383 | 15,111 |
12 months or more Unrealized Losses | (9) | (394) |
Total Fair Value | 4,511 | 21,566 |
Total Unrealized Losses | (43) | (464) |
U.S. Treasury and federal agencies | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 0 | |
Less than 12 months Unrealized Losses | 0 | |
12 months or more Fair Value | 97 | |
12 months or more Unrealized Losses | (1) | |
Total Fair Value | 97 | |
Total Unrealized Losses | 0 | (1) |
Agency mortgage-backed securities | Residential mortgage backed securities | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 2,159 | 3,235 |
Less than 12 months Unrealized Losses | (19) | (21) |
12 months or more Fair Value | 4 | 7,892 |
12 months or more Unrealized Losses | 0 | (221) |
Total Fair Value | 2,163 | 11,127 |
Total Unrealized Losses | (19) | (242) |
Agency mortgage-backed securities | Commercial mortgage-backed securities | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 1,602 | 2,022 |
Less than 12 months Unrealized Losses | (12) | (37) |
12 months or more Fair Value | 0 | 5,260 |
12 months or more Unrealized Losses | 0 | (127) |
Total Fair Value | 1,602 | 7,282 |
Total Unrealized Losses | (12) | (164) |
Non-agency mortgage-backed securities | Commercial mortgage-backed securities | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 884 | |
Less than 12 months Unrealized Losses | (6) | |
12 months or more Fair Value | 1,621 | |
12 months or more Unrealized Losses | (41) | |
Total Fair Value | 2,505 | |
Total Unrealized Losses | 0 | (47) |
Asset-backed securities and other debt securities | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 367 | 314 |
Less than 12 months Unrealized Losses | (3) | (6) |
12 months or more Fair Value | 379 | 241 |
12 months or more Unrealized Losses | (9) | (4) |
Total Fair Value | 746 | 555 |
Total Unrealized Losses | $ (12) | $ (10) |
Investment Securities (Amortize
Investment Securities (Amortized Cost and Fair Value of Available-for-Sale Debt and Held-to-Maturity Securities) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt securities: | ||
Less than 1 year | $ 195 | |
1-5 years | 10,983 | |
5-10 years | 17,566 | |
Over 10 years | 5,666 | |
Other securities | 556 | |
Available-for-sale debt securities, Amortized Cost | 34,966 | $ 33,128 |
Debt securities: | ||
Less than 1 year | 200 | |
1-5 years | 11,288 | |
5-10 years | 18,173 | |
Over 10 years | 5,811 | |
Other securities | 556 | |
Available-for-sale debt and other securities, fair value | 36,028 | 32,830 |
Debt securities: | ||
Less than 1 year | 5 | |
1-5 years | 10 | |
5-10 years | 0 | |
Over 10 years | 2 | |
Other securities | 0 | |
Held-to-maturity securities, amortized cost | 17 | 18 |
Debt securities: | ||
Less than 1 year | 5 | |
1-5 years | 10 | |
5-10 years | 0 | |
Over 10 years | 2 | |
Other securities | 0 | |
Held-to-maturity securities, fair value | $ 17 | $ 18 |
Loans & Leases (Loans and Lease
Loans & Leases (Loans and Leases Classified by Primary Purpose) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and leases held for sale: | ||
Loans and leases held for sale | $ 1,400 | $ 607 |
Portfolio loans and leases: | ||
Commercial and industrial loans | 50,542 | 44,340 |
Commercial mortgage loans | 10,963 | 6,974 |
Commercial construction loans | 5,090 | 4,657 |
Commercial leases | 3,363 | 3,600 |
Residential mortgage loans | 16,724 | 15,504 |
Home equity | 6,083 | 6,402 |
Indirect secured consumer loans | 11,538 | 8,976 |
Credit card | 2,532 | 2,470 |
Other consumer loans | 2,723 | 2,342 |
Portfolio loans and leases | 109,558 | 95,265 |
Commercial Portfolio Segment | ||
Portfolio loans and leases: | ||
Portfolio loans and leases | 69,958 | 59,571 |
Commercial Portfolio Segment | Commercial and Industrial Loans | ||
Loans and leases held for sale: | ||
Loans and leases held for sale | 135 | 67 |
Commercial Portfolio Segment | Commercial mortgage loans | ||
Loans and leases held for sale: | ||
Loans and leases held for sale | 1 | 3 |
Commercial Portfolio Segment | Residential mortgage loans | ||
Loans and leases held for sale: | ||
Loans and leases held for sale | 1,264 | 537 |
Consumer Portfolio Segment | ||
Portfolio loans and leases: | ||
Portfolio loans and leases | $ 39,600 | $ 35,694 |
Loans & Leases (Loans and Lea_2
Loans & Leases (Loans and Leases - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unamortized premiums and discounts, deferred loan fees and costs, and fair value adjustments | $ 249 | $ 296 | ||
Unearned Income | 354 | 479 | ||
Loans pledged at the FHLB | 16,700 | 13,100 | ||
Loans pledged at the FRB | 47,300 | 42,600 | ||
Sales type lease - interest income | 13 | |||
Direct financing lease - interest income | 88 | |||
Allowance for loan and lease losses | 1,202 | 1,103 | $ 1,196 | $ 1,253 |
Commercial Leases | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan and lease losses | $ 17 | $ 18 |
Loans & Leases (Total Loans And
Loans & Leases (Total Loans And Leases Managed By The Bancorp) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | $ 110,958 | $ 95,872 |
Balance of Loans 90 days or More Past Due | 130 | 93 |
Net Charge-Offs | 369 | 330 |
Commercial and Industrial Loans | Commercial Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 50,677 | 44,407 |
Balance of Loans 90 days or More Past Due | 11 | 4 |
Net Charge-Offs | 103 | 132 |
Commercial Mortgage Loans | Commercial Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 10,964 | 6,977 |
Balance of Loans 90 days or More Past Due | 15 | 2 |
Net Charge-Offs | (2) | (1) |
Commercial Construction Loans | Commercial Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 5,090 | 4,657 |
Balance of Loans 90 days or More Past Due | 0 | 0 |
Net Charge-Offs | 0 | 0 |
Commercial Leases | Commercial Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 3,363 | 3,600 |
Balance of Loans 90 days or More Past Due | 0 | 0 |
Net Charge-Offs | 7 | 1 |
Residential mortgage loans | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 17,988 | 16,041 |
Balance of Loans 90 days or More Past Due | 50 | 38 |
Net Charge-Offs | 4 | 7 |
Home Equity | Consumer Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 6,083 | 6,402 |
Balance of Loans 90 days or More Past Due | 1 | 0 |
Net Charge-Offs | 18 | 12 |
Indirect secured consumer loans | Consumer Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 11,538 | 8,976 |
Balance of Loans 90 days or More Past Due | 10 | 12 |
Net Charge-Offs | 50 | 40 |
Credit Card | Consumer Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 2,532 | 2,470 |
Balance of Loans 90 days or More Past Due | 42 | 37 |
Net Charge-Offs | 134 | 101 |
Other Consumer Loans | Consumer Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 2,723 | 2,342 |
Balance of Loans 90 days or More Past Due | 1 | 0 |
Net Charge-Offs | 55 | 38 |
Loans Held-for-Sale | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 1,400 | 607 |
Loans and Leases Managed and Securitized | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | $ 109,558 | $ 95,265 |
Loans & Leases - Components of
Loans & Leases - Components of Net Investment in Leases (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net investment in lease financing | $ 109,375 | $ 95,086 |
Net discount | 249 | 296 |
Leveraged leases | 429 | |
Commercial Lease Financing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Rentals receivable, net of principal and interest on nonrecourse debt | 3,256 | |
Estimated residual value of leased assets | 804 | |
Initial direct cost, net of amortization | 19 | |
Gross investment in lease financing | 4,079 | |
Unearned income | (479) | |
Net investment in lease financing | $ 3,600 | |
Direct financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Lease payment receivable | 2,196 | |
Sales type lease unguaranteed residual asset | 220 | |
Net discount | (7) | |
Direct financing deferred selling profit | 0 | |
Sales-type | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Lease payment receivable | 510 | |
Sales type lease unguaranteed residual asset | 15 | |
Net discount | $ 0 |
Loans & Leases (Undiscounted Ca
Loans & Leases (Undiscounted Cash Flows) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Direct financing | |
Sales Type And Direct Financing Leases Lease Receivable Fiscal Year Maturity [Line Items] | |
2020 | $ 679 |
2021 | 523 |
2022 | 428 |
2023 | 257 |
2024 | 184 |
Thereafter | 273 |
Total undiscounted cash flows | 2,344 |
Less: Difference between undiscounted cash flows and discounted cash flows | 148 |
Lease payment receivable | 2,196 |
Sales-type | |
Sales Type And Direct Financing Leases Lease Receivable Fiscal Year Maturity [Line Items] | |
2020 | 121 |
2021 | 133 |
2022 | 112 |
2023 | 70 |
2024 | 63 |
Thereafter | 75 |
Total undiscounted cash flows | 574 |
Less: Difference between undiscounted cash flows and discounted cash flows | 64 |
Lease payment receivable | $ 510 |
Credit Quality (Summary of Tran
Credit Quality (Summary of Transactions in the ALLL by Portfolio Segment) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Balance, Beginning of period | $ 1,103 | $ 1,196 | $ 1,253 |
Losses charged-off | (510) | (450) | (381) |
Recoveries of losses previously charged-off | 141 | 120 | 83 |
Provision for (benefit from) loan and lease losses | 468 | 237 | 261 |
Deconsolidation of a VIE | (20) | ||
Balance, end of period | 1,202 | 1,103 | 1,196 |
Commercial Portfolio Segment | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Balance, Beginning of period | 645 | 753 | 831 |
Losses charged-off | (127) | (157) | (154) |
Recoveries of losses previously charged-off | 19 | 25 | 29 |
Provision for (benefit from) loan and lease losses | 173 | 24 | 66 |
Deconsolidation of a VIE | (19) | ||
Balance, end of period | 710 | 645 | 753 |
Residential Mortgage Loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Balance, Beginning of period | 81 | 89 | 96 |
Losses charged-off | (9) | (13) | (15) |
Recoveries of losses previously charged-off | 5 | 6 | 8 |
Provision for (benefit from) loan and lease losses | (4) | (1) | 0 |
Deconsolidation of a VIE | 0 | ||
Balance, end of period | 73 | 81 | 89 |
Consumer Portfolio Segment | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Balance, Beginning of period | 267 | 234 | 214 |
Losses charged-off | (374) | (280) | (212) |
Recoveries of losses previously charged-off | 117 | 89 | 46 |
Provision for (benefit from) loan and lease losses | 288 | 224 | 186 |
Deconsolidation of a VIE | 0 | ||
Balance, end of period | 298 | 267 | 234 |
Unallocated | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Balance, Beginning of period | 110 | 120 | 112 |
Losses charged-off | 0 | 0 | 0 |
Recoveries of losses previously charged-off | 0 | 0 | 0 |
Provision for (benefit from) loan and lease losses | 11 | (10) | 9 |
Deconsolidation of a VIE | (1) | ||
Balance, end of period | $ 121 | $ 110 | $ 120 |
Credit Quality (Summary of Tr_2
Credit Quality (Summary of Transactions in the ALLL by Portfolio Segment) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Losses charged-off | $ 510 | $ 450 | $ 381 |
Recoveries of losses previously charged-off | 141 | 120 | $ 83 |
Other Consumer Loans, Point of Sale | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Losses charged-off | 48 | 29 | |
Recoveries of losses previously charged-off | $ 48 | $ 29 |
Credit Quality (Summary of the
Credit Quality (Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually evaluated for impairment | $ 170 | $ 141 | ||
Collectively evaluated for impairment | 911 | 852 | ||
Unallocated | 121 | 110 | ||
Total allowance for loan and lease losses | 1,202 | 1,103 | $ 1,196 | $ 1,253 |
Individually evaluated for impairment | 1,529 | 1,291 | ||
Collectively evaluated for impairment | 107,295 | 93,795 | ||
Purchased credit impaired | 551 | |||
Total portfolio loans and leases | 109,375 | 95,086 | ||
Commercial Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually evaluated for impairment | 82 | 42 | ||
Collectively evaluated for impairment | 628 | 603 | ||
Unallocated | 0 | 0 | ||
Total allowance for loan and lease losses | 710 | 645 | 753 | 831 |
Individually evaluated for impairment | 413 | 277 | ||
Collectively evaluated for impairment | 69,047 | 59,294 | ||
Purchased credit impaired | 498 | |||
Total portfolio loans and leases | 69,958 | 59,571 | ||
Residential Mortgage Loans | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually evaluated for impairment | 55 | 61 | ||
Collectively evaluated for impairment | 18 | 20 | ||
Unallocated | 0 | 0 | ||
Total allowance for loan and lease losses | 73 | 81 | 89 | 96 |
Individually evaluated for impairment | 814 | 736 | ||
Collectively evaluated for impairment | 15,690 | 14,589 | ||
Purchased credit impaired | 37 | |||
Total portfolio loans and leases | 16,541 | 15,325 | ||
Consumer Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually evaluated for impairment | 33 | 38 | ||
Collectively evaluated for impairment | 265 | 229 | ||
Unallocated | 0 | 0 | ||
Total allowance for loan and lease losses | 298 | 267 | 234 | 214 |
Individually evaluated for impairment | 302 | 278 | ||
Collectively evaluated for impairment | 22,558 | 19,912 | ||
Purchased credit impaired | 16 | |||
Total portfolio loans and leases | 22,876 | 20,190 | ||
Unallocated | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Unallocated | 121 | 110 | ||
Total allowance for loan and lease losses | 121 | 110 | $ 120 | $ 112 |
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Purchased credit impaired | 0 | |||
Total portfolio loans and leases | $ 0 | $ 0 |
Credit Quality (Summary of th_2
Credit Quality (Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses | ||||
Allowance for loan and lease losses | $ 1,202 | $ 1,103 | $ 1,196 | $ 1,253 |
Portfolio loans and leases | 109,375 | 95,086 | ||
Leveraged Leases | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Allowance for loan and lease losses | 1 | 1 | ||
Portfolio loans and leases | 429 | 624 | ||
Residential Mortgage Loans | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Portfolio loans and leases at fair value | $ 183 | $ 179 |
Credit Quality (Summary of th_3
Credit Quality (Summary of the Credit Risk Profile of the Bancorp's Commercial Portfolio Segment by Class) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Modifications | ||
Total loans and leases | $ 109,375 | $ 95,086 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Modifications | ||
Total loans and leases | 69,958 | 59,571 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Loans | ||
Financing Receivable, Modifications | ||
Total loans and leases | 50,542 | 44,340 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loans, Owner-Occupied | ||
Financing Receivable, Modifications | ||
Total loans and leases | 4,880 | 3,284 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loans, Nonowner-Occupied | ||
Financing Receivable, Modifications | ||
Total loans and leases | 6,083 | 3,690 |
Commercial Portfolio Segment [Member] | Commercial Construction Loans | ||
Financing Receivable, Modifications | ||
Total loans and leases | 5,090 | 4,657 |
Commercial Portfolio Segment [Member] | Commercial Leases | ||
Financing Receivable, Modifications | ||
Total loans and leases | 3,363 | 3,600 |
Pass | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Modifications | ||
Total loans and leases | 66,143 | 57,581 |
Pass | Commercial Portfolio Segment [Member] | Commercial and Industrial Loans | ||
Financing Receivable, Modifications | ||
Total loans and leases | 47,671 | 42,695 |
Pass | Commercial Portfolio Segment [Member] | Commercial Mortgage Loans, Owner-Occupied | ||
Financing Receivable, Modifications | ||
Total loans and leases | 4,421 | 3,122 |
Pass | Commercial Portfolio Segment [Member] | Commercial Mortgage Loans, Nonowner-Occupied | ||
Financing Receivable, Modifications | ||
Total loans and leases | 5,866 | 3,632 |
Pass | Commercial Portfolio Segment [Member] | Commercial Construction Loans | ||
Financing Receivable, Modifications | ||
Total loans and leases | 4,963 | 4,657 |
Pass | Commercial Portfolio Segment [Member] | Commercial Leases | ||
Financing Receivable, Modifications | ||
Total loans and leases | 3,222 | 3,475 |
Special Mention | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Modifications | ||
Total loans and leases | 1,825 | 901 |
Special Mention | Commercial Portfolio Segment [Member] | Commercial and Industrial Loans | ||
Financing Receivable, Modifications | ||
Total loans and leases | 1,423 | 779 |
Special Mention | Commercial Portfolio Segment [Member] | Commercial Mortgage Loans, Owner-Occupied | ||
Financing Receivable, Modifications | ||
Total loans and leases | 162 | 23 |
Special Mention | Commercial Portfolio Segment [Member] | Commercial Mortgage Loans, Nonowner-Occupied | ||
Financing Receivable, Modifications | ||
Total loans and leases | 135 | 27 |
Special Mention | Commercial Portfolio Segment [Member] | Commercial Construction Loans | ||
Financing Receivable, Modifications | ||
Total loans and leases | 52 | 0 |
Special Mention | Commercial Portfolio Segment [Member] | Commercial Leases | ||
Financing Receivable, Modifications | ||
Total loans and leases | 53 | 72 |
Substandard | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Modifications | ||
Total loans and leases | 1,944 | 1,076 |
Substandard | Commercial Portfolio Segment [Member] | Commercial and Industrial Loans | ||
Financing Receivable, Modifications | ||
Total loans and leases | 1,406 | 853 |
Substandard | Commercial Portfolio Segment [Member] | Commercial Mortgage Loans, Owner-Occupied | ||
Financing Receivable, Modifications | ||
Total loans and leases | 293 | 139 |
Substandard | Commercial Portfolio Segment [Member] | Commercial Mortgage Loans, Nonowner-Occupied | ||
Financing Receivable, Modifications | ||
Total loans and leases | 82 | 31 |
Substandard | Commercial Portfolio Segment [Member] | Commercial Construction Loans | ||
Financing Receivable, Modifications | ||
Total loans and leases | 75 | 0 |
Substandard | Commercial Portfolio Segment [Member] | Commercial Leases | ||
Financing Receivable, Modifications | ||
Total loans and leases | 88 | 53 |
Doubtful | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Modifications | ||
Total loans and leases | 46 | 13 |
Doubtful | Commercial Portfolio Segment [Member] | Commercial and Industrial Loans | ||
Financing Receivable, Modifications | ||
Total loans and leases | 42 | 13 |
Doubtful | Commercial Portfolio Segment [Member] | Commercial Mortgage Loans, Owner-Occupied | ||
Financing Receivable, Modifications | ||
Total loans and leases | 4 | 0 |
Doubtful | Commercial Portfolio Segment [Member] | Commercial Mortgage Loans, Nonowner-Occupied | ||
Financing Receivable, Modifications | ||
Total loans and leases | 0 | 0 |
Doubtful | Commercial Portfolio Segment [Member] | Commercial Construction Loans | ||
Financing Receivable, Modifications | ||
Total loans and leases | 0 | 0 |
Doubtful | Commercial Portfolio Segment [Member] | Commercial Leases | ||
Financing Receivable, Modifications | ||
Total loans and leases | $ 0 | $ 0 |
Credit Quality (Summary of th_4
Credit Quality (Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Total loans and leases | $ 109,375 | $ 95,086 |
Home Equity | Consumer Portfolio Segment | ||
Total loans and leases | 6,083 | 6,402 |
Indirect secured consumer loans | Consumer Portfolio Segment | ||
Total loans and leases | 11,538 | 8,976 |
Credit Card | Consumer Portfolio Segment | ||
Total loans and leases | 2,532 | 2,470 |
Other Consumer Loans | Consumer Portfolio Segment | ||
Total loans and leases | 2,723 | 2,342 |
Performing Financing Receivable | ||
Total loans and leases | 39,196 | 35,395 |
Performing Financing Receivable | Residential Mortgage | Residential Mortgage Loans | ||
Total loans and leases | 16,450 | 15,303 |
Performing Financing Receivable | Home Equity | Consumer Portfolio Segment | ||
Total loans and leases | 5,989 | 6,332 |
Performing Financing Receivable | Indirect secured consumer loans | Consumer Portfolio Segment | ||
Total loans and leases | 11,531 | 8,975 |
Performing Financing Receivable | Credit Card | Consumer Portfolio Segment | ||
Total loans and leases | 2,505 | 2,444 |
Performing Financing Receivable | Other Consumer Loans | Consumer Portfolio Segment | ||
Total loans and leases | 2,721 | 2,341 |
Nonperforming Financing Receivable | ||
Total loans and leases | 221 | 120 |
Nonperforming Financing Receivable | Residential Mortgage | Residential Mortgage Loans | ||
Total loans and leases | 91 | 22 |
Nonperforming Financing Receivable | Home Equity | Consumer Portfolio Segment | ||
Total loans and leases | 94 | 70 |
Nonperforming Financing Receivable | Indirect secured consumer loans | Consumer Portfolio Segment | ||
Total loans and leases | 7 | 1 |
Nonperforming Financing Receivable | Credit Card | Consumer Portfolio Segment | ||
Total loans and leases | 27 | 26 |
Nonperforming Financing Receivable | Other Consumer Loans | Consumer Portfolio Segment | ||
Total loans and leases | $ 2 | $ 1 |
Credit Quality (Summary of th_5
Credit Quality (Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Residential mortgage loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Portfolio loans and leases at fair value | $ 183 | $ 183 | $ 179 |
Credit Quality (Summarizes the
Credit Quality (Summarizes the Bancorp's Recorded Investment in Portfolio Loans and Leases by Age and Class) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due | ||
Current Loans and Leases | $ 108,519 | $ 94,487 |
Total Past Due | 856 | 599 |
Total portfolio loans and leases | 109,375 | 95,086 |
90-Days past Due and Still Accruing | 130 | 93 |
30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 442 | 326 |
90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 414 | 273 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 69,958 | 59,571 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Current Loans and Leases | 50,305 | 44,213 |
Total Past Due | 237 | 127 |
Total portfolio loans and leases | 50,542 | 44,340 |
90-Days past Due and Still Accruing | 11 | 4 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Loans | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 133 | 32 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Loans | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 104 | 95 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loans, Owner-Occupied | ||
Financing Receivable, Recorded Investment, Past Due | ||
Current Loans and Leases | 4,853 | 3,277 |
Total Past Due | 27 | 7 |
Total portfolio loans and leases | 4,880 | 3,284 |
90-Days past Due and Still Accruing | 9 | 2 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loans, Owner-Occupied | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 4 | 1 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loans, Owner-Occupied | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 23 | 6 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loans, Nonowner-Occupied | ||
Financing Receivable, Recorded Investment, Past Due | ||
Current Loans and Leases | 6,072 | 3,688 |
Total Past Due | 11 | 2 |
Total portfolio loans and leases | 6,083 | 3,690 |
90-Days past Due and Still Accruing | 6 | 0 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loans, Nonowner-Occupied | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 5 | 1 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loans, Nonowner-Occupied | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 6 | 1 |
Commercial Portfolio Segment [Member] | Commercial Construction Loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Current Loans and Leases | 5,089 | 4,657 |
Total Past Due | 1 | 0 |
Total portfolio loans and leases | 5,090 | 4,657 |
90-Days past Due and Still Accruing | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial Construction Loans | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 1 | 0 |
Commercial Portfolio Segment [Member] | Commercial Construction Loans | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial Leases | ||
Financing Receivable, Recorded Investment, Past Due | ||
Current Loans and Leases | 3,338 | 3,597 |
Total Past Due | 25 | 3 |
Total portfolio loans and leases | 3,363 | 3,600 |
90-Days past Due and Still Accruing | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial Leases | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 11 | 1 |
Commercial Portfolio Segment [Member] | Commercial Leases | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 14 | 2 |
Residential Mortgage | ||
Financing Receivable, Recorded Investment, Past Due | ||
Current Loans and Leases | 16,372 | 15,227 |
Total Past Due | 169 | 98 |
Total portfolio loans and leases | 16,541 | 15,325 |
90-Days past Due and Still Accruing | 50 | 38 |
Residential Mortgage | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 27 | 37 |
Residential Mortgage | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 142 | 61 |
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due | ||
Current Loans and Leases | 5,965 | 6,280 |
Total Past Due | 118 | 122 |
Total portfolio loans and leases | 6,083 | 6,402 |
90-Days past Due and Still Accruing | 1 | 0 |
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 61 | 71 |
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 57 | 51 |
Consumer Portfolio Segment [Member] | Indirect secured consumer loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Current Loans and Leases | 11,389 | 8,844 |
Total Past Due | 149 | 132 |
Total portfolio loans and leases | 11,538 | 8,976 |
90-Days past Due and Still Accruing | 10 | 12 |
Consumer Portfolio Segment [Member] | Indirect secured consumer loans | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 132 | 119 |
Consumer Portfolio Segment [Member] | Indirect secured consumer loans | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 17 | 13 |
Consumer Portfolio Segment [Member] | Credit Card | ||
Financing Receivable, Recorded Investment, Past Due | ||
Current Loans and Leases | 2,434 | 2,381 |
Total Past Due | 98 | 89 |
Total portfolio loans and leases | 2,532 | 2,470 |
90-Days past Due and Still Accruing | 42 | 37 |
Consumer Portfolio Segment [Member] | Credit Card | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 50 | 47 |
Consumer Portfolio Segment [Member] | Credit Card | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 48 | 42 |
Consumer Portfolio Segment [Member] | Other Consumer Loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Current Loans and Leases | 2,702 | 2,323 |
Total Past Due | 21 | 19 |
Total portfolio loans and leases | 2,723 | 2,342 |
90-Days past Due and Still Accruing | 1 | 0 |
Consumer Portfolio Segment [Member] | Other Consumer Loans | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 18 | 17 |
Consumer Portfolio Segment [Member] | Other Consumer Loans | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | $ 3 | $ 2 |
Credit Quality (Summarizes th_2
Credit Quality (Summarizes the Bancorp's Recorded Investment in Portfolio Loans and Leases by Age and Class) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | $ 856 | $ 599 |
30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 442 | 326 |
90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 414 | 273 |
Residential Mortgage Loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Portfolio loans and leases at fair value | 183 | 179 |
Residential Mortgage Loans | Federal Housing Administration Loan | ||
Financing Receivable, Recorded Investment, Past Due | ||
Losses Due To Claim Denials And Curtailments | 4 | 5 |
Residential Mortgage Loans | Federal Housing Administration Loan | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 94 | 90 |
Residential Mortgage Loans | Federal Housing Administration Loan | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | $ 261 | $ 195 |
Credit Quality (Summarizes th_3
Credit Quality (Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Impaired Financing Receivable Unpaid Principal Balance | ||
Impaired Financing Receivable with Related Allowance Unpaid Principal Balance | $ 917 | $ 846 |
Impaired Financing Receivable with No Related Allowance Unpaid Principal Balance | 718 | 536 |
Unpaid Principal Balance | 1,635 | 1,382 |
Impaired Financing Receivable Recorded Investment Abstract | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 849 | 787 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 680 | 504 |
Recorded Investment | 1,529 | 1,291 |
Allowance | 170 | 141 |
Commercial Portfolio Segment | Commercial and Industrial Loans | ||
Impaired Financing Receivable Unpaid Principal Balance | ||
Impaired Financing Receivable with Related Allowance Unpaid Principal Balance | 277 | 156 |
Impaired Financing Receivable with No Related Allowance Unpaid Principal Balance | 156 | 137 |
Impaired Financing Receivable Recorded Investment Abstract | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 215 | 107 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 142 | 125 |
Allowance | 76 | 34 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||
Impaired Financing Receivable Unpaid Principal Balance | ||
Impaired Financing Receivable with Related Allowance Unpaid Principal Balance | 4 | 2 |
Impaired Financing Receivable with No Related Allowance Unpaid Principal Balance | 21 | 9 |
Impaired Financing Receivable Recorded Investment Abstract | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 4 | 2 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 21 | 9 |
Allowance | 1 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||
Impaired Financing Receivable Unpaid Principal Balance | ||
Impaired Financing Receivable with Related Allowance Unpaid Principal Balance | 1 | 2 |
Impaired Financing Receivable with No Related Allowance Unpaid Principal Balance | 3 | 11 |
Impaired Financing Receivable Recorded Investment Abstract | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 3 | 11 |
Commercial Portfolio Segment | Commercial Leases | ||
Impaired Financing Receivable Unpaid Principal Balance | ||
Impaired Financing Receivable with Related Allowance Unpaid Principal Balance | 26 | 23 |
Impaired Financing Receivable with No Related Allowance Unpaid Principal Balance | 2 | |
Impaired Financing Receivable Recorded Investment Abstract | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 26 | 22 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2 | |
Allowance | 6 | 7 |
Residential Mortgage Loans | ||
Impaired Financing Receivable Unpaid Principal Balance | ||
Impaired Financing Receivable with Related Allowance Unpaid Principal Balance | 431 | 465 |
Impaired Financing Receivable with No Related Allowance Unpaid Principal Balance | 401 | 292 |
Impaired Financing Receivable Recorded Investment Abstract | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 429 | 462 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 385 | 274 |
Allowance | 55 | 61 |
Consumer Portfolio Segment | Home Equity | ||
Impaired Financing Receivable Unpaid Principal Balance | ||
Impaired Financing Receivable with Related Allowance Unpaid Principal Balance | 127 | 146 |
Impaired Financing Receivable with No Related Allowance Unpaid Principal Balance | 125 | 85 |
Impaired Financing Receivable Recorded Investment Abstract | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 127 | 145 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 119 | 83 |
Allowance | 20 | 22 |
Consumer Portfolio Segment | Indirect secured consumer loans | ||
Impaired Financing Receivable Unpaid Principal Balance | ||
Impaired Financing Receivable with Related Allowance Unpaid Principal Balance | 4 | 5 |
Impaired Financing Receivable with No Related Allowance Unpaid Principal Balance | 10 | 2 |
Impaired Financing Receivable Recorded Investment Abstract | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 4 | 4 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 8 | 2 |
Allowance | 1 | |
Consumer Portfolio Segment | Credit Card | ||
Impaired Financing Receivable Unpaid Principal Balance | ||
Impaired Financing Receivable with Related Allowance Unpaid Principal Balance | 47 | 47 |
Impaired Financing Receivable Recorded Investment Abstract | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 44 | 44 |
Allowance | $ 13 | $ 15 |
Credit Quality (Summarizes th_4
Credit Quality (Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | $ 1,635 | $ 1,382 |
Commercial Portfolio Segment | Troubled Debt Restructuring On Accrual Status | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 23 | 60 |
Commercial Portfolio Segment | Troubled Debt Restructuring On Non accrual Status | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 231 | 147 |
Residential Mortgage Loans | Troubled Debt Restructuring On Accrual Status | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 735 | 724 |
Residential Mortgage Loans | Troubled Debt Restructuring On Non accrual Status | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 79 | 12 |
Consumer Portfolio Segment [Member] | Troubled Debt Restructuring On Accrual Status | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 230 | 237 |
Consumer Portfolio Segment [Member] | Troubled Debt Restructuring On Non accrual Status | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | $ 72 | $ 41 |
Credit Quality (Summary of Aver
Credit Quality (Summary of Average Impaired Loans and Leases and Interest Income by Class) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired | |||
Average Recorded Investment | $ 1,393 | $ 1,469 | $ 1,677 |
Interest Income Recognized | 53 | 60 | 52 |
Commercial Portfolio Segment | Commercial and Industrial Loans | |||
Financing Receivable, Impaired | |||
Average Recorded Investment | 306 | 373 | 579 |
Interest Income Recognized | 7 | 15 | 10 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | |||
Financing Receivable, Impaired | |||
Average Recorded Investment | 23 | 15 | 35 |
Interest Income Recognized | 0 | 0 | 0 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | |||
Financing Receivable, Impaired | |||
Average Recorded Investment | 8 | 24 | 61 |
Interest Income Recognized | 0 | 0 | 1 |
Commercial Portfolio Segment | Commercial Leases | |||
Financing Receivable, Impaired | |||
Average Recorded Investment | 28 | 18 | 3 |
Interest Income Recognized | 1 | 0 | 0 |
Residential Mortgage Loans | |||
Financing Receivable, Impaired | |||
Average Recorded Investment | 756 | 743 | 657 |
Interest Income Recognized | 30 | 28 | 25 |
Consumer Portfolio Segment | Home Equity | |||
Financing Receivable, Impaired | |||
Average Recorded Investment | 221 | 244 | 281 |
Interest Income Recognized | 11 | 12 | 12 |
Consumer Portfolio Segment | Indirect secured consumer loans | |||
Financing Receivable, Impaired | |||
Average Recorded Investment | 7 | 8 | 11 |
Interest Income Recognized | 0 | 0 | 0 |
Consumer Portfolio Segment | Credit Card | |||
Financing Receivable, Impaired | |||
Average Recorded Investment | 44 | 44 | 50 |
Interest Income Recognized | $ 4 | $ 5 | $ 4 |
Credit Quality (Summary of th_6
Credit Quality (Summary of the Bancorp's Nonaccrual Loans and Leases by Class) (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Modifications | ||
Nonaccrual portfolio loans and leases | $ 618,000,000 | $ 348,000,000 |
OREO and other repossessed personal property | 62,000,000 | 47,000,000 |
Nonperforming Portfolio Assets | 680,000,000 | 395,000,000 |
Commercial Portfolio Segment | ||
Financing Receivable, Modifications | ||
Nonaccrual portfolio loans and leases | 397,000,000 | 228,000,000 |
Commercial Portfolio Segment | Commercial and Industrial Loans | ||
Financing Receivable, Modifications | ||
Nonaccrual portfolio loans and leases | 338,000,000 | 193,000,000 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||
Financing Receivable, Modifications | ||
Nonaccrual portfolio loans and leases | 29,000,000 | 11,000,000 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||
Financing Receivable, Modifications | ||
Nonaccrual portfolio loans and leases | 1,000,000 | 2,000,000 |
Commercial Portfolio Segment | Commercial Construction Loans | ||
Financing Receivable, Modifications | ||
Nonaccrual portfolio loans and leases | 1,000,000 | 0 |
Commercial Portfolio Segment | Commercial Leases | ||
Financing Receivable, Modifications | ||
Nonaccrual portfolio loans and leases | 28,000,000 | 22,000,000 |
Residential Mortgage Loans | ||
Financing Receivable, Modifications | ||
Nonaccrual portfolio loans and leases | 91,000,000 | 22,000,000 |
Consumer Portfolio Segment | ||
Financing Receivable, Modifications | ||
Nonaccrual portfolio loans and leases | 130,000,000 | 98,000,000 |
Consumer Portfolio Segment | Home Equity | ||
Financing Receivable, Modifications | ||
Nonaccrual portfolio loans and leases | 94,000,000 | 69,000,000 |
Consumer Portfolio Segment | Indirect secured consumer loans | ||
Financing Receivable, Modifications | ||
Nonaccrual portfolio loans and leases | 7,000,000 | 1,000,000 |
Consumer Portfolio Segment | Credit Card | ||
Financing Receivable, Modifications | ||
Nonaccrual portfolio loans and leases | 27,000,000 | 27,000,000 |
Consumer Portfolio Segment | Other Consumer Loans | ||
Financing Receivable, Modifications | ||
Nonaccrual portfolio loans and leases | $ 2,000,000 | $ 1,000,000 |
Credit Quality (Summary of th_7
Credit Quality (Summary of the Bancorp's Nonperforming Loans and Leases by Class) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Modifications | ||
Loans and leases held for sale | $ 1,400 | $ 607 |
Portfolio loans and leases | 109,558 | 95,265 |
Nonperforming Financing Receivable | ||
Financing Receivable, Modifications | ||
Loans and leases held for sale | 7 | 16 |
Nonperforming Financing Receivable | Government Insured | ||
Financing Receivable, Modifications | ||
Portfolio loans and leases | 16 | 6 |
Restructured nonaccrual loans and leases | $ 11 | $ 2 |
Credit Quality (Credit Quality
Credit Quality (Credit Quality Additional Information) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Troubled Debt Restructuring | ||
Line of credit commitments for modified troubled debt restructurings | $ 41 | $ 24 |
Letter of credit commitments for modified troubled debt restructurings | 58 | 67 |
Mortgage loans in process of foreclosure amount | 212 | $ 153 |
Commercial aggregate borrower relationship subject to individual review for impairment | $ 1 |
Credit Quality (Summary of Loan
Credit Quality (Summary of Loans Modified in a TDR) (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Financing Receivable, Modifications | |||
Number of Loans Modified in a TDR During the Period | 7,056 | 8,869 | 9,256 |
Recorded Investment in Loans Modified in a TDR During the Period | $ 374 | $ 415 | $ 413 |
Increase (Decrease) to ALLL Upon Modification | (10) | 13 | 13 |
Charge-offs Recognized Upon Modification | $ 8 | $ 9 | $ 7 |
Commercial Portfolio Segment | Commercial and Industrial Loans | |||
Financing Receivable, Modifications | |||
Number of Loans Modified in a TDR During the Period | 97 | 54 | 75 |
Recorded Investment in Loans Modified in a TDR During the Period | $ 223 | $ 200 | $ 237 |
Increase (Decrease) to ALLL Upon Modification | (19) | 1 | (5) |
Charge-offs Recognized Upon Modification | $ 5 | $ 7 | $ 6 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | |||
Financing Receivable, Modifications | |||
Number of Loans Modified in a TDR During the Period | 15 | 6 | 9 |
Recorded Investment in Loans Modified in a TDR During the Period | $ 12 | $ 3 | $ 8 |
Increase (Decrease) to ALLL Upon Modification | 0 | (1) | 5 |
Charge-offs Recognized Upon Modification | $ 0 | $ 0 | $ 0 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | |||
Financing Receivable, Modifications | |||
Number of Loans Modified in a TDR During the Period | 1 | 3 | 4 |
Recorded Investment in Loans Modified in a TDR During the Period | $ 0 | $ 0 | $ 0 |
Increase (Decrease) to ALLL Upon Modification | 0 | 0 | 0 |
Charge-offs Recognized Upon Modification | $ 0 | $ 0 | $ 0 |
Commercial Portfolio Segment | Commercial Leases | |||
Financing Receivable, Modifications | |||
Number of Loans Modified in a TDR During the Period | 1 | ||
Recorded Investment in Loans Modified in a TDR During the Period | $ 4 | ||
Increase (Decrease) to ALLL Upon Modification | 0 | ||
Charge-offs Recognized Upon Modification | $ 0 | ||
Residential Mortgage Loans | |||
Financing Receivable, Modifications | |||
Number of Loans Modified in a TDR During the Period | 722 | 1,128 | 830 |
Recorded Investment in Loans Modified in a TDR During the Period | $ 101 | $ 168 | $ 116 |
Increase (Decrease) to ALLL Upon Modification | 1 | 4 | 5 |
Charge-offs Recognized Upon Modification | $ 0 | $ 0 | $ 0 |
Consumer Portfolio Segment | Home Equity | |||
Financing Receivable, Modifications | |||
Number of Loans Modified in a TDR During the Period | 80 | 111 | 150 |
Recorded Investment in Loans Modified in a TDR During the Period | $ 4 | $ 7 | $ 10 |
Increase (Decrease) to ALLL Upon Modification | 0 | 0 | 0 |
Charge-offs Recognized Upon Modification | $ 0 | $ 0 | $ 0 |
Consumer Portfolio Segment | Indirect secured consumer loans | |||
Financing Receivable, Modifications | |||
Number of Loans Modified in a TDR During the Period | 100 | 84 | 102 |
Recorded Investment in Loans Modified in a TDR During the Period | $ 0 | $ 0 | $ 0 |
Increase (Decrease) to ALLL Upon Modification | 0 | 0 | 0 |
Charge-offs Recognized Upon Modification | $ 0 | $ 0 | $ 0 |
Consumer Portfolio Segment | Credit Card | |||
Financing Receivable, Modifications | |||
Number of Loans Modified in a TDR During the Period | 6,041 | 7,483 | 8,085 |
Recorded Investment in Loans Modified in a TDR During the Period | $ 34 | $ 37 | $ 38 |
Increase (Decrease) to ALLL Upon Modification | 8 | 9 | 8 |
Charge-offs Recognized Upon Modification | $ 3 | $ 2 | $ 1 |
Credit Quality (Summary of Subs
Credit Quality (Summary of Subsequent Defaults) (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Financing Receivable, Modifications | |||
Number of contracts | 961 | 900 | 1,832 |
Recorded Investment in Loans Modified in a TDR During the Period | $ 66 | $ 100 | $ 52 |
Commercial Portfolio Segment | Commercial and Industrial Loans | |||
Financing Receivable, Modifications | |||
Number of contracts | 12 | 8 | 7 |
Recorded Investment in Loans Modified in a TDR During the Period | $ 20 | $ 61 | $ 17 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | |||
Financing Receivable, Modifications | |||
Number of contracts | 4 | 2 | 4 |
Recorded Investment in Loans Modified in a TDR During the Period | $ 1 | $ 0 | $ 1 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | |||
Financing Receivable, Modifications | |||
Number of contracts | 1 | ||
Recorded Investment in Loans Modified in a TDR During the Period | $ 0 | ||
Residential Mortgage Loans | |||
Financing Receivable, Modifications | |||
Number of contracts | 274 | 225 | 172 |
Recorded Investment in Loans Modified in a TDR During the Period | $ 42 | $ 35 | $ 24 |
Consumer Portfolio Segment | Home Equity | |||
Financing Receivable, Modifications | |||
Number of contracts | 15 | 10 | 16 |
Recorded Investment in Loans Modified in a TDR During the Period | $ 0 | $ 0 | $ 2 |
Consumer Portfolio Segment | Credit Card | |||
Financing Receivable, Modifications | |||
Number of contracts | 655 | 655 | 1,633 |
Recorded Investment in Loans Modified in a TDR During the Period | $ 3 | $ 4 | $ 8 |
Bank Premises and Equipment (Ba
Bank Premises and Equipment (Bank Premises and Equipment) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Property, Plant and Equipment | |||
Land and improvements | [1] | $ 639 | $ 586 |
Buildings | [1] | 1,575 | 1,547 |
Equipment | 2,126 | 1,987 | |
Leasehold improvements | 432 | 403 | |
Construction in progress | [1] | 85 | 81 |
Land and improvements held for sale | 8 | 25 | |
Buildings held for sale | 18 | 14 | |
Equipment held for sale | 1 | 3 | |
Accumulated depreciation and amortization | (2,889) | (2,785) | |
Total bank premises and equipment | $ 1,995 | $ 1,861 | |
Building | Upper Limit | |||
Property, Plant and Equipment | |||
Useful life | 30 years | ||
Building | Lower limit | |||
Property, Plant and Equipment | |||
Useful life | 1 year | ||
Equipment | Upper Limit | |||
Property, Plant and Equipment | |||
Useful life | 20 years | ||
Equipment | Lower limit | |||
Property, Plant and Equipment | |||
Useful life | 2 years | ||
Leasehold Improvements | Upper Limit | |||
Property, Plant and Equipment | |||
Useful life | 30 years | ||
Leasehold Improvements | Lower limit | |||
Property, Plant and Equipment | |||
Useful life | 1 year | ||
[1] | At December 31, 2019 and 2018, land and improvements, buildings and construction in progress included $51 and $55, respectively, associated with parcels of undeveloped land intended for future branch expansion. |
Bank Premises and Equipment (_2
Bank Premises and Equipment (Bank Premises and Equipment (Parenthetical) (Detail)) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment | |||
Land and improvements | [1] | $ 639 | $ 586 |
Branches and undeveloped parcels of land | |||
Property, Plant and Equipment | |||
Land and improvements | $ 51 | $ 55 | |
[1] | At December 31, 2019 and 2018, land and improvements, buildings and construction in progress included $51 and $55, respectively, associated with parcels of undeveloped land intended for future branch expansion. |
Bank Premises and Equipment (_3
Bank Premises and Equipment (Bank Premises and Equipment - Additional Information) (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Property, Plant and Equipment | |||
Depreciation and amortization expense | $ 255 | $ 238 | $ 234 |
Bank Premises Impairment | $ 28 | $ 45 | $ 7 |
Branches and undeveloped parcels of land | MB Financial, Inc. | Chicago market | |||
Property, Plant and Equipment | |||
Branches held for sale | 7 | ||
Other locations held for sale | 11 | ||
Other locations fair value | $ 15 | ||
Impairment as a result of acquisition | $ 14 | ||
2018 Branch Optimization Plan | |||
Property, Plant and Equipment | |||
Branches held for sale | 126 | ||
2018 Branch Optimization Plan | Upper Limit | |||
Property, Plant and Equipment | |||
Branches held for sale | 125 | ||
2018 Branch Optimization Plan | Lower limit | |||
Property, Plant and Equipment | |||
Branches held for sale | 100 | ||
Closed In 2019 | |||
Property, Plant and Equipment | |||
Branches held for sale | 69 | ||
Closed In 2019 | MB Financial, Inc. | Chicago market | |||
Property, Plant and Equipment | |||
Branches held for sale | 45 | ||
Closed In 2020 | |||
Property, Plant and Equipment | |||
Branches held for sale | 30 | ||
To be Closed | MB Financial, Inc. | Chicago market | |||
Property, Plant and Equipment | |||
Branches held for sale | 46 |
Operating Lease Equipment (Add
Operating Lease Equipment (Additional Information) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Subject To Or Available For Operating Lease [Line Items] | |||
Operating lease equipment | $ 848,000,000 | $ 518,000,000 | |
Operating lease income relating to lease payments | 157,000,000 | ||
Commercial Banking | |||
Property Subject To Or Available For Operating Lease [Line Items] | |||
Operating lease equipment impairment | 3,000,000 | ||
Operating lease equipment | |||
Property Subject To Or Available For Operating Lease [Line Items] | |||
Operating lease equipment | 848,000,000 | 518,000,000 | |
Operating lease income relating to lease payments | 151,000,000 | 84,000,000 | $ 96,000,000 |
Operating lease equipment | Commercial Banking | |||
Property Subject To Or Available For Operating Lease [Line Items] | |||
Operating lease equipment impairment | $ 3,000,000 | $ 4,000,000 | $ 52,000,000 |
Operating Lease Equipment (Oper
Operating Lease Equipment (Operating Lease Equipment Payments) (Details) - Operating lease equipment $ in Millions | Dec. 31, 2019USD ($) |
Property Subject To Or Available For Operating Lease [Line Items] | |
2020 | $ 152 |
2021 | 124 |
2022 | 94 |
2023 | 67 |
2024 | 38 |
Thereafter | 63 |
Total operating lease payments | $ 538 |
Lease Obligations - Lessee - Le
Lease Obligations - Lessee - Lease Assets and Lease Liabilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Lessee Lease Description [Line Items] | ||
Operating lease right-of-use assets | $ 473,000,000 | $ 0 |
Total right-of-use assets | 507,000,000 | |
Operating lease liabilities | 555,000,000 | |
Finance lease liabilities | 35,000,000 | |
Total lease liabilities | 590,000,000 | |
Finance lease right of use asset accumulated amortization | 27,000,000 | |
Operating lease right of use asset accumulated amortization | 75,000,000 | |
Other assets | ||
Lessee Lease Description [Line Items] | ||
Operating lease right-of-use assets | 473,000,000 | |
Bank premises and equipment | ||
Lessee Lease Description [Line Items] | ||
Finance lease right-of-use assets | 34,000,000 | |
Accrued taxes, interest and expenses | ||
Lessee Lease Description [Line Items] | ||
Operating lease liabilities | 555,000,000 | |
Long-term debt | ||
Lessee Lease Description [Line Items] | ||
Finance lease liabilities | $ 35,000,000 |
Lease Obligations - Lessee - _2
Lease Obligations - Lessee - Lease Costs (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease Cost [Line Items] | |
Total finance lease costs | $ 7 |
Total operating lease costs | 124 |
Total lease costs | 131 |
Net occupancy and equipment expense | |
Lease Cost [Line Items] | |
Amortization of right-of-use assets | 6 |
Interest Expense, Long-Term Debt | |
Lease Cost [Line Items] | |
Interest on lease liabilities | 1 |
Net occupancy expense | |
Lease Cost [Line Items] | |
Operating lease cost | 96 |
Short-term lease cost | 1 |
Variable lease cost | 30 |
Sublease income | $ (3) |
Lease Obligations - Lessee - Un
Lease Obligations - Lessee - Undiscounted Cash Flows (Details) $ in Millions | Dec. 31, 2019USD ($) |
Operating leases | |
2020 | $ 90 |
2021 | 81 |
2022 | 76 |
2023 | 67 |
2024 | 58 |
Thereafter | 280 |
Total undiscounted cash flows | 652 |
Less: difference between undiscounted cash flows and discounted cash flows | 97 |
Operating lease liabilities | 555 |
Finance leases | |
2020 | 6 |
2021 | 5 |
2022 | 5 |
2023 | 2 |
2024 | 2 |
Thereafter | 26 |
Total undiscounted cash flows | 46 |
Less: Difference between undiscounted cash flows and discounted cash flows | 11 |
Finance lease liabilities | 35 |
Lease Liabilities Payments Due [Abstract] | |
2020 | 96 |
2021 | 86 |
2022 | 81 |
2023 | 69 |
2024 | 60 |
Thereafter | 306 |
Total undiscounted cash flows | 698 |
Less: Difference between undiscounted cash flows and discounted cash flows | 108 |
Total lease liabilities | $ 590 |
Lease Obligations - Lessee - Ad
Lease Obligations - Lessee - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Occupancy Expense | $ 332 | $ 292 | $ 295 |
Operating Lease, Impairment Loss | $ 15 | ||
Occupancy [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Occupancy Expense | $ 101 | $ 101 |
Lease Obligations - Lessee - Ot
Lease Obligations - Lessee - Other Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease obligations other information [Line Items] | |
Finance lease weighted average discount rate, percent | 4.30% |
Operating lease weighted average discount rate, percent | 3.19% |
Operating lease weighted average remaining lease term | 9 years 5 months 23 days |
Finance lease weighted average remaining lease term | 14 years 2 months 1 day |
Lease liability | |
Lease obligations other information [Line Items] | |
Gains on sale and leaseback transactions, net | $ 5 |
Operating cash flows from operating leases | 97 |
Operating cash flows from finance leases | 1 |
Financing cash flows from finance leases | $ 5 |
Goodwill (Changes in the Net Ca
Goodwill (Changes in the Net Carrying Amount of Goodwill by Reporting Segment) (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 22, 2019 | Dec. 31, 2017 | |
Goodwill | ||||
Goodwill | $ 1,800,000,000 | $ 3,410,000,000 | ||
Accumulated impairment losses | (965,000,000) | |||
Goodwill Roll Forward | ||||
Net carrying amount, beginning of period: | $ 2,478,000,000 | $ 2,445,000,000 | ||
Acquisition activity | 1,777,000,000 | 33,000,000 | ||
Sale of Business | (3,000,000) | |||
Net carrying amount, end of period: | 4,252,000,000 | 2,478,000,000 | ||
Commercial Banking | ||||
Goodwill | ||||
Goodwill | 1,363,000,000 | |||
Accumulated impairment losses | (750,000,000) | |||
Goodwill Roll Forward | ||||
Net carrying amount, beginning of period: | 630,000,000 | 613,000,000 | ||
Acquisition activity | 1,324,000,000 | 17,000,000 | ||
Sale of Business | 0 | |||
Net carrying amount, end of period: | 1,954,000,000 | 630,000,000 | ||
Branch Banking | ||||
Goodwill | ||||
Goodwill | 1,655,000,000 | |||
Accumulated impairment losses | 0 | |||
Goodwill Roll Forward | ||||
Net carrying amount, beginning of period: | 1,655,000,000 | 1,655,000,000 | ||
Acquisition activity | 391,000,000 | 0 | ||
Sale of Business | 0 | |||
Net carrying amount, end of period: | 2,046,000,000 | 1,655,000,000 | ||
Consumer Lending | ||||
Goodwill | ||||
Goodwill | 215,000,000 | |||
Accumulated impairment losses | (215,000,000) | |||
Goodwill Roll Forward | ||||
Net carrying amount, beginning of period: | 0 | 0 | ||
Acquisition activity | 0 | 0 | ||
Sale of Business | 0 | |||
Net carrying amount, end of period: | 0 | 0 | ||
Wealth and Asset Management | ||||
Goodwill | ||||
Goodwill | 177,000,000 | |||
Accumulated impairment losses | $ 0 | |||
Goodwill Roll Forward | ||||
Net carrying amount, beginning of period: | 193,000,000 | 177,000,000 | ||
Acquisition activity | 62,000,000 | 16,000,000 | ||
Sale of Business | (3,000,000) | |||
Net carrying amount, end of period: | $ 252,000,000 | $ 193,000,000 |
Intangible Assets (Intangible A
Intangible Assets (Intangible Assets - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 22, 2019 | |
Finite-Lived Intangible Assets | ||||
Amortization of Intangible Assets | $ 45 | $ 5 | $ 2 | |
MB Financial, Inc. | Core deposit intangibles | ||||
Finite-Lived Intangible Assets | ||||
Core deposit intangible asset | $ 195 | |||
Estimated weighted-average life (in years) of acquired intangible asset | 7 years 2 months 12 days | |||
MB Financial, Inc. | Operating lease intangibles | ||||
Finite-Lived Intangible Assets | ||||
Estimated weighted-average life (in years) of acquired intangible asset | 1 year 8 months 12 days | |||
Operating lease intangible asset | $ 25 | |||
Intangible asset amortization expense including components of operating lease income [Member] | ||||
Finite-Lived Intangible Assets | ||||
Amortization of Intangible Assets | $ 54 | $ 5 | $ 2 |
Intangible Assets (Intangible_2
Intangible Assets (Intangible Assets) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 298 | $ 87 |
Accumulated Amortization | (97) | (47) |
Net Carrying Amount | 201 | 40 |
Core deposit intangibles | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 229 | 34 |
Accumulated Amortization | (70) | (30) |
Net Carrying Amount | 159 | 4 |
Customer Relationships | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 29 | 32 |
Accumulated Amortization | (6) | (3) |
Net Carrying Amount | 23 | 29 |
Noncompete Agreements | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 13 | 14 |
Accumulated Amortization | (11) | (11) |
Net Carrying Amount | 2 | 3 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 4 | 7 |
Accumulated Amortization | (1) | (3) |
Net Carrying Amount | 3 | $ 4 |
Operating lease intangibles | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 23 | |
Accumulated Amortization | (9) | |
Net Carrying Amount | $ 14 |
Intangible Assets (Estimated Am
Intangible Assets (Estimated Amortization Expense Other Intangible Assets) (Detail) - Other Intangible Assets $ in Millions | Dec. 31, 2019USD ($) |
Finite-Lived Intangible Assets | |
2020 | $ 56 |
2021 | 43 |
2022 | 34 |
2023 | 24 |
2024 | $ 16 |
VIE (Classifications of Consoli
VIE (Classifications of Consolidated VIE Assets, Liabilities and Noncontrolling Interest Included in the Bancorp's Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Other short-term investments | $ 1,950 | $ 1,825 | ||
Indirect secured consumer loans | 11,538 | 8,976 | ||
ALLL | (1,202) | (1,103) | $ (1,196) | $ (1,253) |
Other assets | 9,190 | 7,372 | ||
Total Assets | 169,369 | 146,069 | ||
Liabilities | ||||
Other liabilities | 2,422 | 2,498 | ||
Long-term debt | 14,970 | 14,426 | ||
Total liabilities | 148,166 | 129,819 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Assets | ||||
Other short-term investments | 74 | 40 | ||
ALLL | (7) | (4) | ||
Other assets | 8 | 5 | ||
Liabilities | ||||
Other liabilities | 2 | 1 | ||
Long-term debt | 1,253 | 606 | ||
Variable Interest Entity, Primary Beneficiary | Indirect secured consumer loans | ||||
Assets | ||||
Other short-term investments | 74 | 40 | ||
Indirect secured consumer loans | 1,354 | 668 | ||
ALLL | (7) | (4) | ||
Other assets | 8 | 5 | ||
Total Assets | 1,429 | 709 | ||
Liabilities | ||||
Other liabilities | 2 | 1 | ||
Long-term debt | 1,253 | 606 | ||
Total liabilities | $ 1,255 | $ 607 |
VIE (Variable Interest Entities
VIE (Variable Interest Entities - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Variable Interest Entity, Primary Beneficiary | Automobile Loans | |||
Variable Interest Entity | |||
Long-term debt reatined | $ 68 | ||
Face amount of notes issued or redeemed | 1,370 | ||
Carry value of automobile loans securitized | 1,430 | ||
Variable Interest Entity, Not Primary Beneficiary | Loans Provided to VIEs | |||
Variable Interest Entity | |||
Unfunded commitment amounts | 1.4 | $ 1.3 | |
Variable Interest Entity, Not Primary Beneficiary | Fifth Third Community Development Corporation Investments | |||
Variable Interest Entity | |||
Total Assets | 1,435 | 1,198 | |
Variable Interest Entity, Not Primary Beneficiary | Fifth Third Community Development Corporation Investments | Qualified Affordable Housing Tax Credits | |||
Variable Interest Entity | |||
Total Assets | 1,200 | 1,100 | |
Unfunded commitments in qualifying LIHTC investments | 428 | 374 | |
Variable Interest Entity, Not Primary Beneficiary | Private equity investments | |||
Variable Interest Entity | |||
Total Assets | 89 | 41 | |
Unfunded commitment amounts | 75 | 32 | |
Capital Contribution To Private Equity Investments | $ 12 | 7 | |
OTTI | $ 8 | $ 1 |
VIE (Assets and Liabilities Rel
VIE (Assets and Liabilities Related to Non-consolidated VIEs and Maximum Exposure to Losses) (Detail) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fifth Third Community Development Corporation Investments | ||
Variable Interest Entity | ||
Total Assets | $ 1,435 | $ 1,198 |
Total Liabilities | 428 | 376 |
Maximum Exposure | 1,435 | 1,198 |
Private equity investments | ||
Variable Interest Entity | ||
Total Assets | 89 | 41 |
Total Liabilities | 0 | 0 |
Maximum Exposure | 164 | 73 |
Lease pool entities | ||
Variable Interest Entity | ||
Total Assets | 74 | |
Total Liabilities | 0 | |
Maximum Exposure | 74 | |
Loans Provided to VIEs | ||
Variable Interest Entity | ||
Total Assets | 2,715 | 2,331 |
Total Liabilities | 0 | 0 |
Maximum Exposure | $ 4,083 | $ 3,617 |
VIE (Investments in Qualified A
VIE (Investments in Qualified Affordable Housing Tax Credits) (Detail) - Applicable income tax expense - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments | |||
Proportional amortization | $ 140 | $ 154 | $ 223 |
Tax credits and other benefits | $ (163) | $ (192) | $ (220) |
VIE (Investments in Qualified_2
VIE (Investments in Qualified Affordable Housing Tax Credits) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |||
Asset Impairment Charges | $ 130 | $ 67 | |
Affordable Housing Investments | |||
Variable Interest Entity [Line Items] | |||
Asset Impairment Charges | $ 57 |
MSR (Activity Related to Mortga
MSR (Activity Related to Mortgage Banking Net Revenue) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale | |||
Residential mortgage loan sales | $ 7,781 | $ 5,078 | $ 6,369 |
Origination fees and gains on loan sales | 175 | 100 | 138 |
Gross mortgage servicing fees | $ 267 | $ 216 | $ 206 |
MSR (Changes in the Servicing A
MSR (Changes in the Servicing Assets) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Servicing Assets at Fair Value | ||
Fair value at beginning of period | $ 938 | $ 858 |
Servicing rights originated | 142 | 81 |
Servicing rights purchased | 26 | 82 |
Servicing rights obtained in acquisition | 263 | 0 |
Changes in fair value due to changes in inputs or assumptions | (203) | 42 |
Changes in fair value due to other changes in fair value | (173) | (125) |
Fair value at end of period | $ 993 | $ 938 |
MSR (Activity Related to the MS
MSR (Activity Related to the MSR Portfolio) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Servicing Assets at Fair Value | |||
Securities gains (losses), net - non-qualifying hedges on mortgage servcing rights | $ 3 | $ (15) | $ 2 |
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (Mortgage banking net revenue) | 221 | (21) | 2 |
MSR fair value adjustments due to change in inputs or assumptions | 376 | 83 | 122 |
Mortgage Servicing Rights | |||
Servicing Assets at Fair Value | |||
MSR fair value adjustments due to change in inputs or assumptions | $ (203) | $ 42 | $ (1) |
MSR (Servicing Rights and Resid
MSR (Servicing Rights and Residual Interests Economic Assumptions) (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fixed Rate Residential Mortgage | ||
Schedule of Servicing Assets at Amortized Value | ||
Weighted- Average Life (in years) | 5 years 10 months 24 days | 6 years 7 months 6 days |
Prepayment Speed (annual) | 12.60% | 10.50% |
OAS (bps) | 530.00% | 522.00% |
Adjustable Rate Residential Mortgage | ||
Schedule of Servicing Assets at Amortized Value | ||
Weighted- Average Life (in years) | 2 years 7 months 6 days | |
Prepayment Speed (annual) | 30.30% | |
OAS (bps) | 647.00% |
MSR (Sales of Receivables and S
MSR (Sales of Receivables and Servicing Rights - Additional Information) (Detail) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Transfers and Servicing of Financial Assets [Abstract] | ||
Servicing of residential mortgage loans for other investors | $ 80.7 | $ 63.2 |
MSR (Sensitivity of the Current
MSR (Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Fixed Rate Residential Mortgage | |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption | |
Fair Value | $ 983 |
Weighted- Average Life (in years) | 5 years 3 months 18 days |
Prepayment Speed (annual) | 13.00% |
Impact of Adverse Change on Fair Value 10% | $ (36) |
Impact of Adverse Change on Fair Value 20% | (69) |
Impact of Adverse Change on Fair Value 50% | $ (158) |
OAS (bps) | 602.00% |
Impact of Adverse Change on Fair Value 10% | $ (21) |
Impact of Adverse Change on Fair Value 20% | (40) |
Adjustable Rate Residential Mortgage | |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption | |
Fair Value | $ 10 |
Weighted- Average Life (in years) | 3 years 7 months 6 days |
Prepayment Speed (annual) | 22.60% |
Impact of Adverse Change on Fair Value 10% | $ (1) |
Impact of Adverse Change on Fair Value 20% | (1) |
Impact of Adverse Change on Fair Value 50% | $ (3) |
OAS (bps) | 921.00% |
Impact of Adverse Change on Fair Value 10% | $ 0 |
Impact of Adverse Change on Fair Value 20% | $ 0 |
Derivatives (Offsetting Derivat
Derivatives (Offsetting Derivative Financial Instruments) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | |||
Gross Amount Recognized in the Balance Sheet | $ 1,673 | $ 1,114 | |
Derivative, Collateral, Obligation to Return Cash | (542) | (271) | |
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | |||
Derivative Liability, Fair Value, Gross Liability | 741 | 874 | |
Assets | |||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | |||
Gross Amount Recognized in the Balance Sheet | [1] | 1,655 | 1,107 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | (417) | (410) | |
Derivative, Collateral, Obligation to Return Cash | [2] | (504) | (348) |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 734 | 349 | |
Liabilities | |||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | |||
Gross Amount Recognized in the Balance Sheet | [1] | 741 | 874 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (417) | (410) | |
Derivative Liability, Fair Value, Gross Liability | [2] | (97) | (123) |
Derivative Fair Value Amount Offset Against Collateral Net | 227 | 341 | |
Derivative | Assets | |||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | |||
Gross Amount Recognized in the Balance Sheet | [1] | 1,655 | 1,107 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | (417) | (410) | |
Derivative, Collateral, Obligation to Return Cash | [2] | (504) | (348) |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 734 | 349 | |
Derivative | Liabilities | |||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | |||
Gross Amount Recognized in the Balance Sheet | [1] | 741 | 874 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (417) | (410) | |
Derivative Liability, Fair Value, Gross Liability | [2] | (97) | (123) |
Derivative Fair Value Amount Offset Against Collateral Net | $ 227 | $ 341 | |
[1] | Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements. | ||
[2] | Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. |
Derivatives (Notional Amounts a
Derivatives (Notional Amounts and Fair Values for All Derivative Instruments Included in the Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives, Fair Value | |||
Notional Amount | $ 456.5 | ||
Derivative Asset, Fair Value, Gross Asset | 1,673 | $ 1,114 | |
Derivative Liability, Fair Value, Gross Liability | 741 | 874 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | |||
Derivatives, Fair Value | |||
Derivative Asset, Fair Value, Gross Asset | 508 | 346 | |
Derivative Liability, Fair Value, Gross Liability | 2 | 29 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Fair Value Hedging | |||
Derivatives, Fair Value | |||
Derivative Asset, Fair Value, Gross Asset | 393 | 262 | |
Derivative Liability, Fair Value, Gross Liability | 0 | 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 | 3,455 | |
Derivative Asset, Fair Value, Gross Asset | 393 | 262 | |
Derivative Liability, Fair Value, Gross Liability | 0 | 2 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | |||
Derivatives, Fair Value | |||
Derivative Asset, Fair Value, Gross Asset | 115 | 84 | |
Derivative Liability, Fair Value, Gross Liability | 2 | 27 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | Interest Rate Swap | Commercial and Industrial Loans | |||
Derivatives, Fair Value | |||
Notional Amount | 8,000 | 8,000 | |
Derivative Asset, Fair Value, Gross Asset | 0 | 15 | |
Derivative Liability, Fair Value, Gross Liability | 2 | 27 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | Interest Rate Floor | Commercial and Industrial Loans | |||
Derivatives, Fair Value | |||
Notional Amount | 3,000 | 3,000 | |
Derivative Asset, Fair Value, Gross Asset | 115 | 69 | |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | |
Nondesignated | |||
Derivatives, Fair Value | |||
Derivative Asset, Fair Value, Gross Asset | 1,165 | 768 | |
Derivative Liability, Fair Value, Gross Liability | 739 | 845 | |
Nondesignated | Risk Management And Other Business Purposes | |||
Derivatives, Fair Value | |||
Derivative Asset, Fair Value, Gross Asset | 132 | 44 | |
Derivative Liability, Fair Value, Gross Liability | 175 | 147 | |
Nondesignated | Risk Management And Other Business Purposes | Interest Rate Contract | Mortgage Servicing Rights | |||
Derivatives, Fair Value | |||
Notional Amount | 6,420 | 10,045 | |
Derivative Asset, Fair Value, Gross Asset | 131 | 40 | |
Derivative Liability, Fair Value, Gross Liability | 2 | 14 | |
Nondesignated | Risk Management And Other Business Purposes | Forward Contracts Related to Residential Mortgage LoansHeld for Sale | Loans Held For Sale | |||
Derivatives, Fair Value | |||
Notional Amount | 2,901 | 926 | |
Derivative Asset, Fair Value, Gross Asset | 1 | 0 | |
Derivative Liability, Fair Value, Gross Liability | 5 | 8 | |
Nondesignated | Risk Management And Other Business Purposes | Swap | |||
Derivatives, Fair Value | |||
Notional Amount | 3,082 | 2,174 | |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | |
Derivative Liability, Fair Value, Gross Liability | 163 | 125 | |
Nondesignated | Risk Management And Other Business Purposes | Foreign Exchange Contract | |||
Derivatives, Fair Value | |||
Notional Amount | 195 | 133 | |
Derivative Asset, Fair Value, Gross Asset | 0 | 4 | |
Derivative Liability, Fair Value, Gross Liability | 5 | 0 | |
Nondesignated | Customer Accommodation | |||
Derivatives, Fair Value | |||
Derivative Asset, Fair Value, Gross Asset | 1,033 | 724 | |
Derivative Liability, Fair Value, Gross Liability | 564 | 698 | |
Nondesignated | Customer Accommodation | Interest Rate Contract | |||
Derivatives, Fair Value | |||
Notional Amount | 73,327 | [1] | 55,012 |
Derivative Asset, Fair Value, Gross Asset | 579 | [1] | 262 |
Derivative Liability, Fair Value, Gross Liability | 148 | [1] | 278 |
Nondesignated | Customer Accommodation | Interest Rate Lock Commitments | |||
Derivatives, Fair Value | |||
Notional Amount | 907 | 407 | |
Derivative Asset, Fair Value, Gross Asset | 18 | 7 | |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | |
Nondesignated | Customer Accommodation | Commodity Contract | |||
Derivatives, Fair Value | |||
Notional Amount | 8,525 | 6,511 | |
Derivative Asset, Fair Value, Gross Asset | 271 | 307 | |
Derivative Liability, Fair Value, Gross Liability | 270 | 278 | |
Nondesignated | Customer Accommodation | TBA Securities | |||
Derivatives, Fair Value | |||
Notional Amount | 50 | 18 | |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | |
Nondesignated | Customer Accommodation | Foreign Exchange Contract | |||
Derivatives, Fair Value | |||
Notional Amount | 14,144 | 13,205 | |
Derivative Asset, Fair Value, Gross Asset | 165 | 148 | |
Derivative Liability, Fair Value, Gross Liability | $ 146 | $ 142 | |
[1] | Derivative assets and liabilities are presented net of variation margin of $40 and $493, respectively. |
Derivatives - Derivative Instru
Derivatives - Derivative Instruments Included in the Consolidated Balance Sheets (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Amount of variation margin payment applied to derivative asset contracts | $ 623 | $ 249 |
Amount of variation margin payment applied to derivative liability contracts | 488 | $ 23 |
Nondesignated | Customer Accommodation | Interest Rate Contract | ||
Derivatives, Fair Value [Line Items] | ||
Amount of variation margin payment applied to derivative asset contracts | 40 | |
Amount of variation margin payment applied to derivative liability contracts | $ 493 |
Derivatives (Change in the Fair
Derivatives (Change in the Fair Value for Interest Rate Contracts and the Related Hedged Items) (Detail) - Fair Value Hedging - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Long-term debt | |||
Derivatives, Fair Value | |||
Carrying Amount Of Hedged Item | $ 3,093 | ||
Cumulative Amount Of Fair Value Hedging Adjustments | 402 | ||
Interest Rate Contract | Interest Expense, Long-Term Debt | |||
Derivatives, Fair Value | |||
Change in fair value of interest rate swaps hedging long-term debt | 152 | $ (36) | $ (33) |
Change in fair value of hedged long-term debt | $ (147) | $ 41 | $ 31 |
Derivatives (Net Gains (Losses)
Derivatives (Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used For Customer Accommodation) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | $ 221 | $ (21) | $ 2 |
Interest Rate Contract | Customer Contracts | Corporate Banking Revenue | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | 40 | 32 | 21 |
Interest Rate Contract | Customer Contracts | Other noninterest expense | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | 0 | 0 | (5) |
Interest Rate Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | (15) | 0 | 2 |
Interest Rate Contract | Interest Rate Lock Commitments | Mortgage Banking Revenue | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | 144 | 70 | 93 |
Commodity Contract | Customer Contracts | Corporate Banking Revenue | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | 8 | 9 | 6 |
Commodity Contract | Customer Contracts | Other noninterest expense | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | 0 | 0 | 1 |
Commodity Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | 1 | (1) | 0 |
Foreign Exchange Contract | Customer Contracts | Corporate Banking Revenue | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | 49 | 55 | 48 |
Foreign Exchange Contract | Customer Contracts | Other noninterest expense | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | 0 | 0 | 2 |
Foreign Exchange Contract | Customer Contracts | Other Noninterest Income | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | 12 | 14 | 0 |
Foreign Exchange Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | $ 0 | $ 1 | $ 1 |
Derivatives (Net Gains (Losse_2
Derivatives (Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges) (Detail) - Cash Flow Hedging - Interest Income (Expense) Net - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of pretax net (losses) gains recognized in OCI | $ 348 | $ 214 | $ (11) |
Amount of pretax net gains (losses) reclassified from OCI into net income | $ 16 | $ (2) | $ 19 |
Derivatives (Net Gains (Losse_3
Derivatives (Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used for Risk Management and Other Business Purposes) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | $ 221 | $ (21) | $ 2 |
Interest Rate Contract | Forward Contracts | Residential mortgages held for sale | Mortgage Banking Revenue | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | 4 | (8) | (17) |
Interest Rate Contract | Mortgage Servicing Rights | Mortgage Banking Revenue | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | 221 | (21) | 2 |
Foreign Exchange Contract | Forward Contracts | Other Noninterest Income | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | (7) | 10 | (7) |
Equity Contract | Swap | Other Noninterest Income | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | (107) | (59) | (80) |
Equity Contract | Stock warrant | Other Noninterest Income | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | $ 0 | $ 0 | $ (1) |
Derivatives (Risk Ratings of th
Derivatives (Risk Ratings of the Notional Amount of Risk Participation Agreements) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | $ 3,943 | $ 4,002 |
Pass | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | 3,841 | 3,919 |
Special Mention | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | 86 | 79 |
Substandard | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | $ 16 | $ 4 |
Derivatives (Derivative Financi
Derivatives (Derivative Financial Instruments - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative | ||
Valuation adjustments related to the credit risk associated with counterparties of customer accommodation derivative contracts | $ 17 | $ 3 |
Deferred gains, net of tax, on cash flow hedges were recorded in accumulated other comprehensive income | 422 | 160 |
Notional amount of the risk participations agreements | 3,943 | 4,002 |
Amount of variation margin payment applied to derivative asset contracts | 623 | 249 |
Amount of variation margin payment applied to derivative liability contracts | $ 488 | 23 |
Interest Rate Contract [Member] | Credit Risk [Member] | ||
Derivative | ||
Credit Risk Derivatives Average Life | 3 years 7 months 6 days | |
Fair value of risk participation agreements | $ 8 | 8 |
Interest Rate Contract [Member] | Cash Flow Hedging | ||
Derivative | ||
Maximum Length of Time Hedged in Interest Rate Cash Flow Hedge | 60 months | |
Net deferred gains or losses, net of tax, recorded in AOCI are expected to be reclassified into earnings | $ 101 | |
Total collateral | ||
Derivative | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 894 | 481 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 347 | $ 551 |
Other Assets (Components of Oth
Other Assets (Components of Other Assets Included in the Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Prepaid Expense and Other Assets | ||
Accounts receivable and drafts-in-process | $ 2,278 | $ 1,963 |
Bank owned life insurance | 1,960 | 1,760 |
Partnership investments | 1,729 | 1,390 |
Derivative instruments | 1,673 | 1,114 |
Operating Lease, Right-of-Use Asset | 473 | 0 |
Accrued interest and fees receivable | 424 | 438 |
Worldpay, Inc. TRA receivable | 345 | 0 |
Prepaid Expense | 101 | 93 |
OREO and other repossessed personal property | 64 | 48 |
Income tax receivable | 32 | 56 |
Investment in Worldpay Holding, LLC | 0 | 420 |
Other | 111 | 90 |
Total other assets | $ 9,190 | $ 7,372 |
Short-Term Borrowings (Summary
Short-Term Borrowings (Summary of Short-Term Borrowings and Weighted-Average Rates) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Short-term Debt [Line Items] | ||
Federal funds purchased | $ 260 | $ 1,925 |
Other short-term borrowings | 1,011 | 573 |
Federal Funds Purchased | ||
Short-term Debt [Line Items] | ||
Federal funds purchased | 260 | 1,925 |
Short-term borrowings, average | 1,267 | 1,509 |
Short-term borrowings, maximum month-end balance | $ 2,693 | $ 2,684 |
Short-term borrowngs, rate | 1.49% | 2.40% |
Short-term borrowings, average rate | 2.26% | 1.97% |
Other Short Term Borrowings | ||
Short-term Debt [Line Items] | ||
Other short-term borrowings | $ 1,011 | $ 573 |
Short-term borrowings, average | 1,046 | 1,611 |
Short-term borrowings, maximum month-end balance | $ 4,046 | $ 6,313 |
Short-term borrowngs, rate | 1.24% | 1.95% |
Short-term borrowings, average rate | 2.67% | 1.82% |
Short-Term Borrowings (Componen
Short-Term Borrowings (Components of Other Short-Term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Short Term Debt | ||
Securities sold under repurchase agreements | $ 469 | $ 302 |
Derivative collateral | 542 | 271 |
Total other short-term borrowings | $ 1,011 | $ 573 |
Long-Term Debt (Summary of the
Long-Term Debt (Summary of the Bancorp's Long-Term Borrowings) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument | ||
Long-term debt | $ 14,970 | $ 14,426 |
Parent Company | ||
Debt Instrument | ||
Long-term debt | 7,513 | |
Parent Company | Senior Debt Obligations | Fixed Rate 2.30 Percent Notes Due 2019 | ||
Debt Instrument | ||
Long-term debt | $ 0 | 500 |
Interest rate | 2.30% | |
Parent Company | Senior Debt Obligations | Fixed Rate 2.875 Percent Due 2020 | ||
Debt Instrument | ||
Long-term debt | $ 1,099 | 1,098 |
Interest rate | 2.875% | |
Parent Company | Senior Debt Obligations | Fixed Rate 2.60 Percent Notes Due 2022 | ||
Debt Instrument | ||
Long-term debt | $ 699 | 698 |
Interest rate | 2.60% | |
Parent Company | Senior Debt Obligations | Fixed Rate 3.50 Percent Due 2022 | ||
Debt Instrument | ||
Long-term debt | $ 499 | 498 |
Interest rate | 3.50% | |
Parent Company | Senior Debt Obligations | Fixed Rate 3.95 Percent Notes Due 2028 | ||
Debt Instrument | ||
Long-term debt | $ 646 | 646 |
Interest rate | 3.95% | |
Parent Company | Senior Debt Obligations | Floating Rate 2.37 Percent Notes Due 2021 | ||
Debt Instrument | ||
Long-term debt | $ 250 | 250 |
Interest rate | 2.37% | |
Parent Company | Senior Debt Obligations | Fixed Rate 3.65 Percent Notes Due 2024 | ||
Debt Instrument | ||
Long-term debt | $ 1,493 | 0 |
Interest rate | 3.65% | |
Parent Company | Senior Debt Obligations | Fixed Rate 2.375 Percent Notes Due 2025 | ||
Debt Instrument | ||
Long-term debt | $ 746 | 0 |
Interest rate | 2.375% | |
Parent Company | Subordinated Debt | Fixed Rate 4.30 Notes Due 2024 | ||
Debt Instrument | ||
Long-term debt | $ 748 | 747 |
Interest rate | 4.30% | |
Parent Company | Subordinated Debt | Fixed Rate 8.25 Percent Notes Due 2038 | ||
Debt Instrument | ||
Long-term debt | $ 1,333 | 1,238 |
Interest rate | 8.25% | |
Subsidiaries | ||
Debt Instrument | ||
Long-term debt | $ 7,457 | |
Subsidiaries | Debt Other Variable Percent Due 2020 Through 2040 | ||
Debt Instrument | ||
Long-term debt | 153 | 56 |
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Fixed Rate | Automobile Loans | ||
Debt Instrument | ||
Long-term debt | $ 1,147 | 568 |
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Fixed Rate | Automobile Loans | Lower limit | ||
Debt Instrument | ||
Interest rate | 1.80% | |
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Fixed Rate | Automobile Loans | Upper Limit | ||
Debt Instrument | ||
Interest rate | 2.69% | |
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Floating Rate | Automobile Loans | ||
Debt Instrument | ||
Long-term debt | $ 42 | 11 |
Interest rate | 1.91% | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.30 Percent Notes Due 2019 | ||
Debt Instrument | ||
Long-term debt | $ 0 | 750 |
Interest rate | 2.30% | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.375 Percent Notes Due 2019 | ||
Debt Instrument | ||
Long-term debt | $ 0 | 850 |
Interest rate | 2.375% | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.625 Percent Notes Due 2019 | ||
Debt Instrument | ||
Long-term debt | $ 0 | 743 |
Interest rate | 1.625% | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.20 Percent Notes Due 2020 | ||
Debt Instrument | ||
Long-term debt | $ 752 | 742 |
Interest rate | 2.20% | |
Subsidiaries | Senior Debt Obligations | Floating Rate 3.412 Percent Notes Due 2019 | ||
Debt Instrument | ||
Long-term debt | $ 0 | 250 |
Interest rate | 3.412% | |
Subsidiaries | Senior Debt Obligations | Floating Rate 2.186 Percent Notes Due 2020 | ||
Debt Instrument | ||
Long-term debt | $ 300 | 300 |
Interest rate | 2.186% | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.25 Percent Notes Due 2021 | ||
Debt Instrument | ||
Long-term debt | $ 1,249 | 1,248 |
Interest rate | 2.25% | |
Subsidiaries | Senior Debt Obligations | Fixed rate 2.875 percent Notes due 2021 | ||
Debt Instrument | ||
Long-term debt | $ 848 | 847 |
Interest rate | 2.875% | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 3.35 Percent Notes Due 2021 | ||
Debt Instrument | ||
Long-term debt | $ 508 | 502 |
Interest rate | 3.35% | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 3.95 Percent Notes Due 2025 | ||
Debt Instrument | ||
Long-term debt | $ 797 | 764 |
Interest rate | 3.95% | |
Subsidiaries | Senior Debt Obligations | Floating Rate 2.376 Percent Notes Due 2021 | ||
Debt Instrument | ||
Long-term debt | $ 299 | 299 |
Interest rate | 2.376% | |
Subsidiaries | Senior Debt Obligations | Floating Rate 2.549 Percent Notes Due 2022 | ||
Debt Instrument | ||
Long-term debt | $ 299 | 0 |
Interest rate | 2.549% | |
Subsidiaries | Subordinated Debt | Fixed Rate 3.85 Percent Notes Due 2026 | ||
Debt Instrument | ||
Long-term debt | $ 748 | 747 |
Interest rate | 3.85% | |
Subsidiaries | Subordinated Debt | Fixed Rate 4.00 Percent Notes Due 2027 | ||
Debt Instrument | ||
Long-term debt | $ 171 | 0 |
Interest rate | 4.00% | |
Subsidiaries | Junior Subordinated Debt | Floating Rate 3.31% - 3.58% Debentures Due 2035 | ||
Debt Instrument | ||
Long-term debt | $ 53 | 52 |
Subsidiaries | Junior Subordinated Debt | Floating Rate 3.31% - 3.58% Debentures Due 2035 | Lower limit | ||
Debt Instrument | ||
Interest rate | 3.31% | |
Subsidiaries | Junior Subordinated Debt | Floating Rate 3.31% - 3.58% Debentures Due 2035 | Upper Limit | ||
Debt Instrument | ||
Interest rate | 3.58% | |
Subsidiaries | Junior Subordinated Debt | FHLB Advances 0.05 To 6.87 Percent Due 2020 Through 2047 | ||
Debt Instrument | ||
Long-term debt | $ 91 | $ 22 |
Subsidiaries | Junior Subordinated Debt | FHLB Advances 0.05 To 6.87 Percent Due 2020 Through 2047 | Lower limit | ||
Debt Instrument | ||
Interest rate | 0.05% | |
Subsidiaries | Junior Subordinated Debt | FHLB Advances 0.05 To 6.87 Percent Due 2020 Through 2047 | Upper Limit | ||
Debt Instrument | ||
Interest rate | 6.87% |
Long-Term Debt (Long-Term Debt
Long-Term Debt (Long-Term Debt - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Debt Instrument | ||||||||
Long-term debt | $ 14,970 | $ 14,426 | ||||||
Debt, outstanding principal balance | 14,600 | 14,200 | ||||||
Debt, discounts and premiums | 18 | 20 | ||||||
Unamortized debt issuance costs | 33 | 30 | ||||||
Additions for mark-to-market adjustments on hedged debt | 402 | 254 | ||||||
Debt Instrument, Face Amount | $ 1,370 | |||||||
Principal Amount of Redemption percentage | 100.00% | |||||||
Subordinated Debt | Floting Rate 3ML LIBOR Plus 64 BPs Senior Notes Due 2022 [Member] | ||||||||
Debt Instrument | ||||||||
Maturity date(s) Start | Feb. 1, 2019 | |||||||
Maturity date(s) End | Feb. 1, 2022 | |||||||
Debt Instrument, Face Amount | $ 300 | |||||||
Variable Interest Entity, Primary Beneficiary | Automobile Loans | ||||||||
Debt Instrument | ||||||||
Long-term debt | 940 | |||||||
Debt, outstanding principal balance | 249 | |||||||
Carry Value Of Loans Leases Or Lines Of Credit Securitized | 1,430 | |||||||
Parent Company | ||||||||
Debt Instrument | ||||||||
Long-term debt | 7,513 | |||||||
Parent Company | Floating Rate 2.37 Percent Notes Due 2021 | Three Month LIBOR | ||||||||
Debt Instrument | ||||||||
Issue of senior notes to third party investors | $ 250 | |||||||
Parent Company | Senior Debt Obligations | Three Month LIBOR | ||||||||
Debt Instrument | ||||||||
Basis Points | 47 | |||||||
Parent Company | Senior Debt Obligations | Fixed Rate 2.875 Percent Due 2020 | ||||||||
Debt Instrument | ||||||||
Long-term debt | $ 1,099 | $ 1,098 | ||||||
Issue of senior notes to third party investors | $ 1,100 | |||||||
Maturity date(s) Start | Jul. 27, 2015 | |||||||
Maturity date(s) End | Jul. 27, 2020 | |||||||
Parent Company | Senior Debt Obligations | Fixed Rate 2.60 Percent Notes Due 2022 | ||||||||
Debt Instrument | ||||||||
Long-term debt | $ 699 | 698 | ||||||
Issue of senior notes to third party investors | $ 700 | |||||||
Maturity date(s) Start | Jun. 15, 2017 | |||||||
Maturity date(s) End | Jun. 15, 2022 | |||||||
Parent Company | Senior Debt Obligations | Fixed Rate 3.50 Percent Due 2022 | ||||||||
Debt Instrument | ||||||||
Long-term debt | $ 499 | 498 | ||||||
Issue of senior notes to third party investors | $ 500 | |||||||
Maturity date(s) Start | Mar. 7, 2012 | |||||||
Maturity date(s) End | Mar. 15, 2022 | |||||||
Parent Company | Senior Debt Obligations | Fixed Rate 3.95 Percent Notes Due 2028 | ||||||||
Debt Instrument | ||||||||
Long-term debt | $ 646 | 646 | ||||||
Issue of senior notes to third party investors | 650 | |||||||
Maturity date(s) Start | Mar. 14, 2018 | |||||||
Maturity date(s) End | Mar. 14, 2028 | |||||||
Parent Company | Senior Debt Obligations | Floating Rate 2.37 Percent Notes Due 2021 | ||||||||
Debt Instrument | ||||||||
Long-term debt | $ 250 | 250 | ||||||
Maturity date(s) Start | Jun. 5, 2018 | |||||||
Maturity date(s) End | Jun. 4, 2021 | |||||||
Parent Company | Senior Debt Obligations | Fixed Rate 3.65 Percent Notes Due 2024 | ||||||||
Debt Instrument | ||||||||
Issue of senior notes to third party investors | $ 1,500 | |||||||
Maturity date(s) Start | Jan. 25, 2019 | |||||||
Maturity date(s) End | Jan. 25, 2024 | |||||||
Parent Company | Senior Debt Obligations | Fixed Rate 2.375 Percent Notes Due 2025 | ||||||||
Debt Instrument | ||||||||
Long-term debt | $ 746 | 0 | ||||||
Issue of senior notes to third party investors | $ 750 | |||||||
Maturity date(s) Start | Oct. 28, 2019 | |||||||
Maturity date(s) End | Jan. 28, 2025 | |||||||
Redemption Date Start | Apr. 25, 2020 | |||||||
Redemption Date End | Dec. 29, 2024 | |||||||
Parent Company | Subordinated Debt | Fixed Rate 4.30 Notes Due 2024 | ||||||||
Debt Instrument | ||||||||
Long-term debt | $ 748 | 747 | ||||||
Issue of senior notes to third party investors | $ 750 | |||||||
Maturity date(s) Start | Nov. 20, 2013 | |||||||
Maturity date(s) End | Jan. 16, 2024 | |||||||
Parent Company | Subordinated Debt | Fixed Rate 8.25 Percent Notes Due 2038 | ||||||||
Debt Instrument | ||||||||
Long-term debt | $ 1,333 | 1,238 | ||||||
Issue of senior notes to third party investors | 1,000 | |||||||
Parent Company | Subordinated Debt | Fixed Rate 8.25 Percent Notes Due 2038 | Three Month LIBOR | ||||||||
Debt Instrument | ||||||||
Amount of debt converted to floating rate | $ 705 | |||||||
Interest rate paid | 4.96% | |||||||
Parent Company | Subordinated Debt | Fixed Rate 2.375 Percent Notes Due 2025 | ||||||||
Debt Instrument | ||||||||
Issue of senior notes to third party investors | $ 750 | |||||||
Subsidiaries | ||||||||
Debt Instrument | ||||||||
Long-term debt | 7,457 | |||||||
Debt, available for future issuance | 19,300 | |||||||
Global Bank Note Program | 25,000 | |||||||
Subsidiaries | Automobile Loans | ||||||||
Debt Instrument | ||||||||
Long-term debt reatined | 68 | |||||||
Subsidiaries | FHLB Advances 0.05 To 6.87 Percent Due 2020 Through 2047 | FHLB advances | ||||||||
Debt Instrument | ||||||||
Residential mortgage loans and securities serving as FHLB collateral | 17,600 | |||||||
Advances from Federal Home Loan Banks | 91 | |||||||
Federal Home Loan Bank, Advances, Maturities Summary, Due in Next Twelve Months | 2 | |||||||
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Two | 2 | |||||||
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Three | 1 | |||||||
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Four | 72 | |||||||
Federal Home Loan Bank, Advances, Maturities Summary, Due after Year Five | 14 | |||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.20 Percent Notes Due 2020 | ||||||||
Debt Instrument | ||||||||
Long-term debt | $ 752 | 742 | ||||||
Debt, outstanding principal balance | 1,100 | |||||||
Maturity date(s) Start | Oct. 30, 2017 | |||||||
Maturity date(s) End | Oct. 30, 2020 | |||||||
Basis Points | 24 | |||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.20 Percent Notes Due 2020 | Three Month LIBOR | ||||||||
Debt Instrument | ||||||||
Issue of senior notes to third party investors | $ 300 | |||||||
Basis Points | 25 | |||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.25 Percent Notes Due 2021 | ||||||||
Debt Instrument | ||||||||
Long-term debt | $ 1,249 | 1,248 | ||||||
Issue of senior notes to third party investors | $ 1,300 | |||||||
Maturity date(s) Start | Jun. 14, 2016 | |||||||
Maturity date(s) End | Jun. 14, 2021 | |||||||
Subsidiaries | Senior Debt Obligations | Fixed rate 2.875 percent Notes due 2021 | ||||||||
Debt Instrument | ||||||||
Long-term debt | $ 848 | 847 | ||||||
Issue of senior notes to third party investors | $ 850 | |||||||
Maturity date(s) Start | Sep. 5, 2014 | |||||||
Maturity date(s) End | Oct. 1, 2021 | |||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 3.35 Percent Notes Due 2021 | ||||||||
Debt Instrument | ||||||||
Long-term debt | $ 508 | 502 | ||||||
Debt, outstanding principal balance | 1,550 | |||||||
Issue of senior notes to third party investors | 500 | |||||||
Maturity date(s) Start | Jul. 26, 2018 | |||||||
Maturity date(s) End | Jul. 26, 2021 | |||||||
Basis Points | 53 | |||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 3.35 Percent Notes Due 2021 | Three Month LIBOR | ||||||||
Debt Instrument | ||||||||
Issue of senior notes to third party investors | 300 | |||||||
Basis Points | 44 | |||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 3.95 Percent Notes Due 2025 | ||||||||
Debt Instrument | ||||||||
Long-term debt | $ 797 | 764 | ||||||
Issue of senior notes to third party investors | 750 | |||||||
Basis Points | 104 | |||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 4.00 Percent Notes Due 2027 | ||||||||
Debt Instrument | ||||||||
Issue of senior notes to third party investors | $ 175 | |||||||
Maturity date(s) End | Dec. 1, 2027 | |||||||
Redemption Date Start | Dec. 1, 2022 | |||||||
Subsidiaries | Subordinated Debt | Fixed Rate 3.85 Percent Notes Due 2026 | ||||||||
Debt Instrument | ||||||||
Long-term debt | $ 748 | 747 | ||||||
Issue of senior notes to third party investors | $ 750 | |||||||
Maturity date(s) Start | Mar. 15, 2016 | |||||||
Maturity date(s) End | Mar. 15, 2026 | |||||||
Subsidiaries | Subordinated Debt | Fixed Rate 3.95 Percent Notes Due 2025 | ||||||||
Debt Instrument | ||||||||
Maturity date(s) Start | Jul. 26, 2018 | |||||||
Maturity date(s) End | Jul. 28, 2025 | |||||||
Subsidiaries | Subordinated Debt | Fixed Rate 4.00 Percent Notes Due 2027 | ||||||||
Debt Instrument | ||||||||
Long-term debt | $ 171 | 0 | ||||||
Subsidiaries | Junior Subordinated Debt | Floating Rate 4.21% - 4.48% Debentures Due 2035 | ||||||||
Debt Instrument | ||||||||
Long-term debt | $ 53 | 52 | ||||||
Subsidiaries | Junior Subordinated Debt | Floating Rate 4.21% - 4.48% Debentures Due 2035 | Trust Preferred Securities | Three Month LIBOR | First Charter Capital Trust I | ||||||||
Debt Instrument | ||||||||
Basis Points | 169 | |||||||
Subsidiaries | Junior Subordinated Debt | Floating Rate 4.21% - 4.48% Debentures Due 2035 | Trust Preferred Securities | Three Month LIBOR | First Charter Capital Trust II | ||||||||
Debt Instrument | ||||||||
Basis Points | 142 | |||||||
Subsidiaries | Junior Subordinated Debt | FHLB Advances 0.05 To 6.87 Percent Due 2020 Through 2047 | ||||||||
Debt Instrument | ||||||||
Long-term debt | $ 91 | $ 22 |
Long-Term Debt (Summary of th_2
Long-Term Debt (Summary of the Bancorp's Long-Term Borrowings) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument | ||
Long-term debt | $ 14,970 | $ 14,426 |
Amount Qualifying As Tier Two Capital For Regulatory Capital Purposes | ||
Debt Instrument | ||
Long-term debt | $ 2.7 | $ 2.6 |
Long-Term Debt (Schedule of Agg
Long-Term Debt (Schedule of Aggregate Maturities of Long-Term Debt Obligations) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument | ||
Contractually obligated payments for long-term debt due in 2020 | $ 2,172 | |
Contractually obligated payments for long-term debt due in 2021 | 3,173 | |
Contractually obligated payments for long-term debt due in 2022 | 2,098 | |
Contractually obligated payments for long-term debt due in 2023 | 514 | |
Contractually obligated payments for long-term debt due in 2024 | 2,339 | |
Thereafter | 4,674 | |
Total | 14,970 | $ 14,426 |
Parent Company | ||
Debt Instrument | ||
Contractually obligated payments for long-term debt due in 2020 | 1,099 | |
Contractually obligated payments for long-term debt due in 2021 | 250 | |
Contractually obligated payments for long-term debt due in 2022 | 1,198 | |
Contractually obligated payments for long-term debt due in 2023 | 0 | |
Contractually obligated payments for long-term debt due in 2024 | 2,241 | |
Thereafter | 2,725 | |
Total | 7,513 | |
Subsidiaries | ||
Debt Instrument | ||
Contractually obligated payments for long-term debt due in 2020 | 1,073 | |
Contractually obligated payments for long-term debt due in 2021 | 2,923 | |
Contractually obligated payments for long-term debt due in 2022 | 900 | |
Contractually obligated payments for long-term debt due in 2023 | 514 | |
Contractually obligated payments for long-term debt due in 2024 | 98 | |
Thereafter | 1,949 | |
Total | $ 7,457 |
Commitments (Summary of Signifi
Commitments (Summary of Significant Commitments) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments to Extend Credit | ||
Long-term Purchase Commitment | ||
Commitments | $ 75,696 | $ 70,415 |
Letters of Credit | ||
Long-term Purchase Commitment | ||
Commitments | 2,137 | 2,041 |
Forward Contracts Related to Residential Mortgage LoansHeld for Sale | ||
Long-term Purchase Commitment | ||
Commitments | 2,901 | 926 |
Purchase Obligations | ||
Long-term Purchase Commitment | ||
Commitments | 113 | 126 |
Capital Commitments for Private Equity Investments | ||
Long-term Purchase Commitment | ||
Commitments | 75 | 32 |
Capital Expenditures | ||
Long-term Purchase Commitment | ||
Commitments | $ 84 | $ 45 |
Commitments (Risk Rating Under
Commitments (Risk Rating Under the Risk Rating System) (Detail) - Commitments to Extend Credit - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Line of Credit Facility | ||
Commitments | $ 75,696 | $ 70,415 |
Pass | ||
Line of Credit Facility | ||
Commitments | 74,654 | 69,928 |
Special Mention | ||
Line of Credit Facility | ||
Commitments | 633 | 271 |
Substandard | ||
Line of Credit Facility | ||
Commitments | 408 | 216 |
Doubtful | ||
Line of Credit Facility | ||
Commitments | $ 1 | $ 0 |
Commitments (Commitments, Conti
Commitments (Commitments, Contingent Liabilities and Guarantees - Additional Information) (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2014 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2010 | Jun. 30, 2010 | Dec. 31, 2009 | |
Loss Contingencies | ||||||||||||
Letters of Credit | $ 2,137 | $ 2,041 | ||||||||||
Margin account balance held by the brokerage clearing agent | 12 | 13 | ||||||||||
Residential Mortgage | ||||||||||||
Loss Contingencies | ||||||||||||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | 6 | 6 | $ 9 | |||||||||
Recorded share of litigation formally settled by Visa and for probable future litigation settlements | 11 | |||||||||||
Repurchased Outstanding Principal | 25 | 18 | ||||||||||
Repurchase demand request | 45 | 19 | ||||||||||
Outstanding repurchase demand inventory | 6 | 1 | ||||||||||
Secured Debt | ||||||||||||
Loss Contingencies | ||||||||||||
Fully and unconditionally guaranteed certain long-term borrowing obligations issued by wholly-owned issuing trust entities | 62 | 62 | ||||||||||
Standby Letters of Credit | ||||||||||||
Loss Contingencies | ||||||||||||
Reserve for unfunded commitments | $ 20 | $ 17 | ||||||||||
Standby letters of credit as a percentage of total letters of credit | 99.00% | 99.00% | ||||||||||
Standby Letters of Credit | Secured Debt | ||||||||||||
Loss Contingencies | ||||||||||||
Standby letters of credit as a percentage of total letters of credit | 66.00% | 60.00% | ||||||||||
Variable Rate Demand Note | ||||||||||||
Loss Contingencies | ||||||||||||
Fifth Third Securities, Inc. (FTS) acted as the remarketing agent to issuers of VRDNs | $ 445 | $ 481 | ||||||||||
Letters of Credit | 3 | 6 | ||||||||||
Total Variable Rate Demand Notes | 449 | 487 | ||||||||||
Letters Credit Issued Related Variable Rate Demand Notes | 187 | 256 | ||||||||||
Variable Rate Demand Note | Trading Securities | ||||||||||||
Loss Contingencies | ||||||||||||
Total Variable Rate Demand Notes | 3 | 9 | ||||||||||
Other Liabilities | ||||||||||||
Loss Contingencies | ||||||||||||
Reserve for unfunded commitments | 144 | 131 | ||||||||||
Visa | ||||||||||||
Loss Contingencies | ||||||||||||
Recorded share of litigation formally settled by Visa and for probable future litigation settlements | $ 163 | $ 125 | ||||||||||
Visa IPO, shares of Visa's Class B common stock received | 10.1 | |||||||||||
Visa Class B shares carryover basis | $ 0 | |||||||||||
Escrow Deposit | $ 300 | $ 600 | $ 450 | $ 150 | $ 1,565 | $ 400 | $ 800 | $ 500 | $ 3,000 |
Commitments (Standby and Commer
Commitments (Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party) (Detail) - Letters of Credit $ in Millions | Dec. 31, 2019USD ($) |
Line of Credit Facility | |
Commitments | $ 2,137 |
Less Than One Year From The Balance Sheet Date | |
Line of Credit Facility | |
Commitments | 1,022 |
More than One and within Five Years from Balance Sheet Date | |
Line of Credit Facility | |
Commitments | 1,110 |
More than Five Years from Balance Sheet Date | |
Line of Credit Facility | |
Commitments | $ 5 |
Commitments (Standby and Comm_2
Commitments (Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party) (Parenthetical) (Detail) - Letters of Credit $ in Millions | Dec. 31, 2019USD ($) |
Line of Credit Facility | |
Commitments | $ 2,137 |
Less Than One Year From The Balance Sheet Date | |
Line of Credit Facility | |
Commitments | 1,022 |
Less Than One Year From The Balance Sheet Date | Commercial | |
Line of Credit Facility | |
Commitments | 2 |
More than One and within Five Years from Balance Sheet Date | |
Line of Credit Facility | |
Commitments | 1,110 |
More than One and within Five Years from Balance Sheet Date | Commercial | |
Line of Credit Facility | |
Commitments | $ 2 |
Commitments (Letters of Credit)
Commitments (Letters of Credit) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | $ 2,137 | $ 2,041 |
Pass | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | 2,005 | 1,905 |
Special Mention | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | 20 | 10 |
Substandard | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | 111 | 126 |
Doubtful | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | $ 1 | $ 0 |
Commitments (Activity in Reserv
Commitments (Activity in Reserve for Representation and Warranty Provisions) (Detail) - Residential Mortgage - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation And Qualifying Accounts Disclosure | ||
Balance, beginning of period | $ 6 | $ 9 |
Net (reductions) additions to the reserve | 0 | (3) |
Balance, end of period | $ 6 | $ 6 |
Commitments (Unresolved Claims
Commitments (Unresolved Claims by Claimant) (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
GSE | ||
Loss Contingencies Dollars | ||
Balance, beginning of period | $ 1 | $ 1 |
New demands | 45 | 19 |
Loan paydowns/payoffs | 0 | |
Resolved claims | (40) | (19) |
Balance, end of period | $ 6 | $ 1 |
Loss Contingencies Units | ||
Balance, beginning of period | 9 | 6 |
New demands | 258 | 121 |
Loan paydowns/payoffs | (3) | |
Resolved claims | (237) | (118) |
Balance, end of period | 27 | 9 |
Private Label | ||
Loss Contingencies Dollars | ||
Balance, beginning of period | $ 0 | $ 0 |
New demands | 1 | 0 |
Loan paydowns/payoffs | 0 | |
Resolved claims | (1) | 0 |
Balance, end of period | $ 0 | $ 0 |
Loss Contingencies Units | ||
Balance, beginning of period | 1 | 1 |
New demands | 8 | 0 |
Loan paydowns/payoffs | 0 | |
Resolved claims | (8) | 0 |
Balance, end of period | 1 | 1 |
Commitments (Visa Funding and B
Commitments (Visa Funding and Bancorp Cash Payments) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2014 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2010 | Jun. 30, 2010 | Dec. 31, 2009 | |
Visa Funding | |||||||||
Loss Contingencies | |||||||||
Escrow Deposit | $ 300 | $ 600 | $ 450 | $ 150 | $ 1,565 | $ 400 | $ 800 | $ 500 | $ 3,000 |
Bancorp Cash Payment | |||||||||
Loss Contingencies | |||||||||
Reduction of liability in cash to the swap counterparty | $ 12 | $ 26 | $ 18 | $ 6 | $ 75 | $ 19 | $ 35 | $ 20 |
Legal and Regulatory Proceedi_2
Legal and Regulatory Proceedings (Legal and Regulatory Proceedings - Additional Information) (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Mar. 31, 2013USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2013 | Mar. 31, 2019 | Sep. 30, 2012 | |
Loss Contingencies | ||||||||
Amount in excess of amounts reserved | $ 56 | |||||||
Number Of Putative Class Actions Filed | 4 | |||||||
Damages sought | $ 40 | $ 800 | $ 280 | |||||
Apr percentage allegedly misleading | 120.00% | |||||||
Federal Lawsuits | ||||||||
Loss Contingencies | ||||||||
Number of merchants requesting exclusion | 500 | |||||||
Class Action Settlement | ||||||||
Loss Contingencies | ||||||||
Number of merchants requesting exclusion | 8,000 | |||||||
Escrow Deposit | $ 46 | |||||||
Percentage Escrow Funds Returned Defendants | 25.00% | 25.00% | ||||||
Litigation Settlement Amount Awarded from Other party | $ 6,240 | |||||||
Escrow Funds Returned to Defendants | 700 | $ 700 | ||||||
Litigation Settlement Amount Awarded To Other Party, Escrow | 5,340 | |||||||
Litigation Settlement Amount Awarded To Other Party, Additional | $ 900 | $ 900 | ||||||
Class Action Settlement | Minimum [Member] | ||||||||
Loss Contingencies | ||||||||
Percentage Escrow Funds Returned Defendants | 15.00% | |||||||
Class Action Settlement | Maximum [Member] | ||||||||
Loss Contingencies | ||||||||
Percentage Escrow Funds Returned Defendants | 25.00% |
Related Party (Related Party Tr
Related Party (Related Party Transactions - Additional Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2010 | Sep. 30, 2017 | Jun. 30, 2009 | |
Related Party Transactions | |||||||||||||||||
Equity Method Investment, Ownership Percentage | 0.00% | 3.30% | 4.90% | 8.60% | |||||||||||||
Gain on sale of Worldpay, Inc. shares | $ 562 | $ 205 | $ 414 | $ 562 | $ 205 | $ 1,037 | |||||||||||
Loans to related parties | 49 | 10 | |||||||||||||||
Taxable Receivable Agreement Payment | 346 | 20 | 44 | ||||||||||||||
Equity investments, carrying value | 0 | 420 | |||||||||||||||
Other Noninterest Income | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Gain on sale of Worldpay, Inc. shares | $ 116 | ||||||||||||||||
Taxable Receivable Agreement Payment | 1 | 20 | 44 | ||||||||||||||
Worldpay Holding, LLC | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | ||||||||||||||||
Equity Method Investment, Ownership Percentage | 18.30% | 22.80% | 25.10% | 27.70% | 33.10% | 39.00% | 18.30% | 49.00% | |||||||||
Gain on sale of Worldpay, Inc. shares | $ 331 | $ 125 | $ 85 | $ 242 | $ 157 | $ 115 | |||||||||||
Dividend on Equity method investment in Vantiv Holding, LLC | 1 | 3 | 19 | ||||||||||||||
Service fee paid to Vantiv Holding, LLC | 77 | 74 | 72 | ||||||||||||||
Outstanding balance of loans owed to the Bancorp from Vantiv Holding, LLC | $ 1,250 | ||||||||||||||||
Loans to related parties | 187 | ||||||||||||||||
Interest income relating to the Vantiv Holding, LLC loans | 2 | 7 | 5 | ||||||||||||||
Payment From Vantiv Inc to Bancorp To Terminate And Settle Certain Remaining TRA Cash Flows | 171 | ||||||||||||||||
Membership Units | 10,252,826 | ||||||||||||||||
Worldpay Holding, LLC | Unused Line of Credit | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Loans to related parties | 74 | ||||||||||||||||
Worldpay Holding, LLC | Other Noninterest Income | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 2 | 1 | 47 | ||||||||||||||
Worldpay Holding, LLC | Beyond Deconversion Period | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Revenue from Related Parties | $ 87 | 75 | 68 | ||||||||||||||
Vantiv, Inc | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Gain on sale of Worldpay, Inc. shares | 116 | $ 49 | |||||||||||||||
Amount Of Cash Flow Sales From 2017 To 2035 | 331 | $ 140 | |||||||||||||||
TRA Obligations Settled Due Exercised Options Exercised | 108 | 63 | |||||||||||||||
Potential Termination And Settlement Of Tra Cash Flows | 394 | ||||||||||||||||
Pretax Gain Recognized | $ 164 | ||||||||||||||||
SLK Global | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Equity Method Investment, Ownership Percentage | 49.00% | ||||||||||||||||
Dividend on Equity method investment in Vantiv Holding, LLC | $ 1 | ||||||||||||||||
Service fee paid to Vantiv Holding, LLC | 22 | 21 | $ 21 | ||||||||||||||
Equity investments, carrying value | 26 | 23 | |||||||||||||||
SLK Global | Other Noninterest Income | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Revenue from Related Parties | 3 | 2 | |||||||||||||||
CDC | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Loans to related parties | 12 | 83 | |||||||||||||||
Related Party Deposit Liabilities | 116 | 77 | |||||||||||||||
CDC | Unfunded Commitment | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Due To Other Related Parties Current And Noncurrent | 21 | $ 80 | |||||||||||||||
Worldpay, Inc. | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Membership Units | 10,252,826 | ||||||||||||||||
Worldpay, Inc. | Other Noninterest Income | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Recognized gain | $ 562 | ||||||||||||||||
Fidelity National Information Services, Inc. and Worldpay, Inc | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
Gain on sale of Worldpay, Inc. shares | 345 | ||||||||||||||||
Payment From Vantiv Inc to Bancorp To Terminate And Settle Certain Remaining TRA Cash Flows | 366 | ||||||||||||||||
Potential Termination And Settlement Of Tra Cash Flows | $ 720 |
Related Party (Summary of the B
Related Party (Summary of the Bancorp's Activities with its Principal Shareholders, Directors and Executives) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transactions | ||
Outstanding balance on loans, net of participations and undrawn commitments | $ 49 | $ 10 |
Commitments to Extend Credit | ||
Related Party Transactions | ||
Commitments to Extend Credit | 75,696 | 70,415 |
Commitments to Extend Credit | Due to related party | ||
Related Party Transactions | ||
Commitments to Extend Credit | 741 | 706 |
Commitments to Extend Credit | Director | Due to related party | ||
Related Party Transactions | ||
Commitments to Extend Credit | 736 | 700 |
Commitments to Extend Credit | Executive Officer | Due to related party | ||
Related Party Transactions | ||
Commitments to Extend Credit | $ 5 | $ 6 |
Related Party (Summary of Vanti
Related Party (Summary of Vantiv Holding, LLC Sales Transactions) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2015 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2009 | |
Related Party Transactions | ||||||||||||||
Gain on sale of Worldpay, Inc. shares | $ 562 | $ 205 | $ 414 | $ 562 | $ 205 | $ 1,037 | ||||||||
Equity Method Investment, Ownership Percentage | 0.00% | 3.30% | 4.90% | 8.60% | ||||||||||
Worldpay Holding, LLC | ||||||||||||||
Related Party Transactions | ||||||||||||||
Gain on sale of Worldpay, Inc. shares | $ 331 | $ 125 | $ 85 | $ 242 | $ 157 | $ 115 | ||||||||
Equity Method Investment, Ownership Percentage | 18.30% | 22.80% | 25.10% | 27.70% | 33.10% | 39.00% | 49.00% |
Related Party (Cash Flows to be
Related Party (Cash Flows to be Received from the TRA) (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Vantiv TRA Cash Flows | |
2020 | $ 31 |
2021 | 11 |
Total Cash Flows to be Received from TRA | 42 |
Cash Flow To Be Received From Put Call Option Exercises | |
Vantiv TRA Cash Flows | |
2022 | 139 |
2023 | 150 |
2024 | 35 |
Total Cash Flows to be Received from TRA | 324 |
Estimated Cash Flow To Be Received Not Subject To Put Call Option | |
Vantiv TRA Cash Flows | |
2020 | 1 |
2021 | 73 |
2022 | 44 |
2023 | 45 |
2024 | 22 |
2025 | 11 |
Total Cash Flows to be Received from TRA | $ 196 |
Income Taxes (Applicable Income
Income Taxes (Applicable Income Taxes Included in the Consolidated Statements of Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation Of Provision Of Income Taxes | |||
U.S. Federal income taxes | $ 788 | $ 463 | $ 986 |
State and local income taxes | 148 | 71 | 68 |
Foreign income taxes | 0 | 8 | (3) |
Total current tax expense (benefit) | 936 | 542 | 1,051 |
U.S. Federal income taxes | (212) | 24 | (254) |
State and local income taxes | (35) | 4 | 2 |
Foreign income taxes | 1 | 2 | 0 |
Total deferred tax expense (benefit) | (246) | 30 | (252) |
Applicable income tax expense | $ 690 | $ 572 | $ 799 |
Income Taxes (Reconciliation Be
Income Taxes (Reconciliation Between the Federal Statutory Corporate Tax Rate and the Bancorp's Effective Tax Rate) (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation Of Statutory Federal Tax Rate | |||
Statutory tax rate | 21.00% | 21.00% | 35.00% |
State taxes, net of federal benefit | 2.80% | 2.10% | 1.50% |
Tax-exempt income | (1.20%) | (0.80%) | (1.10%) |
LIHTC investment and other tax benefits | (5.00%) | (6.80%) | (6.90%) |
LIHTC investment proportional amortization | 4.40% | 5.60% | 7.40% |
Other tax credits | (0.20%) | (0.10%) | (0.40%) |
U.S. tax legislation impact on deferred taxes | 0.00% | 0.00% | (8.50%) |
Other, net | (0.20%) | (0.30%) | (0.20%) |
Effective tax rate | 21.60% | 20.70% | 26.80% |
Income Taxes (Income Taxes - Ad
Income Taxes (Income Taxes - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes | |||
Deferred tax assets related to state net operating loss carryforwards | $ 9 | $ 7 | |
State net operating loss carryforwards specific valuation allowances | $ 17 | 25 | |
State net operating loss carryforwards expiration date | Dec. 31, 2038 | ||
Accrued interest liabilities, net of the related tax benefits | $ 4 | 3 | |
Allocation of earnings for bad debt deductions of former thrift subsidiaries included in retained earnings | 157 | 157 | |
Interest expense recognized in connection with income taxes | $ 1 | $ 1 | $ 2 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 253 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the Beginning and Ending Amounts of the Bancorp's Unrecognized Tax Benefits) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | ||||||
Unrecognized tax benefits at January 1 | $ 55 | [1] | $ 34 | [1] | $ 24 | |
Gross increases for tax positions taken during prior period | 25 | 20 | 17 | |||
Gross decreases for tax positions taken during prior period | (3) | (1) | (1) | |||
Gross increases for tax positions taken during current period | 6 | 8 | 3 | |||
Settlements with taxing authorities | (9) | (5) | (7) | |||
Lapse of applicable statute of limitations | (9) | (1) | (2) | |||
Unrecognized tax benefits at December 31 | [1] | $ 65 | $ 55 | $ 34 | ||
[1] | With the exception of $6 and $5 in 2019 and 2018, respectively, all amounts represent unrecognized tax benefits that, if recognized, would affect the annual effective tax rate. |
Income Taxes (Reconciliation _2
Income Taxes (Reconciliation of the Beginning and Ending Amounts of the Bancorp's Unrecognized Tax Benefits) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes | ||
Unrecognized Tax Benefits Exceptional Adjustments | $ 6 | $ 5 |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Taxes Included in Other Assets in the Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Deferred Income Tax Assets And Liabilities | ||
Allowance for loan and lease losses | $ 252 | $ 232 |
Deferred compensation | 103 | 79 |
Other comprehensive income | 0 | 42 |
Reserve for unfunded commitments | 30 | 28 |
Reserves | 32 | 28 |
State net operating loss carryforwards | 9 | 7 |
Other | 154 | 112 |
Total deferred tax assets | 580 | 528 |
Lease financing | 650 | 599 |
Investments in joint ventures and partnership interests | 25 | 131 |
MSRs and related economic hedges | 144 | 107 |
State deferred taxes | 47 | 73 |
Bank premises and equipment | 73 | 60 |
Other comprehensive income | 352 | 0 |
Other | 127 | 102 |
Total deferred tax liabilities | 1,418 | 1,072 |
Total net deferred tax liabilities | $ (838) | $ (544) |
Retirement and Benefit Plans (D
Retirement and Benefit Plans (Defined Benefit Retirement Plans on Balance Sheets) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement and Benefit Plans [Abstract] | ||
Prepaid benefit cost | $ 0 | $ 1 |
Accrued benefit liability | (19) | (18) |
Net underfunded status | $ (19) | $ (17) |
Retirement and Benefit Plans (R
Retirement and Benefit Plans (Retirement and Benefit Plans - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Defined Benefit Plan Disclosure | ||||
The estimated net actuarial loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost | $ 6 | |||
The increase in pension expense by lowering both the expected rate of return on the plan and the discount rate by 0.25% | 1 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2020 | 16 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2021 | 17 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2022 | 17 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2023 | 17 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2024 | 16 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2025 through 2029 | 70 | |||
Estimated future defined benefit plan contributions | 2 | |||
Plan assets | [1] | 175 | $ 164 | |
Funded plan status | 100.00% | |||
Fifth Third Bank, National Association | ||||
Defined Benefit Plan Disclosure | ||||
Plan assets | 164 | $ 175 | ||
Deferred profit sharing | ||||
Defined Benefit Plan Disclosure | ||||
Expenses recognized for the Bancorp's defined contribution plan | 0 | 0 | ||
Qualified defined contribution plan | ||||
Defined Benefit Plan Disclosure | ||||
Expenses recognized for the Bancorp's defined contribution plan | 90 | 83 | $ 79 | |
Non-qualified defined contribution plan | ||||
Defined Benefit Plan Disclosure | ||||
Expenses recognized for the Bancorp's defined contribution plan | 6 | $ 4 | $ 4 | |
Deferred Profit Sharing [Member] | MB Financial, Inc. | ||||
Defined Benefit Plan Disclosure | ||||
Deferred Compensation Arrangement with Individual, Allocated Share-based Compensation Expense | $ 4 | |||
[1] | For further information on fair value hierarchy levels, refer to Note 1. |
Retirement and Benefit Plans _2
Retirement and Benefit Plans (Defined Benefit Retirement Plans with Overfunded and Underfunded Status) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Defined Benefit Plan Change In Fair Value Roll Forward | ||||
Fair value of plan assets at January 1 | [1] | $ 164 | ||
Fair value of plan assets at December 31 | [1] | 175 | $ 164 | |
Defined Benefit Plan, Change in Benefit Obligation | ||||
Projected benefit obligation at January 1 | 181 | 21 | ||
Interest cost | 7 | 7 | $ 8 | |
Projected benefit obligation at December 31 | 181 | 21 | ||
Underfunded defined benefit pension plans | ||||
Defined Benefit Plan Change In Fair Value Roll Forward | ||||
Fair value of plan assets at January 1 | 164 | |||
Actual return on assets | 26 | 0 | ||
Contributions | 2 | 3 | ||
Settlement | (9) | 0 | ||
Benefits paid | (8) | (3) | ||
Fair value of plan assets at December 31 | 175 | 164 | ||
Defined Benefit Plan, Change in Benefit Obligation | ||||
Projected benefit obligation at January 1 | 18 | |||
Interest cost | 7 | 1 | ||
Settlement | (9) | 0 | ||
Actuarial (gain) loss | 23 | (1) | ||
Benefits paid | (8) | (3) | ||
Projected benefit obligation at December 31 | 194 | 18 | ||
Projected benefit obligation at December 31 | (19) | (18) | ||
Accumulated benefit obligation at December 31 | [2] | 194 | 18 | |
Overfunded defined benefit pension plans | ||||
Defined Benefit Plan Change In Fair Value Roll Forward | ||||
Fair value of plan assets at January 1 | [3] | 164 | 185 | |
Actual return on assets | [3] | (6) | ||
Settlement | [3] | (9) | ||
Benefits paid | [3] | (6) | ||
Fair value of plan assets at December 31 | [3] | 164 | 185 | |
Defined Benefit Plan, Change in Benefit Obligation | ||||
Projected benefit obligation at January 1 | [3] | $ 163 | 188 | |
Interest cost | [3] | 6 | ||
Settlement | [3] | (9) | ||
Actuarial (gain) loss | [3] | (16) | ||
Benefits paid | [3] | (6) | ||
Projected benefit obligation at December 31 | [3] | 163 | $ 188 | |
Projected benefit obligation at December 31 | [3] | 1 | ||
Accumulated benefit obligation at December 31 | [3] | $ 163 | ||
[1] | For further information on fair value hierarchy levels, refer to Note 1. | |||
[2] | Since the Plan’s benefits are frozen, the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at both December 31, 2019 and 2018. | |||
[3] | The Bancorp’s qualified defined benefit plan had an underfunded status at December 31, 2019 and is reflected in the underfunded status table. The Plan had an overfunded status at December 31, 2018. |
Retirement and Benefit Plans (N
Retirement and Benefit Plans (Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Pension And Other Postretirment Benefits Recgonized In Accumulated Other Comprehensive Income (Loss) | |||
Interest cost | $ 7 | $ 7 | $ 8 |
Expected return on assets | (8) | (11) | (10) |
Amortization of net actuarial loss | 6 | 6 | 7 |
Settlement | 3 | 3 | 4 |
Net periodic benefit cost | 8 | 5 | 9 |
Net actuarial loss (gain) | 5 | (1) | (1) |
Amortization of net actuarial loss | (6) | (6) | (7) |
Settlement | (3) | (3) | (4) |
Total recognized in other comprehensive income | (4) | (10) | (12) |
Total recognized in net periodic benefit cost and other comprehensive income | $ 4 | $ (5) | $ (3) |
Retirement and Benefit Plans (P
Retirement and Benefit Plans (Plan Assets Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | $ 175 | $ 164 | ||
Cash equivalents | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 14 | 25 | ||
Mutual and exchange-traded funds | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 76 | 46 | ||
Debt securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 85 | 65 | ||
Debt securities | U.S. Treasury and federal agencies securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 63 | 46 | ||
Debt securities | Non-agency mortgage-backed securities | Commercial mortgage-backed securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 1 | 1 | ||
Debt securities | Asset-backed securities and other debt securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [2] | 21 | [1] | 18 | |
Collective funds | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1],[3] | 28 | |||
Excluding collective funds | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 136 | |||
Fair Value, Inputs, Level 1 | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 147 | |||
Fair Value, Inputs, Level 1 | Cash equivalents | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | 14 | [1] | 25 | [4] | |
Fair Value, Inputs, Level 1 | Mutual and exchange-traded funds | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | 76 | [1] | 46 | [4] | |
Fair Value, Inputs, Level 1 | Debt securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | 57 | [1] | 43 | [4] | |
Fair Value, Inputs, Level 1 | Debt securities | U.S. Treasury and federal agencies securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | 57 | [1] | 43 | [4] | |
Fair Value, Inputs, Level 1 | Debt securities | Non-agency mortgage-backed securities | Commercial mortgage-backed securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | 0 | [1] | 0 | [4] | |
Fair Value, Inputs, Level 1 | Debt securities | Asset-backed securities and other debt securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [2] | 0 | [1] | 0 | |
Fair Value, Inputs, Level 1 | Excluding collective funds | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [4] | 114 | |||
Fair Value, Inputs, Level 2 | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 28 | |||
Fair Value, Inputs, Level 2 | Cash equivalents | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | 0 | [1] | 0 | [4] | |
Fair Value, Inputs, Level 2 | Mutual and exchange-traded funds | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | 0 | [1] | 0 | [4] | |
Fair Value, Inputs, Level 2 | Debt securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | 28 | [1] | 22 | [4] | |
Fair Value, Inputs, Level 2 | Debt securities | U.S. Treasury and federal agencies securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | 6 | [1] | 3 | [4] | |
Fair Value, Inputs, Level 2 | Debt securities | Non-agency mortgage-backed securities | Commercial mortgage-backed securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | 1 | [1] | 1 | [4] | |
Fair Value, Inputs, Level 2 | Debt securities | Asset-backed securities and other debt securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [2] | 21 | [1] | 18 | |
Fair Value, Inputs, Level 2 | Excluding collective funds | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [4] | 22 | |||
Fair Value, Inputs, Level 3 | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 0 | |||
Fair Value, Inputs, Level 3 | Cash equivalents | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 0 | 0 | ||
Fair Value, Inputs, Level 3 | Mutual and exchange-traded funds | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 0 | 0 | ||
Fair Value, Inputs, Level 3 | Debt securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 0 | 0 | ||
Fair Value, Inputs, Level 3 | Debt securities | U.S. Treasury and federal agencies securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 0 | 0 | ||
Fair Value, Inputs, Level 3 | Debt securities | Non-agency mortgage-backed securities | Commercial mortgage-backed securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 0 | 0 | ||
Fair Value, Inputs, Level 3 | Debt securities | Asset-backed securities and other debt securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [2] | $ 0 | [1] | 0 | |
Fair Value, Inputs, Level 3 | Excluding collective funds | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | $ 0 | |||
[1] | For further information on fair value hierarchy levels, refer to Note 1. | ||||
[2] | Includes corporate bonds. | ||||
[3] | Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the fair value of Plan assets presented elsewhere within this footnote. | ||||
[4] | During the year ended December 31, 2018, no assets or liabilities were transferred between Level 1 and Level 2. |
Retirement and Benefit Plans _3
Retirement and Benefit Plans (Plan Assumptions) (Detail) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
For measuring benefit obligations at year end | ||||
Discount rate | [1] | 3.05% | 4.10% | 3.47% |
For measuring net periodic benefit cost | ||||
Discount rate | [1] | 4.10% | 3.47% | 3.97% |
Expected return on plan assets | [1] | 5.50% | 6.00% | 6.00% |
[1] | Since the Plan’s benefits were frozen, except for grandfathered employees, the rate of compensation increase is no longer applicable beginning in 2014 since minimal grandfathered employees are still accruing benefits. |
Retirement and Benefit Plans _4
Retirement and Benefit Plans (Targeted and Actual Weighted Average Asset Allocations by Plan Asset Category) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Total | |||
Defined Benefit Plan Disclosure | |||
Asset allocation by asset category | [1] | 100.00% | 100.00% |
Targeted Range 0 to 55 Percent | Equity securities | |||
Defined Benefit Plan Disclosure | |||
Total equity securities | [1],[2] | $ 19 | $ 67 |
Targeted Range 50 to 100 Percent | Fixed-income securities | |||
Defined Benefit Plan Disclosure | |||
Asset allocation by asset category | [1] | 59.00% | 23.00% |
Targeted Range 0 to 5 Percent | Alternative strategies | |||
Defined Benefit Plan Disclosure | |||
Asset allocation by asset category | [1] | 3.00% | |
Targeted Range 0 to 100 Percent | Cash | |||
Defined Benefit Plan Disclosure | |||
Asset allocation by asset category | [1] | 22.00% | 7.00% |
[1] | These reflect the targeted ranges for the year ended December 31, 2019. | ||
[2] | Includes mutual and exchange-traded funds. |
AOCI (Activity of the Component
AOCI (Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net activity for accumulated net unrealized gain (loss) on available-for-sale securities | |||
Unrealized holding gains (losses) on available-for-sale securities arising during the year | $ 1,046 | $ (371) | $ 21 |
Reclassification adjustment for net (gains) losses included in net income | 7 | (9) | (4) |
Net activity for net unrealized gain (loss) on cash flow hedge derivatives | |||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during the year | 275 | 169 | (7) |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (13) | 2 | (12) |
Net activity for defined benefit plans, net | |||
Net actuarial gain (loss) arising during the year | (5) | 1 | 1 |
Reclassification of amounts to net periodic benefit costs | 8 | 7 | 7 |
Total Other Comprehensive Activity | |||
Pre-tax activity total | 1,696 | (246) | (1) |
Total, Tax | (392) | 63 | 15 |
Other comprehensive income (loss), net of tax | 1,304 | (183) | 14 |
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | (112) | 73 | |
Other comprehensive income (loss), net of tax | 1,304 | (183) | 14 |
Total Accumulated Other Comprehensive Income - Ending Balance | 1,192 | (112) | 73 |
Derivative Hedge AOCI 2019 | |||
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | (112) | ||
Total Accumulated Other Comprehensive Income - Ending Balance | (112) | ||
Derivative Hedge AOCI 2018 | |||
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | 71 | ||
Total Accumulated Other Comprehensive Income - Ending Balance | 71 | ||
Derivative Hedge AOCI 2017 | |||
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | 59 | ||
Accumulated Net Unrealized Investment Gain (Loss) | |||
Pre-tax activity for accumulated net unrealized gain (loss) on available-for-sale securities | |||
Unrealized holding gains on available-for-sale securities arising during period | 1,369 | (483) | 14 |
Reclassification adjustment for net losses (gains) included in net income | (9) | 11 | 3 |
Net unrealized gains on available-for-sale securities | 1,360 | (472) | 17 |
Tax effect for accumulated net unrealized gain (loss) on available-for-sale securities | |||
Unrealized holding gains on available-for-sale securities arising during period | (323) | 112 | 7 |
Reclassification adjustment for net losses (gains) included in net income | 2 | (2) | 1 |
Net unrealized gains on available-for-sale securities | (321) | 110 | 8 |
Net activity for accumulated net unrealized gain (loss) on available-for-sale securities | |||
Unrealized holding gains (losses) on available-for-sale securities arising during the year | 1,046 | (371) | 21 |
Reclassification adjustment for net (gains) losses included in net income | (7) | 9 | 4 |
Net unrealized gains on available-for-sale securities | 1,039 | (362) | 25 |
Total Other Comprehensive Activity | |||
Other comprehensive income (loss), net of tax | 1,039 | (362) | 25 |
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | (227) | 126 | |
Other comprehensive income (loss), net of tax | 1,039 | (362) | 25 |
Total Accumulated Other Comprehensive Income - Ending Balance | 812 | (227) | 126 |
Accumulated Net Unrealized Investment Gain (Loss) | Derivative Hedge AOCI 2019 | |||
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | (227) | ||
Total Accumulated Other Comprehensive Income - Ending Balance | (227) | ||
Accumulated Net Unrealized Investment Gain (Loss) | Derivative Hedge AOCI 2018 | |||
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | 135 | ||
Total Accumulated Other Comprehensive Income - Ending Balance | 135 | ||
Accumulated Net Unrealized Investment Gain (Loss) | Derivative Hedge AOCI 2017 | |||
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | 101 | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | |||
Pre-tax activity for net unrealized gain (loss) on cash flow hedge derivatives | |||
Unrealized holding gains on cash flow hedge derivatives arising during period | 348 | 214 | (11) |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (16) | 2 | (19) |
Net unrealized gains on cash flow hedge derivatives | 332 | 216 | (30) |
Tax effect for net unrealized gain (loss) on cash flow hedge derivatives | |||
Unrealized holding gains on cash flow hedge derivatives arising during period | (73) | (45) | 4 |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 3 | 0 | 7 |
Net unrealized gains on cash flow hedge derivatives | (70) | (45) | 11 |
Net activity for net unrealized gain (loss) on cash flow hedge derivatives | |||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during the year | 275 | 169 | (7) |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (13) | 2 | (12) |
Net unrealized gains on cash flow hedge derivatives | 262 | 171 | (19) |
Total Other Comprehensive Activity | |||
Other comprehensive income (loss), net of tax | 262 | 171 | (19) |
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | 160 | (9) | |
Other comprehensive income (loss), net of tax | 262 | 171 | (19) |
Total Accumulated Other Comprehensive Income - Ending Balance | 422 | 160 | (9) |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Derivative Hedge AOCI 2019 | |||
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | 160 | ||
Total Accumulated Other Comprehensive Income - Ending Balance | 160 | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Derivative Hedge AOCI 2018 | |||
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | (11) | ||
Total Accumulated Other Comprehensive Income - Ending Balance | (11) | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Derivative Hedge AOCI 2017 | |||
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | 10 | ||
Accumulated Defined Benefit Plans Adjustment | |||
Pre-tax activity for defined benefit plans, net | |||
Net actuarial gain (loss) arising during the period | (5) | 1 | 1 |
Reclassification of amounts to net periodic benefit costs | 9 | 9 | 11 |
Defined benefit plans, net | 4 | 10 | 12 |
Tax effect for defined benefit plans, net | |||
Reclassification of amounts to net periodic benefit costs | (1) | (2) | (4) |
Defined benefit plans, net | (1) | (2) | (4) |
Net activity for defined benefit plans, net | |||
Net actuarial gain (loss) arising during the year | (5) | 1 | 1 |
Reclassification of amounts to net periodic benefit costs | 8 | 7 | 7 |
Defined benefit plans, net | 3 | 8 | 8 |
Total Other Comprehensive Activity | |||
Other comprehensive income (loss), net of tax | 3 | 8 | 8 |
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | (45) | (44) | |
Other comprehensive income (loss), net of tax | 3 | 8 | 8 |
Total Accumulated Other Comprehensive Income - Ending Balance | (42) | (45) | (44) |
Accumulated Defined Benefit Plans Adjustment | Derivative Hedge AOCI 2019 | |||
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | $ (45) | ||
Total Accumulated Other Comprehensive Income - Ending Balance | (45) | ||
Accumulated Defined Benefit Plans Adjustment | Derivative Hedge AOCI 2018 | |||
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | $ (53) | ||
Total Accumulated Other Comprehensive Income - Ending Balance | (53) | ||
Accumulated Defined Benefit Plans Adjustment | Derivative Hedge AOCI 2017 | |||
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | $ (52) |
AOCI (Reclassification Out of A
AOCI (Reclassification Out of Accumulated Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net periodic pension cost | $ 8 | $ 5 | $ 9 | |
Income (Loss) Before Income Taxes | 3,202 | 2,765 | 2,979 | |
Applicable income tax expense | 690 | 572 | 799 | |
Net income | 2,512 | 2,193 | 2,180 | |
Total reclassifications for the period | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net income | 12 | (18) | 1 | |
Net unrealized gains on available-for-sale securities | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment for net losses (gains) included in net income | 9 | (11) | (3) | |
Income (Loss) Before Income Taxes | [1] | 9 | (11) | (3) |
Applicable income tax expense | [1] | (2) | 2 | (1) |
Net income | [1] | 7 | (9) | (4) |
Net unrealized gains on available-for-sale securities | Net gains (losses) included in net income | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment for net losses (gains) included in net income | [1] | 9 | (11) | (3) |
Net unrealized gains on cash flow hedge derivatives | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 16 | (2) | 19 | |
Income (Loss) Before Income Taxes | [1] | 16 | (2) | 19 |
Applicable income tax expense | [1] | (3) | 0 | (7) |
Net income | [1] | 13 | (2) | 12 |
Net unrealized gains on cash flow hedge derivatives | Interest rate contracts related to C&I loans | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | [1] | 16 | (2) | 19 |
Amortization of defined periodic benefit costs | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Income (Loss) Before Income Taxes | [1] | (9) | (9) | (11) |
Applicable income tax expense | [1] | 1 | 2 | 4 |
Net income | [1] | (8) | (7) | (7) |
Amortization of defined periodic benefit costs | Net Actuarial Loss | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net periodic pension cost | [2] | (6) | (6) | (7) |
Amortization of defined periodic benefit costs | Pension Settlement | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net periodic pension cost | [2] | $ (3) | $ (3) | $ (4) |
[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 23 for information on the computation of net periodic benefit cost. |
Common, Preferred and Treasur_3
Common, Preferred and Treasury Stock (Share Acitivity within Common, Preferred and Treasury Stock) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Values | |||
Beginning Balance | $ 16,250 | $ 16,220 | $ 16,081 |
Issuance of preferred shares, Series K | 1,770 | 1,331 | |
Impact of MB Financial, Inc. acquisition | 3,356 | ||
Shares acquired for treasury | (1,763) | (1,453) | (1,605) |
Impact of stock transactions under stock compensation plans, net | 72 | 65 | 67 |
Other | 4 | (22) | (6) |
Ending Balance | 21,203 | 16,250 | 16,220 |
Common Stock | |||
Values | |||
Beginning Balance | 2,051 | 2,051 | 2,051 |
Ending Balance | $ 2,051 | $ 2,051 | $ 2,051 |
Shares | |||
Beginning balance | 923,892,581 | 923,892,581 | 923,892,581 |
Ending balance | 923,892,581 | 923,892,581 | 923,892,581 |
Preferred Stock | |||
Values | |||
Beginning Balance | $ 1,331 | $ 1,331 | $ 1,331 |
Conversion of outstanding preferred stock | 197 | ||
Ending Balance | $ 1,770 | $ 1,331 | $ 1,331 |
Shares | |||
Beginning balance | 54,000 | 54,000 | 54,000 |
Conversion of outstanding preferred stock | 200,000 | ||
Ending balance | 264,000 | 54,000 | 54,000 |
Treasury Stock | |||
Values | |||
Beginning Balance | $ (6,471) | $ (5,002) | $ (3,433) |
Impact of MB Financial, Inc. acquisition | 2,447 | ||
Shares acquired for treasury | (1,763) | (1,494) | (1,588) |
Impact of stock transactions under stock compensation plans, net | 56 | 23 | 16 |
Other | 7 | 2 | 3 |
Ending Balance | $ (5,724) | $ (6,471) | $ (5,002) |
Shares | |||
Beginning balance | 277,261,724 | 230,087,688 | 173,413,282 |
Shares acquired for treasury | 64,601,891 | 49,967,134 | 58,493,506 |
Impact of MB Financial, Inc. acquisition | (122,848,442) | ||
Impact of stock transactions under stock compensation plans, net | (4,258,132) | (2,698,451) | (1,693,503) |
Other | 219,911 | (94,647) | (125,597) |
Ending balance | 214,976,952 | 277,261,724 | 230,087,688 |
Preferred Stock Series K | |||
Values | |||
Issuance of preferred shares, Series K | $ 242 | ||
Shares | |||
Issuance of preferred shares, Series K | 10,000 |
Common, Preferred and Treasur_4
Common, Preferred and Treasury Stock (Common, Preferred, and Treasury Stock - Additional Information) (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 26, 2019 | Jun. 30, 2018 | |
Issuance of preferred stock | $ 242,000,000 | $ 0 | $ 0 | |||
Stock Repurchase Authorization Amount | $ 1,240,000,000 | 1,651,000,000 | $ 1,810,000,000 | $ 1,161,000,000 | ||
BHC stress test threshold | 250,000,000,000 | $ 250,000,000,000 | ||||
Capital Distribution | $ 2,000,000,000 | |||||
Stock Option, Exercise Price, Increase | $ 0.03 | |||||
Preferred stock, Series J | ||||||
Depositary shares | 300,000 | |||||
Preferred stock, issued | 12,000 | |||||
Issuance of preferred stock | $ 297,000,000 | |||||
Preferred stock, liquidation preference | $ 25,000 | |||||
Preferred Stock, Dividend Payment Terms | The preferred stock accrued dividends, on a non-cumulative semi-annual basis, at an annual rate of 4.90% through but excluding September 30, 2019, at which time it converted to a quarterly floating-rate dividend of three-month LIBOR plus 3.129%. | |||||
Preferred Stock, Redemption Terms | Subject to any required regulatory approval, the Bancorp may redeem the Series J preferred shares at its option, in whole or in part, at any time on or after September 30, 2019, or any time prior following a regulatory capital event. | |||||
Preferred stock, issued | 12,000 | |||||
Preferred stock, Series I | ||||||
Depositary shares | 18,000,000 | |||||
Preferred stock, issued | 18,000 | |||||
Issuance of preferred stock | $ 441,000,000 | |||||
Preferred stock, liquidation preference | $ 25,000 | |||||
Preferred Stock, Dividend Payment Terms | The preferred stock accrues dividends, on a non-cumulative quarterly basis, at an annual rate of 6.625% through but excluding December 31, 2023, at which time it converts to a quarterly floating-rate dividend of three-month LIBOR plus 3.71%. | |||||
Preferred Stock, Redemption Terms | Subject to any required regulatory approval, the Bancorp may redeem the Series I preferred shares at its option in whole or in part, at any time on or after December 31, 2023 and may redeem in whole but not in part, following a regulatory capital event at any time prior to December 31, 2023. | |||||
Preferred stock, issued | 18,000 | |||||
Preferred stock, Series H | ||||||
Depositary shares | 600,000 | |||||
Preferred stock, issued | 24,000 | |||||
Issuance of preferred stock | $ 593,000,000 | |||||
Preferred stock, liquidation preference | $ 25,000 | |||||
Preferred Stock, Dividend Payment Terms | The preferred stock accrues dividends, on a non-cumulative semi-annual basis, at an annual rate of 5.10% through but excluding June 30, 2023, at which time it converts to a quarterly floating-rate dividend of three-month LIBOR plus 3.033%. | |||||
Preferred Stock, Redemption Terms | Subject to any required regulatory approval, the Bancorp may redeem the Series H preferred shares at its option in whole or in part, at any time on or after June 30, 2023 and may redeem in whole but not in part, following a regulatory capital event at any time prior to June 30, 2023. | |||||
Preferred stock, issued | 24,000 | |||||
Preferred Stock Series K | ||||||
Depositary shares | 10,000,000 | |||||
Preferred stock, issued | 10,000 | |||||
Issuance of preferred stock | $ 242,000,000 | |||||
Preferred stock, liquidation preference | $ 25,000 | |||||
Preferred stock, issued | 10,000 | |||||
Preferred Class B [Member] | ||||||
Preferred stock, issued | 200,000 | |||||
Preferred stock, liquidation preference | $ 1,000 | |||||
Preferred stock, issued | 200,000 | |||||
June 2019 Repurchase Program [Member] | ||||||
Repurchase Shares Authorized | 100,000,000 |
Common, Preferred and Treasur_5
Common, Preferred and Treasury Stock (Accelerated Share Repurchase Transactions) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accelerated Share Repurchases [Line Items] | |||
Shares acquired for treasury | $ 1,763 | $ 1,453 | $ 1,605 |
December 19. 2017 ASR | |||
Accelerated Share Repurchases [Line Items] | |||
Settlement date | Mar. 19, 2018 | ||
Redemption date | Dec. 19, 2017 | ||
December 19. 2017 ASR | February 2018 Repurchase Program | |||
Accelerated Share Repurchases [Line Items] | |||
Shares acquired for treasury | $ 273 | ||
Shares repurchased on repurchase date | 7,727,273 | ||
Shares received from forward contract settlement | 824,367 | ||
Total shares repurchased | 8,551,640 | ||
February 12, 2018 ASR | |||
Accelerated Share Repurchases [Line Items] | |||
Settlement date | Mar. 26, 2018 | ||
Redemption date | Feb. 12, 2018 | ||
February 12, 2018 ASR | February 2018 Repurchase Program | |||
Accelerated Share Repurchases [Line Items] | |||
Shares acquired for treasury | $ 318 | ||
Shares repurchased on repurchase date | 8,691,318 | ||
Shares received from forward contract settlement | 1,015,731 | ||
Total shares repurchased | 9,707,049 | ||
May 25, 2018 ASR | |||
Accelerated Share Repurchases [Line Items] | |||
Settlement date | Jun. 15, 2018 | ||
Redemption date | May 25, 2018 | ||
May 25, 2018 ASR | February 2018 Repurchase Program | |||
Accelerated Share Repurchases [Line Items] | |||
Shares acquired for treasury | $ 235 | ||
Shares repurchased on repurchase date | 6,402,244 | ||
Shares received from forward contract settlement | 1,172,122 | ||
Total shares repurchased | 7,574,366 | ||
July 20, 2018 through August 2, 2018 Open Market Repurchase | |||
Accelerated Share Repurchases [Line Items] | |||
Settlement date | Aug. 6, 2018 | ||
July 20, 2018 through August 2, 2018 Open Market Repurchase | March 2018 Repurchase Program | |||
Accelerated Share Repurchases [Line Items] | |||
Shares acquired for treasury | $ 500 | ||
Shares repurchased on repurchase date | 16,945,020 | ||
Settlement date | Jul. 24, 2018 | ||
October 24, 2018 through November 9, 2018 Open Market Repurchase | |||
Accelerated Share Repurchases [Line Items] | |||
Settlement date | Nov. 14, 2018 | ||
October 24, 2018 through November 9, 2018 Open Market Repurchase | March 2018 Repurchase Program | |||
Accelerated Share Repurchases [Line Items] | |||
Shares acquired for treasury | $ 400 | ||
Shares repurchased on repurchase date | 14,916,332 | ||
March 27, 2019 ASR | |||
Accelerated Share Repurchases [Line Items] | |||
Settlement date | Jun. 28, 2019 | ||
Redemption date | Mar. 27, 2019 | ||
March 27, 2019 ASR | February 2018 Repurchase Program | |||
Accelerated Share Repurchases [Line Items] | |||
Shares acquired for treasury | $ 913 | ||
Shares repurchased on repurchase date | 31,779,280 | ||
Shares received from forward contract settlement | 2,026,584 | ||
Total shares repurchased | 33,805,864 | ||
April 29, 2019 ASR | |||
Accelerated Share Repurchases [Line Items] | |||
Redemption date | Apr. 29, 2019 | ||
April 29, 2019 ASR | Maximum [Member] | |||
Accelerated Share Repurchases [Line Items] | |||
Settlement date | May 24, 2019 | ||
April 29, 2019 ASR | Minimum [Member] | |||
Accelerated Share Repurchases [Line Items] | |||
Settlement date | May 23, 2019 | ||
April 29, 2019 ASR | February 2018 Repurchase Program | |||
Accelerated Share Repurchases [Line Items] | |||
Shares acquired for treasury | $ 200 | ||
Shares repurchased on repurchase date | 6,015,570 | ||
Shares received from forward contract settlement | 1,217,805 | ||
Total shares repurchased | 7,233,375 | ||
August 7, 2019 ASR | |||
Accelerated Share Repurchases [Line Items] | |||
Settlement date | Aug. 16, 2019 | ||
Redemption date | Aug. 7, 2019 | ||
August 7, 2019 ASR | February 2018 Repurchase Program | |||
Accelerated Share Repurchases [Line Items] | |||
Shares acquired for treasury | $ 100 | ||
Shares repurchased on repurchase date | 3,150,482 | ||
Shares received from forward contract settlement | 694,238 | ||
Total shares repurchased | 3,844,720 | ||
August 9, 2019 ASR | |||
Accelerated Share Repurchases [Line Items] | |||
Settlement date | Aug. 28, 2019 | ||
Redemption date | Aug. 9, 2019 | ||
August 9, 2019 ASR | February 2018 Repurchase Program | |||
Accelerated Share Repurchases [Line Items] | |||
Shares acquired for treasury | $ 200 | ||
Shares repurchased on repurchase date | 6,405,426 | ||
Shares received from forward contract settlement | 1,475,487 | ||
Total shares repurchased | 7,880,913 | ||
October 25, 2019 ASR | |||
Accelerated Share Repurchases [Line Items] | |||
Settlement date | Dec. 17, 2019 | ||
Redemption date | Oct. 25, 2019 | ||
October 25, 2019 ASR | February 2018 Repurchase Program | |||
Accelerated Share Repurchases [Line Items] | |||
Shares acquired for treasury | $ 300 | ||
Shares repurchased on repurchase date | 9,020,163 | ||
Shares received from forward contract settlement | 1,149,121 | ||
Total shares repurchased | 10,169,284 | ||
July 29, 2019 through July 30, 2019 Open Market Repurchase | March 2018 Repurchase Program | |||
Accelerated Share Repurchases [Line Items] | |||
Shares acquired for treasury | $ 50 | ||
Shares repurchased on repurchase date | 1,667,735 | ||
Settlement date | Jul. 31, 2019 |
Common, Preferred and Treasur_6
Common, Preferred and Treasury Stock (Accelerated Share Repurchase Transactions) (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Stockholders' Equity Note [Abstract] | |
Derivative, Notional Amount | $ 456.5 |
Stock Repurchased During Period, Value | $ 100 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Share-based Payment, Award, Stock Appreciation Rights, Valuation Assumptions) (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life (in years) | 7 years | 7 years | 6 years |
Expected volatility | 32.00% | 35.00% | 37.00% |
Expected dividend yield | 3.30% | 1.90% | 2.10% |
Risk-free interest rate | 2.60% | 2.60% | 2.10% |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity) (Detail) - Stock Appreciation Rights - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares/Units | |||
Outstanding at January 1 | 26,196 | 31,929 | 40,041 |
Granted | 399 | 272 | 3,672 |
Exercised | (4,829) | (5,058) | (6,953) |
Forfeited or expired | (317) | (947) | (4,831) |
Outstanding at December 31 | 21,449 | 26,196 | 31,929 |
Exercisable at December 31 | 18,249 | 20,132 | 21,403 |
Weighted-Average Grant Price | |||
Outstanding at January 1 | $ 17.30 | $ 17.22 | $ 18.30 |
Granted | 26.72 | 33.15 | 26.52 |
Exercised | 13.34 | 16.96 | 16 |
Forfeited or expired | 23.47 | 20.93 | 35.08 |
Outstanding at December 31 | 18.38 | 17.30 | 17.22 |
Exercisable at December 31 | $ 17.50 | $ 15.90 | $ 15.30 |
Stock-Based Compensation (Outst
Stock-Based Compensation (Outstanding and Exercisable SARs by Grant Price) (Detail) - Stock Appreciation Rights - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of SARs Outstanding at Year End | 21,449 | 26,196 | 31,929 | 40,041 |
Outstanding SARs Weighted-Average Grant Price Per Share | $ 18.38 | $ 17.30 | $ 17.22 | $ 18.30 |
Outstanding Weighted-Average Remaining Contractual Life (in years) | 4 years 4 months 24 days | |||
Number of SARs Exercisable at Year End | 18,249 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 17.50 | $ 15.90 | $ 15.30 | |
Exercisable Weighted-Average Remaining Contractual Life (in years) | 3 years 10 months 24 days | |||
$10.01-$20.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of SARs Outstanding at Year End | 15,944 | |||
Outstanding SARs Weighted-Average Grant Price Per Share | $ 16.12 | |||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 3 years 8 months 12 days | |||
Number of SARs Exercisable at Year End | 14,694 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 16 | |||
Exercisable Weighted-Average Remaining Contractual Life (in years) | 3 years 6 months | |||
$20.01-$30.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of SARs Outstanding at Year End | 5,236 | |||
Outstanding SARs Weighted-Average Grant Price Per Share | $ 24.50 | |||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 6 years 1 month 6 days | |||
Number of SARs Exercisable at Year End | 3,464 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 23.44 | |||
Exercisable Weighted-Average Remaining Contractual Life (in years) | 5 years 3 months 18 days | |||
$30.01-$40.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of SARs Outstanding at Year End | 269 | |||
Outstanding SARs Weighted-Average Grant Price Per Share | $ 33.15 | |||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 8 years | |||
Number of SARs Exercisable at Year End | 91 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 33.15 | |||
Exercisable Weighted-Average Remaining Contractual Life (in years) | 7 years 10 months 24 days |
Stock-Based Compensation (Sch_3
Stock-Based Compensation (Schedule of Share-based Compensation, Restricted Stock Award Activity) (Detail) - Restricted Stock Awards - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares/Units | |||
Outstanding at January 1 | 868 | 2,321 | 4,638 |
Granted | 0 | 0 | 7 |
Assumed | 11 | 0 | 0 |
Released | (867) | (1,347) | (2,063) |
Forfeited | (12) | (106) | (261) |
Outstanding at December 31 | 0 | 868 | 2,321 |
Weighted-Average Grant Price | |||
Outstanding at January 1 | $ 19.18 | $ 19.72 | $ 19.44 |
Granted | 0 | 0 | 21.14 |
Assumed | 25.48 | 0 | 0 |
Released | 18.91 | 20.09 | 19.10 |
Forfeited | 19.01 | 19.40 | 19.75 |
Outstanding at December 31 | $ 25.48 | $ 19.18 | $ 19.72 |
Stock-Based Compensation (Sch_4
Stock-Based Compensation (Schedule of Share-based Compensation, Restricted Stock Units Activity) (Detail) - Restricted Stock Units - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares/Units | |||
Outstanding at January 1 | 8,020 | 6,986 | 5,086 |
Granted | 4,375 | 3,674 | 3,652 |
Assumed | 1,476 | 0 | 0 |
Released | (2,951) | (1,977) | (1,194) |
Forfeited | (914) | (663) | (558) |
Outstanding at December 31 | 10,006 | 8,020 | 6,986 |
Weighted-Average Grant Price | |||
Outstanding at January 1 | $ 27.04 | $ 22.25 | $ 17.84 |
Granted | 26.68 | 32.84 | 26.71 |
Assumed | 25.48 | 0 | 0 |
Released | 24.76 | 21.15 | 17.64 |
Forfeited | 27.41 | 26.45 | 21.02 |
Outstanding at December 31 | $ 27.30 | $ 27.04 | $ 22.25 |
Stock-Based Compensation (Unves
Stock-Based Compensation (Unvested RSUs by Grant-Date Fair Value) (Detail) - Restricted Stock Units - shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 10,006 | 8,020 | 6,986 | 5,086 |
Weighted-Average Remaining Contractual Life (in years) | 1 year 2 months 12 days | |||
$15.01-$20.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 870 | |||
Weighted-Average Remaining Contractual Life (in years) | 8 months 12 days | |||
$20.01-$25.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 243 | |||
Weighted-Average Remaining Contractual Life (in years) | 6 months | |||
$25.01-$30.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 6,477 | |||
Weighted-Average Remaining Contractual Life (in years) | 1 year 2 months 12 days | |||
$30.01-$35.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 2,416 | |||
Weighted-Average Remaining Contractual Life (in years) | 1 year 7 months 6 days |
Stock-Based Compensation (Sch_5
Stock-Based Compensation (Schedule of Share-based Compensation, Stock Options, Activity) (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Options | |||
Outstanding at January 1 | 0 | 2 | 25 |
Assumed | 2,120 | 0 | 0 |
Exercised | (660) | (1) | (18) |
Forfeited or expired | (79) | (1) | (5) |
Outstanding at December 31 | 1,381 | 0 | 2 |
Exercisable at December 31 | 1,162 | 0 | 2 |
Weighted-Average Exercise Price | |||
Outstanding at January 1 | $ 0 | $ 16.50 | $ 19.17 |
Assumed | 19.34 | 0 | 0 |
Exercised | 17.36 | 8.59 | 14.05 |
Forfeited or expired | 22.18 | 24.41 | 40.98 |
Outstanding at December 31 | 20.15 | 0 | 16.50 |
Exercisable at December 31 | $ 19.17 | $ 0 | $ 16.50 |
Stock-Based Compensation (Sch_6
Stock-Based Compensation (Schedule of Outstanding And Exercisable Stock Options Exercise Price) (Detail) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Outstanding Stock Options, Number of Options | 1,381 | 0 | 2 | 25 |
Outstanding Stock Options, Weighted - Exercise Price Per Share | $ 20.15 | $ 0 | $ 16.50 | $ 19.17 |
Outstanding Stock Options, Weighted- Average Contractual Life | 3 years 9 months 18 days | |||
Exercisable Stock Options, Number of Options | 1,162 | |||
Exercisable Stock Options, Weighted - Exercise Price Per Share | $ 19.17 | |||
Exercisable Stock Options ,Weighted - Average Contractual Life | 3 years 2 months 12 days | |||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Outstanding Stock Options, Number of Options | 1,381 | |||
Under $10.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Outstanding Stock Options, Weighted - Exercise Price Per Share | $ 8.62 | |||
Outstanding Stock Options, Weighted- Average Contractual Life | 6 years 8 months 12 days | |||
Exercisable Stock Options, Number of Options | 7 | |||
Exercisable Stock Options, Weighted - Exercise Price Per Share | $ 8.52 | |||
Exercisable Stock Options ,Weighted - Average Contractual Life | 6 years 8 months 12 days | |||
Under $10.00 | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Outstanding Stock Options, Number of Options | 9 | |||
$10.01-$20.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Outstanding Stock Options, Weighted - Exercise Price Per Share | $ 17.04 | |||
Outstanding Stock Options, Weighted- Average Contractual Life | 3 years 6 months | |||
Exercisable Stock Options, Number of Options | 811 | |||
Exercisable Stock Options, Weighted - Exercise Price Per Share | $ 16.91 | |||
Exercisable Stock Options ,Weighted - Average Contractual Life | 3 years 3 months 18 days | |||
$10.01-$20.00 | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Outstanding Stock Options, Number of Options | 884 | |||
$20.01-$30.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Outstanding Stock Options, Weighted - Exercise Price Per Share | $ 25.98 | |||
Outstanding Stock Options, Weighted- Average Contractual Life | 4 years 4 months 24 days | |||
Exercisable Stock Options, Number of Options | 344 | |||
Exercisable Stock Options, Weighted - Exercise Price Per Share | $ 26.14 | |||
Exercisable Stock Options ,Weighted - Average Contractual Life | 2 years 8 months 12 days | |||
$20.01-$30.00 | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Outstanding Stock Options, Number of Options | 488 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-Based Compensation - Additional Information) (Detail) $ / shares in Units, $ in Millions | Apr. 21, 2009shares | Mar. 28, 2007shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares |
Employee Stock Ownership Plan (ESOP) Disclosures | |||||
The Bancorp's total overhang (potential dilution from share-based compensation) | 10.00% | ||||
SARs, RSAs, RSUs, stock options and PSAs outstanding as a percentage of issued shares | 5.00% | ||||
Annual return on tangible common equity performance hurdle | 2.00% | ||||
Stock-based compensation expense | $ 132 | $ 127 | $ 118 | ||
Income tax benefit related to stock-based compensation expense | 27 | $ 27 | $ 41 | ||
Aggregate intrinsic value of exercisable options | $ 13 | ||||
Share available for future issuance | shares | 39,500,000 | ||||
Minimum Volatility rate | 23.00% | ||||
Maximum volatility rate | (29.00%) | ||||
Minimum Risk Free rate | 2.34% | ||||
Maximum Risk Free Rate | (2.51%) | ||||
Departure Rate | 10.00% | ||||
Share Based Compensation Arrangement By Share Based payment Award FairValue Assumtions Exercise Ratios Minimum | 2.20% | ||||
Share Based Compensation Arrangement By Share Based payment Award FairValue Assumtions Exercise Ratios Maximum | 2.80% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years | 7 years | 6 years | ||
Aggregate intrinsic value of outstanding options | $ 15 | ||||
1993 Stock Purchase Plan | |||||
Employee Stock Ownership Plan (ESOP) Disclosures | |||||
Available for future issuance | shares | 4,600,000 | ||||
Additional share issued | shares | 12,000,000 | 1,500,000 | |||
Minimum | |||||
Employee Stock Ownership Plan (ESOP) Disclosures | |||||
Performanace based stock award granted | shares | 0 | ||||
Maximum | |||||
Employee Stock Ownership Plan (ESOP) Disclosures | |||||
Performanace based stock award granted | shares | 1,000,000 | ||||
Stock Appreciation Rights Granted | |||||
Employee Stock Ownership Plan (ESOP) Disclosures | |||||
Vesting period of share based compensation | ratably over a three or four-year period of continued employment. | ||||
Stock-based compensation expense | $ 7 | ||||
Weighted-average grant-date fair value per share | $ / shares | $ 7.38 | $ 11.33 | $ 8.55 | ||
Total grant-date fair value | $ 20 | $ 26 | $ 29 | ||
Weighted-average period over which expense is expected to be recognized | 1 year 1 month 6 days | ||||
Shares granted | shares | 399,000 | 272,000 | 3,672,000 | ||
Restricted Stock Awards | |||||
Employee Stock Ownership Plan (ESOP) Disclosures | |||||
Vesting period of share based compensation | after three or four years or ratably over three or four years of continued employment. | ||||
Total grant-date fair value | $ 16 | $ 27 | $ 39 | ||
Weighted-average period over which expense is expected to be recognized | 1 year 2 months 12 days | ||||
Shares granted | shares | 0 | 0 | 7,000 | ||
Share based compensation arrangement award replacement of other than option granted outstanding | 1.65 | ||||
Restricted Stock Units | |||||
Employee Stock Ownership Plan (ESOP) Disclosures | |||||
Vesting period of share based compensation | after three or four years or ratably over three or four years of continued employment. | ||||
Stock-based compensation expense | $ 125 | ||||
Total grant-date fair value | $ 73 | $ 42 | $ 21 | ||
Weighted-average period over which expense is expected to be recognized | 2 years 3 months 18 days | ||||
Shares granted | shares | 4,375,000 | 3,674,000 | 3,652,000 | ||
Stock options | |||||
Employee Stock Ownership Plan (ESOP) Disclosures | |||||
Intrinsic value of stock options exercised | $ 7 | ||||
Cash received from stock options exercised | $ 11 | ||||
Stock options vested | shares | 0 | 0 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years 4 months 24 days | ||||
Tax benefit from exercised stock options | $ 1 | ||||
Performance Share Awards | |||||
Employee Stock Ownership Plan (ESOP) Disclosures | |||||
Vesting period of share based compensation | three-year cliff vesting terms | ||||
Weighted-average grant-date fair value per share | $ / shares | $ 26.72 | $ 33.15 | $ 26.52 | ||
Shares granted | shares | 328,068 | 279,568 | 407,069 | ||
Employee stock purchase plan | |||||
Employee Stock Ownership Plan (ESOP) Disclosures | |||||
Stock-based compensation expense | $ 2 | $ 2 | $ 1 | ||
Match on qualifying employees purchase of shares of the Bancorp's common stock | 15.00% | ||||
Stock purchased by plan participants | shares | 564,061 | 471,818 | 475,466 | ||
2019 Incentive Compensation Plan | |||||
Employee Stock Ownership Plan (ESOP) Disclosures | |||||
Stock authorized for issuance | shares | 40,000,000 |
Other Noninterest Income and _3
Other Noninterest Income and Other Noninterest Expense (Other Nonint Income and Expense) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Noninterest Income | ||||||
Gain on sale of Worldpay, Inc. shares | $ 562 | $ 205 | $ 414 | $ 562 | $ 205 | $ 1,037 |
Income from the tax receivable agreement associated with Worldpay, Inc. | 346 | 20 | 44 | |||
Operating lease income | 151 | 84 | 96 | |||
Private equity investment income | 65 | 63 | 36 | |||
BOLI income | 60 | 56 | 52 | |||
Cardholder fees | 58 | 56 | 54 | |||
Consumer loan and lease fees | 23 | 23 | 23 | |||
Banking center income | 22 | 21 | 20 | |||
Insurance income | 19 | 20 | 8 | |||
Net gain (losses) on loan sales | 3 | 2 | (2) | |||
Equity method income from interest in Worldpay Holding, LLC | 2 | 1 | 47 | |||
Loss on swap associated with the sale of Visa, Inc. class B shares | (107) | (59) | (80) | |||
Gain (Loss) on Sale of Assets and Asset Impairment Charges | (23) | (43) | 0 | |||
Loss on sale of business | (4) | |||||
Gain related to Vantiv acquisition of Worldpay | 0 | 414 | 0 | |||
Other, net | 47 | 24 | 22 | |||
Total other noninterest income | 1,224 | 887 | 1,357 | |||
Other Noninterest Expense | ||||||
Marketing | 162 | 147 | 114 | |||
Loan and lease | 142 | 112 | 102 | |||
Operating Lease | 124 | 76 | 87 | |||
Losses and adjustments | 102 | 61 | 59 | |||
FDIC insurance and other taxes | 81 | 119 | 127 | |||
Professional services fees | 70 | 67 | 83 | |||
Data processing | 70 | 57 | 58 | |||
Travel | 68 | 52 | 46 | |||
Intangible amortization | 45 | 5 | 2 | |||
Postal and courier | 38 | 35 | 42 | |||
Donations | 30 | 21 | 28 | |||
Recruitment and education | 28 | 32 | 35 | |||
Supplies | 14 | 13 | 14 | |||
Insurance | 14 | 13 | 12 | |||
Loss (gain) on partnership investments | 2 | (4) | 14 | |||
Other, net | 239 | 214 | 184 | |||
Total other noninterest expense | $ 1,229 | $ 1,020 | $ 1,007 |
EPS (Earnings Per Share - Addit
EPS (Earnings Per Share - Additional Information) (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Appreciation Rights | |||
Earnings Per Share Disclosure | |||
Anti-dilutive securities | 2 | 3 | 4 |
EPS (Calculation of Earnings Pe
EPS (Calculation of Earnings Per Share and the Reconciliation of Earnings Per Share to Earnings Per Diluted Share) (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share: | |||
Net income available to common shareholders | $ 2,419 | $ 2,118 | $ 2,105 |
Less: Income allocated to participating securities | 21 | 23 | 23 |
Net income allocated to common shareholders | 2,398 | 2,095 | 2,082 |
Earnings per diluted share: | |||
Net income available to common shareholders | 2,419 | 2,118 | 2,105 |
Stock-based awards | 0 | 0 | 0 |
Net income available to common shareholders plus assumed conversions | 2,419 | 2,118 | 2,105 |
Less: Income allocated to participating securities | 21 | 23 | 23 |
Net income allocated to common shareholders plus assumed conversions | $ 2,398 | $ 2,095 | $ 2,082 |
Earnings per share: | |||
Net income allocated to common shareholders | 710,433,611 | 673,346,168 | 728,289,200 |
Effect of dilutive securities: | |||
Stock-based awards | 10,000,000 | 12,000,000 | 13,000,000 |
Net income allocated to common shareholders | 720,065,498 | 685,488,498 | 740,691,433 |
Earnings per share: | |||
Earnings per share - basic | $ 3.38 | $ 3.11 | $ 2.86 |
Earnings per diluted share: | |||
Earnings per share - diluted | $ 3.33 | $ 3.06 | $ 2.81 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Available-for-sale debt securities, fair value | $ 36,028 | $ 32,830 |
Trading debt securities | 297 | 287 |
Equity securities | 564 | 452 |
Mortgage Servicing Rights | 993 | 938 |
Derivative assets | 1,673 | 1,114 |
Total assets | 260 | 249 |
Commercial | ||
Assets: | ||
Loans held for sale measured at FV | 0 | 7 |
Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 35,472 | 32,278 |
Trading debt securities | 297 | 287 |
Equity securities | 564 | 452 |
Mortgage Servicing Rights | 993 | 938 |
Derivative assets | 1,673 | 1,114 |
Total assets | 40,446 | 35,792 |
Liabilities: | ||
Derivative liabilities | 741 | 874 |
Short positions | 149 | 138 |
Total liabilities | 890 | 1,012 |
Fair value, recurring | Residential Mortgage Loans | ||
Assets: | ||
Loans measured at FV | 183 | |
Interest Rate Contract | Fair value, recurring | ||
Assets: | ||
Derivative assets | 1,237 | 655 |
Liabilities: | ||
Derivative liabilities | 157 | 329 |
Foreign Exchange Contract | Fair value, recurring | ||
Assets: | ||
Derivative assets | 165 | 152 |
Liabilities: | ||
Derivative liabilities | 151 | 142 |
Equity Contract | Fair value, recurring | ||
Liabilities: | ||
Derivative liabilities | 163 | 125 |
Commodity Contract | Fair value, recurring | ||
Assets: | ||
Derivative assets | 271 | 307 |
Liabilities: | ||
Derivative liabilities | 270 | 278 |
Residential mortgage-backed securities | Fair value, recurring | ||
Assets: | ||
Residential mortgage loans held for sale | 1,264 | 537 |
Loans measured at FV | 179 | |
Commercial mortgage-backed securities | Fair value, recurring | ||
Assets: | ||
Loans held for sale measured at FV | 7 | |
U.S. Treasury and federal agencies | ||
Assets: | ||
Available-for-sale debt securities, fair value | 75 | 97 |
U.S. Treasury and federal agencies | Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 75 | 97 |
Trading debt securities | 2 | 16 |
Obligations of states and political subdivisions | ||
Assets: | ||
Available-for-sale debt securities, fair value | 18 | 2 |
Obligations of states and political subdivisions | Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 18 | 2 |
Trading debt securities | 9 | 35 |
Agency mortgage-backed securities | Fair value, recurring | ||
Assets: | ||
Trading debt securities | 55 | 68 |
Agency mortgage-backed securities | Fair value, recurring | Commercial | ||
Assets: | ||
Available-for-sale debt securities, fair value | 15,693 | 10,650 |
Agency mortgage-backed securities | Fair value, recurring | Residential Mortgage Loans | ||
Assets: | ||
Available-for-sale debt securities, fair value | 14,115 | 16,247 |
Agency mortgage-backed securities | Residential mortgage-backed securities | ||
Assets: | ||
Available-for-sale debt securities, fair value | 14,115 | 16,247 |
Agency mortgage-backed securities | Commercial mortgage-backed securities | ||
Assets: | ||
Available-for-sale debt securities, fair value | 15,693 | 10,650 |
Non-agency mortgage-backed securities | Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 3,365 | 3,267 |
Non-agency mortgage-backed securities | Commercial mortgage-backed securities | ||
Assets: | ||
Available-for-sale debt securities, fair value | 3,365 | 3,267 |
Asset-backed securities and other debt securities | ||
Assets: | ||
Available-for-sale debt securities, fair value | 2,206 | 2,015 |
Asset-backed securities and other debt securities | Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 2,206 | 2,015 |
Trading debt securities | 231 | 168 |
Fair Value, Inputs, Level 1 | ||
Assets: | ||
Total assets | 0 | 0 |
Fair Value, Inputs, Level 1 | Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 75 | 97 |
Trading debt securities | 2 | 0 |
Equity securities | 554 | 452 |
Mortgage Servicing Rights | 0 | 0 |
Derivative assets | 38 | 93 |
Total assets | 669 | 642 |
Liabilities: | ||
Derivative liabilities | 22 | 27 |
Short positions | 49 | 110 |
Total liabilities | 71 | 137 |
Fair Value, Inputs, Level 1 | Fair value, recurring | Residential Mortgage Loans | ||
Assets: | ||
Loans measured at FV | 0 | |
Fair Value, Inputs, Level 1 | Interest Rate Contract | Fair value, recurring | ||
Assets: | ||
Derivative assets | 1 | 0 |
Liabilities: | ||
Derivative liabilities | 5 | 8 |
Fair Value, Inputs, Level 1 | Foreign Exchange Contract | Fair value, recurring | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Inputs, Level 1 | Equity Contract | Fair value, recurring | ||
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Inputs, Level 1 | Commodity Contract | Fair value, recurring | ||
Assets: | ||
Derivative assets | 37 | 93 |
Liabilities: | ||
Derivative liabilities | 17 | 19 |
Fair Value, Inputs, Level 1 | Residential mortgage-backed securities | Fair value, recurring | ||
Assets: | ||
Residential mortgage loans held for sale | 0 | 0 |
Loans measured at FV | 0 | |
Fair Value, Inputs, Level 1 | Commercial mortgage-backed securities | Fair value, recurring | ||
Assets: | ||
Loans held for sale measured at FV | 0 | |
Fair Value, Inputs, Level 1 | U.S. Treasury and federal agencies | Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 75 | 97 |
Trading debt securities | 2 | 0 |
Fair Value, Inputs, Level 1 | Obligations of states and political subdivisions | Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 0 | 0 |
Trading debt securities | 0 | 0 |
Fair Value, Inputs, Level 1 | Agency mortgage-backed securities | Fair value, recurring | ||
Assets: | ||
Trading debt securities | 0 | 0 |
Fair Value, Inputs, Level 1 | Agency mortgage-backed securities | Fair value, recurring | Commercial | ||
Assets: | ||
Available-for-sale debt securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Agency mortgage-backed securities | Fair value, recurring | Residential Mortgage Loans | ||
Assets: | ||
Available-for-sale debt securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Non-agency mortgage-backed securities | Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Asset-backed securities and other debt securities | Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 0 | 0 |
Trading debt securities | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Assets: | ||
Total assets | 11 | 67 |
Fair Value, Inputs, Level 2 | Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 35,397 | 32,181 |
Trading debt securities | 295 | 287 |
Equity securities | 10 | 0 |
Mortgage Servicing Rights | 0 | 0 |
Derivative assets | 1,617 | 1,014 |
Total assets | 38,583 | 34,026 |
Liabilities: | ||
Derivative liabilities | 548 | 714 |
Short positions | 100 | 28 |
Total liabilities | 648 | 742 |
Fair Value, Inputs, Level 2 | Fair value, recurring | Residential Mortgage Loans | ||
Assets: | ||
Loans measured at FV | 0 | |
Fair Value, Inputs, Level 2 | Interest Rate Contract | Fair value, recurring | ||
Assets: | ||
Derivative assets | 1,218 | 648 |
Liabilities: | ||
Derivative liabilities | 144 | 313 |
Fair Value, Inputs, Level 2 | Foreign Exchange Contract | Fair value, recurring | ||
Assets: | ||
Derivative assets | 165 | 152 |
Liabilities: | ||
Derivative liabilities | 151 | 142 |
Fair Value, Inputs, Level 2 | Equity Contract | Fair value, recurring | ||
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 | Commodity Contract | Fair value, recurring | ||
Assets: | ||
Derivative assets | 234 | 214 |
Liabilities: | ||
Derivative liabilities | 253 | 259 |
Fair Value, Inputs, Level 2 | Residential mortgage-backed securities | Fair value, recurring | ||
Assets: | ||
Residential mortgage loans held for sale | 1,264 | 537 |
Fair Value, Inputs, Level 2 | Commercial mortgage-backed securities | Fair value, recurring | ||
Assets: | ||
Loans held for sale measured at FV | 7 | |
Fair Value, Inputs, Level 2 | U.S. Treasury and federal agencies | Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 0 | 0 |
Trading debt securities | 0 | 16 |
Fair Value, Inputs, Level 2 | Obligations of states and political subdivisions | Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 18 | 2 |
Trading debt securities | 9 | 35 |
Fair Value, Inputs, Level 2 | Agency mortgage-backed securities | Fair value, recurring | ||
Assets: | ||
Trading debt securities | 55 | 68 |
Fair Value, Inputs, Level 2 | Agency mortgage-backed securities | Fair value, recurring | Commercial | ||
Assets: | ||
Available-for-sale debt securities, fair value | 15,693 | 10,650 |
Fair Value, Inputs, Level 2 | Agency mortgage-backed securities | Fair value, recurring | Residential Mortgage Loans | ||
Assets: | ||
Available-for-sale debt securities, fair value | 14,115 | 16,247 |
Fair Value, Inputs, Level 2 | Non-agency mortgage-backed securities | Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 3,365 | 3,267 |
Fair Value, Inputs, Level 2 | Asset-backed securities and other debt securities | Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 2,206 | 2,015 |
Trading debt securities | 231 | 168 |
Fair Value, Inputs, Level 3 | ||
Assets: | ||
Total assets | 249 | 182 |
Fair Value, Inputs, Level 3 | Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 0 | 0 |
Trading debt securities | 0 | 0 |
Equity securities | 0 | 0 |
Mortgage Servicing Rights | 993 | 938 |
Derivative assets | 18 | 7 |
Total assets | 1,194 | 1,124 |
Liabilities: | ||
Derivative liabilities | 171 | 133 |
Short positions | 0 | 0 |
Total liabilities | 171 | 133 |
Fair Value, Inputs, Level 3 | Fair value, recurring | Residential Mortgage Loans | ||
Assets: | ||
Loans measured at FV | 183 | |
Fair Value, Inputs, Level 3 | Interest Rate Contract | Fair value, recurring | ||
Assets: | ||
Derivative assets | 18 | 7 |
Liabilities: | ||
Derivative liabilities | 8 | 8 |
Fair Value, Inputs, Level 3 | Foreign Exchange Contract | Fair value, recurring | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 | Equity Contract | Fair value, recurring | ||
Liabilities: | ||
Derivative liabilities | 163 | 125 |
Fair Value, Inputs, Level 3 | Commodity Contract | Fair value, recurring | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 | Residential mortgage-backed securities | Fair value, recurring | ||
Assets: | ||
Residential mortgage loans held for sale | 0 | 0 |
Loans measured at FV | 179 | |
Fair Value, Inputs, Level 3 | Commercial mortgage-backed securities | Fair value, recurring | ||
Assets: | ||
Loans held for sale measured at FV | 0 | |
Fair Value, Inputs, Level 3 | U.S. Treasury and federal agencies | Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 0 | 0 |
Trading debt securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Obligations of states and political subdivisions | Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 0 | 0 |
Trading debt securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Agency mortgage-backed securities | Fair value, recurring | ||
Assets: | ||
Trading debt securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Agency mortgage-backed securities | Fair value, recurring | Commercial | ||
Assets: | ||
Available-for-sale debt securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Agency mortgage-backed securities | Fair value, recurring | Residential Mortgage Loans | ||
Assets: | ||
Available-for-sale debt securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Non-agency mortgage-backed securities | Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Asset-backed securities and other debt securities | Fair value, recurring | ||
Assets: | ||
Available-for-sale debt securities, fair value | 0 | 0 |
Trading debt securities | $ 0 | $ 0 |
Fair Value Measurements (Asse_2
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Federal Home Loan Bank Stock | $ 76 | $ 184 |
Federal Reserve Bank Stock | 478 | 366 |
DTCC Stock | $ 2 | $ 2 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements - Additional Information) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Net fair value of the interest rate lock commitments | $ 18,000,000 | ||
Change in fair value of interest rate lock commitments, due to 10% adverse changes in the assumed loan closing rates | 2,000,000 | ||
Change in fair value of interest rate lock commitments, due to 20% adverse changes in the assumed loan closing rates | 4,000,000 | ||
Commercial aggregate borrower relationship subject to individual review for impairment | 1,000,000 | ||
OTTI | 1,000,000 | $ 0 | $ 54,000,000 |
Private equity, observable price change adjustment | 13,000,000 | 64,000,000 | |
Private equity, impairment | 5,000,000 | 12,000,000 | |
Private equity, cumulative impairment | 17,000,000 | ||
Private equity, cumulative observable price change | 47,000,000 | ||
Fair value changes included in earnings for instruments for which the fair value option was elected | 37,000,000 | 20,000,000 | |
Change in fair value of interest rate lock commitments, due to 10% favorable changes in the assumed loan closing rates | 2,000,000 | ||
Change in fair value of interest rate lock commitments, due to 20% favorable changes in the assumed loan closing rates | 4,000,000 | ||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 25 bp | 13,000,000 | ||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 50 bp | 28,000,000 | ||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 25 bp | 12,000,000 | ||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 50 bp | 22,000,000 | ||
Residential Mortgage Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
FVO valuation adjustments related to instrument-specific credit risk | 1,000,000 | 1,000,000 | |
Other Real Estate Owned | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value adjustment | 3,000,000 | 3,000,000 | |
Other Real Estate Owned | Transfer | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value gains or losses | 3,000,000 | 4,000,000 | |
Private equity investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
OTTI | $ 0 | $ 10,000,000 |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||
Beginning balance | $ 991 | $ 861 | $ 804 |
Included in earnings | (339) | (73) | (107) |
Purchases | 428 | 158 | 234 |
Settlements | (93) | (19) | (86) |
Transfers into Level 3 | 36 | 64 | 16 |
Ending balance | 1,023 | 991 | 861 |
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 | (338) | (57) | (191) |
Residential Mortgage | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||
Beginning balance | 179 | 137 | 143 |
Included in earnings | (1) | (3) | 1 |
Purchases | 0 | 0 | 0 |
Settlements | (31) | (19) | (23) |
Transfers into Level 3 | 36 | 64 | 16 |
Ending balance | 183 | 179 | 137 |
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 | (1) | (3) | 1 |
Mortgage Servicing Rights | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||
Beginning balance | 938 | 858 | 744 |
Included in earnings | (376) | (83) | (122) |
Purchases | 431 | 163 | 236 |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 |
Ending balance | 993 | 938 | 858 |
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 | (250) | (4) | (122) |
Interest Rate Contract | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||
Beginning balance | (1) | 3 | 8 |
Included in earnings | 145 | 72 | 94 |
Purchases | (3) | (5) | (2) |
Settlements | (131) | (71) | (97) |
Transfers into Level 3 | 0 | 0 | 0 |
Ending balance | 10 | (1) | 3 |
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 | 20 | 9 | 10 |
Equity Contract | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||
Beginning balance | (125) | (137) | (91) |
Included in earnings | (107) | (59) | (80) |
Purchases | 0 | 0 | 0 |
Settlements | 69 | 71 | 34 |
Transfers into Level 3 | 0 | 0 | 0 |
Ending balance | (163) | (125) | (137) |
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 | $ (107) | $ (59) | $ (80) |
Fair Value Measurements (Reco_2
Fair Value Measurements (Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Parenthetical)) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Derivative assets | $ 1,023 | $ 991 | $ 861 | $ 804 |
Interest Rate Contract | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Derivative assets | 18 | 7 | 8 | |
Derivative liabilities | $ 8 | $ 8 | $ 5 |
Fair Value Measurements (Total
Fair Value Measurements (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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gains and losses included in earnings | $ (339) | $ (73) | $ (107) |
Mortgage Banking Revenue | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gains and losses included in earnings | (235) | (16) | (29) |
Corporate Banking Revenue | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gains and losses included in earnings | 3 | 2 | 2 |
Other Noninterest Income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gains and losses included in earnings | $ (107) | $ (59) | $ (80) |
Fair Value Measurements (Tota_2
Fair Value Measurements (Total Gains and Losses Included in Earning Attributable to Changes in Unrealized Gains and Losses Related to Level 3 Assets and Liabilites Still Held at Year End) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gain and losses included in earnings | $ (338) | $ (57) | $ (191) |
Mortgage Banking Revenue | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gain and losses included in earnings | (233) | 0 | (113) |
Corporate Banking Revenue | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gain and losses included in earnings | 2 | 2 | 2 |
Other Noninterest Income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gain and losses included in earnings | $ (107) | $ (59) | $ (80) |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Recurring Basis)) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Mortgage Servicing Rights | $ 993 | $ 938 |
Residential mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Loans measured at FV | 183 | 179 |
Interest Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Loans measured at FV | 18 | 7 |
Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Loans measured at FV | $ (163) | $ (125) |
Minimum | Residential mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate risk factor | (9.20%) | (13.20%) |
Credit risk factor | 0.00% | 0.00% |
Minimum | Mortgage Servicing Rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Prepayment speed | 0.50% | 0.50% |
OAS (bps) | 5.07% | 4.41% |
Minimum | Interest Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Loan closing rates | 7.30% | 9.50% |
Minimum | Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Timing of the resolution of the covered litigation | Mar. 31, 2022 | Mar. 31, 2021 |
Maximum | Residential mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate risk factor | 9.80% | 9.40% |
Credit risk factor | 26.50% | 39.90% |
Maximum | Mortgage Servicing Rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Prepayment speed | 97.00% | 100.00% |
OAS (bps) | 15.13% | 15.13% |
Maximum | Interest Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Loan closing rates | 97.10% | 96.70% |
Maximum | Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Timing of the resolution of the covered litigation | Dec. 31, 2023 | Dec. 31, 2023 |
Weighted-average | Residential mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate risk factor | (0.20%) | 0.50% |
Credit risk factor | 0.50% | 0.70% |
Weighted-average | Mortgage Servicing Rights | Fixed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Prepayment speed | 13.00% | 10.20% |
OAS (bps) | 6.02% | 5.34% |
Weighted-average | Mortgage Servicing Rights | Adjustable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Prepayment speed | 22.60% | 23.00% |
OAS (bps) | 9.21% | 8.63% |
Weighted-average | Interest Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Loan closing rates | 81.70% | 86.00% |
Weighted-average | Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Timing of the resolution of the covered litigation | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value Measurements (Asse_3
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | $ 260 | $ 249 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (130) | (67) |
Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 16 | |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (3) | |
Commercial and Industrial Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 169 | 93 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (96) | (41) |
Commercial Mortgage Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 12 | 2 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | 0 | 7 |
Commercial Leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 20 | 14 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (6) | (11) |
Other Real Estate Owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 13 | 20 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (6) | (7) |
Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 27 | 32 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (27) | (45) |
Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 6 | 0 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (3) | (2) |
Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 13 | 70 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | 8 | 43 |
Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 2 | |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (8) | |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 249 | 182 |
Fair Value, Inputs, Level 3 | Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 16 | |
Fair Value, Inputs, Level 3 | Commercial and Industrial Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 169 | 93 |
Fair Value, Inputs, Level 3 | Commercial Mortgage Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 12 | 2 |
Fair Value, Inputs, Level 3 | Commercial Leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 20 | 14 |
Fair Value, Inputs, Level 3 | Other Real Estate Owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 13 | 20 |
Fair Value, Inputs, Level 3 | Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 27 | 32 |
Fair Value, Inputs, Level 3 | Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 6 | 0 |
Fair Value, Inputs, Level 3 | Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 2 | 3 |
Fair Value, Inputs, Level 3 | Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 2 | |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 11 | 67 |
Fair Value, Inputs, Level 2 | Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | |
Fair Value, Inputs, Level 2 | Commercial and Industrial Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | 0 |
Fair Value, Inputs, Level 2 | Commercial Mortgage Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | 0 |
Fair Value, Inputs, Level 2 | Commercial Leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | 0 |
Fair Value, Inputs, Level 2 | Other Real Estate Owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | 0 |
Fair Value, Inputs, Level 2 | Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | 0 |
Fair Value, Inputs, Level 2 | Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | 0 |
Fair Value, Inputs, Level 2 | Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 11 | 67 |
Fair Value, Inputs, Level 2 | Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | 0 |
Fair Value, Inputs, Level 1 | Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | |
Fair Value, Inputs, Level 1 | Commercial and Industrial Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | 0 |
Fair Value, Inputs, Level 1 | Commercial Mortgage Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | 0 |
Fair Value, Inputs, Level 1 | Commercial Leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | 0 |
Fair Value, Inputs, Level 1 | Other Real Estate Owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | 0 |
Fair Value, Inputs, Level 1 | Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | 0 |
Fair Value, Inputs, Level 1 | Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | 0 |
Fair Value, Inputs, Level 1 | Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | $ 0 | 0 |
Fair Value, Inputs, Level 1 | Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | $ 0 |
Fair Value Measurements (Fair_3
Fair Value Measurements (Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Nonrecurring Basis)) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | |
Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value measurements nonrecurring assets | $ 16 | |
Commercial and Industrial Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value measurements nonrecurring assets | 93 | $ 169 |
Commercial mortgage loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value measurements nonrecurring assets | 2 | 12 |
Commercial Leases | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value measurements nonrecurring assets | 14 | |
Commercial Leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value measurements nonrecurring assets | 20 | |
OREO Property | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value measurements nonrecurring assets | 20 | 13 |
Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value measurements nonrecurring assets | 32 | 27 |
Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value measurements nonrecurring assets | 0 | 6 |
Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Comparable company analysis, fair value | 3 | $ 2 |
Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value measurements nonrecurring assets | $ 2 | |
Minimum | Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liquidity discount | 0.00% | |
Maximum | Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liquidity discount | 43.00% | |
Weighted-average | Commercial loans held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cost to sell | 10.00% | |
Weighted-average | Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liquidity discount | 12.90% |
Fair Value Measurements (Differ
Fair Value Measurements (Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance for Residential Mortgage Loans Measured at Fair Value) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Residential mortgage loans | ||
Aggregate fair value | ||
Loans measured at fair value | $ 1,447 | $ 716 |
Past due loans of 90 days or more | 2 | 2 |
Non accrual loans | 1 | 2 |
Aggregate unpaid principal balance | ||
Loans measured at fair value | 1,410 | 696 |
Past due loans of 90 days or more | 2 | 2 |
Non accrual loans | 1 | 2 |
Difference | ||
Loans measured at fair value | 37 | 20 |
Past due loans of 90 days or more | 0 | 0 |
Non accrual loans | $ 0 | 0 |
Commercial loans | ||
Aggregate fair value | ||
Loans measured at fair value | 7 | |
Aggregate unpaid principal balance | ||
Loans measured at fair value | 7 | |
Difference | ||
Loans measured at fair value | $ 0 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amounts and Estimated Fair Values for Certain Financial Instruments) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets: | ||||
Cash and due from banks | $ 3,278 | $ 2,681 | $ 2,514 | $ 2,392 |
Other short-term investments | 1,950 | 1,825 | ||
Held-to-maturity securities | 17 | 18 | ||
Loans and leases held for sale | 1,400 | 607 | ||
Commercial and industrial loans | 50,542 | 44,340 | ||
Commercial mortgage loans | 10,963 | 6,974 | ||
Commercial construction loans | 5,090 | 4,657 | ||
Commercial leases | 3,363 | 3,600 | ||
Residential mortgage loans | 16,724 | 15,504 | ||
Home equity | 6,083 | 6,402 | ||
Indirect secured consumer loans | 11,538 | 8,976 | ||
Credit card | 2,532 | 2,470 | ||
Other consumer loans | 2,723 | 2,342 | ||
Portfolio loans and leases, net | 108,356 | 94,162 | ||
Financial liabilities: | ||||
Deposits | 127,062 | 108,835 | ||
Federal funds purchased | 260 | 1,925 | ||
Other short-term borrowings | 1,011 | 573 | ||
Long-term debt | 14,970 | 14,426 | ||
Fair Value, Inputs, Level 1 | ||||
Financial assets: | ||||
Cash and due from banks | 3,278 | 2,681 | ||
Other short-term investments | 1,950 | 1,825 | ||
Other securities | 0 | 0 | ||
Held-to-maturity securities | 0 | 0 | ||
Loans and leases held for sale | 0 | 0 | ||
Commercial and industrial loans | 0 | 0 | ||
Commercial mortgage loans | 0 | 0 | ||
Commercial construction loans | 0 | 0 | ||
Commercial leases | 0 | 0 | ||
Residential mortgage loans | 0 | 0 | ||
Home equity | 0 | 0 | ||
Indirect secured consumer loans | 0 | 0 | ||
Credit card | 0 | 0 | ||
Other consumer loans | 0 | 0 | ||
Unallocated Allowance for Loan and Lease Losses | 0 | 0 | ||
Portfolio loans and leases, net | 0 | 0 | ||
Financial liabilities: | ||||
Deposits | 0 | 0 | ||
Federal funds purchased | 260 | 1,925 | ||
Other short-term borrowings | 0 | 0 | ||
Long-term debt | 15,244 | 14,287 | ||
Fair Value, Inputs, Level 2 | ||||
Financial assets: | ||||
Cash and due from banks | 0 | 0 | ||
Other short-term investments | 0 | 0 | ||
Other securities | 556 | 552 | ||
Held-to-maturity securities | 0 | 0 | ||
Loans and leases held for sale | 0 | 0 | ||
Commercial and industrial loans | 0 | 0 | ||
Commercial mortgage loans | 0 | 0 | ||
Commercial construction loans | 0 | 0 | ||
Commercial leases | 0 | 0 | ||
Residential mortgage loans | 0 | 0 | ||
Home equity | 0 | 0 | ||
Indirect secured consumer loans | 0 | 0 | ||
Credit card | 0 | 0 | ||
Other consumer loans | 0 | 0 | ||
Unallocated Allowance for Loan and Lease Losses | 0 | 0 | ||
Portfolio loans and leases, net | 0 | 0 | ||
Financial liabilities: | ||||
Deposits | 127,059 | 108,782 | ||
Federal funds purchased | 0 | 0 | ||
Other short-term borrowings | 1,011 | 573 | ||
Long-term debt | 700 | 445 | ||
Fair Value, Inputs, Level 3 | ||||
Financial assets: | ||||
Cash and due from banks | 0 | 0 | ||
Other short-term investments | 0 | 0 | ||
Other securities | 0 | 0 | ||
Held-to-maturity securities | 17 | 18 | ||
Loans and leases held for sale | 136 | 63 | ||
Commercial and industrial loans | 51,128 | 44,668 | ||
Commercial mortgage loans | 10,823 | 6,851 | ||
Commercial construction loans | 5,249 | 4,688 | ||
Commercial leases | 3,133 | 3,180 | ||
Residential mortgage loans | 17,509 | 15,688 | ||
Home equity | 6,315 | 6,719 | ||
Indirect secured consumer loans | 11,331 | 8,717 | ||
Credit card | 2,774 | 2,759 | ||
Other consumer loans | 2,866 | 2,428 | ||
Unallocated Allowance for Loan and Lease Losses | 0 | 0 | ||
Portfolio loans and leases, net | 111,128 | 95,698 | ||
Financial liabilities: | ||||
Deposits | 0 | 0 | ||
Federal funds purchased | 0 | 0 | ||
Other short-term borrowings | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Net Carrying Amount | ||||
Financial assets: | ||||
Cash and due from banks | 3,278 | 2,681 | ||
Other short-term investments | 1,950 | 1,825 | ||
Other securities | 556 | 552 | ||
Held-to-maturity securities | 17 | 18 | ||
Loans and leases held for sale | 136 | 63 | ||
Commercial and industrial loans | 49,981 | 43,825 | ||
Commercial mortgage loans | 10,876 | 6,894 | ||
Commercial construction loans | 5,045 | 4,625 | ||
Commercial leases | 3,346 | 3,582 | ||
Residential mortgage loans | 16,468 | 15,244 | ||
Home equity | 6,046 | 6,366 | ||
Indirect secured consumer loans | 11,485 | 8,934 | ||
Credit card | 2,364 | 2,314 | ||
Other consumer loans | 2,683 | 2,309 | ||
Unallocated Allowance for Loan and Lease Losses | (121) | (110) | ||
Portfolio loans and leases, net | 108,173 | 93,983 | ||
Financial liabilities: | ||||
Deposits | 127,062 | 108,835 | ||
Federal funds purchased | 260 | 1,925 | ||
Other short-term borrowings | 1,011 | 573 | ||
Long-term debt | 14,970 | 14,426 | ||
Total Fair Value | ||||
Financial assets: | ||||
Cash and due from banks | 3,278 | 2,681 | ||
Other short-term investments | 1,950 | 1,825 | ||
Other securities | 556 | 552 | ||
Held-to-maturity securities | 17 | 18 | ||
Loans and leases held for sale | 136 | 63 | ||
Commercial and industrial loans | 51,128 | 44,668 | ||
Commercial mortgage loans | 10,823 | 6,851 | ||
Commercial construction loans | 5,249 | 4,688 | ||
Commercial leases | 3,133 | 3,180 | ||
Residential mortgage loans | 17,509 | 15,688 | ||
Home equity | 6,315 | 6,719 | ||
Indirect secured consumer loans | 11,331 | 8,717 | ||
Credit card | 2,774 | 2,759 | ||
Other consumer loans | 2,866 | 2,428 | ||
Unallocated Allowance for Loan and Lease Losses | 0 | 0 | ||
Portfolio loans and leases, net | 111,128 | 95,698 | ||
Financial liabilities: | ||||
Deposits | 127,059 | 108,782 | ||
Federal funds purchased | 260 | 1,925 | ||
Other short-term borrowings | 1,011 | 573 | ||
Long-term debt | $ 15,944 | $ 14,732 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Capital and Risk-Based Capital and Leverage Ratios for the Bancorp and its Significant Subsidiary Banks) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fifth Third Bancorp | ||
Risk Based Ratios | ||
CET1 capital ratio (to risk-weighted assets) | 9.75% | 10.24% |
Tier I risk-based capital (to risk-weighted assets) | 10.99% | 11.32% |
Total risk-based capital (to risk-weighted assets) | 13.84% | 14.48% |
Tier I leverage (to quarterly average assets) | 9.54% | 9.72% |
Risk Based Capital | ||
CET1 capital (to risk-weighted assets) | $ 13,847 | $ 12,534 |
Tier I risk-based capital (to risk-weighted assets) | 15,616 | 13,864 |
Total risk-based capital (to risk weighted assets) | 19,661 | 17,723 |
Tier I leverage (to quarterly average assets) | $ 15,616 | $ 13,864 |
Fifth Third Bancorp | Well Capitalized | ||
Risk Based Ratios | ||
Tier I risk-based capital (to risk-weighted assets) | 6.00% | |
Total risk-based capital (to risk-weighted assets) | 10.00% | |
Fifth Third Bancorp | Minimum | ||
Risk Based Ratios | ||
CET1 capital ratio (to risk-weighted assets) | 4.50% | |
Tier I risk-based capital (to risk-weighted assets) | 6.00% | |
Total risk-based capital (to risk-weighted assets) | 8.00% | |
Tier I leverage (to quarterly average assets) | 4.00% | |
Fifth Third Bank, National Association | ||
Risk Based Ratios | ||
CET1 capital ratio (to risk-weighted assets) | 11.86% | 11.93% |
Tier I risk-based capital (to risk-weighted assets) | 11.86% | 11.93% |
Total risk-based capital (to risk-weighted assets) | 13.46% | 13.57% |
Tier I leverage (to quarterly average assets) | 10.36% | 10.27% |
Risk Based Capital | ||
CET1 capital (to risk-weighted assets) | $ 16,704 | $ 14,435 |
Tier I risk-based capital (to risk-weighted assets) | 16,704 | 14,435 |
Total risk-based capital (to risk weighted assets) | 18,968 | 16,427 |
Tier I leverage (to quarterly average assets) | $ 16,704 | $ 14,435 |
Fifth Third Bank, National Association | Well Capitalized | ||
Risk Based Ratios | ||
CET1 capital ratio (to risk-weighted assets) | 6.50% | |
Tier I risk-based capital (to risk-weighted assets) | 8.00% | |
Total risk-based capital (to risk-weighted assets) | 10.00% | |
Tier I leverage (to quarterly average assets) | 5.00% | |
Fifth Third Bank, National Association | Minimum | ||
Risk Based Ratios | ||
CET1 capital ratio (to risk-weighted assets) | 4.50% | |
Tier I risk-based capital (to risk-weighted assets) | 6.00% | |
Total risk-based capital (to risk-weighted assets) | 8.00% | |
Tier I leverage (to quarterly average assets) | 4.00% |
Parent Company Financial Stat_3
Parent Company Financial Statements (Condensed Statements of Income - Parent Company Only) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Dividends from subsidiaries: | |||
Consolidated nonbank subsidiaries | $ 2,000 | $ 1,900 | |
Securities gains, net | 40 | (54) | $ 2 |
Total interest income | 6,254 | 5,183 | 4,489 |
Expenses | |||
Interest | 1,457 | 1,043 | 691 |
Other | 239 | 214 | 184 |
Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries | 3,202 | 2,765 | 2,979 |
Applicable income tax benefit | 690 | 572 | 799 |
Net Income (Loss) Attributable to Parent | 2,512 | 2,193 | 2,180 |
Other Comprehensive Income (loss) | 1,304 | (183) | 14 |
Comprehensive income attributable to Bancorp | 3,816 | 2,010 | 2,194 |
Parent Company Only | |||
Dividends from subsidiaries: | |||
Consolidated nonbank subsidiaries | 2,155 | 1,890 | 2,343 |
Securities gains, net | 2 | 0 | 0 |
Interest on loans to subsidiaries | 24 | 24 | 21 |
Total interest income | 2,181 | 1,914 | 2,364 |
Expenses | |||
Interest | 267 | 211 | 176 |
Other | 65 | 34 | 42 |
Total expenses | 332 | 245 | 218 |
Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries | 1,849 | 1,669 | 2,146 |
Applicable income tax benefit | (69) | (50) | (68) |
Income (Loss) Before Change in Undistributed Earnings of Subsidiaries | 1,918 | 1,719 | 2,214 |
Change in undistributed earnings (loss) | 594 | 474 | (34) |
Net Income (Loss) Attributable to Parent | 2,512 | 2,193 | 2,180 |
Other Comprehensive Income (loss) | 0 | 0 | 0 |
Comprehensive income attributable to Bancorp | $ 2,512 | $ 2,193 | $ 2,180 |
Parent Company Financial Stat_4
Parent Company Financial Statements (Condensed Statements of Income - Parent Company Only) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Dividend Received From Nonbank Companies And Related Subsidiaries | $ 2,000 | $ 1,900 | |
MB Financial, Inc. | |||
Dividend Received From Nonbank Companies And Related Subsidiaries | 200 | ||
Parent Company Only | |||
Dividends from Bancorp's banking subsidiary to the Bancorp's non-bank subsidiary | 2,000 | 1,900 | $ 2,300 |
Dividend Received From Nonbank Companies And Related Subsidiaries | $ 2,155 | $ 1,890 | $ 2,343 |
Parent Company Financial Stat_5
Parent Company Financial Statements (Condensed Balance Sheet - Parent Company Only) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Equity securities | $ 564 | $ 452 | ||
Investments in subsidiaries: | ||||
Goodwill | 4,252 | 2,478 | $ 2,445 | |
Other Assets | 9,190 | 7,372 | ||
Total Assets | 169,369 | 146,069 | ||
Liabilities | ||||
Other short-term borrowings | 1,011 | 573 | ||
Accrued expenses and other liabilities | 2,422 | 2,498 | ||
Long-term debt (external) | 14,970 | 14,426 | ||
Total liabilities | 148,166 | 129,819 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Common stock | 2,051 | 2,051 | ||
Preferred stock | 1,770 | 1,331 | ||
Capital surplus | 3,599 | 2,873 | ||
Retained earnings | 18,315 | 16,578 | ||
Accumulated other comprehensive income (loss) | 1,192 | (112) | 73 | |
Treasury stock | (5,724) | (6,471) | ||
Noncontrolling interests | 0 | 0 | ||
Total Equity | 21,203 | 16,250 | $ 16,220 | $ 16,081 |
Total Liabilities and Equity | 169,369 | 146,069 | ||
Parent Company Only | ||||
Assets | ||||
Cash | 118 | 120 | ||
Short-term Investments | 4,723 | 3,642 | ||
Equity securities | 49 | 0 | ||
Loans to subsidiaries: | ||||
Nonbank subsidiaries | 444 | 571 | ||
Total loans to subsidiaries | 444 | 571 | ||
Investments in subsidiaries: | ||||
Nonbank subsidiaries | 23,779 | 17,921 | ||
Total investment in subsidiaries | 23,779 | 17,921 | ||
Goodwill | 80 | 80 | ||
Other Assets | 379 | 268 | ||
Total Assets | 29,572 | 22,602 | ||
Liabilities | ||||
Other short-term borrowings | 359 | 253 | ||
Accrued expenses and other liabilities | 497 | 424 | ||
Long-term debt (external) | 7,513 | 5,675 | ||
Total liabilities | 8,369 | 6,352 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Common stock | 2,051 | 2,051 | ||
Preferred stock | 1,770 | 1,331 | ||
Capital surplus | 3,599 | 2,873 | ||
Retained earnings | 18,315 | 16,578 | ||
Accumulated other comprehensive income (loss) | 1,192 | (112) | ||
Treasury stock | (5,724) | (6,471) | ||
Noncontrolling interests | 0 | 0 | ||
Total Equity | 21,203 | 16,250 | ||
Total Liabilities and Equity | $ 29,572 | $ 22,602 |
Parent Company Financial Stat_6
Parent Company Financial Statements (Condensed Statement of Cash Flow - Parent Company Only) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | |||
Net income (loss) | $ 2,512 | $ 2,193 | $ 2,180 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
(Benefit from) provision for deferred income taxes | (246) | 30 | (252) |
Net change in undistributed earnings | 2 | 1 | 47 |
Net change in: | |||
Equity securities | 29 | (132) | 442 |
Other assets | (20) | (303) | 22 |
Accrued expenses and other liabilities | (49) | 147 | (138) |
Net change in: | |||
Other short-term investments | (647) | 928 | 1 |
Financing Activities | |||
Dividends paid on common shares | (660) | (467) | (430) |
Dividends paid on preferred shares | (93) | (98) | (75) |
Proceeds from issuance of long-term debt | 3,866 | 2,438 | 2,490 |
Repayment of long-term debt | (4,212) | (2,884) | (1,969) |
Issuance of preferred stock | 242 | 0 | 0 |
Repurchase of treasury stock and related forward contract | (1,763) | (1,453) | (1,605) |
Other, net | (58) | (69) | (57) |
Cash and Due from Banks at Beginning of Period | 2,681 | 2,514 | 2,392 |
Cash and Due from Banks at End of Period | 3,278 | 2,681 | 2,514 |
Parent Company Only | |||
Operating Activities | |||
Net income (loss) | 2,512 | 2,193 | 2,180 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
(Benefit from) provision for deferred income taxes | (11) | 3 | 2 |
Securities gains, net | (2) | 0 | 0 |
Net change in undistributed earnings | (594) | (474) | 34 |
Net change in: | |||
Equity securities | (49) | 0 | 0 |
Other assets | (80) | 61 | 37 |
Accrued expenses and other liabilities | 134 | (116) | (15) |
Net Cash Provided by (Used in) Operating Activities | 1,910 | 1,667 | 2,238 |
Net change in: | |||
Other short-term investments | (1,081) | (149) | (419) |
Loans to subsidiaries | 127 | 272 | 126 |
Net cash paid on acquisition | (469) | 0 | 0 |
Net Cash Provided by (Used in) Investing Activities | (1,423) | 123 | (293) |
Financing Activities | |||
Net change in other short-term borrowings | 106 | (62) | (29) |
Dividends paid on common shares | (660) | (467) | (430) |
Dividends paid on preferred shares | (93) | (98) | (75) |
Proceeds from issuance of long-term debt | 2,235 | 895 | 697 |
Repayment of long-term debt | (500) | (500) | (500) |
Issuance of preferred stock | 242 | 0 | 0 |
Repurchase of treasury stock and related forward contract | (1,763) | (1,453) | (1,605) |
Other, net | (56) | (65) | (53) |
Net Cash Provided (Used in) Provided by Financing Activities | (489) | (1,750) | (1,995) |
Net (Decrease) Increase in Cash | (2) | 40 | (50) |
Cash and Due from Banks at Beginning of Period | 120 | 80 | 130 |
Cash and Due from Banks at End of Period | $ 118 | $ 120 | $ 80 |
Segments (Results of Operations
Segments (Results of Operations and Average Assets by Segment - Additional Information) (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements | |
Full-service Banking Centers | 1,149 |
Number of business segments | 4 |
Segments (Results of Operatio_2
Segments (Results of Operations and Average Assets by Segment) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Segment Reporting Information | |||||||
Net interest income | $ 4,797 | $ 4,140 | $ 3,798 | ||||
Provision for credit losses | 471 | 207 | 261 | ||||
Net interest income after provision for credit losses | 4,326 | 3,933 | 3,537 | ||||
Noninterest Income: | |||||||
Corporate Banking Revenue | 570 | 438 | 353 | ||||
Service charges on deposits | 565 | 549 | 554 | ||||
Wealth and asset management revenue | 487 | 444 | 419 | ||||
Card And Processing Revenue | 360 | 329 | 313 | ||||
Mortgage banking net revenue | 287 | 212 | 224 | ||||
Other noninterest income | 1,224 | 887 | 1,357 | ||||
Securities gains, net | 40 | (54) | 2 | ||||
Securities gains, non - qualifying hedges on MSRs | 3 | (15) | 2 | ||||
Total noninterest income | 3,536 | 2,790 | 3,224 | ||||
Noninterest expense: | |||||||
Salaries, wages and incentives | 2,001 | 1,783 | 1,633 | ||||
Employee benefits | 417 | 332 | 356 | ||||
Net occupancy expense | 332 | 292 | 295 | ||||
Technology and communications | 422 | 285 | 245 | ||||
Equipment Expense | 129 | 123 | 117 | ||||
Card And Processing Expense | 130 | 123 | 129 | ||||
Other noninterest expense (income) | 1,229 | 1,020 | 1,007 | ||||
Total noninterest expense | 4,660 | 3,958 | 3,782 | ||||
Income (Loss) Before Income Taxes | 3,202 | 2,765 | 2,979 | ||||
Applicable income tax expense (benefit) | 690 | 572 | 799 | ||||
Net income | 2,512 | 2,193 | 2,180 | ||||
Total goodwill | 4,252 | 2,478 | 2,445 | ||||
Total assets | 169,369 | 146,069 | 142,081 | ||||
Inter segment Elimination | |||||||
Segment Reporting Information | |||||||
Net interest income | 0 | 0 | 0 | ||||
Provision for credit losses | 0 | 0 | 0 | ||||
Net interest income after provision for credit losses | 0 | 0 | 0 | ||||
Noninterest Income: | |||||||
Corporate Banking Revenue | 0 | 0 | 0 | ||||
Service charges on deposits | 0 | 0 | 0 | ||||
Wealth and asset management revenue | [1] | (143) | (138) | (132) | |||
Card And Processing Revenue | 0 | 0 | 0 | ||||
Mortgage banking net revenue | 0 | 0 | 0 | ||||
Other noninterest income | 0 | 0 | 0 | ||||
Securities gains, net | 0 | 0 | 0 | ||||
Securities gains, non - qualifying hedges on MSRs | 0 | 0 | 0 | ||||
Total noninterest income | (143) | (138) | (132) | ||||
Noninterest expense: | |||||||
Salaries, wages and incentives | 0 | 0 | 0 | ||||
Employee benefits | 0 | 0 | 0 | ||||
Net occupancy expense | 0 | 0 | 0 | ||||
Technology and communications | 0 | 0 | 0 | ||||
Equipment Expense | 0 | 0 | 0 | ||||
Card And Processing Expense | 0 | 0 | 0 | ||||
Other noninterest expense (income) | (143) | (138) | (132) | ||||
Total noninterest expense | (143) | (138) | (132) | ||||
Income (Loss) Before Income Taxes | 0 | 0 | 0 | ||||
Applicable income tax expense (benefit) | 0 | 0 | 0 | ||||
Net income | 0 | 0 | 0 | ||||
Total goodwill | 0 | 0 | 0 | ||||
Total assets | 0 | 0 | 0 | ||||
Commercial Banking | |||||||
Segment Reporting Information | |||||||
Net interest income | 2,360 | 1,713 | 1,652 | ||||
Provision for credit losses | 183 | (26) | 38 | ||||
Net interest income after provision for credit losses | 2,177 | 1,739 | 1,614 | ||||
Noninterest Income: | |||||||
Corporate Banking Revenue | 565 | [2] | 432 | [3] | 348 | [4] | |
Service charges on deposits | 308 | 273 | 287 | ||||
Wealth and asset management revenue | 3 | 3 | 3 | ||||
Card And Processing Revenue | 66 | 58 | 57 | ||||
Mortgage banking net revenue | 0 | 0 | 0 | ||||
Other noninterest income | 245 | 151 | 143 | ||||
Securities gains, net | 0 | 0 | 0 | ||||
Securities gains, non - qualifying hedges on MSRs | 0 | 0 | 0 | ||||
Total noninterest income | 1,187 | 917 | 838 | ||||
Noninterest expense: | |||||||
Salaries, wages and incentives | 406 | 300 | 252 | ||||
Employee benefits | 60 | 44 | 42 | ||||
Net occupancy expense | 28 | 26 | 26 | ||||
Technology and communications | 11 | 7 | 9 | ||||
Equipment Expense | 25 | 23 | 18 | ||||
Card And Processing Expense | 8 | 4 | 3 | ||||
Other noninterest expense (income) | 1,083 | 859 | 884 | ||||
Total noninterest expense | 1,621 | 1,263 | 1,234 | ||||
Income (Loss) Before Income Taxes | 1,743 | 1,393 | 1,218 | ||||
Applicable income tax expense (benefit) | 319 | 254 | 391 | ||||
Net income | 1,424 | 1,139 | 827 | ||||
Total goodwill | 1,954 | 630 | 613 | ||||
Total assets | 74,570 | 61,630 | 58,456 | ||||
Branch Banking | |||||||
Segment Reporting Information | |||||||
Net interest income | 2,371 | 2,034 | 1,782 | ||||
Provision for credit losses | 224 | 171 | 153 | ||||
Net interest income after provision for credit losses | 2,147 | 1,863 | 1,629 | ||||
Noninterest Income: | |||||||
Corporate Banking Revenue | 4 | 5 | 5 | ||||
Service charges on deposits | 260 | 275 | 265 | ||||
Wealth and asset management revenue | 158 | 150 | 141 | ||||
Card And Processing Revenue | 285 | 266 | 251 | ||||
Mortgage banking net revenue | 6 | 5 | 6 | ||||
Other noninterest income | 89 | 53 | 88 | ||||
Securities gains, net | 0 | 0 | 0 | ||||
Securities gains, non - qualifying hedges on MSRs | 0 | 0 | 0 | ||||
Total noninterest income | 802 | 754 | 756 | ||||
Noninterest expense: | |||||||
Salaries, wages and incentives | 489 | 438 | 425 | ||||
Employee benefits | 112 | 98 | 101 | ||||
Net occupancy expense | 173 | 175 | 176 | ||||
Technology and communications | 4 | 5 | 4 | ||||
Equipment Expense | 48 | 50 | 52 | ||||
Card And Processing Expense | 123 | 121 | 127 | ||||
Other noninterest expense (income) | 911 | 841 | 796 | ||||
Total noninterest expense | 1,860 | 1,728 | 1,681 | ||||
Income (Loss) Before Income Taxes | 1,089 | 889 | 704 | ||||
Applicable income tax expense (benefit) | 229 | 187 | 249 | ||||
Net income | 860 | 702 | 455 | ||||
Total goodwill | 2,046 | 1,655 | 1,655 | ||||
Total assets | 69,413 | 61,040 | 57,931 | ||||
Consumer Lending | |||||||
Segment Reporting Information | |||||||
Net interest income | 325 | 237 | 240 | ||||
Provision for credit losses | 49 | 42 | 40 | ||||
Net interest income after provision for credit losses | 276 | 195 | 200 | ||||
Noninterest Income: | |||||||
Corporate Banking Revenue | 0 | 0 | 0 | ||||
Service charges on deposits | 0 | 0 | 0 | ||||
Wealth and asset management revenue | 0 | 0 | 0 | ||||
Card And Processing Revenue | 0 | 0 | 0 | ||||
Mortgage banking net revenue | 279 | 206 | 217 | ||||
Other noninterest income | 14 | 14 | 18 | ||||
Securities gains, net | 0 | 0 | 0 | ||||
Securities gains, non - qualifying hedges on MSRs | 3 | (15) | 2 | ||||
Total noninterest income | 296 | 205 | 237 | ||||
Noninterest expense: | |||||||
Salaries, wages and incentives | 158 | 156 | 152 | ||||
Employee benefits | 38 | 36 | 37 | ||||
Net occupancy expense | 10 | 10 | 10 | ||||
Technology and communications | 8 | 5 | 2 | ||||
Equipment Expense | 0 | 0 | 0 | ||||
Card And Processing Expense | 0 | 0 | 0 | ||||
Other noninterest expense (income) | 241 | 195 | 210 | ||||
Total noninterest expense | 455 | 402 | 411 | ||||
Income (Loss) Before Income Taxes | 117 | (2) | 26 | ||||
Applicable income tax expense (benefit) | 25 | (1) | 9 | ||||
Net income | 92 | (1) | 17 | ||||
Total goodwill | 0 | 0 | 0 | ||||
Total assets | 26,555 | 22,044 | 22,218 | ||||
Wealth and Asset Management | |||||||
Segment Reporting Information | |||||||
Net interest income | 182 | 182 | 154 | ||||
Provision for credit losses | 0 | 12 | 6 | ||||
Net interest income after provision for credit losses | 182 | 170 | 148 | ||||
Noninterest Income: | |||||||
Corporate Banking Revenue | 1 | 2 | 1 | ||||
Service charges on deposits | 1 | 1 | 1 | ||||
Wealth and asset management revenue | 469 | 429 | 407 | ||||
Card And Processing Revenue | 3 | 5 | 5 | ||||
Mortgage banking net revenue | 2 | 1 | 1 | ||||
Other noninterest income | 13 | 18 | 4 | ||||
Securities gains, net | 0 | 0 | 0 | ||||
Securities gains, non - qualifying hedges on MSRs | 0 | 0 | 0 | ||||
Total noninterest income | 489 | 456 | 419 | ||||
Noninterest expense: | |||||||
Salaries, wages and incentives | 185 | 173 | 154 | ||||
Employee benefits | 32 | 29 | 27 | ||||
Net occupancy expense | 13 | 12 | 11 | ||||
Technology and communications | 1 | 1 | 0 | ||||
Equipment Expense | 1 | 1 | 0 | ||||
Card And Processing Expense | 1 | 0 | 0 | ||||
Other noninterest expense (income) | 296 | 288 | 276 | ||||
Total noninterest expense | 529 | 504 | 468 | ||||
Income (Loss) Before Income Taxes | 142 | 122 | 99 | ||||
Applicable income tax expense (benefit) | 30 | 25 | 34 | ||||
Net income | 112 | 97 | 65 | ||||
Total goodwill | 252 | 193 | 177 | ||||
Total assets | 10,500 | 10,337 | 9,494 | ||||
General Corporate and Other | |||||||
Segment Reporting Information | |||||||
Net interest income | (441) | (26) | (30) | ||||
Provision for credit losses | 15 | 8 | 24 | ||||
Net interest income after provision for credit losses | (456) | (34) | (54) | ||||
Noninterest Income: | |||||||
Corporate Banking Revenue | 0 | (1) | (1) | ||||
Service charges on deposits | (4) | 0 | 1 | ||||
Wealth and asset management revenue | 0 | 0 | 0 | ||||
Card And Processing Revenue | 6 | 0 | 0 | ||||
Mortgage banking net revenue | 0 | 0 | 0 | ||||
Other noninterest income | 863 | 651 | 1,104 | ||||
Securities gains, net | 40 | (54) | 2 | ||||
Securities gains, non - qualifying hedges on MSRs | 0 | 0 | 0 | ||||
Total noninterest income | 905 | 596 | 1,106 | ||||
Noninterest expense: | |||||||
Salaries, wages and incentives | 763 | 716 | 650 | ||||
Employee benefits | 175 | 125 | 149 | ||||
Net occupancy expense | 108 | 69 | 72 | ||||
Technology and communications | 398 | 267 | 230 | ||||
Equipment Expense | 55 | 49 | 47 | ||||
Card And Processing Expense | (2) | (2) | (1) | ||||
Other noninterest expense (income) | (1,159) | (1,025) | (1,027) | ||||
Total noninterest expense | 338 | 199 | 120 | ||||
Income (Loss) Before Income Taxes | 111 | 363 | 932 | ||||
Applicable income tax expense (benefit) | 87 | 107 | 116 | ||||
Net income | 24 | 256 | 816 | ||||
Total goodwill | 0 | 0 | 0 | ||||
Total assets | $ (11,669) | [5] | $ (8,982) | [6] | $ (6,018) | [7] | |
[1] | Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Consolidated Statements of Income. | ||||||
[2] | Includes impairment charges of $3 for operating lease equipment. For more information, refer to Note 9 and Note 29. | ||||||
[3] | Includes impairment charges of $4 for operating lease equipment. For more information, refer to Note 9 and Note 29. | ||||||
[4] | Includes impairment charges of $52 for operating lease equipment. For more information, refer to Note 9. | ||||||
[5] | Includes bank premises and equipment of $27 classified as held for sale. For more information, refer to Note 8. | ||||||
[6] | Includes bank premises and equipment of $42 classified as held for sale. For more information, refer to Note 8. | ||||||
[7] | Includes bank premises and equipment of $27 classified as held for sale. |
Segments (Results of Operatio_3
Segments (Results of Operations and Average Assets by Segment) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information | |||
Impairment of Branches and Land | $ 28 | $ 45 | $ 7 |
Bank premises and equipment held for sale | 27 | 42 | |
Right of use asset, operating lease impairment | 15 | ||
Commercial Banking | |||
Segment Reporting Information | |||
Other Asset Impairment Charges | 3 | ||
Commercial Banking | Operating lease equipment | |||
Segment Reporting Information | |||
Other Asset Impairment Charges | 3 | 4 | 52 |
General Corporate and Other | |||
Segment Reporting Information | |||
Bank premises and equipment held for sale | $ 27 | $ 42 | $ 27 |
Subsequent Events (Subsequent E
Subsequent Events (Subsequent Event - Additional Information) (Detail) - USD ($) $ in Millions | Jan. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | ||
Face amount of notes issued or redeemed | $ 1,370 | |
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.00% | |
Debt Instrument, Redemption, Description | The 2.25% senior fixed-rate notes will be redeemable at the Bank’s option, in whole or in part, at any time or from time to time, on or after July 31, 2020, and prior to January 4, 2027 (the “Applicable Par Call Date”), in each case at a redemption price, plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date, equal to the greater of: (a) 100% of the aggregate principal amount of the 2.25% senior fixed-rate notes being redeemed on that redemption date; and (b) the sum of the present values of the remaining scheduled payments of principal and interest on the 2.25% senior fixed-rate notes being redeemed that would be due if the 2.25% senior fixed-rate notes to be redeemed matured on the Applicable Par Call Date (not including any portion of such payments of interest accrued to the redemption date) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Rate plus the Applicable Spread for the Notes to be redeemed. Additionally, on or after January 4, 2027, the 2.25% senior fixed-rate notes will also be redeemable, in whole or in part, at any time and from time to time, at the Bank’s option at a redemption price equal to 100% of the aggregate principal amount of the 2.25% senior fixed-rate notes being redeemed, plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date. | |
Fixed Rate 1.80 Percent Senior Notes Due 2023 | ||
Subsequent Event [Line Items] | ||
Face amount of notes issued or redeemed | $ 650 | |
Maturity date(s) End | Jan. 30, 2023 | |
Debt Instrument, Redemption, Description | On or after the date that is 30 days before the maturity date, the 1.80% senior fixed-rate notes will be redeemable, in whole or in part, at any time and from time to time, at the Bank’s option at a redemption price equal to 100% of the aggregate principal amount of the 1.80% senior fixed-rate notes being redeemed, plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date. | |
Fixed Rate 2.25 Percent Notes Due 2027 | ||
Subsequent Event [Line Items] | ||
Face amount of notes issued or redeemed | $ 600 | |
Maturity date(s) Start | Jan. 31, 2020 | |
Maturity date(s) End | Feb. 1, 2027 | |
Aggregate Principal | ||
Subsequent Event [Line Items] | ||
Face amount of notes issued or redeemed | $ 1,250 | |
Subsequent Event [Member] | Fixed Rate 2.25 Percent Notes Due 2027 | ||
Subsequent Event [Line Items] | ||
Redemption Date Start | Jul. 31, 2020 | |
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.00% |