Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 31, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-6880 | ||
Entity Registrant Name | US BANCORP \DE\ | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 41-0255900 | ||
Entity Address, Address Line One | 800 Nicollet Mall | ||
Entity Address, City or Town | Minneapolis | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55402 | ||
City Area Code | 651 | ||
Local Phone Number | 466-3000 | ||
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 Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | true | ||
Document Financial Statement Restatement Recovery Analysis [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 50.6 | ||
Entity Common Stock, Shares Outstanding | 1,558,133,431 | ||
Auditor Firm ID | 42 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Minneapolis, Minnesota | ||
Documents Incorporated by Reference | Document Parts Into Which Incorporated 1. Portions of the Annual Report to Shareholders for the Fiscal Year Ended December 31, 2023 (the “2023 Annual Report”) Parts I and II 2. Portions of the Proxy Statement for the Annual Meeting of Shareholders to be held April 16, 2024 (the “Proxy Statement”) Part III | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Entity Central Index Key | 0000036104 | ||
0.850% Medium-Term Notes, Series X (Senior), due June 7, 2024 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 0.850% Medium-Term Notes, Series X (Senior), due June 7, 2024 | ||
Trading Symbol | USB/24B | ||
Security Exchange Name | NYSE | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $.01 par value per share | ||
Trading Symbol | USB | ||
Security Exchange Name | NYSE | ||
Depositary Shares (each representing 1/100th interest in a share of Series A Non-Cumulative Perpetual Preferred Stock, par value $1.00) | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares (each representing 1/100th interest in a share of Series A Non-Cumulative Perpetual Preferred Stock, par value $1.00) | ||
Trading Symbol | USB PrA | ||
Security Exchange Name | NYSE | ||
Depositary Shares (each representing 1/1,000th interest in a share of Series B Non-Cumulative Perpetual Preferred Stock, par value $1.00) | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares (each representing 1/1,000th interest in a share of Series B Non-Cumulative Perpetual Preferred Stock, par value $1.00) | ||
Trading Symbol | USB PrH | ||
Security Exchange Name | NYSE | ||
Depositary Shares (each representing 1/1,000th interest in a share of Series K Non-Cumulative Perpetual Preferred Stock, par value $1.00) | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares (each representing 1/1,000th interest in a share of Series K Non-Cumulative Perpetual Preferred Stock, par value $1.00) | ||
Trading Symbol | USB PrP | ||
Security Exchange Name | NYSE | ||
Depositary Shares (each representing 1/1,000th interest in a share of Series L Non-Cumulative Perpetual Preferred Stock, par value $1.00) | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares (each representing 1/1,000th interest in a share of Series L Non-Cumulative Perpetual Preferred Stock, par value $1.00) | ||
Trading Symbol | USB PrQ | ||
Security Exchange Name | NYSE | ||
Depositary Shares (each representing 1/1,000th interest in a share of Series M Non-Cumulative Perpetual Preferred Stock, par value $1.00) | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares (each representing 1/1,000th interest in a share of Series M Non-Cumulative Perpetual Preferred Stock, par value $1.00) | ||
Trading Symbol | USB PrR | ||
Security Exchange Name | NYSE | ||
Depositary Shares (each representing 1/1,000th interest in a share of Series O Non-Cumulative Perpetual Preferred Stock, par value $1.00) | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares (each representing 1/1,000th interest in a share of Series O Non-Cumulative Perpetual Preferred Stock, par value $1.00) | ||
Trading Symbol | USB PrS | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Cash and due from banks | $ 61,192 | $ 53,542 | |
Investment securities | |||
Held-to-maturity (fair value $74,088 and $77,874, respectively) | 84,045 | 88,740 | |
Available-for-sale ($338 and $858 pledged as collateral, respectively) | [1] | 69,706 | 72,910 |
Loans held for sale (including $2,011 and $1,849 of mortgage loans carried at fair value, respectively) | 2,201 | 2,200 | |
Loans | |||
Total loans | 373,835 | 388,213 | |
Less allowance for loan losses | (7,379) | (6,936) | |
Net loans | 366,456 | 381,277 | |
Premises and equipment | 3,623 | 3,858 | |
Goodwill | 12,489 | 12,373 | |
Other intangible assets | 6,084 | 7,155 | |
Other assets (including $3,548 and $702 of trading securities at fair value pledged as collateral, respectively) | [1] | 57,695 | 52,750 |
Total assets | 663,491 | 674,805 | |
Deposits | |||
Noninterest-bearing | 89,989 | 137,743 | |
Interest-bearing (including $2,818 of time deposits carried at fair value at December 31, 2023) | 422,323 | 387,233 | |
Total deposits | 512,312 | 524,976 | |
Short-term borrowings | 15,279 | 31,216 | |
Long-term debt | 51,480 | 39,829 | |
Other liabilities | 28,649 | 27,552 | |
Total liabilities | 607,720 | 623,573 | |
Shareholders’ equity | |||
Preferred stock | 6,808 | 6,808 | |
Common stock, par value $0.01 a share — authorized: 4,000,000,000 shares; issued: 2023 and 2022—2,125,725,742 shares | 21 | 21 | |
Capital surplus | 8,673 | 8,712 | |
Retained earnings | 74,026 | 71,901 | |
Less cost of common stock in treasury: 2023 — 567,732,687 shares; 2022 — 594,747,484 shares | (24,126) | (25,269) | |
Accumulated other comprehensive income (loss) | (10,096) | (11,407) | |
Total U.S. Bancorp shareholders’ equity | 55,306 | 50,766 | |
Noncontrolling interests | 465 | 466 | |
Total equity | 55,771 | 51,232 | |
Total liabilities and equity | 663,491 | 674,805 | |
Commercial | Commercial | |||
Loans | |||
Total loans | 131,881 | 135,690 | |
Commercial | Commercial real estate | |||
Loans | |||
Total loans | 53,455 | 55,487 | |
Consumer | Residential mortgages | |||
Loans | |||
Total loans | 115,530 | 115,845 | |
Consumer | Credit card | |||
Loans | |||
Total loans | 28,560 | 26,295 | |
Consumer | Other retail | |||
Loans | |||
Total loans | $ 44,409 | $ 54,896 | |
[1] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Held-to-maturity, fair value | $ 74,088 | $ 77,874 | |
Available-for-sale securities | [1] | 69,706 | 72,910 |
Loans held-for-sale, mortgage loans carried at fair value | 2,011 | 1,849 | |
Time deposits | $ 2,818 | $ 0 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, authorized (in shares) | 4,000,000,000 | 4,000,000,000 | |
Common stock, issued (in shares) | 2,125,725,742 | 2,125,725,742 | |
Common stock in treasury (in shares) | 567,732,687 | 594,747,484 | |
Asset Pledged as Collateral with Right | |||
Available-for-sale securities | $ 338 | $ 858 | |
Other assets, trading securities pledged as collateral | $ 3,548 | $ 702 | |
[1] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest Income | |||
Loans | $ 22,324 | $ 13,603 | $ 10,747 |
Loans held for sale | 147 | 201 | 232 |
Investment securities | 4,485 | 3,378 | 2,365 |
Other interest income | 3,051 | 763 | 143 |
Total interest income | 30,007 | 17,945 | 13,487 |
Interest Expense | |||
Deposits | 8,775 | 1,872 | 320 |
Short-term borrowings | 1,971 | 565 | 70 |
Long-term debt | 1,865 | 780 | 603 |
Total interest expense | 12,611 | 3,217 | 993 |
Net interest income | 17,396 | 14,728 | 12,494 |
Provision for credit losses | 2,275 | 1,977 | (1,173) |
Net interest income after provision for credit losses | 15,121 | 12,751 | 13,667 |
Noninterest Income | |||
Card revenue | 1,630 | 1,512 | 1,507 |
Corporate payment products revenue | 759 | 698 | 575 |
Merchant processing services | 1,659 | 1,579 | 1,449 |
Trust and investment management fees | 2,459 | 2,209 | 1,832 |
Service charges | 1,306 | 1,298 | 1,338 |
Commercial products revenue | 1,372 | 1,105 | 1,102 |
Mortgage banking revenue | 540 | 527 | 1,361 |
Investment products fees | 279 | 235 | 239 |
Securities gains (losses), net | (145) | 20 | 103 |
Other | 758 | 273 | 721 |
Total noninterest income | 10,617 | 9,456 | 10,227 |
Noninterest Expense | |||
Compensation and employee benefits | 10,416 | 9,157 | 8,728 |
Net occupancy and equipment | 1,266 | 1,096 | 1,048 |
Professional services | 560 | 529 | 492 |
Marketing and business development | 726 | 456 | 366 |
Technology and communications | 2,049 | 1,726 | 1,728 |
Other intangibles | 636 | 215 | 159 |
Merger and integration charges | 1,009 | 329 | 0 |
Other | 2,211 | 1,398 | 1,207 |
Total noninterest expense | 18,873 | 14,906 | 13,728 |
Income before income taxes | 6,865 | 7,301 | 10,166 |
Applicable income taxes | 1,407 | 1,463 | 2,181 |
Net income (loss) | 5,458 | 5,838 | 7,985 |
Net (income) loss attributable to noncontrolling interests | (29) | (13) | (22) |
Net income (loss) attributable to U.S. Bancorp | 5,429 | 5,825 | 7,963 |
Net income applicable to U.S. Bancorp common shareholders | 5,051 | 5,501 | 7,605 |
Net income applicable to U.S. Bancorp common shareholders, diluted | $ 5,051 | $ 5,501 | $ 7,605 |
Earnings per common share (in dollars per share) | $ 3.27 | $ 3.69 | $ 5.11 |
Diluted earnings per common share (in dollars per share) | $ 3.27 | $ 3.69 | $ 5.10 |
Average common shares outstanding (in shares) | 1,543 | 1,489 | 1,489 |
Average diluted common shares outstanding (in shares) | 1,543 | 1,490 | 1,490 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 5,458 | $ 5,838 | $ 7,985 |
Other Comprehensive Income (Loss) | |||
Changes in unrealized gains (losses) on investment securities available-for-sale | 1,500 | (13,656) | (3,698) |
Changes in unrealized gains (losses) on derivative hedges | (252) | (75) | 125 |
Foreign currency translation | 21 | (10) | 35 |
Changes in unrealized gains (losses) on retirement plans | (262) | 526 | 400 |
Reclassification to earnings of realized (gains) losses | 748 | 544 | 104 |
Income taxes related to other comprehensive income (loss) | (444) | 3,207 | 769 |
Total other comprehensive income (loss) | 1,311 | (9,464) | (2,265) |
Comprehensive income (loss) | 6,769 | (3,626) | 5,720 |
Comprehensive (income) loss attributable to noncontrolling interests | (29) | (13) | (22) |
Comprehensive income (loss) attributable to U.S. Bancorp | $ 6,740 | $ (3,639) | $ 5,698 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Change in accounting principle | [3] | Total U.S. Bancorp Shareholders’ Equity | Total U.S. Bancorp Shareholders’ Equity Change in accounting principle | [3] | Common Stock | Preferred Stock | Capital Surplus | Retained Earnings | Retained Earnings Change in accounting principle | [3] | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | |
Beginning Balance (in shares) at Dec. 31, 2020 | 1,507 | |||||||||||||||
Beginning Balance at Dec. 31, 2020 | $ 53,725 | $ 53,095 | $ 21 | $ 5,983 | $ 8,511 | $ 64,188 | $ (25,930) | $ 322 | $ 630 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income (loss) | 7,985 | 7,963 | 7,963 | 22 | ||||||||||||
Other comprehensive income (loss) | (2,265) | (2,265) | (2,265) | |||||||||||||
Preferred stock dividends | [1] | (303) | (303) | (303) | ||||||||||||
Common stock dividends | (2,630) | (2,630) | (2,630) | |||||||||||||
Issuance of preferred stock | 2,221 | 2,221 | 2,221 | |||||||||||||
Call and redemption of preferred stock | (1,850) | (1,850) | (1,833) | (17) | ||||||||||||
Issuance of common and treasury stock (in shares) | 5 | |||||||||||||||
Issuance of common and treasury stock | $ 46 | 46 | (169) | 215 | ||||||||||||
Purchase of treasury stock (in shares) | (28) | (28) | ||||||||||||||
Purchase of treasury stock | $ (1,556) | (1,556) | (1,556) | |||||||||||||
Distributions to noncontrolling interests | (20) | (20) | ||||||||||||||
Purchase of noncontrolling interests | (167) | (167) | ||||||||||||||
Net other changes in noncontrolling interests | 4 | 4 | ||||||||||||||
Stock option and restricted stock grants | 197 | 197 | 197 | |||||||||||||
Ending Balance (in shares) at Dec. 31, 2021 | 1,484 | |||||||||||||||
Ending Balance at Dec. 31, 2021 | $ 55,387 | 54,918 | $ 21 | 6,371 | 8,539 | 69,201 | (27,271) | (1,943) | 469 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 1.76 | |||||||||||||||
Net income (loss) | $ 5,838 | 5,825 | 5,825 | 13 | ||||||||||||
Other comprehensive income (loss) | (9,464) | (9,464) | (9,464) | |||||||||||||
Preferred stock dividends | [2] | (296) | (296) | (296) | ||||||||||||
Common stock dividends | (2,829) | (2,829) | (2,829) | |||||||||||||
Issuance of preferred stock | 437 | 437 | 437 | |||||||||||||
Issuance of common and treasury stock (in shares) | 48 | |||||||||||||||
Issuance of common and treasury stock | $ 2,039 | 2,039 | (32) | 2,071 | ||||||||||||
Purchase of treasury stock (in shares) | (1) | (1) | ||||||||||||||
Purchase of treasury stock | $ (69) | (69) | (69) | |||||||||||||
Distributions to noncontrolling interests | (13) | (13) | ||||||||||||||
Net other changes in noncontrolling interests | (3) | (3) | ||||||||||||||
Stock option and restricted stock grants | $ 205 | 205 | 205 | |||||||||||||
Ending Balance (in shares) at Dec. 31, 2022 | 1,500 | 1,531 | ||||||||||||||
Ending Balance at Dec. 31, 2022 | $ 51,232 | $ 46 | 50,766 | $ 46 | $ 21 | 6,808 | 8,712 | 71,901 | $ 46 | (25,269) | (11,407) | 466 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2022-02 [Member] | |||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 1.88 | |||||||||||||||
Net income (loss) | $ 5,458 | 5,429 | 5,429 | 29 | ||||||||||||
Other comprehensive income (loss) | 1,311 | 1,311 | 1,311 | |||||||||||||
Preferred stock dividends | [4] | (350) | (350) | (350) | ||||||||||||
Common stock dividends | (3,000) | (3,000) | (3,000) | |||||||||||||
Issuance of common and treasury stock (in shares) | 28 | |||||||||||||||
Issuance of common and treasury stock | $ 941 | 941 | (264) | 1,205 | ||||||||||||
Purchase of treasury stock (in shares) | (1) | (1) | ||||||||||||||
Purchase of treasury stock | $ (62) | (62) | (62) | |||||||||||||
Distributions to noncontrolling interests | (29) | (29) | ||||||||||||||
Net other changes in noncontrolling interests | (1) | (1) | ||||||||||||||
Stock option and restricted stock grants | $ 225 | 225 | 225 | |||||||||||||
Ending Balance (in shares) at Dec. 31, 2023 | 1,600 | 1,558 | ||||||||||||||
Ending Balance at Dec. 31, 2023 | $ 55,771 | $ 55,306 | $ 21 | $ 6,808 | $ 8,673 | $ 74,026 | $ (24,126) | $ (10,096) | $ 465 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 1.93 | |||||||||||||||
[1] Reflects dividends declared per share on the Company’s Series A, Series B, Series F, Series I, Series J, Series K, Series L, Series M, and Series N Non-Cumulative Perpetual Preferred Stock of $3,548.61, $887.153, $1,625.00, $232.953, $1,325.00, $1,375.00, $937.50, $952.778, $202.986, respectively. Reflects dividends declared per share on the Company’s Series A, Series B, Series J, Series K, Series L, Series M, Series N, and Series O Non-Cumulative Perpetual Preferred Stock of $3,965.458, $962.487, $1,325.00, $1,375.00, $937.50, $1,000.00, $925.00, and $1,050.00, respectively. Effective January 1, 2023, the Company adopted accounting guidance which removed the separate recognition and measurement of troubled debt restructurings. Upon adoption, the Company reduced its allowance for credit losses and increased retained earnings net of deferred taxes through a cumulative-effect adjustment Reflects dividends declared per share on the Company’s Series A, Series B, Series J, Series K, Series L, Series M, Series N and Series O Non-Cumulative Perpetual Preferred Stock of $6,439.904, $1,503.518, $1,325.00, $1,375.00, $937.50, $1,000.00, $925.00, and $1,125.00, respectively. |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Common stock dividends (in dollars per share) | $ 1.93 | $ 1.88 | $ 1.76 |
Series A | |||
Preferred stock dividends declared (in dollars per share) | 6,439.904 | 3,965.458 | 3,548.61 |
Series B | |||
Preferred stock dividends declared (in dollars per share) | 1,503.518 | 962.487 | 887.153 |
Series F | |||
Preferred stock dividends declared (in dollars per share) | 1,625 | ||
Series I | |||
Preferred stock dividends declared (in dollars per share) | 232.95 | ||
Series J | |||
Preferred stock dividends declared (in dollars per share) | 1,325 | 1,325 | 1,325 |
Series K | |||
Preferred stock dividends declared (in dollars per share) | 1,375 | 1,375 | 1,375 |
Series L | |||
Preferred stock dividends declared (in dollars per share) | 937.50 | 937.50 | 937.50 |
Series M | |||
Preferred stock dividends declared (in dollars per share) | 1,000 | 1,000 | 952.778 |
Series N | |||
Preferred stock dividends declared (in dollars per share) | 925 | 925 | $ 202.986 |
Series O | |||
Preferred stock dividends declared (in dollars per share) | $ 1,125 | $ 1,050 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Activities | |||
Net income attributable to U.S. Bancorp | $ 5,429 | $ 5,825 | $ 7,963 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Provision for credit losses | 2,275 | 1,977 | (1,173) |
Depreciation and amortization of premises and equipment | 382 | 345 | 338 |
Amortization of intangibles | 636 | 215 | 159 |
(Gain) loss on sale of loans held for sale | 7 | 387 | (1,135) |
(Gain) loss on sale of securities and other assets | 119 | (188) | (398) |
Loans originated for sale, net of repayments | (26,936) | (33,127) | (72,627) |
Proceeds from sales of loans held for sale | 26,686 | 38,895 | 74,315 |
Other, net | (151) | 6,790 | 2,428 |
Net cash provided by operating activities | 8,447 | 21,119 | 9,870 |
Investing Activities | |||
Proceeds from sales of available-for-sale investment securities | 11,209 | 36,391 | 16,075 |
Proceeds from maturities of held-to-maturity investment securities | 6,164 | 5,759 | 1,093 |
Proceeds from maturities of available-for-sale investment securities | 6,314 | 14,927 | 41,199 |
Purchases of held-to-maturity investment securities | (932) | (7,091) | (1,088) |
Purchases of available-for-sale investment securities | (8,342) | (24,592) | (99,045) |
Net decrease (increase) in loans outstanding | 3,829 | (27,318) | (17,459) |
Proceeds from sales of loans | 5,707 | 4,420 | 6,183 |
Purchases of loans | (1,106) | (2,113) | (4,466) |
Net (increase) decrease in securities purchased under agreements to resell | (2,404) | 252 | 18 |
Net cash (paid for) received from acquisitions | (330) | 12,257 | (661) |
Other, net | (1,184) | (5,392) | 664 |
Net cash provided by (used in) investing activities | 18,925 | 7,500 | (57,487) |
Financing Activities | |||
Net (decrease) increase in deposits | (12,291) | (17,215) | 26,313 |
Net (decrease) increase in short-term borrowings | (16,508) | 15,213 | 30 |
Proceeds from issuance of long-term debt | 15,583 | 8,732 | 2,626 |
Principal payments or redemption of long-term debt | (4,084) | (6,926) | (11,432) |
Proceeds from issuance of preferred stock | 0 | 437 | 2,221 |
Proceeds from issuance of common stock | 951 | 21 | 43 |
Repurchase of preferred stock | 0 | (1,100) | (1,250) |
Repurchase of common stock | (62) | (69) | (1,555) |
Cash dividends paid on preferred stock | (341) | (299) | (308) |
Cash dividends paid on common stock | (2,970) | (2,776) | (2,579) |
Purchase of noncontrolling interests | 0 | 0 | (167) |
Net cash (used in) provided by financing activities | (19,722) | (3,982) | 13,942 |
Change in cash and due from banks | 7,650 | 24,637 | (33,675) |
Cash and due from banks at beginning of period | 53,542 | 28,905 | 62,580 |
Cash and due from banks at end of period | 61,192 | 53,542 | 28,905 |
Supplemental Cash Flow Disclosures | |||
Cash paid for income taxes | 645 | 767 | 535 |
Cash paid for interest | 12,282 | 2,717 | 1,061 |
Noncash transfer of available-for-sale investment securities to held-to-maturity | 0 | 40,695 | 41,823 |
Net noncash transfers to foreclosed property | 26 | 23 | 14 |
Acquisitions | |||
Assets (sold) acquired | (83) | 106,209 | 749 |
Liabilities sold (assumed) | 413 | (95,753) | (88) |
Net | $ 330 | $ 10,456 | $ 661 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 1 Significant Accounting Policies U.S. Bancorp is a financial services holding company headquartered in Minneapolis, Minnesota, serving millions of local, national and global customers. U.S. Bancorp and its subsidiaries (the “Company”) provide a full range of financial services, including lending and depository services through banking offices principally in the Midwest and West regions of the United States, through online services, over mobile devices and through other distribution channels. The Company also engages in credit card, merchant, and ATM processing, mortgage banking, cash management, capital markets, insurance, trust and investment management, brokerage, and leasing activities, principally in domestic markets. Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries and all VIEs for which the Company has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and the obligation to absorb losses or right to receive benefits of the VIE that could potentially be significant to the VIE. Consolidation eliminates intercompany accounts and transactions. Certain items in prior periods have been reclassified to conform to the current period presentation. Uses of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual experience could differ from those estimates and assumptions. Securities Realized gains or losses on securities are determined on a trade date basis based on the specific amortized cost of the investments sold. Trading Securities Securities held for resale are classified as trading securities and are included in other assets and reported at fair value. Changes in fair value and realized gains or losses are reported in noninterest income. Available-for-sale Securities Debt securities that are not trading securities but may be sold before maturity in response to changes in the Company’s interest rate risk profile, funding needs, demand for collateralized deposits by public entities or other reasons, are carried at fair value with unrealized net gains or losses reported within other comprehensive income (loss). Declines in fair value related to credit, if any, are recorded through the establishment of an allowance for credit losses. Held-to-maturity Securities Debt securities for which the Company has the positive intent and ability to hold to maturity are reported at historical cost adjusted for amortization of premiums and accretion of discounts. Expected credit losses, if any, are recorded through the establishment of an allowance for credit losses. Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase Securities purchased under agreements to resell and securities sold under agreements to repurchase are accounted for as collateralized financing transactions with a receivable or payable recorded at the amounts at which the securities were acquired or sold, plus accrued interest. Collateral requirements are continually monitored and additional collateral is received or provided as required. The Company records a receivable or payable for cash collateral paid or received. Equity Investments Equity investments in entities where the Company has a significant influence (generally between 20 percent and 50 percent ownership), but does not control the entity, are accounted for using the equity method. Investments in limited partnerships and similarly structured limited liability companies where the Company’s ownership interest is greater than 5 percent are accounted for using the equity method. Equity investments not using the equity method are accounted for at fair value with changes in fair value and realized gains or losses reported in noninterest income, unless fair value is not readily determinable, in which case the investment is carried at cost subject to adjustments for any observable market transactions on the same or similar instruments of the investee. Most of the Company’s equity investments do not have readily determinable fair values. All equity investments are evaluated for impairment at least annually and more frequently if certain criteria are met. Loans The Company offers a broad array of lending products and categorizes its loan portfolio into two segments, which is the level at which it develops and documents a systematic methodology to determine the allowance for credit losses. The Company’s two loan portfolio segments are commercial lending and consumer lending. The Company further disaggregates its loan portfolio segments into various classes based on their underlying risk characteristics. The two classes within the commercial lending segment are commercial loans and commercial real estate loans. The three classes within the consumer lending segment are residential mortgages, credit card loans and other retail loans. Originated Loans Held for Investment Loans the Company originates as held for investment are reported at the principal amount outstanding, net of unearned interest income and deferred fees and costs, and any direct principal charge-offs. Interest income is accrued on the unpaid principal balances as earned. Loan and commitment fees and certain direct loan origination costs are deferred and recognized over the life of the loan and/or commitment period as yield adjustments. Purchased Loans All purchased loans are recorded at fair value at the date of purchase and those acquired on or after January 1, 2020 are divided into those considered PCD and those not considered PCD. An allowance for credit losses is established for each population and considers product mix, risk characteristics of the portfolio, delinquency status and refreshed loan-to-value ratios when possible. The allowance established for purchased loans not considered PCD is recognized through provision expense upon acquisition, whereas the allowance established for loans considered PCD at acquisition is offset by an increase in the basis of the acquired loans. Any subsequent increases and decreases in the allowance related to purchased loans, regardless of PCD status, are recognized through provision expense, with charge-offs charged to the allowance. Commitments to Extend Credit Unfunded commitments for residential mortgage loans intended to be held for sale are considered derivatives and recorded in other assets and other liabilities on the Consolidated Balance Sheet at fair value with changes in fair value recorded in noninterest income. All other unfunded loan commitments are not considered derivatives and are not reported on the Consolidated Balance Sheet. Reserves for credit exposure on all other unfunded credit commitments are recorded in other liabilities. Allowance for Credit Losses The allowance for credit losses is established for current expected credit losses on the Company’s loan and lease portfolio, including unfunded credit commitments. The allowance considers expected losses for the remaining lives of the applicable assets, inclusive of expected recoveries. The allowance for credit losses is increased through provisions charged to earnings and reduced by net charge-offs. Management evaluates the appropriateness of the allowance for credit losses on a quarterly basis. Multiple economic scenarios are considered over a three-year reasonable and supportable forecast period, which includes increasing consideration of historical loss experience over years two and three. These economic scenarios are constructed with interrelated projections of multiple economic variables, and loss estimates are produced that consider the historical correlation of those economic variables with credit losses. After the forecast period, the Company fully reverts to long-term historical loss experience, adjusted for prepayments and characteristics of the current loan and lease portfolio, to estimate losses over the remaining life of the portfolio. The economic scenarios are updated at least quarterly and are designed to provide a range of reasonable estimates, from better to worse than current expectations. Scenarios are weighted based on the Company’s expectation of economic conditions for the foreseeable future and reflect significant judgment and consideration of economic forecast uncertainty. Final loss estimates also consider factors affecting credit losses not reflected in the scenarios, due to the unique aspects of current conditions and expectations. These factors may include, but are not limited to, loan servicing practices, regulatory guidance, and/or fiscal and monetary policy actions. The allowance recorded for credit losses utilizes forward-looking expected loss models to consider a variety of factors affecting lifetime credit losses. These factors include, but are not limited to, macroeconomic variables such as unemployment rates, real estate prices, gross domestic product levels, inflation, interest rates and corporate bonds spreads, as well as loan and borrower characteristics, such as internal risk ratings on commercial loans and consumer credit scores, delinquency status, collateral type and available valuation information, consideration of end-of-term losses on lease residuals, and the remaining term of the loan, adjusted for expected prepayments. For each loan portfolio, including those loans modified under various loan modification programs, model estimates are adjusted as necessary to consider any relevant changes in portfolio composition, lending policies, underwriting standards, risk management practices, economic conditions or other factors that would affect the accuracy of the model. Expected credit loss estimates also include consideration of expected cash recoveries on loans previously charged-off or expected recoveries on collateral dependent loans where recovery is expected through sale of the collateral at fair value less selling costs. Where loans do not exhibit similar risk characteristics, an individual analysis is performed to consider expected credit losses. The allowance recorded for individually evaluated loans greater than $5 million in the commercial lending segment is based on an analysis utilizing expected cash flows discounted using the original effective interest rate, the observable market price of the loan, or the fair value of the collateral, less selling costs, for collateral-dependent loans as appropriate. For smaller commercial loans collectively evaluated for impairment, historical loss experience is also incorporated into the allowance methodology applied to this category of loans. The Company’s methodology for determining the appropriate allowance for credit losses also considers the imprecision inherent in the methodologies used and allocated to the various loan portfolios. As a result, amounts determined under the methodologies described above are adjusted by management to consider the potential impact of other qualitative factors not captured in the quantitative model adjustments which include, but are not limited to, the following: model imprecision, imprecision in economic scenario assumptions, and emerging risks related to either changes in the environment that are affecting specific portfolios, or changes in portfolio concentrations over time that may affect model performance. The consideration of these items results in adjustments to allowance amounts included in the Company’s allowance for credit losses for each loan portfolio. The Company also assesses the credit risk associated with off-balance sheet loan commitments, letters of credit, investment securities and derivatives. Credit risk associated with derivatives is reflected in the fair values recorded for those positions. The liability for off-balance sheet credit exposure related to loan commitments and other credit guarantees is included in other liabilities. Because business processes and credit risks associated with unfunded credit commitments are essentially the same as for loans, the Company utilizes similar processes to estimate its liability for unfunded credit commitments. The results of the analysis are evaluated quarterly to confirm the estimates are appropriate for each specific loan portfolio, as well as the entire loan portfolio, as the entire allowance for credit losses is available for the entire loan portfolio. Credit Quality The credit quality of the Company’s loan portfolios is assessed as a function of net credit losses, levels of nonperforming assets and delinquencies, and credit quality ratings as defined by the Company. For all loan portfolio classes, loans are considered past due based on the number of days delinquent except for monthly amortizing loans which are classified delinquent based upon the number of contractually required payments not made (for example, two missed payments is considered 30 days delinquent). When a loan is placed on nonaccrual status, unpaid accrued interest is reversed, reducing interest income in the current period. Commercial lending segment loans are generally placed on nonaccrual status when the collection of principal and interest has become 90 days past due or is otherwise considered doubtful. Commercial lending segment loans are generally fully charged down if unsecured by collateral or partially charged down to the fair value of the collateral securing the loan, less costs to sell, when the loan is placed on nonaccrual. Consumer lending segment loans are generally charged-off at a specific number of days or payments past due. Residential mortgages and other retail loans secured by 1-4 family properties are generally charged down to the fair value of the collateral securing the loan, less costs to sell, at 180 days past due. Residential mortgage loans and lines in a first lien position are placed on nonaccrual status in instances where a partial charge-off occurs unless the loan is well secured and in the process of collection. Residential mortgage loans and lines in a junior lien position secured by 1-4 family properties are placed on nonaccrual status at 120 days past due or when they are behind a first lien that has become 180 days or greater past due or placed on nonaccrual status. Any secured consumer lending segment loan whose borrower has had debt discharged through bankruptcy, for which the loan amount exceeds the fair value of the collateral, is charged down to the fair value of the related collateral and the remaining balance is placed on nonaccrual status. Credit card loans continue to accrue interest until the account is charged-off. Credit cards are charged-off at 180 days past due. Other retail loans not secured by 1-4 family properties are charged-off at 120 days past due; and revolving consumer lines are charged-off at 180 days past due. Similar to credit cards, other retail loans are generally not placed on nonaccrual status because of the relative short period of time to charge-off. Certain retail customers having financial difficulties may have the terms of their credit card and other loan agreements modified to require only principal payments and, as such, are reported as nonaccrual. For all loan classes, interest payments received on nonaccrual loans are generally recorded as a reduction to a loan’s carrying amount while a loan is on nonaccrual and are recognized as interest income upon payoff of the loan. However, interest income may be recognized for interest payments if the remaining carrying amount of the loan is believed to be collectible. In certain circumstances, loans in any class may be restored to accrual status, such as when a loan has demonstrated sustained repayment performance or no amounts are past due and prospects for future payment are no longer in doubt; or when the loan becomes well secured and is in the process of collection. Loans where there has been a partial charge-off may be returned to accrual status if all principal and interest (including amounts previously charged-off) is expected to be collected and the loan is current. The Company classifies its loan portfolio classes using internal credit quality ratings on a quarterly basis. These ratings include pass, special mention and classified, and are an important part of the Company’s overall credit risk management process and evaluation of the allowance for credit losses. Loans with a pass rating represent those loans not classified on the Company’s rating scale for problem credits, as minimal credit risk has been identified. Special mention loans are those loans that have a potential weakness deserving management’s close attention. Classified loans are those loans where a well-defined weakness has been identified that may put full collection of contractual cash flows at risk. It is possible that others, given the same information, may reach different reasonable conclusions regarding the credit quality rating classification of specific loans. Loan Modifications In certain circumstances, the Company may modify the terms of a loan to maximize the collection of amounts due when a borrower is experiencing financial difficulties or is expected to experience difficulties in the near-term. The Company recognizes interest on modified loans if full collection of contractual principal and interest is expected. The effects of modifications on credit loss expectations, such as improved payment capacity, longer expected lives and other factors, are considered when measuring the allowance for credit losses. Modification performance, including redefault rates and how these compare to historical losses, are also considered. Modifications generally do not result in significant changes to the Company’s allowance for credit losses. For the commercial lending segment, modifications generally result in the Company working with borrowers on a case-by-case basis. Commercial and commercial real estate modifications generally include extensions of the maturity date and may be accompanied by an increase or decrease to the interest rate. In addition, the Company may work with the borrower in identifying other changes that mitigate loss to the Company, which may include additional collateral or guarantees to support the loan. To a lesser extent, the Company may provide an interest rate reduction. Modifications for the consumer lending segment are generally part of programs the Company has initiated. The Company modifies residential mortgage loans under Federal Housing Administration, United States Department of Veterans Affairs, or its own internal programs. Under these programs, the Company offers qualifying homeowners the opportunity to permanently modify their loan and achieve more affordable monthly payments. These modifications may include adjustments to interest rates, conversion of adjustable rates to fixed rates, extension of maturity dates or deferrals of payments, capitalization of accrued interest and/or outstanding advances, or in limited situations, partial forgiveness of loan principal. In most instances, participation in residential mortgage loan restructuring programs requires the customer to complete a short-term trial period. A permanent loan modification is contingent on the customer successfully completing the trial period arrangement, and the loan documents are not modified until that time. Credit card and other retail loan modifications are generally part of distinct modification programs providing customers experiencing financial difficulty with modifications whereby balances may be amortized up to 60 months, and generally include waiver of fees and reduced interest rates. Leases The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Retail leases, primarily automobiles, have terms up to 5 years. Commercial leases may include high dollar assets such as aircraft or lower cost items such as office equipment. At lease inception, retail lease customers may be provided with an end-of-term purchase option, which is based on the contractual residual value of the automobile at the expiration of the lease. Automobile leases do not typically contain options to extend or terminate the lease. Equipment leases may contain various types of purchase options. Some option amounts are a stated value, while others are determined using the fair market value at the time of option exercise. Residual values on leased assets are reviewed regularly for impairment. Residual valuations for retail leases are based on independent assessments of expected used automobile sale prices at the end of the lease term. Impairment tests are conducted based on these valuations considering the probability of the lessee returning the asset to the Company, re-marketing efforts, insurance coverage and ancillary fees and costs. Valuations for commercial leases are based upon external or internal management appraisals. The Company manages its risk to changes in the residual value of leased vehicles, office and business equipment, and other assets through disciplined residual valuation setting at the inception of a lease, diversification of its leased assets, regular residual asset valuation reviews and monitoring of residual value gains or losses upon the disposition of assets. Retail lease residual value risk is mitigated further by the purchase of residual value insurance coverage and effective end-of-term marketing of off-lease vehicles. The Company, as lessee, leases certain assets for use in its operations. Leased assets primarily include retail branches, operations centers and other corporate locations, and, to a lesser extent, office and computer equipment. For each lease with an original term greater than 12 months, the Company records a lease liability and a corresponding right of use (“ROU”) asset. The Company accounts for the lease and non-lease components in the majority of its lease contracts as a single lease component, with the determination of the lease liability at lease inception based on the present value of the consideration to be paid under the contract. The discount rate used by the Company is determined at commencement of the lease using a secured rate for a similar term as the period of the lease. The Company’s leases do not include significant variable lease payments. Certain of the Company’s real estate leases include options to extend. Lease extension options are generally exercisable at market rates. Such option periods do not provide a significant incentive, and their exercise is not reasonably certain. Accordingly, the Company does not generally recognize payments occurring during option periods in the calculation of its ROU assets and lease liabilities. Other Real Estate OREO is included in other assets, and is property acquired through foreclosure or other proceedings on defaulted loans. OREO is initially recorded at fair value, less estimated selling costs. The fair value of OREO is evaluated regularly and any decreases in value along with holding costs, such as taxes and insurance, are reported in noninterest expense. Loans Held For Sale Loans held for sale (“LHFS”) represent mortgage loans intended to be sold in the secondary market and other loans that management has an active plan to sell. LHFS are carried at the lower-of-cost-or-fair value as determined on an aggregate basis by type of loan with the exception of loans for which the Company has elected fair value accounting, which are carried at fair value. Any writedowns to fair value upon the transfer of loans to LHFS are reflected in loan charge-offs. Where an election is made to carry the LHFS at fair value, any change in fair value is recognized in noninterest income. Where an election is made to carry LHFS at lower-of-cost-or-fair value, any further decreases are recognized in noninterest income and increases in fair value above the loan cost basis are not recognized until the loans are sold. Fair value elections are made at the time of origination or purchase based on the Company’s fair value election policy. The Company has elected fair value accounting for substantially all its MLHFS. Derivative Financial Instruments In the ordinary course of business, the Company enters into derivative transactions to manage various risks and to accommodate the business requirements of its customers. Derivative instruments are reported in other assets or other liabilities at fair value. Changes in a derivative’s fair value are recognized currently in earnings unless specific hedge accounting criteria are met. All derivative instruments that qualify and are designated for hedge accounting are recorded at fair value and classified as either a hedge of the fair value of a recognized asset or liability (“fair value hedge”); a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”); or a hedge of the volatility of a net investment in foreign operations driven by changes in foreign currency exchange rates (“net investment hedge”). Changes in the fair value of a derivative that is highly effective and designated as a fair value hedge, and the offsetting changes in the fair value of the hedged item, are recorded in earnings. Changes in the fair value of a derivative that is highly effective and designated as a cash flow hedge are recorded in other comprehensive income (loss) until cash flows of the hedged item are realized. Changes in the fair value of net investment hedges that are highly effective are recorded in other comprehensive income (loss). The Company performs an assessment, at inception and, at a minimum, quarterly thereafter, to determine the effectiveness of the derivative in offsetting changes in the value or cash flows of the hedged item(s). If a derivative designated as a cash flow hedge is terminated or ceases to be highly effective, the gain or loss in other comprehensive income (loss) is amortized to earnings over the period the forecasted hedged transactions impact earnings. If a hedged forecasted transaction is no longer probable, hedge accounting is ceased and any gain or loss included in other comprehensive income (loss) is reported in earnings immediately, unless the forecasted transaction is at least reasonably possible of occurring, whereby the amounts remain within other comprehensive income (loss). Revenue Recognition In the ordinary course of business, the Company recognizes income derived from various revenue generating activities. Certain revenues are generated from contracts where they are recognized when, or as services or products are transferred to customers for amounts the Company expects to be entitled. Revenue generating activities related to financial assets and liabilities are also recognized, including mortgage servicing fees, loan commitment fees, foreign currency remeasurements, and gains and losses on securities, equity investments and unconsolidated subsidiaries. Certain specific policies include the following: Card Revenue Card revenue includes interchange from credit, debit and stored-value cards processed through card association networks, annual fees, and other transaction and account management fees. Interchange rates are generally set by the card associations and based on purchase volumes and other factors. The Company records interchange as services are provided. Transaction and account management fees are recognized as services are provided, except for annual fees which are recognized over the applicable period. Costs for rewards programs and certain payments to partners and card associations are also recorded within card revenue when services are provided. The Company predominately records card revenue within the Payment Services line of business. Corporate Payment Products Revenue Corporate payment products revenue primarily includes interchange from commercial card products processed through card association networks and revenue from proprietary network transactions. The Company records corporate payment products revenue as services are provided. Certain payments to card associations and customers are also recorded within corporate payment products revenue as services are provided. Corporate payment products revenue is recorded within the Payment Services line of business. Merchant Processing Services Merchant processing services revenue consists principally of merchant discount and other transaction and account management fees charged to merchants for the electronic processing of card association network transactions, less interchange paid to the card-issuing bank, card association assessments, and revenue sharing amounts. All of these are recognized at the time the merchant’s services are performed. The Company may enter into revenue sharing agreements with referral partners or in connection with purchases of merchant contracts from sellers. The revenue sharing amounts are determined primarily on sales volume processed or revenue generated for a particular group of merchants. Merchant processing revenue also includes revenues related to point-of-sale equipment recorded as sales when the equipment is shipped or as earned for equipment rentals. The Company records merchant processing services revenue within the Payment Services line of business. Trust and Investment Management Fees Trust and investment management fees are recognized over the period in which services are performed and are based on a percentage of the fair value of the assets under management or administration, fixed based on account type, or transaction-based fees. Services provided to clients include trustee, transfer agent, custodian, fiscal agent, escrow, fund accounting and administration services. Services provided to mutual funds may include selling, distribution and marketing services. Trust and investment management fees are predominately recorded within the Wealth, Corporate, Commercial and Institutional Banking line of business. Service Charges Service charges include fees received on deposit accounts under depository agreements with customers to provide access to deposited funds, serve as a custodian of funds, and when applicable, pay interest on deposits. Checking or savings accounts may contain fees for various services used on a day-to-day basis by a customer. Fees are recognized as services are delivered to and consumed by the customer, or as fees are charged. Service charges also include revenue generated from ATM transaction processing and settlement services which is recognized at the time the services are performed. Certain payments to partners and card associations related to ATM processing services are also recorded within service charges as services are provided. Further, revenue generated from treasury management services are included in service charges and include fees for a broad range of products and services that enable customers to manage their cash more efficiently. These products and services include cash and investment management, receivables management, disbursement services, funds transfer services, and information reporting. Treasury management revenue is recognized as products and services are provided to customers. The Company reflects a discount calculated on monthly average collected customer balances. Service charges are reported primarily within the Wealth, Corporate, Commercial and Institutional Banking, and Consumer and Business Banking lines of business. Commercial Products Revenue Commercial products revenue primarily includes revenue related to ancillary services provided to Wealth, Corporate, Commercial and Institutional Banking, and Consumer and Business Banking customers, including standby letter of credit fees, non-yield related loan fees, capital markets related revenue, sales of direct financing leases, and loan and syndication fees. Sales of direct financing leases are recognized at the point of sale. In addition, the Company may lead or participate with a group of underwriters in raising investment capital on behalf of securities issuers and charge underwriting fees. These fees are recognized at securities issuance. The Company, in its role as lead underwriter, arranges deal structuring and use of outside vendors for the underwriting group. The Company recognizes only those fees and expenses related to its underwriting commitment. Mortgage Banking Revenue Mortgage banking revenue includes revenue derived from mortgages originated and subsequently sold, generally with servicing retained. The primary components include |
Accounting Changes
Accounting Changes | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes | NOTE 2 Accounting Changes Reference Interest Rate Transition In March 2020, the Financial Accounting Standards Board (“FASB”) issued accounting guidance, providing temporary optional expedients and exceptions to the guidance in United States generally accepted accounting principles on contract modifications and hedge accounting, to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. Under the guidance, a company can elect not to apply certain modification accounting requirements to contracts affected by reference rate transition, if certain criteria are met. A company that makes this election would not be required to remeasure the contracts at the modification date or reassess a previous accounting determination. This guidance also permits a company to elect various optional expedients that would allow it to continue applying hedge accounting for hedging relationships affected by reference rate transition, if certain criteria are met. The guidance is effective upon issuance and generally can be applied through December 31, 2024. The Company is applying certain optional expedients and exceptions for cash flow hedges and will continue to evaluate these for eligible contract modifications and hedging relationships. Fair Value Hedging – Portfolio Layer Method Effective January 1, 2023, the Company adopted accounting guidance, issued by the FASB in March 2022, related to fair value hedge accounting of portfolios of financial assets. This guidance permits a company to designate multiple hedging relationships on a single closed portfolio, resulting in a larger portion of the interest rate risk associated with such a portfolio being eligible to be hedged. The guidance also expands the scope of the method to include non-prepayable financial assets and clarifies other technical questions from the original accounting guidance. The adoption of this guidance is not material to the Company’s financial statements. Financial Instruments – Troubled Debt Restructurings and Vintage Disclosures Effective January 1, 2023, the Company adopted accounting guidance on a modified retrospective basis, issued by the FASB in March 2022, related to the recognition and measurement of TDRs by creditors. This guidance removes the separate recognition and measurement requirements for TDRs by replacing them with a requirement for a company to apply existing accounting guidance to determine whether a modification results in a new loan or a continuation of an existing loan. This guidance also replaces existing TDR disclosures with similar but more expansive disclosures for certain modifications of receivables made to borrowers experiencing financial difficulty. Further, this guidance also requires companies to disclose current-period gross write-offs by year of origination for financing receivables. The adoption of this guidance is not material to the Company’s financial statements. Accounting for Tax Credit Investments Using the Proportional Amortization Method Effective January 1, 2023, the Company adopted accounting guidance on a modified retrospective basis, issued by the FASB in March 2023, related to the accounting for tax credit investments. This guidance allows the Company to elect to account for tax credit investments using the proportional amortization method on a program-by-program basis if certain conditions are met, regardless of the program from which the income tax credits are received. The adoption of this guidance was not material to the Company’s financial statements. Income Taxes – Improvements to Income Tax Disclosures In December 2023, the FASB issued guidance, effective for the Company for annual reporting periods beginning after December 15, 2024, related to income tax disclosures. This guidance requires additional information in income tax rate reconciliation disclosures and additional disclosures about income taxes paid. The guidance is required, at a minimum, to be adopted on a prospective basis, with an option to apply it retrospectively. The Company expects the adoption of this guidance will not be material to its financial statements. Segment Reporting – Improvements to Reportable Segment Disclosures |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | NOTE 3 Business Combinations MUFG Union Bank Acquisition On December 1, 2022, the Company acquired MUB’s core regional banking franchise from MUFG. Pursuant to the terms of the Share Purchase Agreement, the Company acquired all of the issued and outstanding shares of common stock of MUB for a purchase price consisting of $5.5 billion in cash and approximately 44 million shares of common stock of the Company. Under the terms of the Share Purchase Agreement, the purchase price was based on MUB having a tangible book value of $6.25 billion at the closing of the acquisition. At the closing of the acquisition, MUB had $3.5 billion of tangible book value over the $6.25 billion target, consisting of additional cash. The additional cash received is required to be repaid to MUFG on or prior to the fifth anniversary date of the completion of the purchase, in accordance with the terms of the Share Purchase Agreement. As such, it is recognized as debt at the parent company. During 2023, the Company repaid $936 million of its debt obligation from the proceeds of the issuance of 24 million shares of common stock of the Company to an affiliate of MUFG. The acquisition has been accounted for as a business combination. Accordingly, the assets acquired and liabilities assumed from MUB were recorded at fair value as of the acquisition date. The determination of fair value requires management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. Fair value estimates related to the assets and liabilities from MUB were subject to adjustment for up to one year after the closing date of the acquisition as additional information became available. The Company merged MUB into USBNA during 2023. In connection with the transaction, the Company recorded within noninterest expense nonrecurring merger and integration charges of $1.0 billion and $329 million during 2023 and 2022, respectively. These expenses were primarily comprised of personnel, legal, advisory and technology related costs. The following table includes the fair value of consideration transferred and the fair value of the identifiable tangible and intangible assets and liabilities from MUB: December 1, 2022 (Dollars in Millions) Acquisition consideration Cash $ 5,500 Market value of shares of common stock 2,014 Total consideration transferred at acquisition close date 7,514 Discounted liability to MUFG (a) 2,944 Total $ 10,458 Fair Value of MUB assets and liabilities Assets Cash and due from banks $ 17,754 Investment securities 22,725 Loans held for sale 2,220 Loans 53,395 Less allowance for loan losses (463) Net loans 52,932 Premises and equipment 646 Other intangible assets (excluding goodwill) 2,808 Other assets 4,764 Total assets $ 103,849 Liabilities Deposits $ 86,110 Short-term borrowings 4,777 Long-term debt 2,584 Other liabilities 2,243 Total liabilities 95,714 Less: Net assets $ 8,135 Goodwill $ 2,323 (a) Represents $3.5 billion of noninterest-bearing additional cash held by MUB upon close of the acquisition to be delivered to MUFG on or prior to December 1, 2027, discounted at the Company’s 5-year unsecured borrowing rate as of the acquisition date, per authoritative accounting guidance. Goodwill of $2.3 billion recorded in connection with the transaction resulted from the reputation, operating model and expertise of MUB. The amount of goodwill recorded reflects the increased market share and related synergies that are expected to result from the acquisition, and represents the excess purchase price over the estimated fair value of the net assets from MUB. The goodwill was allocated to the Company’s business segments and is not deductible for income tax purposes. Refer to Note 11 for the amount of goodwill allocated to each business segment in c onnection with the transaction. During 2023, the Company completed the divestiture of three MUB branches to HomeStreet Bank, a wholly owned subsidiary of HomeStreet, Inc., to satisfy regulatory requirements related to the acquisition. There were approximately $400 million in deposits and $22 million in loans divested as part of this transaction. The following table includes the fair value and unpaid principal balance of the loans from the MUB acquisition: December 1, 2022 (Dollars in Millions) Unpaid Principal Balance Fair Value Commercial $ 11,771 $ 11,366 Commercial real estate 14,397 13,737 Residential mortgages 28,256 26,247 Credit card 299 212 Other retail 1,397 1,370 Total loans $ 56,120 $ 52,932 Other intangible assets from the MUB acquisition, as of December 1, 2022, consisted of the following: (Dollars in Millions) Weighted-Average Estimated Life Amortization Method Fair Value Mortgage servicing rights — (a) $ 147 Core deposit benefits 10 years Accelerated 2,635 Other 11 years Accelerated 26 Total other intangible assets (excluding goodwill) $ 2,808 (a) Mortgage servicing rights are recorded at fair value and are not amortized. Valuation Methodologies The methods used to determine the fair values of the significant assets acquired and liabilities assumed as part of the MUB acquisition are described below. Cash and Due from Banks The carrying amount of these assets is a reasonable estimate of fair value based on the short-term nature of these assets. Investment Securities Fair value estimates for the investment securities were determined by using quoted market prices for identical securities in active markets when available. For certain securities where quoted market prices were not readily available, the Company utilized a third-party pricing service. The third-party pricing service used a variety of methods that incorporated relevant market data to arrive at an estimate of what a buyer in the marketplace would have paid for these securities under current market conditions. These methods included the use of quoted prices for similar securities, inactive transaction prices and broker quotes, as well as discounted cash flow methodologies. Loans Held for Sale Fair value estimates for loans held for sale were valued based on quoted market prices, where available, and by comparison to instruments with similar collateral and risk profiles. Loans Fair value estimates for loans were based on discounted cash flow methodologies that considered credit loss and prepayment expectations, market interest rates and other market factors, such as liquidity, from the perspective of a market participant. Loan cash flows were generated on an individual loan basis. The probability of default, loss given default, exposure at default and prepayment assumptions were the key factors in determining expected credit losses which were embedded into the estimated cash flows. Core Deposit Benefits This intangible asset represents the economic benefit created by certain client deposit relationships by way of favorable funding relative to alternative sources. The fair value was estimated utilizing the after-tax cost savings method of the income approach. Appropriate consideration was given to deposit costs including cost of funds, net maintenance costs or servicing costs, client retention and alternative funding source costs at the time of acquisition. The discount rate used was derived taking into account the estimated cost of equity, risk-free return rate and risk premium for the market and specific risk related to the asset’s cash flows. Other Assets Included in other assets are tax-advantaged investments promoting affordable housing. The fair value of these investments was estimated based on the value of the expected future benefits. Deposits and Borrowed Funds The fair values for deposits, short-term borrowings and long-term debt were estimated by discounting contractual cash flows using current market rates for instruments with similar maturities. The following table presents financial results of MUB included in the Consolidated Statement of Income from the date of acquisition through December 31, 2022. (Dollars in Millions) One Month Ended December 31, 2022 Net interest income $ 255 Noninterest income (38) (a) Net income (loss) (562) (a) Includes realized losses on investment securities sold. The following table presents unaudited pro forma results as if the acquisition of MUB by the Company occurred on January 1, 2021 and includes the impact of amortizing and accreting certain estimated purchase accounting adjustments such as intangible assets as well as fair value adjustments to investment securities, loans, deposits and long-term debt. The pro forma information does not necessarily reflect the results that would have occurred had the Company acquired MUB on January 1, 2021. Year Ended December 31 (Dollars in Millions) 2022 2021 Net interest income $ 17,541 $ 14,958 Noninterest income 10,068 11,071 Net income 7,184 7,187 The Company initially measures the amortized cost of a PCD loan by adding the acquisition date estimate of expected credit losses to the loan’s purchase price. The allowance for credit losses for PCD loans of $463 million was established through an adjustment to the MUB loan balance reflected in the related purchase accounting mark. Non-PCD loans and PCD loans had a fair value of $48.5 billion and $4.4 billion, respectively, at the acquisition date with unpaid principal balances of $51.0 billion and $5.1 billion, respectively. In accordance with authoritative accounting guidance, there was no carryover of the allowance for credit losses that had been previously recorded by MUB. Subsequent to acquisition, the Company recorded an allowance for credit losses primarily on non-PCD loans of $662 million through an increase to the provision for credit losses in 2022. The following table provides information about the determination of the purchase price of PCD loans at the acquisition date: December 1, 2022 (Dollars in Millions) Principal balance $ 5,097 Allowance for credit losses at acquisition (463) Non-credit discount (213) Purchase price $ 4,421 |
Restrictions on Cash and Due fr
Restrictions on Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Restrictions on Cash and Due from Banks | NOTE 4 Restrictions on Cash and Due from Banks Banking regulators require bank subsidiaries to maintain minimum average reserve balances, either in the form of vault cash or reserve balances held with central banks or other financial institutions. The amount of required reserve balances were approximately $53 million and $45 million at December 31, 2023 and 2022, respectively. The Company |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | NOTE 5 Investment Securities The Company’s held-to-maturity investment securities are carried at historical cost, adjusted for amortization of premiums and accretion of discounts. The Company’s available-for-sale investment securities are carried at fair value with unrealized net gains or losses reported within accumulated other comprehensive income (loss) in shareholders’ equity. The amortized cost, gross unrealized holding gains and losses, and fair value of held-to-maturity and available-for-sale investment securities at December 31 were as follows: 2023 2022 (Dollars in Millions) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value Held-to-maturity U.S. Treasury and agencies $ 1,345 $ — $ (35) $ 1,310 $ 1,344 $ — $ (51) $ 1,293 Mortgage-backed securities Residential agency 80,997 6 (9,929) 71,074 85,693 2 (10,810) 74,885 Commercial agency 1,695 6 (5) 1,696 1,703 1 (8) 1,696 Other 8 — — 8 — — — — Total held-to-maturity $ 84,045 $ 12 $ (9,969) $ 74,088 $ 88,740 $ 3 $ (10,869) $ 77,874 Available-for-sale U.S. Treasury and agencies $ 21,768 $ 8 $ (2,234) $ 19,542 $ 24,801 $ 1 $ (2,769) $ 22,033 Mortgage-backed securities Residential agency 28,185 104 (2,211) 26,078 32,060 8 (2,797) 29,271 Commercial Agency 8,703 — (1,360) 7,343 8,736 — (1,591) 7,145 Non-agency 7 — (1) 6 7 — — 7 Asset-backed securities 6,713 25 (14) 6,724 4,356 5 (38) 4,323 Obligations of state and political subdivisions 10,867 36 (914) 9,989 11,484 12 (1,371) 10,125 Other 24 — — 24 6 — — 6 Total available-for-sale, excluding portfolio level basis adjustments 76,267 173 (6,734) 69,706 81,450 26 (8,566) 72,910 Portfolio level basis adjustments (a) 335 — (335) — — — — — Total available-for-sale $ 76,602 $ 173 $ (7,069) $ 69,706 $ 81,450 $ 26 $ (8,566) $ 72,910 (a) Represents fair value hedge basis adjustments related to active portfolio layer method hedges of available-for-sale investment securities, which are not allocated to individual securities in the portfolio. For additional information, refer to Note 20. Investment securities with a fair value of $20.5 billion at December 31, 2023, and $15.3 billion at December 31, 2022, were pledged to secure public, private and trust deposits, repurchase agreements and for other purposes required by contractual obligation or law. Included in these amounts were securities where the Company and certain counterparties have agreements granting the counterparties the right to sell or pledge the securities. Investment securities securing these types of arrangements had a fair value of $338 million at December 31, 2023, and $858 million at December 31, 2022. The following table provides information about the amount of interest income from taxable and non-taxable investment securities: Year Ended December 31 (Dollars in Millions) 2023 2022 2021 Taxable $ 4,171 $ 3,081 $ 2,103 Non-taxable 314 297 262 Total interest income from investment securities $ 4,485 $ 3,378 $ 2,365 The following table provides information about the amount of gross gains and losses realized through the sales of available-for-sale investment securities: Year Ended December 31 (Dollars in Millions) 2023 2022 2021 Realized gains $ 74 $ 163 $ 122 Realized losses (219) (143) (19) Net realized gains (losses) $ (145) $ 20 $ 103 Income tax expense (benefit) on net realized gains (losses) $ (37) $ 5 $ 26 The Company conducts a regular assessment of its available-for-sale investment securities with unrealized losses to determine whether all or some portion of a security’s unrealized loss is related to credit and an allowance for credit losses is necessary. If the Company intends to sell or it is more likely than not the Company will be required to sell an investment security, the amortized cost of the security is written down to fair value. When evaluating credit losses, the Company considers various factors such as the nature of the investment security, the credit ratings or financial condition of the issuer, the extent of the unrealized loss, expected cash flows of underlying collateral, the existence of any government or agency guarantees, and market conditions. The Company measures the allowance for credit losses using market information where available and discounting the cash flows at the original effective rate of the investment security. The allowance for credit losses is adjusted each period through earnings and can be subsequently recovered. The allowance for credit losses on the Company’s available-for-sale investment securities was immaterial at December 31, 2023 and December 31, 2022. At December 31, 2023, certain investment securities had a fair value below amortized cost. The following table shows the gross unrealized losses excluding portfolio level basis adjustments and fair value of the Company’s available-for-sale investment securities with unrealized losses, aggregated by investment category and length of time the individual investment securities have been in continuous unrealized loss positions, at December 31, 2023: Less Than 12 Months 12 Months or Greater Total (Dollars in Millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury and agencies $ 874 $ (3) $ 17,270 $ (2,231) $ 18,144 $ (2,234) Mortgage-backed securities Residential agency 519 (8) 21,356 (2,203) 21,875 (2,211) Commercial Agency — — 7,343 (1,360) 7,343 (1,360) Non-agency — — 6 (1) 6 (1) Asset-backed securities 2,235 (14) — — 2,235 (14) Obligations of state and political subdivisions 544 (3) 7,464 (911) 8,008 (914) Other — — 4 — 4 — Total investment securities $ 4,172 $ (28) $ 53,443 $ (6,706) $ 57,615 $ (6,734) These unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase of these available-for-sale investment securities. U.S. Treasury and agencies securities and agency mortgage-backed securities are issued, guaranteed or otherwise supported by the United States government. The Company’s obligations of state and political subdivisions are generally high grade. Accordingly, the Company does not consider these unrealized losses to be credit-related and an allowance for credit losses is not necessary. In general, the issuers of the investment securities are contractually prohibited from prepayment at less than par, and the Company did not pay significant purchase premiums for these investment securities. At December 31, 2023, the Company had no plans to sell investment securities with unrealized losses, and believes it is more likely than not it would not be required to sell such investment securities before recovery of their amortized cost. During the years ended December 31, 2023 and 2022, the Company did not purchase any investment securities that had more-than-insignificant credit deterioration. Predominantly all of the Company’s held-to-maturity investment securities are U.S. Treasury and agencies securities and highly rated agency mortgage-backed securities that are guaranteed or otherwise supported by the United States government and have no history of credit losses. Accordingly the Company does not expect to incur any credit losses on held-to-maturity investment securities and has no allowance for credit losses recorded for these securities. The following table provides information about the amortized cost, fair value and yield by maturity date of the investment securities outstanding at December 31, 2023: (Dollars in Millions) Amortized Fair Value Weighted- Weighted-Average Yield (e) Held-to-maturity U.S. Treasury and Agencies Maturing in one year or less $ 50 $ 50 0.3 2.67 % Maturing after one year through five years 1,295 1,260 2.4 2.85 Maturing after five years through ten years — — — — Maturing after ten years — — — — Total $ 1,345 $ 1,310 2.3 2.85 % Mortgage-Backed Securities (a) Maturing in one year or less $ 22 $ 22 0.7 4.43 % Maturing after one year through five years 1,268 1,266 2.5 4.52 Maturing after five years through ten years 75,984 67,094 8.8 2.19 Maturing after ten years 5,418 4,388 10.2 1.91 Total $ 82,692 $ 72,770 8.8 2.21 % Other Maturing in one year or less $ — $ — — — % Maturing after one year through five years 8 8 2.8 2.56 Maturing after five years through ten years — — — — Maturing after ten years — — — — Total $ 8 $ 8 2.8 2.56 % Total held-to-maturity (b) $ 84,045 $ 74,088 8.7 2.22 % Available-for-sale U.S. Treasury and Agencies Maturing in one year or less $ 9 $ 9 0.3 5.28 % Maturing after one year through five years 8,882 8,378 3.7 2.35 Maturing after five years through ten years 11,165 9,827 6.8 2.08 Maturing after ten years 1,712 1,328 10.8 2.02 Total $ 21,768 $ 19,542 5.9 2.19 % Mortgage-Backed Securities (a) Maturing in one year or less $ 83 $ 81 0.8 2.26 % Maturing after one year through five years 11,196 10,860 3.5 3.80 Maturing after five years through ten years 24,455 21,483 7.3 2.76 Maturing after ten years 1,161 1,003 10.9 3.43 Total $ 36,895 $ 33,427 6.3 3.09 % Asset-Backed Securities (a) Maturing in one year or less $ — $ — — — % Maturing after one year through five years 5,834 5,844 1.7 5.05 Maturing after five years through ten years 879 880 5.8 7.15 Maturing after ten years — — — — Total $ 6,713 $ 6,724 2.2 5.33 % Obligations of State and Political Subdivisions (c) (d) Maturing in one year or less $ 225 $ 225 0.4 5.52 % Maturing after one year through five years 3,546 3,536 3.0 4.55 Maturing after five years through ten years 1,453 1,414 7.3 3.86 Maturing after ten years 5,643 4,814 15.3 3.14 Total $ 10,867 $ 9,989 9.9 3.75 % Other Maturing in one year or less $ — $ — — — % Maturing after one year through five years 24 24 1.7 4.51 Maturing after five years through ten years — — — — Maturing after ten years — — — — Total $ 24 $ 24 1.7 4.51 % Total available-for-sale (b) (f) $ 76,267 $ 69,706 6.3 3.12 % (a) Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future prepayments. (b) The weighted-average maturity of total held-to-maturity investment securities was 9.2 years at December 31, 2022, with a corresponding weighted-average yield of 2.18 percent. The weighted-average maturity of total available-for-sale investment securities was 7.4 years at December 31, 2022, with a corresponding weighted-average yield of 2.94 percent. (c) Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to maturity if the security is purchased at par or a discount. (d) Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity date for securities with a fair value equal to or below par. (e) Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent. Yields on investment securities are computed based on amortized cost balances, excluding any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to maturity. (f) Amortized cost excludes portfolio level basis adjustments of $335 million. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | NOTE 6 Loans and Allowance for Credit Losses The composition of the loan portfolio at December 31, by class and underlying specific portfolio type, was as follows: (Dollars in Millions) 2023 2022 Commercial Commercial $ 127,676 $ 131,128 Lease financing 4,205 4,562 Total commercial 131,881 135,690 Commercial Real Estate Commercial mortgages 41,934 43,765 Construction and development 11,521 11,722 Total commercial real estate 53,455 55,487 Residential Mortgages Residential mortgages 108,605 107,858 Home equity loans, first liens 6,925 7,987 Total residential mortgages 115,530 115,845 Credit Card 28,560 26,295 Other Retail Retail leasing 4,135 5,519 Home equity and second mortgages 13,056 12,863 Revolving credit 3,668 3,983 Installment 13,889 14,592 Automobile 9,661 17,939 Total other retail 44,409 54,896 Total loans $ 373,835 $ 388,213 The Company had loans of $123.1 billion at December 31, 2023, and $134.6 billion at December 31, 2022, pledged at the Federal Home Loan Bank, and loans of $82.8 billion at December 31, 2023, and $85.8 billion at December 31, 2022, pledged at the Federal Reserve Bank. The Company offers a broad array of lending products to consumer and commercial customers, in various industries, across several geographical locations, predominately in the states in which it has Consumer and Business Banking offices. Collateral for commercial and commercial real estate loans may include marketable securities, accounts receivable, inventory, equipment, real estate, or the related property. Originated loans are reported at the principal amount outstanding, net of unearned interest and deferred fees and costs, and any partial charge-offs recorded. Purchased loans are recorded at fair value at the date of purchase. Net unearned interest and deferred fees and costs on originated loans and unamortized premiums and discounts on purchased loans amounted to $2.7 billion at December 31, 2023 and $3.1 billion at December 31, 2022. The Company evaluates purchased loans for more-than-insignificant deterioration at the date of purchase in accordance with applicable authoritative accounting guidance. Purchased loans that have experienced more-than-insignificant deterioration from origination are considered purchased credit deteriorated loans. All other purchased loans are considered non-purchased credit deteriorated loans. Allowance for Credit Losses The allowance for credit losses is established for current expected credit losses on the Company’s loan and lease portfolio, including unfunded credit commitments. The allowance considers expected losses for the remaining lives of the applicable assets, inclusive of expected recoveries. The allowance for credit losses is increased through provisions charged to earnings and reduced by net charge-offs. Activity in the allowance for credit losses by portfolio class was as follows: (Dollars in Millions) Commercial Commercial Real Estate Residential Mortgages Credit Other Total Balance at December 31, 2022 $ 2,163 $ 1,325 $ 926 $ 2,020 $ 970 $ 7,404 Add Change in accounting principle (a) — — (31) (27) (4) (62) Allowance for acquired credit losses (b) — 127 — — — 127 Provision for credit losses 270 431 41 1,259 274 2,275 Deduct Loans charged-off 389 281 129 1,014 478 2,291 Less recoveries of loans charged-off (75) (18) (20) (165) (108) (386) Net loan charge-offs (recoveries) 314 263 109 849 370 1,905 Balance at December 31, 2023 $ 2,119 $ 1,620 $ 827 $ 2,403 $ 870 $ 7,839 Balance at December 31, 2021 $ 1,849 $ 1,123 $ 565 $ 1,673 $ 945 $ 6,155 Add Allowance for acquired credit losses (b) 163 87 36 45 5 336 Provision for credit losses (c) 378 152 302 826 319 1,977 Deduct Loans charged-off (d) 319 54 13 696 418 1,500 Less recoveries of loans charged-off (92) (17) (36) (172) (120) (437) Net loan charge-offs (recoveries) 227 37 (23) 524 298 1,063 Other Changes — — — — (1) (1) Balance at December 31, 2022 $ 2,163 $ 1,325 $ 926 $ 2,020 $ 970 $ 7,404 Balance at December 31, 2020 $ 2,423 $ 1,544 $ 573 $ 2,355 $ 1,115 $ 8,010 Add Provision for credit losses (471) (419) (40) (170) (73) (1,173) Deduct Loans charged-off 222 29 18 686 253 1,208 Less recoveries of loans charged-off (119) (27) (50) (174) (156) (526) Net loan charge-offs (recoveries) 103 2 (32) 512 97 682 Balance at December 31, 2021 $ 1,849 $ 1,123 $ 565 $ 1,673 $ 945 $ 6,155 (a) Effective January 1, 2023, the Company adopted accounting guidance which removed the separate recognition and measurement of troubled debt restructurings. (b) Represents allowance for credit deteriorated and charged-off loans acquired from MUB. (c) Includes $662 million of provision for credit losses related to the acquisition of MUB. (d) Includes $179 million of total charge-offs primarily on loans previously charged-off by MUB, which were written up upon acquisition to unpaid principal balance as required by purchase accounting. The increase in the allowance for credit losses from December 31, 2022 to December 31, 2023 was primarily driven by normalizing credit losses, credit card balance growth and commercial real estate credit quality. The following table provides a summary of loans charged-off during the year ended December 31, 2023, by portfolio class and year of origination: (Dollars in Millions) Commercial Commercial Real Estate (a) Residential Mortgages (b) Credit Card (c) Other Retail (d) Total Loans Originated in 2023 $ 48 $ 63 $ — $ — $ 57 $ 168 Originated in 2022 63 88 1 — 130 282 Originated in 2021 30 69 6 — 83 188 Originated in 2020 17 2 8 — 38 65 Originated in 2019 15 3 16 — 31 65 Originated prior to 2019 53 56 98 — 31 238 Revolving 163 — — 1,014 80 1,257 Revolving converted to term — — — — 28 28 Total charge-offs $ 389 $ 281 $ 129 $ 1,014 $ 478 $ 2,291 Note: Year of origination is based on the origination date of a loan, or for existing loans the date when the maturity date, pricing or commitment amount is amended. (a) Includes $91 million in charge-offs related to uncollectible amounts on acquired loans. (b) Includes $117 million of charge-offs related to balance sheet repositioning and capital management actions. (c) Predominantly all credit card loans are considered revolving loans. Includes an immaterial amount of charge-offs related to revolving converted to term loans. (d) Includes $192 million of charge-offs related to balance sheet repositioning and capital management actions. Credit Quality The credit quality of the Company’s loan portfolios is assessed as a function of net credit losses, levels of nonperforming assets and delinquencies, and credit quality ratings as defined by the Company. These credit quality ratings are an important part of the Company’s overall credit risk management process and evaluation of the allowance for credit losses. The following table provides a summary of loans by portfolio class, including the delinquency status of those that continue to accrue interest, and those that are nonperforming: Accruing (Dollars in Millions) Current 30-89 Days Past Due 90 Days or More Past Due Nonperforming (b) Total December 31, 2023 Commercial $ 130,925 $ 464 $ 116 $ 376 $ 131,881 Commercial real estate 52,619 55 4 777 53,455 Residential mortgages (a) 115,067 169 136 158 115,530 Credit card 27,779 406 375 — 28,560 Other retail 43,926 278 67 138 44,409 Total loans $ 370,316 $ 1,372 $ 698 $ 1,449 $ 373,835 December 31, 2022 Commercial $ 135,077 $ 350 $ 94 $ 169 $ 135,690 Commercial real estate 55,057 87 5 338 55,487 Residential mortgages (a) 115,224 201 95 325 115,845 Credit card 25,780 283 231 1 26,295 Other retail 54,382 309 66 139 54,896 Total loans $ 385,520 $ 1,230 $ 491 $ 972 $ 388,213 (a) At December 31, 2023, $595 million of loans 30–89 days past due and $2.0 billion of loans 90 days or more past due purchased and that could be purchased from Government National Mortgage Association (“GNMA”) mortgage pools under delinquent loan repurchase options whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current, compared with $647 million and $2.2 billion at December 31, 2022, respectively. (b) Substantially all nonperforming loans at December 31, 2023 and 2022, had an associated allowance for credit losses. The Company recognized interest income on nonperforming loans of $22 million and $19 million for the years ended December 31, 2023 and 2022, respectively, compared to what would have been recognized at the original contractual terms of the loans of $49 million and $34 million, respectively. At December 31, 2023, total nonperforming assets held by the Company were $1.5 billion, compared with $1.0 billion at December 31, 2022. Total nonperforming assets included $1.4 billion of nonperforming loans, $26 million of OREO and $19 million of other nonperforming assets owned by the Company at December 31, 2023, compared with $972 million, $23 million and $21 million, respectively, at December 31, 2022. At December 31, 2023, the amount of foreclosed residential real estate held by the Company, and included in OREO, was $26 million, compared with $23 million at December 31, 2022. These amounts excluded $47 million and $54 million at December 31, 2023 and December 31, 2022, respectively, of foreclosed residential real estate related to mortgage loans whose payments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. In addition, the amount of residential mortgage loans secured by residential real estate in the process of foreclosure at December 31, 2023 and December 31, 2022, was $728 million and $1.1 billion, respectively, of which $487 million and $830 million, respectively, related to loans purchased and that could be purchased from GNMA mortgage pools under delinquent loan repurchase options whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating: December 31, 2023 December 31, 2022 Criticized Criticized (Dollars in Millions) Pass Special Mention Classified (a) Total Criticized Total Pass Special Mention Classified (a) Total Criticized Total Commercial Originated in 2023 $ 43,023 $ 827 $ 856 $ 1,683 $ 44,706 $ — $ — $ — $ — $ — Originated in 2022 40,076 274 632 906 40,982 61,229 245 315 560 61,789 Originated in 2021 9,219 117 154 271 9,490 26,411 159 78 237 26,648 Originated in 2020 3,169 92 71 163 3,332 7,049 68 138 206 7,255 Originated in 2019 1,340 18 103 121 1,461 3,962 51 210 261 4,223 Originated prior to 2019 3,963 12 106 118 4,081 8,986 64 129 193 9,179 Revolving (b) 26,213 362 1,254 1,616 27,829 25,888 344 364 708 26,596 Total commercial 127,003 1,702 3,176 4,878 131,881 133,525 931 1,234 2,165 135,690 Commercial real estate Originated in 2023 8,848 465 2,206 2,671 11,519 — — — — — Originated in 2022 11,831 382 1,141 1,523 13,354 14,527 206 519 725 15,252 Originated in 2021 9,235 500 385 885 10,120 13,565 171 99 270 13,835 Originated in 2020 3,797 51 87 138 3,935 6,489 97 117 214 6,703 Originated in 2019 4,749 336 359 695 5,444 6,991 251 304 555 7,546 Originated prior to 2019 6,010 122 260 382 6,392 9,639 138 875 1,013 10,652 Revolving 2,613 6 70 76 2,689 1,489 — 10 10 1,499 Revolving converted to term 2 — — — 2 — — — — — Total commercial real estate 47,085 1,862 4,508 6,370 53,455 52,700 863 1,924 2,787 55,487 Residential mortgages (c) Originated in 2023 9,734 — 5 5 9,739 — — — — — Originated in 2022 29,146 — 17 17 29,163 28,452 — — — 28,452 Originated in 2021 36,365 — 16 16 36,381 39,527 — 7 7 39,534 Originated in 2020 14,773 — 9 9 14,782 16,556 — 8 8 16,564 Originated in 2019 5,876 — 16 16 5,892 7,222 — 18 18 7,240 Originated prior to 2019 19,326 — 246 246 19,572 23,658 — 397 397 24,055 Revolving 1 — — — 1 — — — — — Total residential mortgages 115,221 — 309 309 115,530 115,415 — 430 430 115,845 Credit card (d) 28,185 — 375 375 28,560 26,063 — 232 232 26,295 Other retail Originated in 2023 5,184 — 4 4 5,188 — — — — — Originated in 2022 5,607 — 12 12 5,619 9,563 — 6 6 9,569 Originated in 2021 10,398 — 15 15 10,413 15,352 — 12 12 15,364 Originated in 2020 4,541 — 9 9 4,550 7,828 — 11 11 7,839 Originated in 2019 1,793 — 7 7 1,800 3,418 — 13 13 3,431 Originated prior to 2019 2,215 — 13 13 2,228 3,689 — 31 31 3,720 Revolving 13,720 — 104 104 13,824 14,029 — 98 98 14,127 Revolving converted to term 735 — 52 52 787 800 — 46 46 846 Total other retail 44,193 — 216 216 44,409 54,679 — 217 217 54,896 Total loans $ 361,687 $ 3,564 $ 8,584 $ 12,148 $ 373,835 $ 382,382 $ 1,794 $ 4,037 $ 5,831 $ 388,213 Total outstanding commitments $ 762,869 $ 5,053 $ 10,470 $ 15,523 $ 778,392 $ 772,804 $ 2,825 $ 5,041 $ 7,866 $ 780,670 Note: Year of origination is based on the origination date of a loan, or for existing loans the date when the maturity date, pricing or commitment amount is amended. Predominantly all current year and nearer term loan origination years for criticized loans relate to existing loans that have had recent maturity date, pricing or commitment amount amendments. (a) Classified rating on consumer loans primarily based on delinquency status. (b) Includes an immaterial amount of revolving converted to term loans. (c) At December 31, 2023, $2.0 billion of GNMA loans 90 days or more past due and $1.2 billion of modified GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs were classified with a pass rating, compared with $2.2 billion and $1.0 billion at December 31, 2022, respectively. (d) Predominately all credit card loans are considered revolving loans. Includes an immaterial amount of revolving converted to term loans. Loan Modifications In certain circumstances, the Company may modify the terms of a loan to maximize the collection of amounts due when a borrower is experiencing financial difficulties or is expected to experience difficulties in the near-term. The following table provides a summary of loan balances at December 31, 2023, which were modified during the year ended December 31, 2023, by portfolio class and modification granted: (Dollars in Millions) Interest Rate Reduction Payment Delay Term Extension Multiple Modifications (a) Total Modifications Percent of Class Total Commercial $ 46 $ — $ 286 $ 33 $ 365 .3 % Commercial real estate — — 645 72 717 1.3 Residential mortgages (b) — 234 26 20 280 .2 Credit card 349 1 — — 350 1.2 Other retail 7 21 144 3 175 .4 Total loans, excluding loans purchased from GNMA mortgage pools 402 256 1,101 128 1,887 .5 Loans purchased from GNMA mortgage pools (b) — 1,263 255 321 1,839 1.6 Total loans $ 402 $ 1,519 $ 1,356 $ 449 $ 3,726 1.0 % (a) Includes $329 million of total loans receiving a payment delay and term extension, $112 million of total loans receiving an interest rate reduction and term extension and $8 million of total loans receiving an interest rate reduction, payment delay and term extension for the year ended December 31, 2023. (b) Percent of class total amounts expressed as a percent of total residential mortgage loan balances. Loan modifications included in the table above exclude trial period arrangements offered to customers and secured loans to consumer borrowers that have had debt discharged through bankruptcy where the borrower has not reaffirmed the debt during the periods presented. At December 31, 2023, the balance of loans modified in trial period arrangements was $39 million, while the balance of secured loans to consumer borrowers that have had debt discharged through bankruptcy was not material. The following table summarizes the effects of loan modifications made to borrowers on loans modified during the year ended December 31, 2023: (Dollars in Millions) Weighted-Average Interest Rate Reduction Weighted-Average Months of Term Extension Commercial 13.0 % 12 Commercial real estate 3.5 11 Residential mortgages 1.2 98 Credit card 15.4 — Other retail 7.9 4 Loans purchased from GNMA mortgage pools .6 103 Note: The weighted-average payment deferral for all portfolio classes was less than $1 million for the year ended December 31, 2023. Forbearance payments are required to be paid at the end of the original term loan. Loans that receive a forbearance plan generally remain in default until they are no longer delinquent as the result of the payment of all past due amounts or the borrower receiving a term extension or modification. Therefore, loans only receiving forbearance plans are not included in the table below. The following table provides a summary of loan balances at December 31, 2023, which were modified during the year ended December 31, 2023, by portfolio class and delinquency status: (Dollars in Millions) Current 30-89 Days Past Due 90 Days or More Past Due Total Commercial $ 255 $ 12 $ 98 $ 365 Commercial real estate 524 — 193 717 Residential mortgages (a) 1,385 24 16 1,425 Credit card 251 67 32 350 Other retail 133 21 8 162 Total loans $ 2,548 $ 124 $ 347 $ 3,019 (a) At December 31, 2023, $372 million of loans 30-89 days past due and $175 million of loans 90 days or more past due purchased and that could be purchased from GNMA mortgage pools under delinquent loan repurchase options whose payments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current. The following table provides a summary of loans that defaulted (fully or partially charged-off or became 90 days or more past due) that were modified during the year ended December 31, 2023. (Dollars in Millions) Interest Rate Reduction Payment Delay Term Extension Multiple Modifications (a) Commercial $ 7 $ — $ — $ — Commercial real estate — — 1 — Residential mortgages — 8 2 1 Credit card 35 — — — Other retail 1 1 11 — Total loans, excluding loans purchased from GNMA mortgage pools 43 9 14 1 Loans purchased from GNMA mortgage pools — 67 30 37 Total loans $ 43 $ 76 $ 44 $ 38 (a) Represents loans receiving a payment delay and term extension. As of December 31, 2023, the Company had $283 million of commitments to lend additional funds to borrowers whose terms of their outstanding owed balances have been modified. Prior Period Troubled Debt Restructuring Information The following table provides a summary of loans modified as troubled debt restructurings for the years ended December 31, by portfolio class: (Dollars in Millions) Number of Loans Pre-Modification Outstanding Loan Balance Post-Modification Outstanding Loan Balance 2022 Commercial 2,259 $ 148 $ 134 Commercial real estate 75 50 47 Residential mortgages 1,699 475 476 Credit card 44,470 243 246 Other retail 2,514 89 85 Total loans, excluding loans purchased from GNMA mortgage pools 51,017 1,005 988 Loans purchased from GNMA mortgage pools 1,640 226 230 Total loans 52,657 $ 1,231 $ 1,218 2021 Commercial 2,156 $ 140 $ 127 Commercial real estate 112 193 179 Residential mortgages 977 329 328 Credit card 25,297 144 146 Other retail 2,576 74 67 Total loans, excluding loans purchased from GNMA mortgage pools 31,118 880 847 Loans purchased from GNMA mortgage pools 2,311 334 346 Total loans 33,429 $ 1,214 $ 1,193 The following table provides a summary of troubled debt restructured loans that defaulted (fully or partially charged-off or became 90 days or more past due) for the years ended December 31, that were modified as troubled debt restructurings within 12 months previous to default: (Dollars in Millions) Number of Loans Amount Defaulted 2022 Commercial 767 $ 24 Commercial real estate 20 11 Residential mortgages 235 28 Credit card 7,904 42 Other retail 307 5 Total loans, excluding loans purchased from GNMA mortgage pools 9,233 110 Loans purchased from GNMA mortgage pools 282 59 Total loans 9,515 $ 169 2021 Commercial 1,084 $ 32 Commercial real estate 16 7 Residential mortgages 81 9 Credit card 7,700 43 Other retail 714 11 Total loans, excluding loans purchased from GNMA mortgage pools 9,595 102 Loans purchased from GNMA mortgage pools 176 26 Total loans 9,771 $ 128 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | NOTE 7 Leases The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Retail leases consist primarily of automobiles, while commercial leases may include high dollar assets such as aircraft or lower cost items such as office equipment. The components of the net investment in sales-type and direct financing leases, at December 31, were as follows: (Dollars in Millions) 2023 2022 Lease receivables $ 7,239 $ 8,731 Unguaranteed residual values accruing to the lessor’s benefit 1,082 1,323 Total net investment in sales-type and direct financing leases $ 8,321 $ 10,054 The Company, as a lessor, recorded $738 million, $764 million and $888 million of revenue on its Consolidated Statement of Income for the years ended December 31, 2023, 2022 and 2021, respectively, primarily consisting of interest income on sales-type and direct financing leases. The contractual future lease payments to be received by the Company, at December 31, 2023, were as follows: (Dollars in Millions) Sales-type and Direct Financing Leases Operating Leases 2024 $ 3,069 $ 138 2025 2,182 110 2026 1,333 66 2027 690 42 2028 260 27 Thereafter 369 57 Total lease payments 7,903 $ 440 Amounts representing interest (664) Lease receivables $ 7,239 The Company, as lessee, leases certain assets for use in its operations. Leased assets primarily include retail branches, operations centers and other corporate locations, and, to a lesser extent, office and computer equipment. For each lease with an original term greater than 12 months, the Company records a lease liability and a corresponding ROU asset. At December 31, 2023, the Company’s ROU assets included in premises and equipment long-term debt other liabilities billion and $1.6 billion, respectively, compared with $1.6 billion of ROU assets and $1.7 billion of lease liabilities at December 31, 2022, respectively. Total costs incurred by the Company, as a lessee, were $496 million, $390 million and $364 million for the years ended December 31, 2023, 2022 and 2021, respectively, and principally related to contractual lease payments on operating leases. The Company’s leases do not impose significant covenants or other restrictions on the Company. The following table presents amounts relevant to the Company’s assets leased for use in its operations for the years ended December 31: (Dollars in Millions) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 409 $ 294 $ 288 Operating cash flows from finance leases 7 4 5 Financing cash flows from finance leases 49 14 12 Right of use assets obtained in exchange for new operating lease liabilities 230 239 164 Right of use assets obtained in exchange for new finance lease liabilities 25 91 75 The following table presents the weighted-average remaining lease terms and discount rates of the Company’s assets leased for use in its operations at December 31: 2023 2022 Weighted-average remaining lease term of operating leases (in years) 6.4 6.8 Weighted-average remaining lease term of finance leases (in years) 8.3 8.5 Weighted-average discount rate of operating leases 3.7 % 3.3 % Weighted-average discount rate of finance leases 7.7 % 7.9 % The contractual future lease obligations of the Company at December 31, 2023, were as follows: (Dollars in Millions) Operating Leases Finance 2024 $ 377 $ 41 2025 295 38 2026 245 36 2027 196 22 2028 144 8 Thereafter 360 23 Total lease payments 1,617 168 Amounts representing interest (211) (18) Lease liabilities $ 1,406 $ 150 |
Leases | NOTE 7 Leases The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Retail leases consist primarily of automobiles, while commercial leases may include high dollar assets such as aircraft or lower cost items such as office equipment. The components of the net investment in sales-type and direct financing leases, at December 31, were as follows: (Dollars in Millions) 2023 2022 Lease receivables $ 7,239 $ 8,731 Unguaranteed residual values accruing to the lessor’s benefit 1,082 1,323 Total net investment in sales-type and direct financing leases $ 8,321 $ 10,054 The Company, as a lessor, recorded $738 million, $764 million and $888 million of revenue on its Consolidated Statement of Income for the years ended December 31, 2023, 2022 and 2021, respectively, primarily consisting of interest income on sales-type and direct financing leases. The contractual future lease payments to be received by the Company, at December 31, 2023, were as follows: (Dollars in Millions) Sales-type and Direct Financing Leases Operating Leases 2024 $ 3,069 $ 138 2025 2,182 110 2026 1,333 66 2027 690 42 2028 260 27 Thereafter 369 57 Total lease payments 7,903 $ 440 Amounts representing interest (664) Lease receivables $ 7,239 The Company, as lessee, leases certain assets for use in its operations. Leased assets primarily include retail branches, operations centers and other corporate locations, and, to a lesser extent, office and computer equipment. For each lease with an original term greater than 12 months, the Company records a lease liability and a corresponding ROU asset. At December 31, 2023, the Company’s ROU assets included in premises and equipment long-term debt other liabilities billion and $1.6 billion, respectively, compared with $1.6 billion of ROU assets and $1.7 billion of lease liabilities at December 31, 2022, respectively. Total costs incurred by the Company, as a lessee, were $496 million, $390 million and $364 million for the years ended December 31, 2023, 2022 and 2021, respectively, and principally related to contractual lease payments on operating leases. The Company’s leases do not impose significant covenants or other restrictions on the Company. The following table presents amounts relevant to the Company’s assets leased for use in its operations for the years ended December 31: (Dollars in Millions) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 409 $ 294 $ 288 Operating cash flows from finance leases 7 4 5 Financing cash flows from finance leases 49 14 12 Right of use assets obtained in exchange for new operating lease liabilities 230 239 164 Right of use assets obtained in exchange for new finance lease liabilities 25 91 75 The following table presents the weighted-average remaining lease terms and discount rates of the Company’s assets leased for use in its operations at December 31: 2023 2022 Weighted-average remaining lease term of operating leases (in years) 6.4 6.8 Weighted-average remaining lease term of finance leases (in years) 8.3 8.5 Weighted-average discount rate of operating leases 3.7 % 3.3 % Weighted-average discount rate of finance leases 7.7 % 7.9 % The contractual future lease obligations of the Company at December 31, 2023, were as follows: (Dollars in Millions) Operating Leases Finance 2024 $ 377 $ 41 2025 295 38 2026 245 36 2027 196 22 2028 144 8 Thereafter 360 23 Total lease payments 1,617 168 Amounts representing interest (211) (18) Lease liabilities $ 1,406 $ 150 |
Leases | NOTE 7 Leases The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Retail leases consist primarily of automobiles, while commercial leases may include high dollar assets such as aircraft or lower cost items such as office equipment. The components of the net investment in sales-type and direct financing leases, at December 31, were as follows: (Dollars in Millions) 2023 2022 Lease receivables $ 7,239 $ 8,731 Unguaranteed residual values accruing to the lessor’s benefit 1,082 1,323 Total net investment in sales-type and direct financing leases $ 8,321 $ 10,054 The Company, as a lessor, recorded $738 million, $764 million and $888 million of revenue on its Consolidated Statement of Income for the years ended December 31, 2023, 2022 and 2021, respectively, primarily consisting of interest income on sales-type and direct financing leases. The contractual future lease payments to be received by the Company, at December 31, 2023, were as follows: (Dollars in Millions) Sales-type and Direct Financing Leases Operating Leases 2024 $ 3,069 $ 138 2025 2,182 110 2026 1,333 66 2027 690 42 2028 260 27 Thereafter 369 57 Total lease payments 7,903 $ 440 Amounts representing interest (664) Lease receivables $ 7,239 The Company, as lessee, leases certain assets for use in its operations. Leased assets primarily include retail branches, operations centers and other corporate locations, and, to a lesser extent, office and computer equipment. For each lease with an original term greater than 12 months, the Company records a lease liability and a corresponding ROU asset. At December 31, 2023, the Company’s ROU assets included in premises and equipment long-term debt other liabilities billion and $1.6 billion, respectively, compared with $1.6 billion of ROU assets and $1.7 billion of lease liabilities at December 31, 2022, respectively. Total costs incurred by the Company, as a lessee, were $496 million, $390 million and $364 million for the years ended December 31, 2023, 2022 and 2021, respectively, and principally related to contractual lease payments on operating leases. The Company’s leases do not impose significant covenants or other restrictions on the Company. The following table presents amounts relevant to the Company’s assets leased for use in its operations for the years ended December 31: (Dollars in Millions) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 409 $ 294 $ 288 Operating cash flows from finance leases 7 4 5 Financing cash flows from finance leases 49 14 12 Right of use assets obtained in exchange for new operating lease liabilities 230 239 164 Right of use assets obtained in exchange for new finance lease liabilities 25 91 75 The following table presents the weighted-average remaining lease terms and discount rates of the Company’s assets leased for use in its operations at December 31: 2023 2022 Weighted-average remaining lease term of operating leases (in years) 6.4 6.8 Weighted-average remaining lease term of finance leases (in years) 8.3 8.5 Weighted-average discount rate of operating leases 3.7 % 3.3 % Weighted-average discount rate of finance leases 7.7 % 7.9 % The contractual future lease obligations of the Company at December 31, 2023, were as follows: (Dollars in Millions) Operating Leases Finance 2024 $ 377 $ 41 2025 295 38 2026 245 36 2027 196 22 2028 144 8 Thereafter 360 23 Total lease payments 1,617 168 Amounts representing interest (211) (18) Lease liabilities $ 1,406 $ 150 |
Leases | NOTE 7 Leases The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Retail leases consist primarily of automobiles, while commercial leases may include high dollar assets such as aircraft or lower cost items such as office equipment. The components of the net investment in sales-type and direct financing leases, at December 31, were as follows: (Dollars in Millions) 2023 2022 Lease receivables $ 7,239 $ 8,731 Unguaranteed residual values accruing to the lessor’s benefit 1,082 1,323 Total net investment in sales-type and direct financing leases $ 8,321 $ 10,054 The Company, as a lessor, recorded $738 million, $764 million and $888 million of revenue on its Consolidated Statement of Income for the years ended December 31, 2023, 2022 and 2021, respectively, primarily consisting of interest income on sales-type and direct financing leases. The contractual future lease payments to be received by the Company, at December 31, 2023, were as follows: (Dollars in Millions) Sales-type and Direct Financing Leases Operating Leases 2024 $ 3,069 $ 138 2025 2,182 110 2026 1,333 66 2027 690 42 2028 260 27 Thereafter 369 57 Total lease payments 7,903 $ 440 Amounts representing interest (664) Lease receivables $ 7,239 The Company, as lessee, leases certain assets for use in its operations. Leased assets primarily include retail branches, operations centers and other corporate locations, and, to a lesser extent, office and computer equipment. For each lease with an original term greater than 12 months, the Company records a lease liability and a corresponding ROU asset. At December 31, 2023, the Company’s ROU assets included in premises and equipment long-term debt other liabilities billion and $1.6 billion, respectively, compared with $1.6 billion of ROU assets and $1.7 billion of lease liabilities at December 31, 2022, respectively. Total costs incurred by the Company, as a lessee, were $496 million, $390 million and $364 million for the years ended December 31, 2023, 2022 and 2021, respectively, and principally related to contractual lease payments on operating leases. The Company’s leases do not impose significant covenants or other restrictions on the Company. The following table presents amounts relevant to the Company’s assets leased for use in its operations for the years ended December 31: (Dollars in Millions) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 409 $ 294 $ 288 Operating cash flows from finance leases 7 4 5 Financing cash flows from finance leases 49 14 12 Right of use assets obtained in exchange for new operating lease liabilities 230 239 164 Right of use assets obtained in exchange for new finance lease liabilities 25 91 75 The following table presents the weighted-average remaining lease terms and discount rates of the Company’s assets leased for use in its operations at December 31: 2023 2022 Weighted-average remaining lease term of operating leases (in years) 6.4 6.8 Weighted-average remaining lease term of finance leases (in years) 8.3 8.5 Weighted-average discount rate of operating leases 3.7 % 3.3 % Weighted-average discount rate of finance leases 7.7 % 7.9 % The contractual future lease obligations of the Company at December 31, 2023, were as follows: (Dollars in Millions) Operating Leases Finance 2024 $ 377 $ 41 2025 295 38 2026 245 36 2027 196 22 2028 144 8 Thereafter 360 23 Total lease payments 1,617 168 Amounts representing interest (211) (18) Lease liabilities $ 1,406 $ 150 |
Leases | NOTE 7 Leases The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Retail leases consist primarily of automobiles, while commercial leases may include high dollar assets such as aircraft or lower cost items such as office equipment. The components of the net investment in sales-type and direct financing leases, at December 31, were as follows: (Dollars in Millions) 2023 2022 Lease receivables $ 7,239 $ 8,731 Unguaranteed residual values accruing to the lessor’s benefit 1,082 1,323 Total net investment in sales-type and direct financing leases $ 8,321 $ 10,054 The Company, as a lessor, recorded $738 million, $764 million and $888 million of revenue on its Consolidated Statement of Income for the years ended December 31, 2023, 2022 and 2021, respectively, primarily consisting of interest income on sales-type and direct financing leases. The contractual future lease payments to be received by the Company, at December 31, 2023, were as follows: (Dollars in Millions) Sales-type and Direct Financing Leases Operating Leases 2024 $ 3,069 $ 138 2025 2,182 110 2026 1,333 66 2027 690 42 2028 260 27 Thereafter 369 57 Total lease payments 7,903 $ 440 Amounts representing interest (664) Lease receivables $ 7,239 The Company, as lessee, leases certain assets for use in its operations. Leased assets primarily include retail branches, operations centers and other corporate locations, and, to a lesser extent, office and computer equipment. For each lease with an original term greater than 12 months, the Company records a lease liability and a corresponding ROU asset. At December 31, 2023, the Company’s ROU assets included in premises and equipment long-term debt other liabilities billion and $1.6 billion, respectively, compared with $1.6 billion of ROU assets and $1.7 billion of lease liabilities at December 31, 2022, respectively. Total costs incurred by the Company, as a lessee, were $496 million, $390 million and $364 million for the years ended December 31, 2023, 2022 and 2021, respectively, and principally related to contractual lease payments on operating leases. The Company’s leases do not impose significant covenants or other restrictions on the Company. The following table presents amounts relevant to the Company’s assets leased for use in its operations for the years ended December 31: (Dollars in Millions) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 409 $ 294 $ 288 Operating cash flows from finance leases 7 4 5 Financing cash flows from finance leases 49 14 12 Right of use assets obtained in exchange for new operating lease liabilities 230 239 164 Right of use assets obtained in exchange for new finance lease liabilities 25 91 75 The following table presents the weighted-average remaining lease terms and discount rates of the Company’s assets leased for use in its operations at December 31: 2023 2022 Weighted-average remaining lease term of operating leases (in years) 6.4 6.8 Weighted-average remaining lease term of finance leases (in years) 8.3 8.5 Weighted-average discount rate of operating leases 3.7 % 3.3 % Weighted-average discount rate of finance leases 7.7 % 7.9 % The contractual future lease obligations of the Company at December 31, 2023, were as follows: (Dollars in Millions) Operating Leases Finance 2024 $ 377 $ 41 2025 295 38 2026 245 36 2027 196 22 2028 144 8 Thereafter 360 23 Total lease payments 1,617 168 Amounts representing interest (211) (18) Lease liabilities $ 1,406 $ 150 |
Accounting for Transfers and Se
Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities | NOTE 8 Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities The Company transfers financial assets in the normal course of business. The majority of the Company’s financial asset transfers are residential mortgage loan sales primarily to GSEs, transfers of tax-advantaged investments, commercial loan sales through participation agreements, and other individual or portfolio loan and securities sales. In accordance with the accounting guidance for asset transfers, the Company considers any ongoing involvement with transferred assets in determining whether the assets can be derecognized from the balance sheet. Guarantees provided to certain third parties in connection with the transfer of assets are further discussed in Note 23. For loans sold under participation agreements, the Company also considers whether the terms of the loan participation agreement meet the accounting definition of a participating interest. With the exception of servicing and certain performance-based guarantees, the Company’s continuing involvement with financial assets sold is minimal and generally limited to market customary representation and warranty clauses. Any gain or loss on sale depends on the previous carrying amount of the transferred financial assets, the consideration received, and any liabilities incurred in exchange for the transferred assets. Upon transfer, any servicing assets and other interests that continue to be held by the Company are initially recognized at fair value. For further information on MSRs, refer to Note 10. On a limited basis, the Company may acquire and package high-grade corporate bonds for select corporate customers, in which the Company generally has no continuing involvement with these transactions. Additionally, the Company is an authorized GNMA issuer and issues GNMA securities on a regular basis. The Company has no other asset securitizations or similar asset-backed financing arrangements that are off-balance sheet. The Company previously provided financial support primarily through the use of waivers of trust and investment management fees associated with various unconsolidated registered money market funds it manages. The Company discontinued providing this support beginning in the third quarter of 2022 due to rising interest rates in 2022. The Company provided $65 million and $250 million of support to the funds during the years ended December 31, 2022 and 2021, respectively. The Company is involved in various entities that are considered to be VIEs. The Company’s investments in VIEs are primarily related to investments promoting affordable housing, community development and renewable energy sources. Some of these tax-advantaged investments support the Company’s regulatory compliance with the Community Reinvestment Act. The Company’s investments in these entities generate a return primarily through the realization of federal and state income tax credits, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These tax credits are recognized as a reduction of tax expense or, for investments qualifying as investment tax credits, as a reduction to the related investment asset. The Company recognized federal and state income tax credits related to its affordable housing and other tax-advantaged investments in tax expense of $576 million, $461 million and $508 million for the years ended December 31, 2023, 2022 and 2021, respectively. The Company also recognized $318 million, $527 million and $418 million of investment tax credits for the years ended December 31, 2023, 2022 and 2021, respectively. The Company recognized $582 million, $424 million and $468 million of expenses related to all of these investments for the years ended December 31, 2023, 2022 and 2021, respectively, which were primarily included in tax expense. The Company is not required to consolidate VIEs in which it has concluded it does not have a controlling financial interest, and thus is not the primary beneficiary. In such cases, the Company does not have both the power to direct the entities’ most significant activities and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. The Company’s investments in these unconsolidated VIEs are carried in other assets on the Consolidated Balance Sheet. The Company’s unfunded capital and other commitments related to these unconsolidated VIEs are generally carried in other liabilities on the Consolidated Balance Sheet. The Company’s maximum exposure to loss from these unconsolidated VIEs include the investment recorded on the Company’s Consolidated Balance Sheet, net of unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. While the Company believes potential losses from these investments are remote, the maximum exposure was determined by assuming a scenario where the community-based business and housing projects completely fail and do not meet certain government compliance requirements resulting in recapture of the related tax credits. The following table provides a summary of investments in community development and tax-advantaged VIEs that the Company has not consolidated: At December 31 (Dollars in Millions) 2023 2022 Investment carrying amount $ 6,659 $ 5,452 Unfunded capital and other commitments 3,619 2,416 Maximum exposure to loss 9,002 9,761 The Company also has noncontrolling financial investments in private investment funds and partnerships considered to be VIEs, which are not consolidated. The Company’s recorded investment in these entities, carried in other assets on the Consolidated Balance Sheet, was approximately $219 million at December 31, 2023 and $177 million at December 31, 2022. The maximum exposure to loss related to these VIEs was $319 million at December 31, 2023 and $310 million at December 31, 2022, representing the Company’s investment balance and its unfunded commitments to invest additional amounts. The Company also held senior notes of $5.3 billion as available-for-sale investment securities at December 31, 2023, compared with $3.4 billion at December 31, 2022. These senior notes were issued by third-party securitization vehicles that held $6.1 billion at December 31, 2023 and $4.0 billion at December 31, 2022 of indirect auto loans that collateralize the senior notes. These VIEs are not consolidated by the Company. The Company’s individual net investments in unconsolidated VIEs, which exclude any unfunded capital commitments, ranged from less than $1 million to $86 million at December 31, 2023, compared with less than $1 million to $116 million at December 31, 2022. The Company is required to consolidate VIEs in which it has concluded it has a controlling financial interest. The Company sponsors entities to which it transfers its interests in tax-advantaged investments to third parties. At December 31, 2023, approximately $6.1 billion of the Company’s assets and $4.4 billion of its liabilities included on the Consolidated Balance Sheet were related to community development and tax-advantaged investment VIEs which the Company has consolidated, primarily related to these transfers. These amounts compared to $5.9 billion and $4.2 billion, respectively, at December 31, 2022. The majority of the assets of these consolidated VIEs are reported in other assets, and the liabilities are reported in long-term debt and other liabilities. The assets of a particular VIE are the primary source of funds to settle its obligations. The creditors of the VIEs do not have recourse to the general credit of the Company. The Company’s exposure to the consolidated VIEs is generally limited to the carrying value of its variable interests plus any related tax credits previously recognized or transferred to others with a guarantee. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | NOTE 9 Premises and Equipment Premises and equipment at December 31 consisted of the following: (Dollars in Millions) 2023 2022 Land $ 515 $ 535 Buildings and improvements 3,239 3,296 Furniture, fixtures and equipment 3,013 3,485 Right of use assets on operating leases 1,149 1,296 Right of use assets on finance leases 275 269 Construction in progress 68 46 8,259 8,927 Less accumulated depreciation and amortization (4,636) (5,069) Total $ 3,623 $ 3,858 |
Mortgage Servicing Rights
Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights | NOTE 10 Mortgage Servicing Rights The Company capitalizes MSRs as separate assets when loans are sold and servicing is retained. MSRs may also be purchased from others. The Company carries MSRs at fair value, with changes in the fair value recorded in earnings during the period in which they occur. The Company serviced $233.4 billion of residential mortgage loans for others at December 31, 2023, and $243.6 billion at December 31, 2022, including subserviced mortgages with no corresponding MSR asset. Included in mortgage banking revenue are the MSR fair value changes arising from market rate and model assumption changes, net of the value change in derivatives used to economically hedge MSRs. These changes resulted in net losses of $41 million, $45 million and $183 million for the years ended December 31, 2023, 2022 and 2021, respectively. Loan servicing and ancillary fees, not including valuation changes, included in mortgage banking revenue were $733 million, $754 million and $725 million for the years ended December 31, 2023, 2022 and 2021, respectively. Changes in fair value of capitalized MSRs are summarized as follows: (Dollars in Millions) 2023 2022 2021 Balance at beginning of period $ 3,755 $ 2,953 $ 2,210 Rights purchased 5 156 42 Rights capitalized 373 590 1,136 Rights sold (a) (440) (255) 2 Changes in fair value of MSRs Due to fluctuations in market interest rates (b) 66 804 272 Due to revised assumptions or models (c) 12 (29) (196) Other changes in fair value (d) (394) (464) (513) Balance at end of period $ 3,377 $ 3,755 $ 2,953 (a) MSRs sold include those having a negative fair value, resulting from the loans being severely delinquent. (b) Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits. (c) Includes changes in MSR value not caused by changes in market interest rates, such as changes in assumed cost to service, ancillary income and option adjusted spread, as well as the impact of any model changes. (d) Primarily the change in MSR value from passage of time and cash flows realized (decay), but also includes the impact of changes to expected cash flows not associated with changes in market interest rates, such as the impact of delinquencies. The estimated sensitivity to changes in interest rates of the fair value of the MSR portfolio and the related derivative instruments as of December 31 follows: 2023 2022 (Dollars in Millions) Down Down Down Up Up Up Down Down Down Up Up Up MSR portfolio $ (370) $ (173) $ (84) $ 77 $ 147 $ 268 $ (334) $ (153) $ (73) $ 66 $ 125 $ 224 Derivative instrument hedges 381 178 86 (79) (152) (289) 337 153 73 (67) (127) (236) Net sensitivity $ 11 $ 5 $ 2 $ (2) $ (5) $ (21) $ 3 $ — $ — $ (1) $ (2) $ (12) The fair value of MSRs and their sensitivity to changes in interest rates is influenced by the mix of the servicing portfolio and characteristics of each segment of the portfolio. The Company’s servicing portfolio consists of the distinct portfolios of government-insured mortgages, conventional mortgages and Housing Finance Agency (“HFA”) mortgages. The servicing portfolios are predominantly comprised of fixed-rate agency loans with limited adjustable- rate or jumbo mortgage loans. The HFA servicing portfolio is comprised of loans originated under state and local housing authority program guidelines which assist purchases by first-time or low- to moderate-income homebuyers through a favorable rate subsidy, down payment and/or closing cost assistance on government- and conventional-insured mortgages. A summary of the Company’s MSRs and related characteristics by portfolio as of December 31 follows: 2023 2022 (Dollars in Millions) HFA Government Conventional (d) Total HFA Government Conventional (d) Total Servicing portfolio (a) $ 48,286 $ 25,996 $ 151,056 $ 225,338 $ 44,071 $ 23,141 $ 172,541 $ 239,753 Fair value $ 769 $ 507 $ 2,101 $ 3,377 $ 725 $ 454 $ 2,576 $ 3,755 Value (bps) (b) 159 195 139 150 165 196 149 157 Weighted-average servicing fees (bps) 36 44 26 30 36 42 27 30 Multiple (value/servicing fees) 4.45 4.41 5.41 5.00 4.56 4.69 5.52 5.20 Weighted-average note rate 4.56 % 4.23 % 3.81 % 4.02 % 4.16 % 3.81 % 3.52 % 3.67 % Weighted-average age (in years) 4.3 5.5 4.3 4.4 4.0 5.7 3.7 3.9 Weighted-average expected prepayment (constant prepayment rate) 10.5 % 11.1 % 9.1 % 9.6 % 7.4 % 8.5 % 7.8 % 7.8 % Weighted-average expected life (in years) 7.2 6.5 7.0 7.0 8.8 7.6 7.5 7.7 Weighted-average option adjusted spread (c) 5.4 % 5.9 % 4.6 % 4.9 % 7.6 % 6.9 % 5.1 % 5.8 % (a) Represents principal balance of mortgages having corresponding MSR asset. (b) Calculated as fair value divided by the servicing portfolio. (c) Option adjusted spread is the incremental spread added to the risk-free rate to reflect optionality and other risk inherent in the MSRs. (d) |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 11 Intangible Assets Intangible assets consisted of the following: At December 31 (Dollars in Millions) 2023 2022 Goodwill $ 12,489 $ 12,373 Merchant processing contracts 124 155 Core deposit benefits 2,134 2,706 Mortgage servicing rights 3,377 3,755 Trust relationships 41 50 Other identified intangibles 408 489 Total $ 18,573 $ 19,528 Aggregate amortization expense consisted of the following: Year Ended December 31 (Dollars in Millions) 2023 2022 2021 Merchant processing contracts $ 31 $ 38 $ 45 Core deposit benefits 481 53 15 Trust relationships 10 12 10 Other identified intangibles 114 112 89 Total $ 636 $ 215 $ 159 The estimated amortization expense for the next five years is as follows: (Dollars in Millions) 2024 $ 566 2025 484 2026 415 2027 344 2028 281 The following table reflects the changes in the carrying value of goodwill for the years ended December 31, 2023, 2022 and 2021: (Dollars in Millions) Wealth, Corporate, Commercial and Institutional Banking Consumer and Business Banking Payment Services Treasury and Corporate Support Consolidated Company Balance at December 31, 2020 $ 3,266 $ 3,475 $ 3,177 $ — $ 9,918 Goodwill acquired 144 35 192 — 371 Foreign exchange translation and other 263 (265) (25) — (27) Balance at December 31, 2021 $ 3,673 $ 3,245 $ 3,344 $ — $ 10,262 Goodwill acquired 918 1,220 11 — 2,149 Foreign exchange translation and other (2) — (36) — (38) Balance at December 31, 2022 $ 4,589 $ 4,465 $ 3,319 $ — $ 12,373 Goodwill acquired 235 (139) — — 96 Foreign exchange translation and other 1 — 19 — 20 Balance at December 31, 2023 $ 4,825 $ 4,326 $ 3,338 $ — $ 12,489 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Deposits | NOTE 12 Deposits The composition of deposits at December 31 was as follows: (Dollars in Millions) 2023 2022 Noninterest-bearing deposits $ 89,989 $ 137,743 Interest-bearing deposits Interest checking 127,453 134,491 Money market savings 199,378 148,014 Savings accounts 43,219 71,782 Time deposits 52,273 32,946 Total interest-bearing deposits 422,323 387,233 Total deposits $ 512,312 $ 524,976 The maturities of time deposits outstanding at December 31, 2023 were as follows: (Dollars in Millions) 2024 $ 44,570 2025 6,448 2026 798 2027 252 2028 197 Thereafter 8 Total $ 52,273 |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | NOTE 13 Short-Term Borrowings Short-term borrowings at December 31 consisted of the following: (Dollars in Millions) 2023 2022 Federal funds purchased $ 248 $ 226 Securities sold under agreements to repurchase 3,576 1,431 Commercial paper 7,773 8,145 Other short-term borrowings 3,682 21,414 (a) Total $ 15,279 $ 31,216 (a) Balance primarily includes short-term FHLB advances. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 14 Long-Term Debt Long-term debt (debt with original maturities of more than one year) at December 31 consisted of the following: (Dollars in Millions) Rate Type Rate (a) Maturity Date 2023 2022 U.S. Bancorp (Parent Company) Subordinated notes Fixed 3.600 % 2024 $ 1,000 $ 1,000 Fixed 7.500 % 2026 199 199 Fixed 3.100 % 2026 1,000 1,000 Fixed 3.000 % 2029 1,000 1,000 Fixed 4.967 % 2033 1,300 1,300 Fixed 2.491 % 2036 1,300 1,300 Medium-term notes Fixed .850% - 6.787% 2024 - 2034 26,618 18,468 Other (b) 1,915 2,716 Subtotal 34,332 26,983 Subsidiaries Federal Home Loan Bank advances Fixed 1.860% - 8.250% 2025 - 2026 9,051 2,051 Floating 6.080% - 6.100% 2025 - 2026 3,000 3,000 Bank notes Fixed 2.050% - 5.550% 2025 - 2032 2,289 4,800 Floating —% - 5.398% 2046 - 2062 1,324 1,352 Other (c) 1,484 1,643 Subtotal 17,148 12,846 Total $ 51,480 $ 39,829 (a) Weighted-average interest rates of medium-term notes, Federal Home Loan Bank advances and bank notes were 3.89 percent, 4.94 percent and 3.27 percent, respectively. (b) Includes $2.1 billion and $2.9 billion at December 31, 2023 and 2022, respectively, of discounted noninterest-bearing additional cash received by the Company upon close of the MUB acquisition to be delivered to MUFG on or prior to December 1, 2027, discounted at the Company’s 5-year unsecured borrowing rate as of the acquisition date, as well as debt issuance fees and unrealized gains and losses and deferred amounts relating to derivative instruments. (c) Includes consolidated community development and tax-advantaged investment VIEs, finance lease obligations, debt issuance fees, and unrealized gains and losses and deferred amounts relating to derivative instruments. The Company has arrangements with the Federal Home Loan Bank and Federal Reserve Bank whereby the Company could have borrowed an additional $215.8 billion and $114.8 billion at December 31, 2023 and 2022, respectively . Maturities of long-term debt outstanding at December 31, 2023, were: (Dollars in Millions) Parent Company Consolidated 2024 $ 5,475 $ 6,663 2025 2,030 6,559 2026 3,906 13,381 2027 4,763 4,796 2028 3,824 3,835 Thereafter 14,334 16,246 Total $ 34,332 $ 51,480 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | NOTE 15 Shareholders' Equity At December 31, 2023 and 2022, the Company had authority to issue 4 billion shares of common stock and 50 million shares of preferred stock. The Company had 1.6 billion and 1.5 billion shares of common stock outstanding at December 31, 2023 and 2022, respectively. The Company had 27 million shares reserved for future issuances, primarily under its stock incentive plans at December 31, 2023. The number of shares issued and outstanding and the carrying amount of each outstanding series of the Company’s preferred stock at December 31 were as follows: 2023 2022 (Dollars in Millions) Shares Liquidation Discount Carrying Shares Liquidation Discount Carrying Series A 12,510 $ 1,251 $ 145 $ 1,106 12,510 $ 1,251 $ 145 $ 1,106 Series B 40,000 1,000 — 1,000 40,000 1,000 — 1,000 Series J 40,000 1,000 7 993 40,000 1,000 7 993 Series K 23,000 575 10 565 23,000 575 10 565 Series L 20,000 500 14 486 20,000 500 14 486 Series M 30,000 750 21 729 30,000 750 21 729 Series N 60,000 1,500 8 1,492 60,000 1,500 8 1,492 Series O 18,000 450 13 437 18,000 450 13 437 Total preferred stock (a) 243,510 $ 7,026 $ 218 $ 6,808 243,510 $ 7,026 $ 218 $ 6,808 (a) The par value of all shares issued and outstanding at December 31, 2023 and 2022, was $1.00 per share. Prior to July 1, 2023, dividends for the Company’s outstanding Series A Preferred Stock, Series B Preferred Stock and Series J Preferred Stock (each as defined below) were calculated based on LIBOR. On July 1, 2023, the interest rate on these series of preferred stock transitioned from a LIBOR-based rate to a rate based on the Secured Overnight Financing Rate (“SOFR”), including a credit spread adjustment, pursuant to the Adjustable Interest Rate (LIBOR) Act. During 2022, the Company issued depositary shares representing an ownership interest in 18,000 shares of Series O Non-Cumulative Perpetual Preferred Stock with a liquidation preference of $25,000 per share (the “Series O Preferred Stock”). The Series O Preferred Stock has no stated maturity and will not be subject to any sinking fund or other obligation of the Company. Dividends, if declared, will accrue and be payable quarterly, in arrears, at a rate per annum equal to 4.50 percent. The Series O Preferred Stock is redeemable at the Company’s option, in whole or in part, on or after April 15, 2027. The Series O Preferred Stock is redeemable at the Company’s option, in whole, but not in part, prior to April 15, 2027 within 90 days following an official administrative or judicial decision, amendment to, or change in the laws or regulations that would not allow the Company to treat the full liquidation value of the Series O Preferred Stock as Tier 1 capital for purposes of the capital adequacy guidelines of the Federal Reserve Board. During 2021, the Company issued depositary shares representing an ownership interest in 60,000 shares of Series N Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock with a liquidation preference of $25,000 per share (the “Series N Preferred Stock”). The Series N Preferred Stock has no stated maturity and will not be subject to any sinking fund or other obligation of the Company. Dividends, if declared, will accrue and be payable quarterly, in arrears, at a rate per annum equal to 3.70 percent from the date of issuance to, but excluding, January 15, 2027, and thereafter will accrue and be payable quarterly at a floating rate per annum equal to the five-year treasury rate plus 2.541 percent. The Series N Preferred Stock is redeemable at the Company’s option, in whole or in part, on or after January 15, 2027. The Series N Preferred Stock is redeemable at the Company’s option, in whole, but not in part, prior to January 15, 2027 within 90 days following an official administrative or judicial decision, amendment to, or change in the laws or regulations that would not allow the Company to treat the full liquidation value of the Series N Preferred Stock as Tier 1 capital for purposes of the capital adequacy guidelines of the Federal Reserve Board. During 2021, the Company issued depositary shares representing an ownership interest in 30,000 shares of Series M Non-Cumulative Perpetual Preferred Stock with a liquidation preference of $25,000 per share (the “Series M Preferred Stock”). The Series M Preferred Stock has no stated maturity and will not be subject to any sinking fund or other obligation of the Company. Dividends, if declared, will accrue and be payable quarterly, in arrears, at a rate per annum equal to 4.00 percent. The Series M Preferred Stock is redeemable at the Company’s option, in whole or in part, on or after April 15, 2026. The Series M Preferred Stock is redeemable at the Company’s option, in whole, but not in part, prior to April 15, 2026 within 90 days following an official administrative or judicial decision, amendment to, or change in the laws or regulations that would not allow the Company to treat the full liquidation value of the Series M Preferred Stock as Tier 1 capital for purposes of the capital adequacy guidelines of the Federal Reserve Board. During 2020, the Company issued depositary shares representing an ownership interest in 20,000 shares of Series L Non-Cumulative Perpetual Preferred Stock with a liquidation preference of $25,000 per share (the “Series L Preferred Stock”). The Series L Preferred Stock has no stated maturity and will not be subject to any sinking fund or other obligation of the Company. Dividends, if declared, will accrue and be payable quarterly, in arrears, at a rate per annum equal to 3.75 percent. The Series L Preferred Stock is redeemable at the Company’s option, in whole or in part, on or after January 15, 2026. The Series L Preferred Stock is redeemable at the Company’s option, in whole, but not in part, prior to January 15, 2026 within 90 days following an official administrative or judicial decision, amendment to, or change in the laws or regulations that would not allow the Company to treat the full liquidation value of the Series L Preferred Stock as Tier 1 capital for purposes of the capital adequacy guidelines of the Federal Reserve Board. During 2018, the Company issued depositary shares representing an ownership interest in 23,000 shares of Series K Non-Cumulative Perpetual Preferred Stock with a liquidation preference of $25,000 per share (the “Series K Preferred Stock”). The Series K Preferred Stock has no stated maturity and will not be subject to any sinking fund or other obligation of the Company. Dividends, if declared, will accrue and be payable quarterly, in arrears, at a rate per annum equal to 5.50 percent. The Series K Preferred Stock is redeemable at the Company’s option, in whole or in part. During 2017, the Company issued depositary shares representing an ownership interest in 40,000 shares of Series J Non-Cumulative Perpetual Preferred Stock with a liquidation preference of $25,000 per share (the “Series J Preferred Stock”). The Series J Preferred Stock has no stated maturity and will not be subject to any sinking fund or other obligation of the Company. Dividends, if declared, will accrue and be payable semiannually, in arrears, at a rate per annum equal to 5.300 percent from the date of issuance to, but excluding, April 15, 2027, and thereafter will accrue and be payable quarterly at a floating rate per annum equal to 2.914 percent above three-month CME Term SOFR plus a credit spread adjustment of 0.26161 percent. The Series J Preferred Stock is redeemable at the Company’s option, in whole or in part, on or after April 15, 2027. The Series J Preferred Stock is redeemable at the Company’s option, in whole, but not in part, prior to April 15, 2027 within 90 days following an official administrative or judicial decision, amendment to, or change in the laws or regulations that would not allow the Company to treat the full liquidation value of the Series J Preferred Stock as Tier 1 capital for purposes of the capital adequacy guidelines of the Federal Reserve Board. During 2010, the Company issued depositary shares representing an ownership interest in 5,746 shares of Series A Non-Cumulative Perpetual Preferred Stock (the “Series A Preferred Stock”) to investors, in exchange for their portion of USB Capital IX Income Trust Securities. During 2011, the Company issued depositary shares representing an ownership interest in 6,764 shares of Series A Preferred Stock to USB Capital IX, thereby settling the stock purchase contract established between the Company and USB Capital IX as part of the 2006 issuance of USB Capital IX Income Trust Securities. The preferred shares were issued to USB Capital IX for the purchase price specified in the stock forward purchase contract. The Series A Preferred Stock has a liquidation preference of $100,000 per share, no stated maturity and will not be subject to any sinking fund or other obligation of the Company. Dividends, if declared, will accrue and be payable quarterly, in arrears, at a rate per annum equal to the greater of 1.02 percent above three-month CME Term SOFR plus a credit spread adjustment of 0.26161 percent, or 3.50 percent. The Series A Preferred Stock is redeemable at the Company’s option, subject to prior approval by the Federal Reserve Board. During 2006, the Company issued depositary shares representing an ownership interest in 40,000 shares of Series B Non-Cumulative Perpetual Preferred Stock with a liquidation preference of $25,000 per share (the “Series B Preferred Stock”). The Series B Preferred Stock has no stated maturity and will not be subject to any sinking fund or other obligation of the Company. Dividends, if declared, will accrue and be payable quarterly, in arrears, at a rate per annum equal to the greater of 0.60 percent above three-month CME Term SOFR plus a credit spread adjustment of 0.26161 percent, or 3.50 percent. The Series B Preferred Stock is redeemable at the Company’s option, subject to the prior approval of the Federal Reserve Board. During 2023, 2022 and 2021, the Company repurchased shares of its common stock under various authorizations approved by its Board of Directors. The Company suspended all common stock repurchases at the beginning of the third quarter of 2021, except for those done exclusively in connection with its stock-based compensation programs, due to its acquisition of MUB. The Company will evaluate its future share repurchases in connection with potential capital requirements given proposed regulatory capital rules and the related landscape. The following table summarizes the Company’s common stock repurchased in each of the last three years: (Dollars and Shares in Millions) Shares Value 2023 1 $ 62 2022 1 69 2021 28 1,556 Shareholders’ equity is affected by transactions and valuations of asset and liability positions that require adjustments to accumulated other comprehensive income (loss). The reconciliation of the transactions affecting accumulated other comprehensive income (loss) included in shareholders’ equity for the years ended December 31, is as follows: (Dollars in Millions) Unrealized Gains (Losses) on Investment Securities Available-For-Sale Unrealized Gains (Losses) on Investment Securities Transferred From Available-For-Sale to Held-To-Maturity Unrealized Gains (Losses) on Derivative Hedges Unrealized Gains (Losses) on Retirement Plans Foreign Currency Translation Total 2023 Balance at beginning of period $ (6,378) $ (3,933) $ (114) $ (939) $ (43) $ (11,407) Changes in unrealized gains (losses) 1,500 — (252) (262) — 986 Foreign currency translation adjustment (a) — — — — 21 21 Reclassification to earnings of realized (gains) losses 145 530 80 (7) — 748 Applicable income taxes (418) (134) 44 70 (6) (444) Balance at end of period $ (5,151) $ (3,537) $ (242) $ (1,138) $ (28) $ (10,096) 2022 Balance at beginning of period $ 540 $ (935) $ (85) $ (1,426) $ (37) $ (1,943) Changes in unrealized gains (losses) (13,656) — (75) 526 — (13,205) Transfer of securities from available-for-sale to held-to-maturity 4,413 (4,413) — — — — Foreign currency translation adjustment (a) — — — — (10) (10) Reclassification to earnings of realized (gains) losses (20) 400 36 128 — 544 Applicable income taxes 2,345 1,015 10 (167) 4 3,207 Balance at end of period $ (6,378) $ (3,933) $ (114) $ (939) $ (43) $ (11,407) 2021 Balance at beginning of period $ 2,417 $ — $ (189) $ (1,842) $ (64) $ 322 Changes in unrealized gains and losses (3,698) — 125 400 — (3,173) Transfer of securities from available-for-sale to held-to-maturity 1,289 (1,289) — — — — Foreign currency translation adjustment (a) — — — — 35 35 Reclassification to earnings of realized (gains) losses (103) 36 14 157 — 104 Applicable income taxes 635 318 (35) (141) (8) 769 Balance at end of period $ 540 $ (935) $ (85) $ (1,426) $ (37) $ (1,943) (a) Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges. Additional detail about the impact to net income for items reclassified out of accumulated other comprehensive income (loss) and into earnings for the years ended December 31 is as follows: Impact to Net Income Affected Line Item in the Consolidated Statement of Income (Dollars in Millions) 2023 2022 2021 Unrealized gains (losses) on investment securities available-for-sale Realized gains (losses) on sale of investment securities $ (145) $ 20 $ 103 Securities gains (losses), net 37 (5) (26) Applicable income taxes (108) 15 77 Net-of-tax Unrealized gains (losses) on investment securities transferred from available-for-sale to held-to-maturity Amortization of unrealized gains (losses) (530) (400) (36) Interest income 134 119 9 Applicable income taxes (396) (281) (27) Net-of-tax Unrealized gains (losses) on derivative hedges Realized gains (losses) on derivative hedges (80) (36) (14) Net interest income 21 9 4 Applicable income taxes (59) (27) (10) Net-of-tax Unrealized gains (losses) on retirement plans Actuarial gains (losses) and prior service cost (credit) amortization 7 (128) (157) Other noninterest expense (2) 33 40 Applicable income taxes 5 (95) (117) Net-of-tax Total impact to net income $ (558) $ (388) $ (77) Regulatory Capital The Company uses certain measures defined by bank regulatory agencies to assess its capital. The regulatory capital requirements effective for the Company follow Basel III, with the Company being subject to calculating its capital adequacy as a percentage of risk-weighted assets under the standardized approach. Tier 1 capital is considered core capital and includes common shareholders’ equity adjusted for the aggregate impact of certain items included in other comprehensive income (loss) (“common equity tier 1 capital”), plus qualifying preferred stock, trust preferred securities and noncontrolling interests in consolidated subsidiaries subject to certain limitations. Total risk-based capital includes Tier 1 capital and other items such as subordinated debt and the allowance for credit losses. Capital measures are stated as a percentage of risk-weighted assets, which are measured based on their perceived credit risks and include certain off-balance sheet exposures, such as unfunded loan commitments, letters of credit, and derivative contracts. Beginning in 2022, the Company began to phase into its regulatory capital requirements the cumulative deferred impact of its 2020 adoption of the accounting guidance related to the impairment of financial instruments based on the CECL methodology plus 25 percent of its quarterly credit reserve increases over the past two years. This cumulative deferred impact will be phased into the Company’s regulatory capital through 2024, culminating with a fully phased in regulatory capital calculation beginning in 2025. The Company is also subject to leverage ratio requirements, which is defined as Tier 1 capital as a percentage of adjusted average assets under the standardized approach and Tier 1 capital as a percentage of total on- and off-balance sheet leverage exposure under more risk-sensitive advanced approaches. The following table provides a summary of the regulatory capital requirements in effect, along with the actual components and ratios for the Company and its bank subsidiaries, at December 31: U.S. Bancorp U.S. Bank National Association MUFG Union Bank National Association (a) (Dollars in Millions) 2023 2022 2023 2022 2022 Basel III Standardized Approach: Common equity tier 1 capital $ 44,947 $ 41,560 $ 58,194 $ 46,681 $ 10,888 Tier 1 capital 52,199 48,813 58,638 47,127 10,888 Total risk-based capital 61,921 59,015 68,817 56,736 11,565 Risk-weighted assets 453,390 496,500 445,829 436,764 58,641 Common equity tier 1 capital as a percent of risk-weighted assets 9.9 % 8.4 % 13.1 % 10.7 % 18.6 % Tier 1 capital as a percent of risk-weighted assets 11.5 9.8 13.2 10.8 18.6 Total risk-based capital as a percent of risk-weighted assets 13.7 11.9 15.4 13.0 19.7 Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) 8.1 7.9 9.2 8.1 10.9 Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure (total leverage exposure ratio) 6.6 6.4 7.5 6.5 10.1 Minimum (b) Well- Capitalized Bank Regulatory Capital Requirements Common equity tier 1 capital as a percent of risk-weighted assets 7.0 % 6.5 % Tier 1 capital as a percent of risk-weighted assets 8.5 8.0 Total risk-based capital as a percent of risk-weighted assets 10.5 10.0 Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) 4.0 5.0 Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure (total leverage exposure ratio) (c) 3.0 3.0 (a) MUFG Union Bank National Association merged into U.S. Bank National Association during 2023. (b) The minimum common equity tier 1 capital, tier 1 capital and total risk-based capital ratio requirements reflect a stress capital buffer requirement of 2.5 percent. Banks and financial services holding companies must maintain minimum capital levels, including a stress capital buffer requirement, to avoid limitations on capital distributions and certain discretionary compensation payments. (c) A minimum "well-capitalized" threshold does not apply to U.S. Bancorp for this ratio as it is not formally defined under applicable banking regulations for bank holding companies. Noncontrolling interests principally represent third-party investors’ interests in consolidated entities, including preferred stock of consolidated subsidiaries. During 2006, the Company’s banking subsidiary formed USB Realty Corp., a real estate investment trust, for the purpose of issuing 5,000 shares of Fixed-to-Floating Rate Exchangeable Non-cumulative Perpetual Series A Preferred Stock with a liquidation preference of $100,000 per share (“Series A Preferred Securities”) to third-party investors. Dividends on the Series A Preferred Securities, if declared, will accrue and be payable quarterly, in arrears, at a rate per annum equal to 1.147 percent above three-month CME Term SOFR plus a credit spread adjustment of 0.26161 percent. Prior to July 1, 2023, dividends for the Series A Preferred Securities were calculated based on LIBOR. On July 1, 2023, the interest rate on these securities transitioned from a LIBOR-based rate to a SOFR-based rate, including a credit spread adjustment, pursuant to the Adjustable Interest Rate (LIBOR) Act. If USB Realty Corp. has not declared a dividend on the Series A Preferred Securities before the dividend payment date for any dividend period, such dividend shall not be cumulative and shall cease to accrue and be payable, and USB Realty Corp. will have no obligation to pay dividends accrued for such dividend period, whether or not dividends on the Series A Preferred Securities are declared for any future dividend period. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 16 Earnings Per Share The components of earnings per share were: Year Ended December 31 (Dollars and Shares in Millions, Except Per Share Data) 2023 2022 2021 Net income attributable to U.S. Bancorp $ 5,429 $ 5,825 $ 7,963 Preferred dividends (350) (296) (303) Impact of preferred stock call and redemption — — (17) (a) Earnings allocated to participating stock awards (28) (28) (38) Net income applicable to U.S. Bancorp common shareholders $ 5,051 $ 5,501 $ 7,605 Average common shares outstanding 1,543 1,489 1,489 Net effect of the exercise and assumed purchase of stock awards — 1 1 Average diluted common shares outstanding 1,543 1,490 1,490 Earnings per common share $ 3.27 $ 3.69 $ 5.11 Diluted earnings per common share $ 3.27 $ 3.69 $ 5.10 (a) Represents stock issuance costs originally recorded in preferred stock upon the issuance of the Company’s Series I and Series F Preferred Stock that were reclassified to retained earnings on the date the Company announced its intent to redeem the outstanding shares. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefits | NOTE 17 Employee Benefits Employee Retirement Savings Plan The Company has a defined contribution retirement savings plan that covers substantially all its employees. Qualified employees are allowed to contribute up to 75 percent of their annual compensation, subject to Internal Revenue Service limits, through salary deductions under Section 401(k) of the Internal Revenue Code. Employee contributions are invested at their direction among a variety of investment alternatives. Employee contributions are 100 percent matched by the Company, up to four percent of each employee’s eligible annual compensation. The Company’s matching contribution vests immediately and is invested in the same manner as each employee’s future contribution elections. Total expense for the Company’s matching contributions was $254 million, $211 million and $213 million in 2023, 2022 and 2021, respectively. Pension and Postretirement Welfare Plans The Company has tax qualified noncontributory defined benefit pension plans, nonqualified pension plans and postretirement welfare plans. Pension Plans The funded tax qualified noncontributory defined benefit pension plans provide benefits to substantially all the Company’s employees. Participants receive annual cash balance pay credits based on eligible pay multiplied by a percentage determined by their age and/or years of service, as defined by the plan documents. Participants also receive an annual interest credit. Generally, employees become vested upon completing three years of vesting service. The Company did not contribute to its qualified pension plans in 2023 and 2022 and does not expect to contribute to the plans in 2024. The Company also maintains two non-qualified plans that are unfunded and provide benefits to certain employees. The assumptions used in computing the accumulated benefit obligation, the projected benefit obligation and net pension expense are substantially consistent with those assumptions used for the funded qualified plans. In 2024, the Company expects to contribute approximately $27 million to its non-qualified pension plans, which equals the 2024 expected benefit payments. Postretirement Welfare Plans In addition to providing pension benefits, the Company has funded and unfunded postretirement welfare plans available to certain eligible participants based on their hire or retirement date. The plans are closed to new participants. In 2024, the Company does not expect to contribute to its postretirement welfare plans. The following table summarizes the changes in benefit obligations and plan assets for the years ended December 31, and the funded status and amounts recognized in the Consolidated Balance Sheet at December 31 for the pension plans: (Dollars in Millions) 2023 2022 Change In Projected Benefit Obligation (a) Benefit obligation at beginning of measurement period $ 6,617 $ 8,030 Service cost 223 280 Interest cost 370 248 Plan amendments (23) 2 Actuarial (gain) loss 398 (2,250) Lump sum settlements (94) (76) Benefit payments (213) (195) Acquisitions — 578 Benefit obligation at end of measurement period (b) $ 7,278 $ 6,617 Change In Fair Value Of Plan Assets Fair value at beginning of measurement period $ 7,375 $ 8,113 Actual return on plan assets 658 (1,245) Employer contributions 28 28 Lump sum settlements (94) (76) Benefit payments (213) (195) Acquisitions (c) 25 750 Fair value at end of measurement period $ 7,779 $ 7,375 Funded Status $ 501 $ 758 Components Of The Consolidated Balance Sheet Noncurrent benefit asset $ 1,072 $ 1,286 Current benefit liability (26) (25) Noncurrent benefit liability (545) (503) Recognized amount $ 501 $ 758 Accumulated Other Comprehensive Income (Loss), Pretax Net actuarial loss $ (1,607) $ (1,326) Net prior service credit 34 12 Recognized amount $ (1,573) $ (1,314) Note: At December 31, 2023 and 2022, the postretirement welfare plans projected benefit obligation was $49 million and $51 million, respectively, the fair value of plan assets was $45 million and $42 million, respectively, and the amount recognized in accumulated other comprehensive income (loss), pretax was $52 million and $62 million, respectively. (a) The increase in the projected benefit obligation for 2023 was primarily due to a lower discount rate, and the decrease for 2022 was primarily due to a higher discount rate partially offset by the acquired MUB benefit obligations. (b) At December 31, 2023 and 2022, the accumulated benefit obligation for all pension plans was $6.8 billion and $5.0 billion, respectively. (c) The increase in plan assets was related to the 2022 MUB acquisition. The following table provides information for pension plans with benefit obligations in excess of plan assets at December 31: (Dollars in Millions) 2023 2022 Plans with Projected Benefit Obligations in Excess of Plan Assets Projected benefit obligation $ 571 $ 528 Fair value of plan assets — — Plans with Accumulated Benefit Obligations in Excess of Plan Assets Accumulated benefit obligation $ 530 $ 487 Fair value of plan assets — — The following table sets forth the components of net periodic pension cost and other amounts recognized in accumulated other comprehensive income (loss) for the years ended December 31 for the pension plans: (Dollars in Millions) 2023 2022 2021 Components Of Net Periodic Pension Cost Service cost $ 223 $ 280 $ 265 Interest cost 370 248 219 Expected return on plan assets (546) (481) (450) Prior service credit amortization (1) (2) (2) Actuarial loss amortization 5 140 169 Net periodic pension cost $ 51 $ 185 $ 201 Other Changes In Plan Assets And Benefit Obligations Recognized In Other Comprehensive Income (Loss) Net actuarial (loss) gain arising during the year $ (286) $ 523 $ 398 Net actuarial loss amortized during the year 5 140 169 Net prior service credit (cost) arising during the year 23 (2) — Net prior service credit amortized during the year (1) (2) (2) Total recognized in other comprehensive income (loss) $ (259) $ 659 $ 565 Total recognized in net periodic pension cost and other comprehensive income (loss) $ (310) $ 474 $ 364 Note: The net periodic benefit for the postretirement welfare plans was $10 million, $9 million and $9 million for the years end December 31, 2023, 2022 and 2021, respectively. The total of other amounts recognized as other comprehensive loss was $10 million, $5 million and $8 million for the years ended December 31, 2023, 2022 and 2021, respectively. The following table sets forth weighted-average assumptions used to determine the pension plans projected benefit obligations at December 31: 2023 2022 Discount rate 5.12 % 5.55 % Cash balance interest crediting rate 3.04 3.36 Rate of compensation increase (a) 3.72 4.13 (a) Determined on an active liability-weighted basis. The following table sets forth weighted-average assumptions used to determine net periodic pension cost for the years ended December 31: 2023 2022 2021 Discount rate 5.55 % 3.00 % 2.75 % Cash balance interest crediting rate 3.36 3.00 3.00 Expected return on plan assets (a) 6.75 6.50 6.50 Rate of compensation increase (b) 4.13 3.56 3.56 (a) With the help of an independent pension consultant, the Company considers several sources when developing its expected long-term rates of return on plan assets assumptions, including, but not limited to, past returns and estimates of future returns given the plans’ asset allocation, economic conditions, and peer group long-term rate of return information. The Company determines its expected long-term rates of return reflecting current economic conditions and plan assets. (b) Determined on an active liability-weighted basis. Investment Policies and Asset Allocation In establishing its investment policies and asset allocation strategies, the Company considers expected returns and the volatility associated with different strategies. An independent consultant performs modeling that projects numerous outcomes using a broad range of possible scenarios, including a mix of possible rates of inflation and economic growth. Starting with current economic information, the model bases its projections on past relationships between inflation, fixed income rates and equity returns when these types of economic conditions have existed over the previous 30 years, both in the United States and in foreign countries. Estimated future returns and other actuarially determined adjustments are also considered in calculating the estimated return on assets. Generally, based on historical performance of the various investment asset classes, investments in equities have outperformed other investment classes but are subject to higher volatility. In an effort to minimize volatility, while recognizing the long-term up-side potential of investing in equities, the Committee has determined that a target asset allocation of 35 percent long duration bonds, 30 percent global equities, 10 percent real assets, 10 percent private equity funds, 5 percent domestic mid-small cap equities, 5 percent emerging markets equities, and 5 percent hedge funds is appropriate. At December 31, 2023 and 2022, plan assets included an asset management arrangement with a related party totaling $62.6 million and $87.8 million, respectively. In accordance with authoritative accounting guidance, the Company groups plan assets into a three-level hierarchy for valuation techniques used to measure their fair value based on whether the valuation inputs are observable or unobservable. Refer to Note 22 for further discussion on these levels. The assets of the qualified pension plans include investments in equity and U.S. Treasury securities whose fair values are determined based on quoted prices in active markets and are classified within Level 1 of the fair value hierarchy. The qualified pension plans also invest in U.S. agency, corporate and municipal debt securities, which are all valued based on observable market prices or data by third party pricing services, and mutual funds which are valued based on quoted net asset values provided by the trustee of the fund; these assets are classified as Level 2. Additionally, the qualified pension plans invest in certain assets that are valued based on net asset values as a practical expedient, including investments in collective investment funds, hedge funds, and private equity funds; the net asset values are provided by the fund trustee or administrator and are not classified in the fair value hierarchy. The following table summarizes qualified pension plans investment assets measured at fair value at December 31: 2023 2022 (Dollars in Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 68 $ — $ — $ 68 $ 202 $ — $ — $ 202 Debt securities — — — — 961 855 — 1,816 Mutual funds Debt securities — — — — — 382 — 382 Emerging markets equity securities — — — — — 156 — 156 Other — — — — — — 6 6 $ 68 $ — $ — 68 $ 1,163 $ 1,393 $ 6 2,562 Plan investment assets not classified in fair value hierarchy (a) : Collective investment funds Domestic equity securities 1,546 1,494 Domestic mid-small cap equity securities 406 313 International equity securities 981 620 Domestic real estate securities 142 144 Fixed income 2,295 — Real estate funds (b) 746 763 Hedge funds (c) 412 451 Private equity funds (d) 1,183 1,028 Total plan investment assets at fair value $ 7,779 $ 7,375 (a) These investments are valued based on net asset value per share as a practical expedient; fair values are provided to reconcile to total investment assets of the plans at fair value. (b) This category consists of several investment strategies diversified across several real estate managers. (c) This category consists of several investment strategies diversified across several hedge fund managers. (d) This category consists of several investment strategies diversified across several private equity fund managers. The following table summarizes the changes in fair value for qualified pension plans investment assets measured at fair value using significant unobservable inputs (Level 3) for the years ended December 31: 2023 2022 2021 (Dollars in Millions) Other Other Other Balance at beginning of period $ 6 $ 4 $ 6 Unrealized gains (losses) relating to assets still held at end of year — 2 (2) Purchases, sales, and settlements, net (6) — — Balance at end of period $ — $ 6 $ 4 The following benefit payments are expected to be paid from the pension plans for the years ended December 31: (Dollars in Millions) 2024 $ 332 2025 383 2026 391 2027 416 2028 430 2029-2033 2,439 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 18 Stock-Based Compensation As part of its employee and director compensation programs, the Company currently may grant certain stock awards under the provisions of its stock incentive plan. The plan provides for grants of options to purchase shares of common stock at a fixed price equal to the fair value of the underlying stock at the date of grant. Option grants are generally exercisable up to ten years from the date of grant. In addition, the plan provides for grants of shares of common stock or stock units that are subject to restriction on transfer prior to vesting. Most stock and unit awards vest over three Stock Option Awards The following is a summary of stock options outstanding and exercised under prior and existing stock incentive plans of the Company: Year Ended December 31 Stock Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) 2023 Number outstanding at beginning of period 3,253,090 $ 44.42 Exercised (399,329) 38.15 Cancelled (a) (15,476) 47.88 Number outstanding at end of period (b) 2,838,285 $ 45.28 2.0 $ — Exercisable at end of period 2,838,285 $ 45.28 2.0 $ — 2022 Number outstanding at beginning of period 3,890,131 $ 42.58 Exercised (624,729) 32.87 Cancelled (a) (12,312) 50.97 Number outstanding at end of period (b) 3,253,090 $ 44.42 2.7 $ — Exercisable at end of period 3,253,090 $ 44.42 2.7 $ — 2021 Number outstanding at beginning of period 5,180,391 $ 40.38 Exercised (1,281,646) 33.66 Cancelled (a) (8,614) 48.20 Number outstanding at end of period (b) 3,890,131 $ 42.58 3.3 $ 53 Exercisable at end of period 3,890,131 $ 42.58 3.3 $ 53 Note: The Company did not grant any stock option awards during 2023, 2022, and 2021. (a) Options cancelled include both non-vested (i.e., forfeitures) and vested options. (b) Outstanding options include stock-based awards that may be forfeited in future periods. The impact of the estimated forfeitures is reflected in compensation expense. Stock-based compensation expense is based on the estimated fair value of the award at the date of grant or modification. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model, requiring the use of subjective assumptions. Because employee stock options have characteristics that differ from those of traded options, including vesting provisions and trading limitations that impact their liquidity, the determined value used to measure compensation expense may vary from the actual fair value of the employee stock options. To satisfy option exercises, the Company predominantly uses treasury stock. The following summarizes certain stock option activity of the Company: Year Ended December 31 (Dollars in Millions) 2023 2022 2021 Fair value of options vested $ — $ — $ 3 Intrinsic value of options exercised 2 15 27 Cash received from options exercised 15 21 43 Tax benefit realized from options exercised 1 4 7 Additional information regarding stock options outstanding as of December 31, 2023, is as follows: Outstanding Options Exercisable Options Range of Exercise Prices Shares Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Shares Weighted- Average Exercise Price $35.01—$40.00 1,008,046 2.1 $ 39.49 1,008,046 $ 39.49 $40.01—$45.00 988,880 0.8 42.95 988,880 42.95 $45.01—$50.00 — — — — — $50.01—$55.01 841,359 3.1 54.96 841,359 54.96 2,838,285 2.0 $ 45.28 2,838,285 $ 45.28 Restricted Stock and Unit Awards A summary of the status of the Company’s restricted shares of stock and unit awards is presented below: 2023 2022 2021 Year Ended December 31 Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Outstanding at beginning of period 6,880,826 $ 52.59 6,812,753 $ 51.04 6,343,313 $ 51.38 Granted 5,565,634 45.87 4,109,793 55.62 4,512,995 52.54 Vested (3,872,874) 52.05 (3,690,666) 52.88 (3,793,978) 53.27 Cancelled (257,015) 50.00 (351,054) 54.95 (249,577) 52.83 Outstanding at end of period 8,316,571 $ 48.42 6,880,826 $ 52.59 6,812,753 $ 51.04 The total fair value of shares vested was $180 million, $198 million and $191 million for the years ended December 31, 2023, 2022 and 2021, respectively. Stock-based compensation expense was $224 million, $202 million and $207 million for the years ended December 31, 2023, 2022 and 2021, respectively. On an after-tax basis, stock-based compensation was $167 million, $152 million |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 19 Income Taxes The components of income tax expense were: Year Ended December 31 (Dollars in Millions) 2023 2022 2021 Federal Current $ 1,434 $ 1,366 $ 1,203 Deferred (326) (108) 469 Federal income tax 1,108 1,258 1,672 State Current 482 401 398 Deferred (183) (196) 111 State income tax 299 205 509 Total income tax provision $ 1,407 $ 1,463 $ 2,181 A reconciliation of expected income tax expense at the federal statutory rate of 21 percent to the Company’s applicable income tax expense follows: Year Ended December 31 (Dollars in Millions) 2023 2022 2021 Tax at statutory rate $ 1,442 $ 1,533 $ 2,135 State income tax, at statutory rates, net of federal tax benefit 322 305 439 Tax effect of Tax credits and benefits, net of related expenses (272) (273) (331) Tax-exempt income (142) (121) (114) Revaluation of tax related assets and liabilities (a) 15 (79) — Nondeductible legal and regulatory expenses 76 37 24 Other items (34) 61 28 Applicable income taxes $ 1,407 $ 1,463 $ 2,181 (a) The 2022 acquisition of MUB resulted in an increase in the Company’s state effective tax rate, requiring the Company to revalue its state deferred tax assets and liabilities. As a result of this revaluation, the Company recorded an estimated net tax benefit of $79 million during 2022. The tax effects of fair value adjustments on securities available-for-sale, derivative instruments in cash flow hedges, foreign currency translation adjustments, and pension and post-retirement plans are recorded directly to shareholders’ equity as part of other comprehensive income (loss). In preparing its tax returns, the Company is required to interpret complex tax laws and regulations and utilize income and cost allocation methods to determine its taxable income. On an ongoing basis, the Company is subject to examinations by federal, state, local and foreign taxing authorities that may give rise to differing interpretations of these complex laws, regulations and methods. Due to the nature of the examination process, it generally takes years before these examinations are completed and matters are resolved. Federal tax examinations for all years ending through December 31, 2016 are completed and resolved. The Company’s tax returns for the years ended December 31, 2017 through December 31, 2020 are under examination by the Internal Revenue Service. The years open to examination by foreign, state and local government authorities vary by jurisdiction. A reconciliation of the changes in the federal, state and foreign uncertain tax position balances are summarized as follows: Year Ended December 31 (Dollars in Millions) 2023 2022 2021 Balance at beginning of period $ 513 $ 487 $ 474 Additions for tax positions taken in prior years 141 35 14 Additions for tax positions taken in the current year 3 3 7 Exam resolutions (302) (8) (1) Statute expirations (5) (4) (7) Balance at end of period $ 350 $ 513 $ 487 The total amount of uncertain tax positions that, if recognized, would impact the effective income tax rate as of December 31, 2023, 2022 and 2021, were $276 million, $294 million and $285 million, respectively. The Company classifies interest and penalties related to uncertain tax positions as a component of income tax expense. At December 31, 2023, the Company’s uncertain tax position balance included $40 million of accrued interest and penalties. During the years ended December 31, 2023, 2022 and 2021 the Company recorded approximately $(11) million, $7 million and $5 million, respectively, in interest and penalties on uncertain tax positions. Deferred income tax assets and liabilities reflect the tax effect of estimated temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for the same items for income tax reporting purposes. The significant components of the Company’s net deferred tax asset (liability) follows: At December 31 (Dollars in Millions) 2023 2022 Deferred Tax Assets Securities available-for-sale and financial instruments $ 3,231 $ 3,992 Federal, state and foreign net operating loss, credit carryforwards and other carryforwards 2,836 2,677 Allowance for credit losses 2,051 1,980 Loans 1,013 1,287 Accrued expenses 838 618 Obligation for operating leases 348 368 Partnerships and other investment assets 271 112 Stock compensation 87 81 Other deferred tax assets, net 370 501 Gross deferred tax assets 11,045 11,616 Deferred Tax Liabilities Leasing activities (1,455) (1,813) Goodwill and other intangible assets (1,450) (1,575) Mortgage servicing rights (758) (815) Right of use operating leases (301) (325) Pension and postretirement benefits (115) (172) Fixed assets (44) (125) Other deferred tax liabilities, net (168) (234) Gross deferred tax liabilities (4,291) (5,059) Valuation allowance (364) (263) Net Deferred Tax Asset $ 6,390 $ 6,294 The Company has approximately $2.7 billion of federal, state and foreign net operating loss carryforwards which expire at various times beginning in 2024. A substantial portion of these carryforwards relate to state-only net operating losses, for which the related deferred tax asset is subject to a full valuation allowance as the carryforwards are not expected to be realized within the carryforward period. Management has determined it is more likely than not the other net deferred tax assets could be realized through carry back to taxable income in prior years, future reversals of existing taxable temporary differences and future taxable income. In addition, the Company has $1.3 billion of federal credit carryforwards which expire at various times through 2043 which are not subject to a valuation allowance as management believes that it is more likely than not that the credits will be utilized within the carryforward period. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | NOTE 20 Derivative Instruments In the ordinary course of business, the Company enters into derivative transactions to manage various risks and to accommodate the business requirements of its customers. The Company recognizes all derivatives on the Consolidated Balance Sheet at fair value in other assets or in other liabilities. On the date the Company enters into a derivative contract, the derivative is designated as either a fair value hedge, cash flow hedge, net investment hedge, or a designation is not made as it is a customer-related transaction, an economic hedge for asset/liability risk management purposes or another stand-alone derivative created through the Company’s operations (“free-standing derivative”). When a derivative is designated as a fair value, cash flow or net investment hedge, the Company performs an assessment, at inception and, at a minimum, quarterly thereafter, to determine the effectiveness of the derivative in offsetting changes in the value or cash flows of the hedged item(s). Fair Value Hedges These derivatives are interest rate swaps the Company uses to hedge the change in fair value related to interest rate changes of its underlying available-for-sale investment securities and fixed-rate debt. Changes in the fair value of derivatives designated as fair value hedges, and changes in the fair value of the hedged items, are recorded in earnings. Cash Flow Hedges These derivatives are interest rate swaps the Company uses to hedge the forecasted cash flows from its underlying variable-rate loans and debt. Changes in the fair value of derivatives designated as cash flow hedges are recorded in other comprehensive income (loss) until the cash flows of the hedged items are realized. If a derivative designated as a cash flow hedge is terminated or ceases to be highly effective, the gain or loss in other comprehensive income (loss) is amortized to earnings over the period the forecasted hedged transactions impact earnings. If a hedged forecasted transaction is no longer probable, hedge accounting is ceased and any gain or loss included in other comprehensive income (loss) is reported in earnings immediately, unless the forecasted transaction is at least reasonably possible of occurring, whereby the amounts remain within other comprehensive income (loss). At December 31, 2023, the Company had $242 million (net-of-tax) of realized and unrealized losses on derivatives classified as cash flow hedges recorded in other comprehensive income (loss), compared with $114 million (net-of-tax) of realized and unrealized losses at December 31, 2022. The estimated amount to be reclassified from other comprehensive income (loss) into earnings during the next 12 months is a loss of $78 million (net-of-tax). All cash flow hedges were highly effective for the twelve months ended December 31, 2023. Net Investment Hedges The Company uses forward commitments to sell specified amounts of certain foreign currencies, and non-derivative debt instruments, to hedge the volatility of its net investment in foreign operations driven by fluctuations in foreign currency exchange rates. The carrying amount of non-derivative debt instruments designated as net investment hedges was $1.3 billion at December 31, 2023 and December 31, 2022. Other Derivative Positions The Company enters into free-standing derivatives to mitigate interest rate risk and for other risk management purposes. These derivatives include forward commitments to sell TBAs and other commitments to sell residential mortgage loans, which are used to economically hedge the interest rate risk related to MLHFS and unfunded mortgage loan commitments. The Company also enters into interest rate swaps, swaptions, forward commitments to buy TBAs, U.S. Treasury and Eurodollar futures and options on U.S. Treasury futures to economically hedge the change in the fair value of the Company’s MSRs. The Company enters into foreign currency forwards to economically hedge remeasurement gains and losses the Company recognizes on foreign currency denominated assets and liabilities. The Company also enters into interest rate swaps as economic hedges of fair value option elected deposits. In addition, the Company acts as a seller and buyer of interest rate, foreign exchange and commodity contracts for its customers. The Company mitigates the market and liquidity risk associated with these customer derivatives by entering into similar offsetting positions with broker-dealers, or on a portfolio basis by entering into other derivative or non-derivative financial instruments that partially or fully offset the exposure to earnings from these customer-related positions. The Company’s customer derivatives and related hedges are monitored and reviewed by the Company’s Market Risk Committee, which establishes policies for market risk management, including exposure limits for each portfolio. The Company also has derivative contracts that are created through its operations, including certain unfunded mortgage loan commitments and swap agreements related to the sale of a portion of its Class B common and preferred shares of Visa Inc. Refer to Note 23 for further information on these swap agreements. The Company uses credit derivatives to economically hedge the credit risk on its derivative positions and loan portfolios. The following table summarizes the asset and liability management derivative positions of the Company at December 31: 2023 2022 Notional Value Fair Value Notional Value Fair Value (Dollars in Millions) Assets Liabilities Assets Liabilities Fair value hedges Interest rate contracts Receive fixed/pay floating swaps $ 12,100 $ — $ 16 $ 17,400 $ — $ 9 Pay fixed/receive floating swaps 24,139 — — 5,542 — — Cash flow hedges Interest rate contracts Receive fixed/pay floating swaps 18,400 — — 14,300 — — Net investment hedges Foreign exchange forward contracts 854 — 10 778 — — Other economic hedges Interest rate contracts Futures and forwards Buy 5,006 29 5 3,546 10 18 Sell 4,501 7 34 7,522 20 38 Options Purchased 6,085 237 — 11,434 346 — Written 3,696 14 75 7,849 7 148 Receive fixed/pay floating swaps 7,029 9 3 9,215 — 3 Pay fixed/receive floating swaps 3,801 — — 9,616 — — Foreign exchange forward contracts 734 2 5 962 2 6 Equity contracts 227 2 — 361 — 10 Credit contracts 2,620 1 — 330 — — Other (a) 2,136 11 93 1,908 11 190 Total $ 91,328 $ 312 $ 241 $ 90,763 $ 396 $ 422 (a) Includes derivative liability swap agreements related to the sale of a portion of the Company’s Class B common and preferred shares of Visa Inc. The Visa swap agreements had a total notional value and fair value of $2.0 billion and $91 million at December 31, 2023, respectively, compared to $1.8 billion and $190 million at December 31, 2022, respectively. In addition, includes short-term underwriting purchase and sale commitments with total notional values of $28 million at December 31, 2023, and $13 million at December 31, 2022. The following table summarizes the customer-related derivative positions of the Company at December 31: 2023 2022 Notional Value Fair Value Notional Value Fair Value (Dollars in Millions) Assets Liabilities Assets Liabilities Interest rate contracts Receive fixed/pay floating swaps $ 363,375 $ 791 $ 4,395 $ 301,690 $ 309 $ 5,689 Pay fixed/receive floating swaps 330,539 1,817 280 316,133 2,323 206 Other (a) 82,209 17 51 40,261 3 16 Options Purchased 102,423 1,026 18 103,489 1,794 5 Written 97,690 20 1,087 99,923 6 1,779 Futures Buy — — — 3,623 — 4 Sell — — — 2,376 8 — Foreign exchange rate contracts Forwards, spots and swaps 121,119 2,252 1,942 134,666 3,010 2,548 Options Purchased 1,532 28 — 954 22 — Written 1,532 — 28 954 — 22 Commodity contracts Swaps 2,498 116 110 — — — Options Purchased 1,936 151 — — — — Written 1,936 — 151 — — — Credit contracts 13,053 1 6 10,765 1 8 Total $ 1,119,842 $ 6,219 $ 8,068 $ 1,014,834 $ 7,476 $ 10,277 (a) Primarily represents floating rate interest rate swaps that pay based on differentials between specified interest rate indexes. The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax) for the years ended December 31: Gains (Losses) Recognized in Other Comprehensive Income (Loss) Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings (Dollars in Millions) 2023 2022 2021 2023 2022 2021 Asset and Liability Management Positions Cash flow hedges Interest rate contracts $ (187) $ (56) $ 94 $ (59) $ (27) $ (10) Net investment hedges Foreign exchange forward contracts (11) 42 19 — — — Non-derivative debt instruments (33) 59 84 — — — Note: The Company does not exclude components from effectiveness testing for cash flow and net investment hedges. The table below shows the effect of fair value and cash flow hedge accounting on the Consolidated Statement of Income for the years ended December 31: Interest Income Interest Expense (Dollars in Millions) 2023 2022 2021 2023 2022 2021 Total amount of income and expense line items presented in the Consolidated Statement of Income in which the effects of fair value or cash flow hedges are recorded $ 30,007 $ 17,945 $ 13,487 $ 12,611 $ 3,217 $ 993 Asset and Liability Management Positions Fair value hedges Interest rate contract derivatives (430) 138 17 (458) 482 232 Hedged items 427 (139) (19) 461 (486) (232) Cash flow hedges Interest rate contract derivatives (52) — — 28 — 14 Note: The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company reclassified The table below shows cumulative hedging adjustments and the carrying amount of assets and liabilities designated in fair value hedges at December 31: Carrying Amount of the Hedged Assets and Liabilities Cumulative Hedging Adjustment (a) (Dollars in Millions) 2023 2022 2023 2022 Line Item in the Consolidated Balance Sheet Available-for-sale investment securities (b) $ 11,795 $ 4,937 $ (448) $ (552) Long-term debt 11,987 17,190 (148) (142) (a) The cumulative hedging adjustment related to discontinued hedging relationships on available-for-sale investment securities and long-term debt was $(379) million and $(68) million, respectively, at December 31, 2023, compared with $(392) million and $399 million at December 31, 2022, respectively. (b) Includes amounts related to available-for-sale investment securities currently designated as the hedged item in a fair value hedge using the portfolio layer method. At December 31, 2023, the amortized cost of the closed portfolios used in these hedging relationships was $15.6 billion, of which $9.1 billion was designated as hedged. At December 31, 2023, the cumulative amount of basis adjustments associated with these hedging relationships was $(335) million. The table below shows the gains (losses) recognized in earnings for other economic hedges and the customer-related positions for the years ended December 31: (Dollars in Millions) Location of Gains (Losses) Recognized in Earnings 2023 2022 2021 Asset and Liability Management Positions Other economic hedges Interest rate contracts Futures and forwards Mortgage banking revenue $ 71 $ 407 $ 511 Purchased and written options Mortgage banking revenue 89 1 527 Swaps Mortgage banking revenue/Other noninterest income/Interest expense (19) (1,010) (197) Foreign exchange forward contracts Other noninterest income (7) (1) 1 Equity contracts Compensation expense (8) (8) 7 Other Other noninterest income 1 (181) 5 Customer-Related Positions Interest rate contracts Swaps Commercial products revenue 185 98 110 Purchased and written options Commercial products revenue 45 20 (5) Futures Commercial products revenue (1) 30 3 Foreign exchange rate contracts Forwards, spots and swaps Commercial products revenue 195 100 93 Purchased and written options Commercial products revenue 1 1 1 Commodity contracts Swaps Commercial products revenue 6 — — Credit contracts Commercial products revenue 1 20 (7) Derivatives are subject to credit risk associated with counterparties to the derivative contracts. The Company measures that credit risk using a credit valuation adjustment and includes it within the fair value of the derivative. The Company manages counterparty credit risk through diversification of its derivative positions among various counterparties, by entering into derivative positions that are centrally cleared through clearinghouses, by entering into master netting arrangements and, where possible, by requiring collateral arrangements. A master netting arrangement allows two counterparties, who have multiple derivative contracts with each other, the ability to net settle amounts under all contracts, including any related collateral, through a single payment and in a single currency. Collateral arrangements generally require the counterparty to deliver collateral (typically cash or U.S. Treasury and agency securities) equal to the Company’s net derivative receivable, subject to minimum transfer and credit rating requirements. |
Netting Arrangements for Certai
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities | 12 Months Ended |
Dec. 31, 2023 | |
Offsetting [Abstract] | |
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities | NOTE 21 Netting Arrangements for Certain Financial Instruments and Securities Financing Activities The Company’s derivative portfolio consists of bilateral over-the-counter trades, certain interest rate derivatives and credit contracts required to be centrally cleared through clearinghouses per current regulations, and exchange-traded positions which may include U.S. Treasury and Eurodollar futures or options on U.S. Treasury futures. Of the Company’s $1.2 trillion total notional amount of derivative positions at December 31, 2023, $548.9 billion related to bilateral over-the-counter trades, $660.4 billion related to those centrally cleared through clearinghouses and $1.9 billion related to those that were exchange-traded. The Company’s derivative contracts typically include offsetting rights (referred to as netting arrangements), and depending on expected volume, credit risk, and counterparty preference, collateral maintenance may be required. For all derivatives under collateral support arrangements, fair value is determined daily and, depending on the collateral maintenance requirements, the Company and a counterparty may receive or deliver collateral, based upon the net fair value of all derivative positions between the Company and the counterparty. Collateral is typically cash, but securities may be allowed under collateral arrangements with certain counterparties. Receivables and payables related to cash collateral are included in other assets and other liabilities on the Consolidated Balance Sheet, along with the related derivative asset and liability fair values. Any securities pledged to counterparties as collateral remain on the Consolidated Balance Sheet. Securities received from counterparties as collateral are not recognized on the Consolidated Balance Sheet, unless the counterparty defaults. In general, securities used as collateral can be sold, repledged or otherwise used by the party in possession. No restrictions exist on the use of cash collateral by either party. Refer to Note 20 for further discussion of the Company’s derivatives, including collateral arrangements. As part of the Company’s treasury and broker-dealer operations, the Company executes transactions that are treated as securities sold under agreements to repurchase or securities purchased under agreements to resell, both of which are accounted for as collateralized financings. Securities sold under agreements to repurchase include repurchase agreements and securities loaned transactions. Securities purchased under agreements to resell include reverse repurchase agreements and securities borrowed transactions. For securities sold under agreements to repurchase, the Company records a liability for the cash received, which is included in short-term borrowings on the Consolidated Balance Sheet. For securities purchased under agreements to resell, the Company records a receivable for the cash paid, which is included in other assets on the Consolidated Balance Sheet. Securities transferred to counterparties under repurchase agreements and securities loaned transactions continue to be recognized on the Consolidated Balance Sheet, are measured at fair value, and are included in investment securities or other assets. Securities received from counterparties under reverse repurchase agreements and securities borrowed transactions are not recognized on the Consolidated Balance Sheet unless the counterparty defaults. The securities transferred under repurchase and reverse repurchase transactions typically are U.S. Treasury and agency securities, residential agency mortgage-backed securities, corporate debt securities or asset-backed securities. The securities loaned or borrowed typically are corporate debt securities traded by the Company’s primary broker-dealer subsidiary. In general, the securities transferred can be sold, repledged or otherwise used by the party in possession. No restrictions exist on the use of cash collateral by either party. Repurchase/reverse repurchase and securities loaned/borrowed transactions expose the Company to counterparty risk. The Company manages this risk by performing assessments, independent of business line managers, and establishing concentration limits on each counterparty. Additionally, these transactions include collateral arrangements that require the fair values of the underlying securities to be determined daily, resulting in cash being obtained or refunded to counterparties to maintain specified collateral levels. The following table summarizes the maturities by category of collateral pledged for repurchase agreements and securities loaned transactions: (Dollars in Millions) Overnight and Continuous Less Than 30 Days 30-89 Days Greater Than 90 Days Total December 31, 2023 Repurchase agreements U.S. Treasury and agencies $ 2,375 $ — $ — $ — $ 2,375 Residential agency mortgage-backed securities 338 — — — 338 Corporate debt securities 821 — — — 821 Asset-backed securities — 45 — — 45 Total repurchase agreements 3,534 45 — — 3,579 Securities loaned Corporate debt securities 290 — — — 290 Total securities loaned 290 — — — 290 Gross amount of recognized liabilities $ 3,824 $ 45 $ — $ — $ 3,869 December 31, 2022 Repurchase agreements U.S. Treasury and agencies $ 147 $ — $ — $ — $ 147 Residential agency mortgage-backed securities 846 — — — 846 Corporate debt securities 439 — — — 439 Total repurchase agreements 1,432 — — — 1,432 Securities loaned Corporate debt securities 120 — — — 120 Total securities loaned 120 — — — 120 Gross amount of recognized liabilities $ 1,552 $ — $ — $ — $ 1,552 The Company executes its derivative, repurchase/reverse repurchase and securities loaned/borrowed transactions under the respective industry standard agreements. These agreements include master netting arrangements that allow for multiple contracts executed with the same counterparty to be viewed as a single arrangement. This allows for net settlement of a single amount on a daily basis. In the event of default, the master netting arrangement provides for close-out netting, which allows all of these positions with the defaulting counterparty to be terminated and net settled with a single payment amount. The Company has elected to offset the assets and liabilities under netting arrangements for the balance sheet presentation of the majority of its derivative counterparties. The netting occurs at the counterparty level, and includes all assets and liabilities related to the derivative contracts, including those associated with cash collateral received or delivered. The Company has not elected to offset the assets and liabilities under netting arrangements for the balance sheet presentation of repurchase/reverse repurchase and securities loaned/borrowed transactions. The following tables provide information on the Company’s netting adjustments, and items not offset on the Consolidated Balance Sheet but available for offset in the event of default: (Dollars in Millions) Gross Recognized Assets Gross Amounts Offset on the Consolidated Balance Sheet (a) Net Amounts Presented on the Consolidated Balance Sheet Gross Amounts Not Offset on the Consolidated Balance Sheet Financial Instruments (b) Collateral Received (c) Net Amount December 31, 2023 Derivative assets (d) $ 6,504 $ (3,666) $ 2,838 $ (141) $ (3) $ 2,694 Reverse repurchase agreements 2,513 — 2,513 (568) (1,941) 4 Securities borrowed 1,802 — 1,802 (14) (1,717) 71 Total $ 10,819 $ (3,666) $ 7,153 $ (723) $ (3,661) $ 2,769 December 31, 2022 Derivative assets (d) $ 7,852 $ (5,427) $ 2,425 $ (231) $ (80) $ 2,114 Reverse repurchase agreements 107 — 107 (102) (5) — Securities borrowed 1,606 — 1,606 — (1,548) 58 Total $ 9,565 $ (5,427) $ 4,138 $ (333) $ (1,633) $ 2,172 (a) Includes $1.6 billion and $3.0 billion of cash collateral related payables that were netted against derivative assets at December 31, 2023 and 2022, respectively. (b) For derivative assets this includes any derivative liability fair values that could be offset in the event of counterparty default; for reverse repurchase agreements this includes any repurchase agreement payables that could be offset in the event of counterparty default; for securities borrowed this includes any securities loaned payables that could be offset in the event of counterparty default. (c) Includes the fair value of securities received by the Company from the counterparty. These securities are not included on the Consolidated Balance Sheet unless the counterparty defaults. (d) Excludes $27 million and $20 million at December 31, 2023 and 2022, respectively, of derivative assets not subject to netting arrangements. (Dollars in Millions) Gross Recognized Liabilities Gross Amounts Offset on the Consolidated Balance Sheet (a) Net Amounts Presented on the Consolidated Balance Sheet Gross Amounts Not Offset on the Consolidated Balance Sheet Net Amount Financial Instruments (b) Collateral Pledged (c) December 31, 2023 Derivative liabilities (d) $ 8,217 $ (3,720) $ 4,497 $ (141) $ — $ 4,356 Repurchase agreements 3,579 — 3,579 (568) (3,008) 3 Securities loaned 290 — 290 (14) (270) 6 Total $ 12,086 $ (3,720) $ 8,366 $ (723) $ (3,278) $ 4,365 December 31, 2022 Derivative liabilities (d) $ 10,506 $ (4,551) $ 5,955 $ (231) $ — $ 5,724 Repurchase agreements 1,432 — 1,432 (102) (1,325) 5 Securities loaned 120 — 120 — (118) 2 Total $ 12,058 $ (4,551) $ 7,507 $ (333) $ (1,443) $ 5,731 (a) Includes $1.7 billion and $2.1 billion of cash collateral related receivables that were netted against derivative liabilities at December 31, 2023 and 2022, respectively. (b) For derivative liabilities this includes any derivative asset fair values that could be offset in the event of counterparty default; for repurchase agreements this includes any reverse repurchase agreement receivables that could be offset in the event of counterparty default; for securities loaned this includes any securities borrowed receivables that could be offset in the event of counterparty default. (c) Includes the fair value of securities pledged by the Company to the counterparty. These securities are included on the Consolidated Balance Sheet unless the Company defaults. (d) |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Assets and Liabilities | NOTE 22 Fair Values of Assets and Liabilities The Company uses fair value measurements for the initial recording of certain assets and liabilities, periodic remeasurement of certain assets and liabilities, and disclosures. Derivatives, trading and available-for-sale investment securities, MSRs, certain time deposits and substantially all MLHFS are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as loans held for sale, loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-fair value accounting or impairment write-downs of individual assets. Other financial instruments, such as held-to-maturity investment securities, loans, the majority of time deposits, short-term borrowings and long-term debt, are accounted for at amortized cost. See “Fair Value of Financial Instruments” in this Note for further information on the estimated fair value of these other financial instruments. In accordance with disclosure guidance, certain financial instruments, such as deposits with no defined or contractual maturity, receivables and payables due in one year or less, insurance contracts and equity investments not accounted for at fair value, are excluded from this Note. In addition, refer to Note 3 regarding the fair value of assets and liabilities acquired in the MUB acquisition. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value measurement reflects all of the assumptions that market participants would use in pricing the asset or liability, including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset and the risk of nonperformance. The Company groups its assets and liabilities measured at fair value into a three-level hierarchy for valuation techniques used to measure financial assets and financial liabilities at fair value. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are: • Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 1 includes U.S. Treasury securities, as well as exchange-traded instruments. • Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 includes debt securities that are traded less frequently than exchange-traded instruments and which are typically valued using third party pricing services; derivative contracts and other assets and liabilities, including securities, and certain time deposits, whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data; and MLHFS whose values are determined using quoted prices for similar assets or pricing models with inputs that are observable in the market or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category includes MSRs and certain derivative contracts. Valuation Methodologies The valuation methodologies used by the Company to measure financial assets and liabilities at fair value are described below. In addition, the following section includes an indication of the level of the fair value hierarchy in which the assets or liabilities are classified. Where appropriate, the descriptions include information about the valuation models and key inputs to those models. During the years ended December 31, 2023, 2022 and 2021, there were no significant changes to the valuation techniques used by the Company to measure fair value. Available-For-Sale Investment Securities When quoted market prices for identical securities are available in an active market, these prices are used to determine fair value and these securities are classified within Level 1 of the fair value hierarchy. Level 1 investment securities include U.S. Treasury and exchange-traded securities. For other securities, quoted market prices may not be readily available for the specific securities. When possible, the Company determines fair value based on market observable information, including quoted market prices for similar securities, inactive transaction prices, and broker quotes. These securities are classified within Level 2 of the fair value hierarchy. Level 2 valuations are generally provided by a third-party pricing service. Level 2 investment securities are predominantly agency mortgage-backed securities, certain other asset-backed securities, obligations of state and political subdivisions and agency debt securities. Mortgage Loans Held For Sale MLHFS measured at fair value, for which an active secondary market and readily available market prices exist, are initially valued at the transaction price and are subsequently valued by comparison to instruments with similar collateral and risk profiles. MLHFS are classified within Level 2. Included in mortgage banking revenue were net losses of $46 million, $450 million and $145 million for the years ended December 31, 2023, 2022 and 2021, respectively, from the changes to fair value of these MLHFS under fair value option accounting guidance. Changes in fair value due to instrument specific credit risk were immaterial. Interest income for MLHFS is measured based on contractual interest rates and reported as interest income on the Consolidated Statement of Income. Electing to measure MLHFS at fair value reduces certain timing differences and better matches changes in fair value of these assets with changes in the value of the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting. Time Deposits The Company elects the fair value option to account for certain time deposits that are hedged with derivatives that do not qualify for hedge accounting. Electing to measure these time deposits at fair value reduces certain timing differences and better matches changes in fair value of these deposits with changes in the value of the derivative instruments used to economically hedge them. The time deposits measured at fair value are valued using a discounted cash flow model that utilizes market observable inputs and are classified within Level 2. Included in interest expense on deposits were net gains of $4 million for the year ended December 31, 2023 from the changes in fair value of time deposits under fair value option accounting guidance. Mortgage Servicing Rights MSRs are valued using a discounted cash flow methodology, and are classified within Level 3. The Company determines fair value of the MSRs by projecting future cash flows for different interest rate scenarios using prepayment rates and other assumptions, and discounts these cash flows using a risk adjusted rate based on option adjusted spread levels. There is minimal observable market activity for MSRs on comparable portfolios and, therefore, the determination of fair value requires significant management judgment. Refer to Note 10 for further information on MSR valuation assumptions. Derivatives The majority of derivatives held by the Company are executed over-the-counter or centrally cleared through clearinghouses and are valued using market standard cash flow valuation techniques. The models incorporate inputs, depending on the type of derivative, including interest rate curves, foreign exchange rates and volatility. All derivative values incorporate an assessment of the risk of counterparty nonperformance, measured based on the Company’s evaluation of credit risk including external assessments of credit risk. The Company monitors and manages its nonperformance risk by considering its ability to net derivative positions under master netting arrangements, as well as collateral received or provided under collateral arrangements. Accordingly, the Company has elected to measure the fair value of derivatives, at a counterparty level, on a net basis. The majority of the derivatives are classified within Level 2 of the fair value hierarchy, as the significant inputs to the models, including nonperformance risk, are observable. However, certain derivative transactions are with counterparties where risk of nonperformance cannot be observed in the market and, therefore, the credit valuation adjustments result in these derivatives being classified within Level 3 of the fair value hierarchy. The Company also has other derivative contracts that are created through its operations, including commitments to purchase and originate mortgage loans and swap agreements executed in conjunction with the sale of a portion of its Class B common and preferred shares of Visa Inc. (the “Visa swaps”). The mortgage loan commitments are valued by pricing models that include market observable and unobservable inputs, which result in the commitments being classified within Level 3 of the fair value hierarchy. The unobservable inputs include assumptions about the percentage of commitments that actually become a closed loan and the MSR value that is inherent in the underlying loan value. The Visa swaps require payments by either the Company or the purchaser of the Visa Inc. Class B common and preferred shares when there are changes in the conversion rate of the Visa Inc. Class B common and preferred shares to Visa Inc. Class A common and preferred shares, respectively, as well as quarterly payments to the purchaser based on specified terms of the agreements. Management reviews and updates the Visa swaps fair value in conjunction with its review of Visa Inc. related litigation contingencies, and the associated escrow funding. The expected litigation resolution impacts the Visa Inc. Class B common share to Visa Inc. Class A common share conversion rate, as well as the ultimate termination date for the Visa swaps. Accordingly, the Visa swaps are classified within Level 3. Refer to Note 23 for further information on the Visa Inc. restructuring and related card association litigation. Significant Unobservable Inputs of Level 3 Assets and Liabilities The following section provides information to facilitate an understanding of the uncertainty in the fair value measurements for the Company’s Level 3 assets and liabilities recorded at fair value on the Consolidated Balance Sheet. This section includes a description of the significant inputs used by the Company and a description of any interrelationships between these inputs. The discussion below excludes nonrecurring fair value measurements of collateral value used for impairment measures for loans and OREO. These valuations utilize third party appraisal or broker price opinions, and are classified as Level 3 due to the significant judgment involved. Mortgage Servicing Rights The significant unobservable inputs used in the fair value measurement of the Company’s MSRs are expected prepayments and the option adjusted spread that is added to the risk-free rate to discount projected cash flows. Significant increases in either of these inputs in isolation would have resulted in a significantly lower fair value measurement. Significant decreases in either of these inputs in isolation would have resulted in a significantly higher fair value measurement. There is no direct interrelationship between prepayments and option adjusted spread. Prepayment rates generally move in the opposite direction of market interest rates. Option adjusted spread is generally impacted by changes in market return requirements. The following table shows the significant valuation assumption ranges for MSRs at December 31, 2023: Minimum Maximum Weighted- Average (a) Expected prepayment 7 % 23 % 10 % Option adjusted spread 4 11 5 (a) Determined based on the relative fair value of the related mortgage loans serviced. Derivatives The Company has two distinct Level 3 derivative portfolios: (i) the Company’s commitments to purchase and originate mortgage loans that meet the requirements of a derivative and (ii) the Company’s asset/liability and customer-related derivatives that are Level 3 due to unobservable inputs related to measurement of risk of nonperformance by the counterparty. In addition, the Company’s Visa swaps are classified within Level 3. The significant unobservable inputs used in the fair value measurement of the Company’s derivative commitments to purchase and originate mortgage loans are the percentage of commitments that actually become a closed loan and the MSR value that is inherent in the underlying loan value. A significant increase in the rate of loans that close would have resulted in a larger derivative asset or liability. A significant increase in the inherent MSR value would have resulted in an increase in the derivative asset or a reduction in the derivative liability. Expected loan close rates and the inherent MSR values are directly impacted by changes in market rates and will generally move in the same direction as interest rates. The following table shows the significant valuation assumption ranges for the Company’s derivative commitments to purchase and originate mortgage loans at December 31, 2023: Minimum Maximum Weighted- Average (a) Expected loan close rate 17 % 99 % 74 % Inherent MSR value (basis points per loan) 48 177 97 (a) Determined based on the relative fair value of the related mortgage loans. The significant unobservable input used in the fair value measurement of certain of the Company’s asset/liability and customer-related derivatives is the credit valuation adjustment related to the risk of counterparty nonperformance. A significant increase in the credit valuation adjustment would have resulted in a lower fair value measurement. A significant decrease in the credit valuation adjustment would have resulted in a higher fair value measurement. The credit valuation adjustment is impacted by changes in market rates, volatility, market implied credit spreads, and loss recovery rates, as well as the Company’s assessment of the counterparty’s credit position. At December 31, 2023, the minimum, maximum and weighted-average credit valuation adjustment as a percentage of the net fair value of the counterparty’s derivative contracts prior to adjustment was 0 percent, 507 percent and 2 percent, respectively. The significant unobservable inputs used in the fair value measurement of the Visa swaps are management’s estimate of the probability of certain litigation scenarios occurring, and the timing of the resolution of the related litigation loss estimates in excess, or shortfall, of the Company’s proportional share of escrow funds. An increase in the loss estimate or a delay in the resolution of the related litigation would have resulted in an increase in the derivative liability. A decrease in the loss estimate or an acceleration of the resolution of the related litigation would have resulted in a decrease in the derivative liability. The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis: (Dollars in Millions) Level 1 Level 2 Level 3 Netting Total December 31, 2023 Available-for-sale securities U.S. Treasury and agencies $ 14,787 $ 4,755 $ — $ — $ 19,542 Mortgage-backed securities Residential agency — 26,078 — — 26,078 Commercial Agency — 7,343 — — 7,343 Non-agency — 6 — — 6 Asset-backed securities — 6,724 — — 6,724 Obligations of state and political subdivisions — 9,989 — — 9,989 Other — 24 — — 24 Total available-for-sale 14,787 54,919 — — 69,706 Mortgage loans held for sale — 2,011 — — 2,011 Mortgage servicing rights — — 3,377 — 3,377 Derivative assets — 5,078 1,453 (3,666) 2,865 Other assets 550 1,991 — — 2,541 Total $ 15,337 $ 63,999 $ 4,830 $ (3,666) $ 80,500 Time deposits $ — $ 2,818 $ — $ — $ 2,818 Derivative liabilities 16 4,955 3,338 (3,720) 4,589 Short-term borrowings and other liabilities (a) 517 1,786 — — 2,303 Total $ 533 $ 9,559 $ 3,338 $ (3,720) $ 9,710 December 31, 2022 Available-for-sale securities U.S. Treasury and agencies $ 13,723 $ 8,310 $ — $ — $ 22,033 Mortgage-backed securities Residential agency — 29,271 — — 29,271 Commercial Agency — 7,145 — — 7,145 Non-agency — 7 — — 7 Asset-backed securities — 4,323 — — 4,323 Obligations of state and political subdivisions — 10,124 1 — 10,125 Other — 6 — — 6 Total available-for-sale 13,723 59,186 1 — 72,910 Mortgage loans held for sale — 1,849 — — 1,849 Mortgage servicing rights — — 3,755 — 3,755 Derivative assets 9 6,608 1,255 (5,427) 2,445 Other assets 248 1,756 — — 2,004 Total $ 13,980 $ 69,399 $ 5,011 $ (5,427) $ 82,963 Derivative liabilities $ 4 $ 6,241 $ 4,454 $ (4,551) $ 6,148 Short-term borrowings and other liabilities (a) 125 1,564 — — 1,689 Total $ 129 $ 7,805 $ 4,454 $ (4,551) $ 7,837 Note: Excluded from the table above are equity investments without readily determinable fair values. The Company has elected to carry these investments at historical cost, adjusted for impairment and any changes resulting from observable price changes for identical or similar investments of the issuer. The aggregate carrying amount of these equity investments was $133 million and $104 million at December 31, 2023 and 2022, respectively. The Company recorded a $5 million impairment on these equity investments during 2023 , and the cumulative impairment on these equity investments is $5 million at December 31, 2023. The Company has not recorded adjustments for observable price changes on these equity investments during 2023 and 2022, or on a cumulative basis. (a) Primarily represents the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance. The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31: (Dollars in Millions) Beginning of Period Balance Net Gains (Losses) Included in Net Income Net Gains (Losses) Included in Other Comprehensive Income (Loss) Purchases Sales Principal Payments Issuances Settlements End of Period Balance Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period 2023 Available-for-sale securities Obligations of state and political subdivisions $ 1 $ — $ — $ — $ — $ (1) $ — $ — $ — $ — Total available-for-sale 1 — — — — (1) — — — — Mortgage servicing rights 3,755 (316) (a) — 5 (440) — 373 (c) — 3,377 (316) (a) Net derivative assets and liabilities (3,199) (2,696) (b) — 552 (45) — 1 3,502 (1,885) (183) (d) 2022 Available-for-sale securities Asset-backed securities $ 7 $ — $ (3) $ — $ (4) $ — $ — $ — $ — $ — Obligations of state and political subdivisions 1 — — — — — — — 1 — Total available-for-sale 8 — (3) — (4) — — — 1 — Mortgage servicing rights 2,953 311 (a) — 156 (255) — 590 (c) — 3,755 311 (a) Net derivative assets and liabilities 799 (5,940) (e) — 716 (36) — 11 1,251 (3,199) (3,538) (f) 2021 Available-for-sale securities Asset-backed securities $ 7 $ — $ 1 $ — $ — $ (1) $ — $ — $ 7 $ 1 Obligations of state and political subdivisions 1 — — — — — — — 1 — Total available-for-sale 8 — 1 — — (1) — — 8 1 Mortgage servicing rights 2,210 (437) (a) — 42 2 — 1,136 (c) — 2,953 (437) (a) Net derivative assets and liabilities 2,326 (924) (g) — 337 (3) — — (937) 799 (968) (h) (a) Included in mortgage banking revenue (b) Approximately $182 million, $(2.9) billion and $1 million included in mortgage banking revenue commercial products revenue other non-interest income (c) Represents MSRs capitalized during the period. (d) Approximately $15 million, $(199) million and $1 million included in mortgage banking revenue commercial products revenue other non-interest income (e) Approximately $(141) million, $(5.6) billion and $(181) million included in mortgage banking revenue commercial products revenue other non-interest income (f) Approximately $5 million, $(3.4) billion and $(181) million included in mortgage banking revenue commercial products revenue other non-interest income (g) Approximately $666 million, $(1.6) billion and $5 million included in mortgage banking revenue commercial products revenue other non-interest income (h) Approximately $42 million, $(1.0) billion and $5 million included in mortgage banking revenue commercial products revenue other non-interest income The Company is also required periodically to measure certain other financial assets at fair value on a nonrecurring basis. These measurements of fair value usually result from the application of lower-of-cost-or-fair value accounting or write-downs of individual assets. The following table summarizes the balances as of the measurement date of assets measured at fair value on a nonrecurring basis, and still held as of December 31: 2023 2022 (Dollars in Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Loans (a) $ — $ — $ 354 $ 354 $ — $ — $ 97 $ 97 Other assets (b) — — 27 27 — — 21 21 (a) Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully charged-off. (b) Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial acquisition. The following table summarizes losses recognized related to nonrecurring fair value measurements of individual assets or portfolios for the years ended December 31: (Dollars in Millions) 2023 2022 2021 Loans (a) $ 368 $ 40 $ 60 Other assets (b) 32 20 25 (a) Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off. (b) Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition. Fair Value Option The following table summarizes the differences between the aggregate fair value carrying amount of the assets and liabilities for which the fair value option has been elected and the aggregate remaining contractual principal balance outstanding as of December 31: 2023 2022 (Dollars in Millions) Fair Value Carrying Amount Contractual Principal Outstanding Carrying Amount Over (Under) Contractual Principal Outstanding Fair Value Carrying Amount Contractual Principal Outstanding Carrying Amount Over (Under) Contractual Principal Outstanding Total loans (a) $ 2,011 $ 1,994 $ 17 $ 1,849 $ 1,848 $ 1 Time deposits 2,818 2,822 (4) — — — (a) Includes nonaccrual loans of $1 million carried at fair value with contractual principal outstanding of $1 million at December 31, 2023 and $1 million carried at fair value with contractual principal outstanding of $1 million at December 31, 2022. Includes loans 90 days or more past due of $4 million carried at fair value with contractual principal outstanding of $4 million at December 31, 2023 and $1 million carried at fair value with contractual principal outstanding of $1 million at December 31, 2022. Fair Value of Financial Instruments The following section summarizes the estimated fair value for financial instruments accounted for at amortized cost as of December 31, 2023 and 2022. In accordance with disclosure guidance related to fair values of financial instruments, the Company did not include assets and liabilities that are not financial instruments, such as the value of goodwill, long-term relationships with deposit, credit card, merchant processing and trust customers, other purchased intangibles, premises and equipment, deferred taxes and other liabilities. Additionally, in accordance with the disclosure guidance, receivables and payables due in one year or less, insurance contracts, equity investments not accounted for at fair value, and deposits with no defined or contractual maturities are excluded. The estimated fair values of the Company’s financial instruments as of December 31, are shown in the table below: 2023 2022 Carrying Amount Fair Value Carrying Amount Fair Value (Dollars in Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial Assets Cash and due from banks $ 61,192 $ 61,192 $ — $ — $ 61,192 $ 53,542 $ 53,542 $ — $ — $ 53,542 Federal funds sold and securities purchased under resale agreements 2,543 — 2,543 — 2,543 356 — 356 — 356 Investment securities held-to-maturity 84,045 1,310 72,778 — 74,088 88,740 1,293 76,581 — 77,874 Loans held for sale (a) 190 — — 190 190 351 — — 351 351 Loans 366,456 — — 362,849 362,849 381,277 — — 368,874 368,874 Other (b) 2,377 — 1,863 514 2,377 2,962 — 2,224 738 2,962 Financial Liabilities Time deposits (c) 49,455 — 49,607 — 49,607 32,946 — 32,338 — 32,338 Short-term borrowings (d) 12,976 — 12,729 — 12,729 29,527 — 29,145 — 29,145 Long-term debt 51,480 — 49,697 — 49,697 39,829 — 37,622 — 37,622 Other (e) 5,432 — 1,406 4,026 5,432 5,137 — 1,500 3,637 5,137 (a) Excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected. (b) Includes investments in Federal Reserve Bank and Federal Home Loan Bank stock and tax-advantaged investments. (c) Excludes time deposits for which the fair value option under applicable accounting guidance was elected. (d) Excludes the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance. (e) Includes operating lease liabilities and liabilities related to tax-advantaged investments. The fair value of unfunded commitments, deferred non-yield related loan fees, standby letters of credit and other guarantees is approximately equal to their carrying value. The carrying value of unfunded commitments, deferred non-yield related loan fees and standby letters of credit was |
Guarantees and Contingent Liabi
Guarantees and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees and Contingent Liabilities | NOTE 23 Guarantees and Contingent Liabilities Visa Restructuring and Card Association Litigation The Company’s Payment Services business issues credit and debit cards and acquires credit and debit card transactions through the Visa U.S.A. Inc. card association or its affiliates (collectively “Visa”). In 2007, Visa completed a restructuring and issued shares of Visa Inc. common stock to its financial institution members in contemplation of its initial public offering (“IPO”) completed in the first quarter of 2008 (the “Visa Reorganization”). As a part of the Visa Reorganization, the Company received its proportionate number of shares of Visa Inc. common stock, which were subsequently converted to Class B shares of Visa Inc. (“Class B shares”). As of December 31, 2023, the Company has sold substantially all of its Class B shares. Visa U.S.A. Inc. (“Visa U.S.A.”) and MasterCard International (collectively, the “Card Brands”) are defendants in antitrust lawsuits challenging the practices of the Card Brands (the “Visa Litigation”). Visa U.S.A. member banks have a contingent obligation to indemnify Visa Inc. under the Visa U.S.A. bylaws (which were modified at the time of the restructuring in October 2007) for potential losses arising from the Visa Litigation. The indemnification by the Visa U.S.A. member banks has no specific maximum amount. Using proceeds from its IPO and through reductions to the conversion ratio applicable to the Class B shares held by Visa U.S.A. member banks, Visa Inc. has funded an escrow account for the benefit of member financial institutions to fund their indemnification obligations associated with the Visa Litigation. The receivable related to the escrow account is classified in other liabilities and fully offsets the related Visa Litigation contingent liability. In October 2012, Visa signed a settlement agreement to resolve class action claims associated with the multidistrict interchange litigation pending in the United States District Court for the Eastern District of New York (the “Multi-District Litigation”). The U.S. Court of Appeals for the Second Circuit reversed the approval of that settlement and remanded the matter to the district court. Thereafter, the case was split into two putative class actions, one seeking damages (the “Damages Action”) and a separate class action seeking injunctive relief only (the “Injunctive Action”). In September 2018, Visa signed a new settlement agreement, superseding the original settlement agreement, to resolve the Damages Action. The Damages Action settlement has received final court approval and is now resolved. The Injunctive Action, which generally seeks changes to Visa rules, is still pending. Commitments to Extend Credit Commitments to extend credit are legally binding and generally have fixed expiration dates or other termination clauses. The contractual amount represents the Company’s exposure to credit loss, in the event of default by the borrower. The Company manages this credit risk by using the same credit policies it applies to loans. Collateral is obtained to secure commitments based on management’s credit assessment of the borrower. The collateral may include marketable securities, receivables, inventory, equipment and real estate. Since the Company expects many of the commitments to expire without being drawn, total commitment amounts do not necessarily represent the Company’s future liquidity requirements. In addition, the commitments include consumer credit lines that are cancelable upon notification to the consumer. The contract or notional amounts of unfunded commitments to extend credit at December 31, 2023, excluding those commitments considered derivatives, were as follows: Term (Dollars in Millions) Less Than One Year Greater Than One Year Total Commercial and commercial real estate loans $ 43,385 $ 137,155 $ 180,540 Corporate and purchasing card loans (a) 34,943 — 34,943 Residential mortgages 114 — 114 Retail credit card loans (a) 134,297 — 134,297 Other retail loans 15,616 27,430 43,046 Other 7,585 — 7,585 (a) Primarily cancellable at the Company’s discretion. Other Guarantees and Contingent Liabilities The following table is a summary of other guarantees and contingent liabilities of the Company at December 31, 2023: (Dollars in Millions) Collateral Held Carrying Amount Maximum Potential Future Payments Standby letters of credit $ — $ 20 $ 10,999 Third party borrowing arrangements — — 5 Securities lending indemnifications 6,924 — 6,679 Asset sales — 106 10,263 Merchant processing 815 71 140,288 Tender option bond program guarantee 607 — 589 Other — 21 2,696 Letters of Credit Standby letters of credit are commitments the Company issues to guarantee the performance of a customer to a third party. The guarantees frequently support public and private borrowing arrangements, including commercial paper issuances, bond financings and other similar transactions. The Company also issues and confirms commercial letters of credit on behalf of customers to ensure payment or collection in connection with trade transactions. In the event of a customer’s or counterparty’s nonperformance, the Company’s credit loss exposure is similar to that in any extension of credit, up to the letter’s contractual amount. Management assesses the borrower’s credit to determine the necessary collateral, which may include marketable securities, receivables, inventory, equipment and real estate. Since the conditions requiring the Company to fund letters of credit may not occur, the Company expects its liquidity requirements to be less than the total outstanding commitments. The maximum potential future payments guaranteed by the Company under standby letter of credit arrangements at December 31, 2023, were approximately $11.0 billion with a weighted-average term of approximately 16 months. The estimated fair value of standby letters of credit was approximately $20 million at December 31, 2023. The contract or notional amount of letters of credit at December 31, 2023, were as follows: Term (Dollars in Millions) Less Than One Year Greater Than One Year Total Standby $ 6,444 $ 4,555 $ 10,999 Commercial 559 59 618 Guarantees Guarantees are contingent commitments issued by the Company to customers or other third parties. The Company’s guarantees primarily include parent guarantees related to subsidiaries’ third party borrowing arrangements; third party performance guarantees inherent in the Company’s business operations, such as indemnified securities lending programs and merchant charge-back guarantees; and indemnification or buy-back provisions related to certain asset sales. For certain guarantees, the Company has recorded a liability related to the potential obligation, or has access to collateral to support the guarantee or through the exercise of other recourse provisions can offset some or all of the maximum potential future payments made under these guarantees. Third Party Borrowing Arrangements The Company provides guarantees to third parties as a part of certain subsidiaries’ borrowing arrangements. The maximum potential future payments guaranteed by the Company under these arrangements were approximately $5 million at December 31, 2023. Commitments from Securities Lending The Company participates in securities lending activities by acting as the customer’s agent involving the loan of securities. The Company indemnifies customers for the difference between the fair value of the securities lent and the fair value of the collateral received. Cash collateralizes these transactions. The maximum potential future payments guaranteed by the Company under these arrangements were approximately $6.7 billion at December 31, 2023, and represent the fair value of the securities lent to third parties. At December 31, 2023, the Company held $6.9 billion of cash as collateral for these arrangements. Asset Sales The Company has provided guarantees to certain third parties in connection with the sale or syndication of certain assets, primarily loan portfolios and tax-advantaged investments. These guarantees are generally in the form of asset buy-back or make-whole provisions that are triggered upon a credit event or a change in the tax-qualifying status of the related projects, as applicable, and remain in effect until the loans are collected or final tax credits are realized, respectively. The maximum potential future payments guaranteed by the Company under these arrangements were approximately $10.3 billion at December 31, 2023, and represented the proceeds received from the buyer or the guaranteed portion in these transactions where the buy-back or make-whole provisions have not yet expired. At December 31, 2023, the Company had reserved $93 million for potential losses related to the sale or syndication of tax-advantaged investments. The maximum potential future payments do not include loan sales where the Company provides standard representation and warranties to the buyer against losses related to loan underwriting documentation defects that may have existed at the time of sale that generally are identified after the occurrence of a triggering event such as delinquency. For these types of loan sales, the maximum potential future payments is generally the unpaid principal balance of loans sold measured at the end of the current reporting period. Actual losses will be significantly less than the maximum exposure, as only a fraction of loans sold will have a representation and warranty breach, and any losses on repurchase would generally be mitigated by any collateral held against the loans. The Company regularly sells loans to GSEs as part of its mortgage banking activities. The Company provides customary representations and warranties to GSEs in conjunction with these sales. These representations and warranties generally require the Company to repurchase assets if it is subsequently determined that a loan did not meet specified criteria, such as a documentation deficiency or rescission of mortgage insurance. If the Company is unable to cure or refute a repurchase request, the Company is generally obligated to repurchase the loan or otherwise reimburse the GSE for losses. At December 31, 2023, the Company had reserved $13 million for potential losses from representation and warranty obligations, compared with $17 million at December 31, 2022. The Company’s reserve reflects management’s best estimate of losses for representation and warranty obligations. The Company’s repurchase reserve is modeled at the loan level, taking into consideration the individual credit quality and borrower activity that has transpired since origination. The model applies credit quality and economic risk factors to derive a probability of default and potential repurchase that are based on the Company’s historical loss experience, and estimates loss severity based on expected collateral value. The Company also considers qualitative factors that may result in anticipated losses differing from historical loss trends. As of December 31, 2023 and 2022, the Company had $18 million and $39 million, respectively, of unresolved representation and warranty claims from GSEs. The Company does not have a significant amount of unresolved claims from investors other than GSEs. Merchant Processing The Company, through its subsidiaries, provides merchant processing services. Under the rules of credit card associations, a merchant processor retains a contingent liability for credit card transactions processed. This contingent liability arises in the event of a billing dispute between the merchant and a cardholder that is ultimately resolved in the cardholder’s favor. In this situation, the transaction is “charged-back” to the merchant and the disputed amount is credited or otherwise refunded to the cardholder. If the Company is unable to collect this amount from the merchant, it bears the loss for the amount of the refund paid to the cardholder. A cardholder, through its issuing bank, generally has until the later of up to four months after the date the transaction is processed or the receipt of the product or service to present a charge-back to the Company as the merchant processor. The absolute maximum potential liability is estimated to be the total volume of credit card transactions that meet the associations’ requirements to be valid charge-back transactions at any given time. Management estimates that the maximum potential exposure for charge-backs would approximate the total amount of merchant transactions processed through the credit card associations for the last four months. For the last four months of 2023 this amount totaled approximately $140.3 billion. In most cases, this contingent liability is unlikely to arise, as most products and services are delivered when purchased and amounts are refunded when items are returned to merchants. However, where the product or service has been purchased but is not provided until a future date (“future delivery”), the potential for this contingent liability increases. To mitigate this risk, the Company may require the merchant to make an escrow deposit, place maximum volume limitations on future delivery transactions processed by the merchant at any point in time, or require various credit enhancements (including letters of credit and bank guarantees). Also, merchant processing contracts may include event triggers to provide the Company more financial and operational control in the event of financial deterioration of the merchant. The Company currently processes card transactions in the United States, Canada and Europe through wholly-owned subsidiaries. In the event a merchant was unable to fulfill product or services subject to future delivery, such as airline tickets, the Company could become financially liable for refunding the purchase price of such products or services purchased through the credit card associations under the charge-back provisions. Charge-back risk related to these merchants is evaluated in a manner similar to credit risk assessments and, as such, merchant processing contracts contain various provisions to protect the Company in the event of default. At December 31, 2023, the value of airline tickets purchased to be delivered at a future date through card transactions processed by the Company was $13.1 billion. The Company held collateral of $679 million in escrow deposits, letters of credit and indemnities from financial institutions, and liens on various assets. In addition to specific collateral or other credit enhancements, the Company maintains a liability for its implied guarantees associated with future delivery. At December 31, 2023, the liability was $50 million primarily related to these airline processing arrangements. In the normal course of business, the Company has unresolved charge-backs. The Company assesses the likelihood of its potential liability based on the extent and nature of unresolved charge-backs and its historical loss experience. At December 31, 2023, the Company held $135 million of merchant escrow deposits as collateral and had a recorded liability for potential losses of $21 million. Tender Option Bond Program Guarantee As discussed in Note 8, the Company sponsors a municipal bond securities tender option bond program and consolidates the program’s entities on its Consolidated Balance Sheet. The Company provides financial performance guarantees related to the program’s entities. At December 31, 2023, the Company guaranteed $589 million of borrowings of the program’s entities, included on the Consolidated Balance Sheet in short-term borrowings. The Company also included on its Consolidated Balance Sheet the related $607 million of available-for-sale investment securities serving as collateral for this arrangement. Other Guarantees and Commitments As of December 31, 2023, the Company sponsored, and owned 100 percent of the common equity of, USB Capital IX, a wholly-owned unconsolidated trust, formed for the purpose of issuing redeemable Income Trust Securities (“ITS”) to third-party investors, originally investing the proceeds in junior subordinated debt securities (“Debentures”) issued by the Company and entering into stock purchase contracts to purchase the Company’s preferred stock in the future. As of December 31, 2023, all of the Debentures issued by the Company have either matured or been retired. Total assets of USB Capital IX were $686 million at December 31, 2023, consisting primarily of the Company’s Series A Preferred Stock. The Company’s obligations under the transaction documents, taken together, have the effect of providing a full and unconditional guarantee by the Company, on a junior subordinated basis, of the payment obligations of the trust to third-party investors totaling $685 million at December 31, 2023. The Company has also made other financial performance guarantees and commitments primarily related to the operations of its subsidiaries. At December 31, 2023, the maximum potential future payments guaranteed or committed by the Company under these arrangements were approximately $2.0 billion. Litigation and Regulatory Matters The Company is subject to various litigation and regulatory matters that arise from the conduct of its business activities. The Company establishes reserves for such matters when potential losses become probable and can be reasonably estimated. The Company believes the ultimate resolution of existing legal and regulatory matters will not have a material adverse effect on the financial condition, results of operations or cash flows of the Company. However, in light of the uncertainties inherent in these matters, it is possible that the ultimate resolution of one or more of these matters may have a material adverse effect on the Company’s results of operations for a particular period, and future changes in circumstances or additional information could result in additional accruals or resolution in excess of established accruals, which could adversely affect the Company’s results of operations, potentially materially. Residential Mortgage-Backed Securities Litigation Starting in 2011, the Company and other large financial institutions have been sued in their capacity as trustee for residential mortgage–backed securities trusts for losses arising out of the 2008 financial crisis. In the lawsuits brought against the Company, the investors allege that the Company’s banking subsidiary, USBNA, as trustee caused them to incur substantial losses by failing to enforce loan repurchase obligations and failing to abide by appropriate standards of care after events of default allegedly occurred. The plaintiffs in these matters seek monetary damages in unspecified amounts and most also seek equitable relief. Regulatory Matters The Company is continually subject to examinations, inquiries, investigations and other forms of regulatory and governmental inquiry or scrutiny covering a wide range of issues in its financial services businesses including in areas of heightened regulatory scrutiny, such as compliance, risk management, third-party risk management and consumer protection. In some cases, these matters are part of reviews of specified activities at multiple industry participants; in others, they are directed at the Company individually. For example, the Division of Enforcement of the SEC has been investigating U.S. Bancorp Fund Services, LLC (“USBFS”), a subsidiary of USBNA, relating to its role providing fund administration services to a third-party investment fund. This investment fund was advised by an investment adviser who engaged in fraud, and USBFS was not affiliated with the investment adviser and did not provide any advisory services to the fund. The Division of Enforcement has made a preliminary determination to recommend that the SEC file an enforcement action against USBFS, and USBFS is in the process of responding to the SEC on this matter. The Company is cooperating fully with all pending examinations, inquiries and investigations, any of which could lead to administrative or legal proceedings or settlements. Remedies in these proceedings or settlements may include fines, penalties, restitution or alterations in the Company’s business practices (which may increase the Company’s operating expenses and decrease its revenue). On December 19, 2023, USBNA agreed to the issuance of consent orders with the OCC and the Consumer Financial Protection Bureau (“CFPB”) resolving the previously disclosed investigations of the Company's administration of unemployment insurance benefit prepaid debit cards during the pandemic timeframe. Also, on February 9, 2024, the SEC announced a settlement with U.S. Bancorp Investments, Inc., resolving the previously disclosed inquiry regarding record retention requirements relating to electronic business communications. The Commodity Futures Trading Commission (“CFTC”) has conducted an inquiry concerning similar issues and the Company is currently in resolution discussions with the CFTC on that matter. The financial impact of the resolution of these matters was not material to the Company's financial condition, results of operations or cash flows and the anticipated resolution of the CFTC matter is also not expected to be material. Outlook |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segments | NOTE 24 Business Segments Within the Company, financial performance is measured by major lines of business based on the products and services provided to customers through its distribution channels. These operating segments are components of the Company about which financial information is prepared and is evaluated regularly by management in deciding how to allocate resources and assess performance. The Company has the following reportable operating segments: Wealth, Corporate, Commercial and Institutional Banking Wealth, Corporate, Commercial and Institutional Banking provides core banking, specialized lending, transaction and payment processing, capital markets, asset management, and brokerage and investment related services to wealth, middle market, large corporate, government and institutional clients. Consumer and Business Banking Consumer and Business Banking comprises consumer banking, small business banking and consumer lending. Products and services are delivered through banking offices, telephone servicing and sales, online services, direct mail, ATM processing, mobile devices, distributed mortgage loan officers, and intermediary relationships including auto dealerships, mortgage banks, and strategic business partners. Payment Services Payment Services includes consumer and business credit cards, stored-value cards, debit cards, corporate, government and purchasing card services and merchant processing. Treasury and Corporate Support Treasury and Corporate Support includes the Company’s investment portfolios, funding, capital management, interest rate risk management, income taxes not allocated to business segments, including most investments in tax-advantaged projects, and the residual aggregate of those expenses associated with corporate activities that are managed on a consolidated basis. Basis of Presentation Business segment results are derived from the Company’s business unit profitability reporting systems by specifically attributing managed balance sheet assets, deposits and other liabilities and their related income or expense. The allowance for credit losses and related provision expense are allocated to the business segments according to the volume and credit quality of the loan balances managed, but with the impact of changes in economic forecasts recorded in Treasury and Corporate Support. Goodwill and other intangible assets are assigned to the business segments based on the mix of business of an entity acquired by the Company. Within the Company, capital levels are evaluated and managed centrally; however, capital is allocated to the business segments to support evaluation of business performance. Business segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements. Generally, the determination of the amount of capital allocated to each business segment includes credit allocations following a Basel III regulatory framework. Interest income and expense is determined based on the assets and liabilities managed by the business segment. Because funding and asset/liability management is a central function, funds transfer-pricing methodologies are utilized to allocate a cost of funds used or credit for funds provided to all business segment assets and liabilities, respectively, using a matched funding concept. Also, each business unit is allocated the taxable-equivalent benefit of tax-exempt products. The residual effect on net interest income of asset/liability management activities is included in Treasury and Corporate Support. Noninterest income and expenses directly managed by each business segment, including fees, service charges, salaries and benefits, and other direct revenues and costs are accounted for within each segment’s financial results in a manner similar to the consolidated financial statements. Occupancy costs are allocated based on utilization of facilities by the business segments. Generally, operating losses are charged to the business segment when the loss event is realized in a manner similar to a loan charge-off. Noninterest expenses incurred by centrally managed operations or business segments that directly support another business segment’s operations are charged to the applicable business segment based on its utilization of those services, primarily measured by the volume of customer activities, number of employees or other relevant factors. These allocated expenses are reported as net shared services expense within noninterest expense. Certain activities that do not directly support the operations of the business segments or for which the business segments are not considered financially accountable in evaluating their performance are not charged to the business segments. The income or expenses associated with these corporate activities, including merger and integration charges, are reported within the Treasury and Corporate Support business segment. Income taxes are assessed to each business segment at a standard tax rate with the residual tax expense or benefit to arrive at the consolidated effective tax rate included in Treasury and Corporate Support. Designations, assignments and allocations change from time to time as management systems are enhanced, methods of evaluating performance or product lines change or business segments are realigned to better respond to the Company’s diverse customer base. During 2023, certain organization and methodology changes were made, including the Company combining its Wealth Management and Investment Services and Corporate and Commercial Banking lines of businesses to create the Wealth, Corporate, Commercial and Institutional Banking line of business during the third quarter. Prior period results were restated and presented on a comparable basis. Business segment results for the years ended December 31 were as follows: Wealth, Corporate, Commercial and Institutional Banking Consumer and Business Banking Payment Services (Dollars in Millions) 2023 2022 2023 2022 2023 2022 Condensed Income Statement Net interest income (taxable-equivalent basis) $ 6,129 $ 5,213 $ 8,331 $ 6,764 $ 2,702 $ 2,504 Noninterest income 4,143 3,561 1,662 1,536 4,056 (a) 3,794 (a) Total net revenue 10,272 8,774 9,993 8,300 6,758 6,298 Noninterest expense 5,183 4,135 6,964 5,779 3,772 3,525 Income (loss) before provision and income taxes 5,089 4,639 3,029 2,521 2,986 2,773 Provision for credit losses 334 154 79 75 1,394 980 Income (loss) before income taxes 4,755 4,485 2,950 2,446 1,592 1,793 Income taxes and taxable-equivalent adjustment 1,190 1,122 738 612 398 449 Net income (loss) 3,565 3,363 2,212 1,834 1,194 1,344 Net (income) loss attributable to noncontrolling interests — — — — — — Net income (loss) attributable to U.S. Bancorp $ 3,565 $ 3,363 $ 2,212 $ 1,834 $ 1,194 $ 1,344 Average Balance Sheet Loans $ 175,780 $ 150,512 $ 161,862 $ 144,441 $ 38,471 $ 34,627 Other earning assets 6,615 4,771 2,388 3,117 97 634 Goodwill 4,682 3,634 4,466 3,250 3,327 3,305 Other intangible assets 1,007 365 5,265 3,784 350 423 Assets 202,642 169,554 179,103 160,174 44,292 41,072 Noninterest-bearing deposits 70,977 82,671 31,082 31,719 2,981 3,410 Interest-bearing deposits 199,780 175,345 189,148 163,190 103 162 Total deposits 270,757 258,016 220,230 194,909 3,084 3,572 Total U.S. Bancorp shareholders’ equity 22,362 18,159 16,016 12,678 9,310 8,233 Treasury and Corporate Support Consolidated Company (Dollars in Millions) 2023 2022 2023 2022 Condensed Income Statement Net interest income (taxable-equivalent basis) $ 365 $ 365 $ 17,527 $ 14,846 Noninterest income 756 565 10,617 (b) 9,456 (b) Total net revenue 1,121 930 28,144 24,302 Noninterest expense 2,954 1,467 18,873 14,906 Income (loss) before provision and income taxes (1,833) (537) 9,271 9,396 Provision for credit losses 468 768 2,275 1,977 Income (loss) before income taxes (2,301) (1,305) 6,996 7,419 Income taxes and taxable-equivalent adjustment (788) (602) 1,538 1,581 Net income (loss) (1,513) (703) 5,458 5,838 Net (income) loss attributable to noncontrolling interests (29) (13) (29) (13) Net income (loss) attributable to U.S. Bancorp $ (1,542) $ (716) $ 5,429 $ 5,825 Average Balance Sheet Loans $ 5,162 $ 3,993 $ 381,275 $ 333,573 Other earning assets 214,824 203,248 223,924 211,770 Goodwill — — 12,475 10,189 Other intangible assets 17 5 6,639 4,577 Assets 237,403 221,349 663,440 592,149 Noninterest-bearing deposits 2,728 2,594 107,768 120,394 Interest-bearing deposits 8,864 3,293 397,895 341,990 Total deposits 11,592 5,887 505,663 462,384 Total U.S. Bancorp shareholders’ equity 5,972 11,346 53,660 50,416 (a) Presented net of related rewards and rebate costs and certain partner payments of $3.0 billion and $2.9 billion for 2023 and 2022, respectively. (b) |
U.S. Bancorp (Parent Company)
U.S. Bancorp (Parent Company) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
U.S. Bancorp (Parent Company) | NOTE 25 U.S. Bancorp (Parent Company) Condensed Balance Sheet At December 31 (Dollars in Millions) 2023 2022 Assets Due from banks, principally interest-bearing $ 11,585 $ 5,288 Available-for-sale investment securities 662 672 Investments in bank subsidiaries 61,495 59,202 Investments in nonbank subsidiaries 3,884 3,575 Advances to bank subsidiaries 12,100 9,100 Advances to nonbank subsidiaries 159 150 Other assets 974 1,101 Total assets $ 90,859 $ 79,088 Liabilities and Shareholders’ Equity Long-term debt $ 34,332 $ 26,983 Other liabilities 1,221 1,339 Shareholders’ equity 55,306 50,766 Total liabilities and shareholders’ equity $ 90,859 $ 79,088 Condensed Income Statement Year Ended December 31 (Dollars in Millions) 2023 2022 2021 Income Dividends from bank subsidiaries $ 4,869 $ 4,750 $ 7,000 Dividends from nonbank subsidiaries 11 105 2 Interest from subsidiaries 606 119 112 Other income 51 31 46 Total income 5,537 5,005 7,160 Expense Interest expense 1,336 505 348 Other expense 137 162 154 Total expense 1,473 667 502 Income before income taxes and equity in undistributed income of subsidiaries 4,064 4,338 6,658 Applicable income taxes (170) (138) (53) Income of parent company 4,234 4,476 6,711 Equity in undistributed income of subsidiaries 1,195 1,349 1,252 Net income attributable to U.S. Bancorp $ 5,429 $ 5,825 $ 7,963 Condensed Statement of Cash Flows Year Ended December 31 (Dollars in Millions) 2023 2022 2021 Operating Activities Net income attributable to U.S. Bancorp $ 5,429 $ 5,825 $ 7,963 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed income of subsidiaries (1,195) (1,349) (1,252) Other, net 83 (398) (85) Net cash provided by operating activities 4,317 4,078 6,626 Investing Activities Proceeds from sales and maturities of investment securities 25 423 200 Investments in subsidiaries — (5,030) — Net (increase) decrease in short-term advances to subsidiaries (9) 557 411 Long-term advances to subsidiaries (7,500) (2,000) (7,000) Principal collected on long-term advances to subsidiaries 4,500 2,500 1,250 Cash paid for acquisition — (5,500) — Other, net 172 (173) (269) Net cash used in investing activities (2,812) (9,223) (5,408) Financing Activities Proceeds from issuance of long-term debt 8,150 8,150 1,300 Principal payments or redemption of long-term debt (936) (2,300) (3,000) Proceeds from issuance of preferred stock — 437 2,221 Proceeds from issuance of common stock 951 21 43 Repurchase of preferred stock — (1,100) (1,250) Repurchase of common stock (62) (69) (1,555) Cash dividends paid on preferred stock (341) (299) (308) Cash dividends paid on common stock (2,970) (2,776) (2,579) Net cash provided by (used in) financing activities 4,792 2,064 (5,128) Change in cash and due from banks 6,297 (3,081) (3,910) Cash and due from banks at beginning of year 5,288 8,369 12,279 Cash and due from banks at end of year $ 11,585 $ 5,288 $ 8,369 Transfer of funds (dividends, loans or advances) from bank subsidiaries to the Company is restricted. Federal law requires loans to the Company or its affiliates to be secured and generally limits loans to the Company or an individual affiliate to 10 percent of each bank’s unimpaired capital and surplus. In the aggregate, loans to the Company and all affiliates cannot exceed 20 percent of each bank’s unimpaired capital and surplus. Dividend payments to the Company by its subsidiary bank are subject to regulatory review and statutory limitations and, in some instances, regulatory approval. In general, dividends by the Company’s bank subsidiary to the parent company are limited by rules which compare dividends to net income for regulatorily-defined periods. Furthermore, dividends are restricted by minimum capital constraints for all national banks. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 26 Subsequent Events The Company has evaluated the impact of events that have occurred subsequent to December 31, 2023 through the date the consolidated financial statements were filed with the SEC. Based on this evaluation, the Company has determined |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
Uses of Estimates | Uses of Estimates |
Securities | Securities Realized gains or losses on securities are determined on a trade date basis based on the specific amortized cost of the investments sold. Trading Securities Securities held for resale are classified as trading securities and are included in other assets and reported at fair value. Changes in fair value and realized gains or losses are reported in noninterest income. Available-for-sale Securities Debt securities that are not trading securities but may be sold before maturity in response to changes in the Company’s interest rate risk profile, funding needs, demand for collateralized deposits by public entities or other reasons, are carried at fair value with unrealized net gains or losses reported within other comprehensive income (loss). Declines in fair value related to credit, if any, are recorded through the establishment of an allowance for credit losses. Held-to-maturity Securities Debt securities for which the Company has the positive intent and ability to hold to maturity are reported at historical cost adjusted for amortization of premiums and accretion of discounts. Expected credit losses, if any, are recorded through the establishment of an allowance for credit losses. Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase |
Equity Investments | Equity Investments |
Loans | Loans The Company offers a broad array of lending products and categorizes its loan portfolio into two segments, which is the level at which it develops and documents a systematic methodology to determine the allowance for credit losses. The Company’s two loan portfolio segments are commercial lending and consumer lending. The Company further disaggregates its loan portfolio segments into various classes based on their underlying risk characteristics. The two classes within the commercial lending segment are commercial loans and commercial real estate loans. The three classes within the consumer lending segment are residential mortgages, credit card loans and other retail loans. Originated Loans Held for Investment Loans the Company originates as held for investment are reported at the principal amount outstanding, net of unearned interest income and deferred fees and costs, and any direct principal charge-offs. Interest income is accrued on the unpaid principal balances as earned. Loan and commitment fees and certain direct loan origination costs are deferred and recognized over the life of the loan and/or commitment period as yield adjustments. Purchased Loans All purchased loans are recorded at fair value at the date of purchase and those acquired on or after January 1, 2020 are divided into those considered PCD and those not considered PCD. An allowance for credit losses is established for each population and considers product mix, risk characteristics of the portfolio, delinquency status and refreshed loan-to-value ratios when possible. The allowance established for purchased loans not considered PCD is recognized through provision expense upon acquisition, whereas the allowance established for loans considered PCD at acquisition is offset by an increase in the basis of the acquired loans. Any subsequent increases and decreases in the allowance related to purchased loans, regardless of PCD status, are recognized through provision expense, with charge-offs charged to the allowance. Commitments to Extend Credit Unfunded commitments for residential mortgage loans intended to be held for sale are considered derivatives and recorded in other assets and other liabilities on the Consolidated Balance Sheet at fair value with changes in fair value recorded in noninterest income. All other unfunded loan commitments are not considered derivatives and are not reported on the Consolidated Balance Sheet. Reserves for credit exposure on all other unfunded credit commitments are recorded in other liabilities. Allowance for Credit Losses The allowance for credit losses is established for current expected credit losses on the Company’s loan and lease portfolio, including unfunded credit commitments. The allowance considers expected losses for the remaining lives of the applicable assets, inclusive of expected recoveries. The allowance for credit losses is increased through provisions charged to earnings and reduced by net charge-offs. Management evaluates the appropriateness of the allowance for credit losses on a quarterly basis. Multiple economic scenarios are considered over a three-year reasonable and supportable forecast period, which includes increasing consideration of historical loss experience over years two and three. These economic scenarios are constructed with interrelated projections of multiple economic variables, and loss estimates are produced that consider the historical correlation of those economic variables with credit losses. After the forecast period, the Company fully reverts to long-term historical loss experience, adjusted for prepayments and characteristics of the current loan and lease portfolio, to estimate losses over the remaining life of the portfolio. The economic scenarios are updated at least quarterly and are designed to provide a range of reasonable estimates, from better to worse than current expectations. Scenarios are weighted based on the Company’s expectation of economic conditions for the foreseeable future and reflect significant judgment and consideration of economic forecast uncertainty. Final loss estimates also consider factors affecting credit losses not reflected in the scenarios, due to the unique aspects of current conditions and expectations. These factors may include, but are not limited to, loan servicing practices, regulatory guidance, and/or fiscal and monetary policy actions. The allowance recorded for credit losses utilizes forward-looking expected loss models to consider a variety of factors affecting lifetime credit losses. These factors include, but are not limited to, macroeconomic variables such as unemployment rates, real estate prices, gross domestic product levels, inflation, interest rates and corporate bonds spreads, as well as loan and borrower characteristics, such as internal risk ratings on commercial loans and consumer credit scores, delinquency status, collateral type and available valuation information, consideration of end-of-term losses on lease residuals, and the remaining term of the loan, adjusted for expected prepayments. For each loan portfolio, including those loans modified under various loan modification programs, model estimates are adjusted as necessary to consider any relevant changes in portfolio composition, lending policies, underwriting standards, risk management practices, economic conditions or other factors that would affect the accuracy of the model. Expected credit loss estimates also include consideration of expected cash recoveries on loans previously charged-off or expected recoveries on collateral dependent loans where recovery is expected through sale of the collateral at fair value less selling costs. Where loans do not exhibit similar risk characteristics, an individual analysis is performed to consider expected credit losses. The allowance recorded for individually evaluated loans greater than $5 million in the commercial lending segment is based on an analysis utilizing expected cash flows discounted using the original effective interest rate, the observable market price of the loan, or the fair value of the collateral, less selling costs, for collateral-dependent loans as appropriate. For smaller commercial loans collectively evaluated for impairment, historical loss experience is also incorporated into the allowance methodology applied to this category of loans. The Company’s methodology for determining the appropriate allowance for credit losses also considers the imprecision inherent in the methodologies used and allocated to the various loan portfolios. As a result, amounts determined under the methodologies described above are adjusted by management to consider the potential impact of other qualitative factors not captured in the quantitative model adjustments which include, but are not limited to, the following: model imprecision, imprecision in economic scenario assumptions, and emerging risks related to either changes in the environment that are affecting specific portfolios, or changes in portfolio concentrations over time that may affect model performance. The consideration of these items results in adjustments to allowance amounts included in the Company’s allowance for credit losses for each loan portfolio. The Company also assesses the credit risk associated with off-balance sheet loan commitments, letters of credit, investment securities and derivatives. Credit risk associated with derivatives is reflected in the fair values recorded for those positions. The liability for off-balance sheet credit exposure related to loan commitments and other credit guarantees is included in other liabilities. Because business processes and credit risks associated with unfunded credit commitments are essentially the same as for loans, the Company utilizes similar processes to estimate its liability for unfunded credit commitments. The results of the analysis are evaluated quarterly to confirm the estimates are appropriate for each specific loan portfolio, as well as the entire loan portfolio, as the entire allowance for credit losses is available for the entire loan portfolio. Credit Quality The credit quality of the Company’s loan portfolios is assessed as a function of net credit losses, levels of nonperforming assets and delinquencies, and credit quality ratings as defined by the Company. For all loan portfolio classes, loans are considered past due based on the number of days delinquent except for monthly amortizing loans which are classified delinquent based upon the number of contractually required payments not made (for example, two missed payments is considered 30 days delinquent). When a loan is placed on nonaccrual status, unpaid accrued interest is reversed, reducing interest income in the current period. Commercial lending segment loans are generally placed on nonaccrual status when the collection of principal and interest has become 90 days past due or is otherwise considered doubtful. Commercial lending segment loans are generally fully charged down if unsecured by collateral or partially charged down to the fair value of the collateral securing the loan, less costs to sell, when the loan is placed on nonaccrual. Consumer lending segment loans are generally charged-off at a specific number of days or payments past due. Residential mortgages and other retail loans secured by 1-4 family properties are generally charged down to the fair value of the collateral securing the loan, less costs to sell, at 180 days past due. Residential mortgage loans and lines in a first lien position are placed on nonaccrual status in instances where a partial charge-off occurs unless the loan is well secured and in the process of collection. Residential mortgage loans and lines in a junior lien position secured by 1-4 family properties are placed on nonaccrual status at 120 days past due or when they are behind a first lien that has become 180 days or greater past due or placed on nonaccrual status. Any secured consumer lending segment loan whose borrower has had debt discharged through bankruptcy, for which the loan amount exceeds the fair value of the collateral, is charged down to the fair value of the related collateral and the remaining balance is placed on nonaccrual status. Credit card loans continue to accrue interest until the account is charged-off. Credit cards are charged-off at 180 days past due. Other retail loans not secured by 1-4 family properties are charged-off at 120 days past due; and revolving consumer lines are charged-off at 180 days past due. Similar to credit cards, other retail loans are generally not placed on nonaccrual status because of the relative short period of time to charge-off. Certain retail customers having financial difficulties may have the terms of their credit card and other loan agreements modified to require only principal payments and, as such, are reported as nonaccrual. For all loan classes, interest payments received on nonaccrual loans are generally recorded as a reduction to a loan’s carrying amount while a loan is on nonaccrual and are recognized as interest income upon payoff of the loan. However, interest income may be recognized for interest payments if the remaining carrying amount of the loan is believed to be collectible. In certain circumstances, loans in any class may be restored to accrual status, such as when a loan has demonstrated sustained repayment performance or no amounts are past due and prospects for future payment are no longer in doubt; or when the loan becomes well secured and is in the process of collection. Loans where there has been a partial charge-off may be returned to accrual status if all principal and interest (including amounts previously charged-off) is expected to be collected and the loan is current. The Company classifies its loan portfolio classes using internal credit quality ratings on a quarterly basis. These ratings include pass, special mention and classified, and are an important part of the Company’s overall credit risk management process and evaluation of the allowance for credit losses. Loans with a pass rating represent those loans not classified on the Company’s rating scale for problem credits, as minimal credit risk has been identified. Special mention loans are those loans that have a potential weakness deserving management’s close attention. Classified loans are those loans where a well-defined weakness has been identified that may put full collection of contractual cash flows at risk. It is possible that others, given the same information, may reach different reasonable conclusions regarding the credit quality rating classification of specific loans. Loan Modifications In certain circumstances, the Company may modify the terms of a loan to maximize the collection of amounts due when a borrower is experiencing financial difficulties or is expected to experience difficulties in the near-term. The Company recognizes interest on modified loans if full collection of contractual principal and interest is expected. The effects of modifications on credit loss expectations, such as improved payment capacity, longer expected lives and other factors, are considered when measuring the allowance for credit losses. Modification performance, including redefault rates and how these compare to historical losses, are also considered. Modifications generally do not result in significant changes to the Company’s allowance for credit losses. For the commercial lending segment, modifications generally result in the Company working with borrowers on a case-by-case basis. Commercial and commercial real estate modifications generally include extensions of the maturity date and may be accompanied by an increase or decrease to the interest rate. In addition, the Company may work with the borrower in identifying other changes that mitigate loss to the Company, which may include additional collateral or guarantees to support the loan. To a lesser extent, the Company may provide an interest rate reduction. Modifications for the consumer lending segment are generally part of programs the Company has initiated. The Company modifies residential mortgage loans under Federal Housing Administration, United States Department of Veterans Affairs, or its own internal programs. Under these programs, the Company offers qualifying homeowners the opportunity to permanently modify their loan and achieve more affordable monthly payments. These modifications may include adjustments to interest rates, conversion of adjustable rates to fixed rates, extension of maturity dates or deferrals of payments, capitalization of accrued interest and/or outstanding advances, or in limited situations, partial forgiveness of loan principal. In most instances, participation in residential mortgage loan restructuring programs requires the customer to complete a short-term trial period. A permanent loan modification is contingent on the customer successfully completing the trial period arrangement, and the loan documents are not modified until that time. |
Leases as lessor | The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Retail leases, primarily automobiles, have terms up to 5 years. Commercial leases may include high dollar assets such as aircraft or lower cost items such as office equipment. At lease inception, retail lease customers may be provided with an end-of-term purchase option, which is based on the contractual residual value of the automobile at the expiration of the lease. Automobile leases do not typically contain options to extend or terminate the lease. Equipment leases may contain various types of purchase options. Some option amounts are a stated value, while others are determined using the fair market value at the time of option exercise. Residual values on leased assets are reviewed regularly for impairment. Residual valuations for retail leases are based on independent assessments of expected used automobile sale prices at the end of the lease term. Impairment tests are conducted based on these valuations considering the probability of the lessee returning the asset to the Company, re-marketing efforts, insurance coverage and ancillary fees and costs. Valuations for commercial leases are based upon external or internal management appraisals. The Company manages its risk to changes in the residual value of leased vehicles, office and business equipment, and other assets through disciplined residual valuation setting at the inception of a lease, diversification of its leased assets, regular residual asset valuation reviews and monitoring of residual value gains or losses upon the disposition of assets. Retail lease residual value risk is mitigated further by the purchase of residual value insurance coverage and effective end-of-term marketing of off-lease vehicles. |
Leases as lessee | The Company, as lessee, leases certain assets for use in its operations. Leased assets primarily include retail branches, operations centers and other corporate locations, and, to a lesser extent, office and computer equipment. For each lease with an original term greater than 12 months, the Company records a lease liability and a corresponding right of use (“ROU”) asset. The Company accounts for the lease and non-lease components in the majority of its lease contracts as a single lease component, with the determination of the lease liability at lease inception based on the present value of the consideration to be paid under the contract. The discount rate used by the Company is determined at commencement of the lease using a secured rate for a similar term as the period of the lease. The Company’s leases do not include significant variable lease payments. Certain of the Company’s real estate leases include options to extend. Lease extension options are generally exercisable at market rates. Such option periods do not provide a significant incentive, and their exercise is not reasonably certain. Accordingly, the Company does not generally recognize payments occurring during option periods in the calculation of its ROU assets and lease liabilities. |
Other Real Estate | Other Real Estate |
Loans Held For Sale | Loans Held For Sale Loans held for sale (“LHFS”) represent mortgage loans intended to be sold in the secondary market and other loans that management has an active plan to sell. LHFS are carried at the lower-of-cost-or-fair value as determined on an aggregate basis by type of loan with the exception of loans for which the Company has elected fair value accounting, which are carried at fair value. Any writedowns to fair value upon the transfer of loans to LHFS are reflected in loan charge-offs. |
Derivative Financial Instruments | Derivative Financial Instruments In the ordinary course of business, the Company enters into derivative transactions to manage various risks and to accommodate the business requirements of its customers. Derivative instruments are reported in other assets or other liabilities at fair value. Changes in a derivative’s fair value are recognized currently in earnings unless specific hedge accounting criteria are met. All derivative instruments that qualify and are designated for hedge accounting are recorded at fair value and classified as either a hedge of the fair value of a recognized asset or liability (“fair value hedge”); a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”); or a hedge of the volatility of a net investment in foreign operations driven by changes in foreign currency exchange rates (“net investment hedge”). Changes in the fair value of a derivative that is highly effective and designated as a fair value hedge, and the offsetting changes in the fair value of the hedged item, are recorded in earnings. Changes in the fair value of a derivative that is highly effective and designated as a cash flow hedge are recorded in other comprehensive income (loss) until cash flows of the hedged item are realized. Changes in the fair value of net investment hedges that are highly effective are recorded in other comprehensive income (loss). The Company performs an assessment, at inception and, at a minimum, quarterly thereafter, to determine the effectiveness of the derivative in offsetting changes in the value or cash flows of the hedged item(s). |
Revenue Recognition | Revenue Recognition In the ordinary course of business, the Company recognizes income derived from various revenue generating activities. Certain revenues are generated from contracts where they are recognized when, or as services or products are transferred to customers for amounts the Company expects to be entitled. Revenue generating activities related to financial assets and liabilities are also recognized, including mortgage servicing fees, loan commitment fees, foreign currency remeasurements, and gains and losses on securities, equity investments and unconsolidated subsidiaries. Certain specific policies include the following: Card Revenue Card revenue includes interchange from credit, debit and stored-value cards processed through card association networks, annual fees, and other transaction and account management fees. Interchange rates are generally set by the card associations and based on purchase volumes and other factors. The Company records interchange as services are provided. Transaction and account management fees are recognized as services are provided, except for annual fees which are recognized over the applicable period. Costs for rewards programs and certain payments to partners and card associations are also recorded within card revenue when services are provided. The Company predominately records card revenue within the Payment Services line of business. Corporate Payment Products Revenue Corporate payment products revenue primarily includes interchange from commercial card products processed through card association networks and revenue from proprietary network transactions. The Company records corporate payment products revenue as services are provided. Certain payments to card associations and customers are also recorded within corporate payment products revenue as services are provided. Corporate payment products revenue is recorded within the Payment Services line of business. Merchant Processing Services Merchant processing services revenue consists principally of merchant discount and other transaction and account management fees charged to merchants for the electronic processing of card association network transactions, less interchange paid to the card-issuing bank, card association assessments, and revenue sharing amounts. All of these are recognized at the time the merchant’s services are performed. The Company may enter into revenue sharing agreements with referral partners or in connection with purchases of merchant contracts from sellers. The revenue sharing amounts are determined primarily on sales volume processed or revenue generated for a particular group of merchants. Merchant processing revenue also includes revenues related to point-of-sale equipment recorded as sales when the equipment is shipped or as earned for equipment rentals. The Company records merchant processing services revenue within the Payment Services line of business. Trust and Investment Management Fees Trust and investment management fees are recognized over the period in which services are performed and are based on a percentage of the fair value of the assets under management or administration, fixed based on account type, or transaction-based fees. Services provided to clients include trustee, transfer agent, custodian, fiscal agent, escrow, fund accounting and administration services. Services provided to mutual funds may include selling, distribution and marketing services. Trust and investment management fees are predominately recorded within the Wealth, Corporate, Commercial and Institutional Banking line of business. Service Charges Service charges include fees received on deposit accounts under depository agreements with customers to provide access to deposited funds, serve as a custodian of funds, and when applicable, pay interest on deposits. Checking or savings accounts may contain fees for various services used on a day-to-day basis by a customer. Fees are recognized as services are delivered to and consumed by the customer, or as fees are charged. Service charges also include revenue generated from ATM transaction processing and settlement services which is recognized at the time the services are performed. Certain payments to partners and card associations related to ATM processing services are also recorded within service charges as services are provided. Further, revenue generated from treasury management services are included in service charges and include fees for a broad range of products and services that enable customers to manage their cash more efficiently. These products and services include cash and investment management, receivables management, disbursement services, funds transfer services, and information reporting. Treasury management revenue is recognized as products and services are provided to customers. The Company reflects a discount calculated on monthly average collected customer balances. Service charges are reported primarily within the Wealth, Corporate, Commercial and Institutional Banking, and Consumer and Business Banking lines of business. Commercial Products Revenue Commercial products revenue primarily includes revenue related to ancillary services provided to Wealth, Corporate, Commercial and Institutional Banking, and Consumer and Business Banking customers, including standby letter of credit fees, non-yield related loan fees, capital markets related revenue, sales of direct financing leases, and loan and syndication fees. Sales of direct financing leases are recognized at the point of sale. In addition, the Company may lead or participate with a group of underwriters in raising investment capital on behalf of securities issuers and charge underwriting fees. These fees are recognized at securities issuance. The Company, in its role as lead underwriter, arranges deal structuring and use of outside vendors for the underwriting group. The Company recognizes only those fees and expenses related to its underwriting commitment. Mortgage Banking Revenue Mortgage banking revenue includes revenue derived from mortgages originated and subsequently sold, generally with servicing retained. The primary components include: gains and losses on mortgage sales; servicing revenue; changes in fair value for mortgage loans originated with the intent to sell and measured at fair value under the fair value option; changes in fair value for derivative commitments to purchase and originate mortgage loans; changes in the fair value of MSRs; and the impact of risk management activities associated with the mortgage origination pipeline, funded loans and MSRs. Net interest income from mortgage loans is recorded in interest income. Refer to Other Significant Policies in Note 1, as well as Note 10 and Note 22 for a further discussion of MSRs. Mortgage banking revenue is reported within the Consumer and Business Banking line of business. Investment Products Fees Investment products fees include commissions related to the execution of requested security trades, distribution fees from sale of mutual funds, and investment advisory fees. Commissions and investment advisory fees are recognized as services are delivered to and utilized by the customer. Distribution fees are received over time, are dependent on the consumer maintaining their mutual fund asset position and the value of such position. These revenues are estimated and recognized at the point a significant reversal of revenue becomes remote. Investment products fees are predominately reported within the Wealth, Corporate, Commercial and Institutional Banking line of business. Other Noninterest Income |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is recorded on acquired businesses if the purchase price exceeds the fair value of the net assets acquired. Goodwill is not amortized but is subject, at a minimum, to annual tests for impairment at a reporting unit level. In certain situations, an interim impairment test may be required if events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Determining the amount of goodwill |
Income Taxes | Income Taxes |
Mortgage Servicing Rights | Mortgage Servicing Rights |
Pensions | Pensions For purposes of its pension plans, the Company utilizes its fiscal year-end as the measurement date. At the measurement date, plan assets are determined based on fair value, generally representing observable market prices or the net asset value provided by the funds’ trustee or administrator. The actuarial cost method used to compute the pension liabilities and related expense is the projected unit credit method. The projected benefit obligation is principally determined based on the present value of projected benefit distributions at an assumed discount rate. The discount rate utilized is based on the investment yield of high quality corporate bonds available in the marketplace with maturities equal to projected cash flows of future benefit payments as of the measurement date. Periodic pension expense (or income) includes service costs, interest costs based on the assumed discount rate, the expected return on plan assets based on an actuarially derived market-related value and amortization of actuarial gains and losses. Service cost is included in compensation and employee benefits expense on the Consolidated Statement of Income, with all other components of periodic pension expense included in other noninterest expense on the Consolidated Statement of Income. Pension accounting |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and depreciated primarily on a straight-line basis over the estimated life of the assets. Estimated useful lives range up to 40 years for newly constructed buildings and from 3 to 25 years for furniture and equipment. |
Capitalized Software | Capitalized Software |
Stock-Based Compensation | Stock-Based Compensation The Company grants stock-based awards, which may include restricted stock, restricted stock units and options to purchase common stock of the Company. Stock option grants are for a fixed number of shares to employees and directors with an exercise price equal to the fair value of the shares at the date of grant. Restricted stock and restricted stock unit grants are awarded at no cost to the recipient. Stock-based compensation for awards is recognized in the Company’s results of operations over the vesting period. The Company immediately recognizes compensation cost of awards to employees that meet retirement status, despite their continued active employment. The amortization of stock-based compensation reflects estimated forfeitures adjusted for actual forfeiture experience. 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 stock-based awards are exercised, cancelled, expire, or restrictions are released, the Company may be required to recognize an adjustment to tax expense, depending on the market price of the Company’s common stock at that time. |
Per Share Calculations | Per Share Calculations |
Accounting Changes | NOTE 2 Accounting Changes Reference Interest Rate Transition In March 2020, the Financial Accounting Standards Board (“FASB”) issued accounting guidance, providing temporary optional expedients and exceptions to the guidance in United States generally accepted accounting principles on contract modifications and hedge accounting, to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. Under the guidance, a company can elect not to apply certain modification accounting requirements to contracts affected by reference rate transition, if certain criteria are met. A company that makes this election would not be required to remeasure the contracts at the modification date or reassess a previous accounting determination. This guidance also permits a company to elect various optional expedients that would allow it to continue applying hedge accounting for hedging relationships affected by reference rate transition, if certain criteria are met. The guidance is effective upon issuance and generally can be applied through December 31, 2024. The Company is applying certain optional expedients and exceptions for cash flow hedges and will continue to evaluate these for eligible contract modifications and hedging relationships. Fair Value Hedging – Portfolio Layer Method Effective January 1, 2023, the Company adopted accounting guidance, issued by the FASB in March 2022, related to fair value hedge accounting of portfolios of financial assets. This guidance permits a company to designate multiple hedging relationships on a single closed portfolio, resulting in a larger portion of the interest rate risk associated with such a portfolio being eligible to be hedged. The guidance also expands the scope of the method to include non-prepayable financial assets and clarifies other technical questions from the original accounting guidance. The adoption of this guidance is not material to the Company’s financial statements. Financial Instruments – Troubled Debt Restructurings and Vintage Disclosures Effective January 1, 2023, the Company adopted accounting guidance on a modified retrospective basis, issued by the FASB in March 2022, related to the recognition and measurement of TDRs by creditors. This guidance removes the separate recognition and measurement requirements for TDRs by replacing them with a requirement for a company to apply existing accounting guidance to determine whether a modification results in a new loan or a continuation of an existing loan. This guidance also replaces existing TDR disclosures with similar but more expansive disclosures for certain modifications of receivables made to borrowers experiencing financial difficulty. Further, this guidance also requires companies to disclose current-period gross write-offs by year of origination for financing receivables. The adoption of this guidance is not material to the Company’s financial statements. Accounting for Tax Credit Investments Using the Proportional Amortization Method Effective January 1, 2023, the Company adopted accounting guidance on a modified retrospective basis, issued by the FASB in March 2023, related to the accounting for tax credit investments. This guidance allows the Company to elect to account for tax credit investments using the proportional amortization method on a program-by-program basis if certain conditions are met, regardless of the program from which the income tax credits are received. The adoption of this guidance was not material to the Company’s financial statements. Income Taxes – Improvements to Income Tax Disclosures In December 2023, the FASB issued guidance, effective for the Company for annual reporting periods beginning after December 15, 2024, related to income tax disclosures. This guidance requires additional information in income tax rate reconciliation disclosures and additional disclosures about income taxes paid. The guidance is required, at a minimum, to be adopted on a prospective basis, with an option to apply it retrospectively. The Company expects the adoption of this guidance will not be material to its financial statements. Segment Reporting – Improvements to Reportable Segment Disclosures |
Business Combinations | Valuation Methodologies The methods used to determine the fair values of the significant assets acquired and liabilities assumed as part of the MUB acquisition are described below. Cash and Due from Banks The carrying amount of these assets is a reasonable estimate of fair value based on the short-term nature of these assets. Investment Securities Fair value estimates for the investment securities were determined by using quoted market prices for identical securities in active markets when available. For certain securities where quoted market prices were not readily available, the Company utilized a third-party pricing service. The third-party pricing service used a variety of methods that incorporated relevant market data to arrive at an estimate of what a buyer in the marketplace would have paid for these securities under current market conditions. These methods included the use of quoted prices for similar securities, inactive transaction prices and broker quotes, as well as discounted cash flow methodologies. Loans Held for Sale Fair value estimates for loans held for sale were valued based on quoted market prices, where available, and by comparison to instruments with similar collateral and risk profiles. Loans Fair value estimates for loans were based on discounted cash flow methodologies that considered credit loss and prepayment expectations, market interest rates and other market factors, such as liquidity, from the perspective of a market participant. Loan cash flows were generated on an individual loan basis. The probability of default, loss given default, exposure at default and prepayment assumptions were the key factors in determining expected credit losses which were embedded into the estimated cash flows. Core Deposit Benefits This intangible asset represents the economic benefit created by certain client deposit relationships by way of favorable funding relative to alternative sources. The fair value was estimated utilizing the after-tax cost savings method of the income approach. Appropriate consideration was given to deposit costs including cost of funds, net maintenance costs or servicing costs, client retention and alternative funding source costs at the time of acquisition. The discount rate used was derived taking into account the estimated cost of equity, risk-free return rate and risk premium for the market and specific risk related to the asset’s cash flows. Other Assets Included in other assets are tax-advantaged investments promoting affordable housing. The fair value of these investments was estimated based on the value of the expected future benefits. Deposits and Borrowed Funds |
Accounting for Transfers and Servicing of Financial Assets | In accordance with the accounting guidance for asset transfers, the Company considers any ongoing involvement with transferred assets in determining whether the assets can be derecognized from the balance sheet.For loans sold under participation agreements, the Company also considers whether the terms of the loan participation agreement meet the accounting definition of a participating interest. With the exception of servicing and certain performance-based guarantees, the Company’s continuing involvement with financial assets sold is minimal and generally limited to market customary representation and warranty clauses. Any gain or loss on sale depends on the previous carrying amount of the transferred financial assets, the consideration received, and any liabilities incurred in exchange for the transferred assets. Upon transfer, any servicing assets and other interests that continue to be held by the Company are initially recognized at fair value. |
Variable Interest Entities | The Company is not required to consolidate VIEs in which it has concluded it does not have a controlling financial interest, and thus is not the primary beneficiary. In such cases, the Company does not have both the power to direct the entities’ most significant activities and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. |
Netting Arrangements for Certain Financial Instruments | The Company’s derivative portfolio consists of bilateral over-the-counter trades, certain interest rate derivatives and credit contracts required to be centrally cleared through clearinghouses per current regulations, and exchange-traded positions which may include U.S. Treasury and Eurodollar futures or options on U.S. Treasury futures. Of the Company’s $1.2 trillion total notional amount of derivative positions at December 31, 2023, $548.9 billion related to bilateral over-the-counter trades, $660.4 billion related to those centrally cleared through clearinghouses and $1.9 billion related to those that were exchange-traded. The Company’s derivative contracts typically include offsetting rights (referred to as netting arrangements), and depending on expected volume, credit risk, and counterparty preference, collateral maintenance may be required. For all derivatives under collateral support arrangements, fair value is determined daily and, depending on the collateral maintenance requirements, the Company and a counterparty may receive or deliver collateral, based upon the net fair value of all derivative positions between the Company and the counterparty. Collateral is typically cash, but securities may be allowed under collateral arrangements with certain counterparties. Receivables and payables related to cash collateral are included in other assets and other liabilities on the Consolidated Balance Sheet, along with the related derivative asset and liability fair values. Any securities pledged to counterparties as collateral remain on the Consolidated Balance Sheet. Securities received from counterparties as collateral are not recognized on the Consolidated Balance Sheet, unless the counterparty defaults. In general, securities used as collateral can be sold, repledged or otherwise used by the party in possession. No restrictions exist on the use of cash collateral by either party. Refer to Note 20 for further discussion of the Company’s derivatives, including collateral arrangements. As part of the Company’s treasury and broker-dealer operations, the Company executes transactions that are treated as securities sold under agreements to repurchase or securities purchased under agreements to resell, both of which are accounted for as collateralized financings. Securities sold under agreements to repurchase include repurchase agreements and securities loaned transactions. Securities purchased under agreements to resell include reverse repurchase agreements and securities borrowed transactions. For securities sold under agreements to repurchase, the Company records a liability for the cash received, which is included in short-term borrowings on the Consolidated Balance Sheet. For securities purchased under agreements to resell, the Company records a receivable for the cash paid, which is included in other assets on the Consolidated Balance Sheet. Securities transferred to counterparties under repurchase agreements and securities loaned transactions continue to be recognized on the Consolidated Balance Sheet, are measured at fair value, and are included in investment securities or other assets. Securities received from counterparties under reverse repurchase agreements and securities borrowed transactions are not recognized on the Consolidated Balance Sheet unless the counterparty defaults. The securities transferred under repurchase and reverse repurchase transactions typically are U.S. Treasury and agency securities, residential agency mortgage-backed securities, corporate debt securities or asset-backed securities. The securities loaned or borrowed typically are corporate debt securities traded by the Company’s primary broker-dealer subsidiary. In general, the securities transferred can be sold, repledged or otherwise used by the party in possession. No restrictions exist on the use of cash collateral by either party. Repurchase/reverse repurchase and securities loaned/borrowed transactions expose the Company to counterparty risk. The Company manages this risk by performing assessments, independent of business line managers, and establishing concentration limits on each counterparty. Additionally, these transactions include collateral arrangements that require the fair values of the underlying securities to be determined daily, resulting in cash being obtained or refunded to counterparties to maintain specified collateral levels. The Company executes its derivative, repurchase/reverse repurchase and securities loaned/borrowed transactions under the respective industry standard agreements. These agreements include master netting arrangements that allow for multiple contracts executed with the same counterparty to be viewed as a single arrangement. This allows for net settlement of a single amount on a daily basis. In the event of default, the master netting arrangement provides for close-out netting, which allows all of these positions with the defaulting counterparty to be terminated and net settled with a single payment amount. |
Fair Values of Assets and Liabilities | The Company uses fair value measurements for the initial recording of certain assets and liabilities, periodic remeasurement of certain assets and liabilities, and disclosures. Derivatives, trading and available-for-sale investment securities, MSRs, certain time deposits and substantially all MLHFS are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as loans held for sale, loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-fair value accounting or impairment write-downs of individual assets. Other financial instruments, such as held-to-maturity investment securities, loans, the majority of time deposits, short-term borrowings and long-term debt, are accounted for at amortized cost. See “Fair Value of Financial Instruments” in this Note for further information on the estimated fair value of these other financial instruments. In accordance with disclosure guidance, certain financial instruments, such as deposits with no defined or contractual maturity, receivables and payables due in one year or less, insurance contracts and equity investments not accounted for at fair value, are excluded from this Note. In addition, refer to Note 3 regarding the fair value of assets and liabilities acquired in the MUB acquisition. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value measurement reflects all of the assumptions that market participants would use in pricing the asset or liability, including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset and the risk of nonperformance. The Company groups its assets and liabilities measured at fair value into a three-level hierarchy for valuation techniques used to measure financial assets and financial liabilities at fair value. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are: • Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 1 includes U.S. Treasury securities, as well as exchange-traded instruments. • Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 includes debt securities that are traded less frequently than exchange-traded instruments and which are typically valued using third party pricing services; derivative contracts and other assets and liabilities, including securities, and certain time deposits, whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data; and MLHFS whose values are determined using quoted prices for similar assets or pricing models with inputs that are observable in the market or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category includes MSRs and certain derivative contracts. Valuation Methodologies The valuation methodologies used by the Company to measure financial assets and liabilities at fair value are described below. In addition, the following section includes an indication of the level of the fair value hierarchy in which the assets or liabilities are classified. Where appropriate, the descriptions include information about the valuation models and key inputs to those models. During the years ended December 31, 2023, 2022 and 2021, there were no significant changes to the valuation techniques used by the Company to measure fair value. Available-For-Sale Investment Securities When quoted market prices for identical securities are available in an active market, these prices are used to determine fair value and these securities are classified within Level 1 of the fair value hierarchy. Level 1 investment securities include U.S. Treasury and exchange-traded securities. For other securities, quoted market prices may not be readily available for the specific securities. When possible, the Company determines fair value based on market observable information, including quoted market prices for similar securities, inactive transaction prices, and broker quotes. These securities are classified within Level 2 of the fair value hierarchy. Level 2 valuations are generally provided by a third-party pricing service. Level 2 investment securities are predominantly agency mortgage-backed securities, certain other asset-backed securities, obligations of state and political subdivisions and agency debt securities. Mortgage Loans Held For Sale MLHFS measured at fair value, for which an active secondary market and readily available market prices exist, are initially valued at the transaction price and are subsequently valued by comparison to instruments with similar collateral and risk profiles. MLHFS are classified within Level 2. Included in mortgage banking revenue were net losses of $46 million, $450 million and $145 million for the years ended December 31, 2023, 2022 and 2021, respectively, from the changes to fair value of these MLHFS under fair value option accounting guidance. Changes in fair value due to instrument specific credit risk were immaterial. Interest income for MLHFS is measured based on contractual interest rates and reported as interest income on the Consolidated Statement of Income. Electing to measure MLHFS at fair value reduces certain timing differences and better matches changes in fair value of these assets with changes in the value of the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting. Time Deposits The Company elects the fair value option to account for certain time deposits that are hedged with derivatives that do not qualify for hedge accounting. Electing to measure these time deposits at fair value reduces certain timing differences and better matches changes in fair value of these deposits with changes in the value of the derivative instruments used to economically hedge them. The time deposits measured at fair value are valued using a discounted cash flow model that utilizes market observable inputs and are classified within Level 2. Included in interest expense on deposits were net gains of $4 million for the year ended December 31, 2023 from the changes in fair value of time deposits under fair value option accounting guidance. Mortgage Servicing Rights MSRs are valued using a discounted cash flow methodology, and are classified within Level 3. The Company determines fair value of the MSRs by projecting future cash flows for different interest rate scenarios using prepayment rates and other assumptions, and discounts these cash flows using a risk adjusted rate based on option adjusted spread levels. There is minimal observable market activity for MSRs on comparable portfolios and, therefore, the determination of fair value requires significant management judgment. Refer to Note 10 for further information on MSR valuation assumptions. Derivatives The majority of derivatives held by the Company are executed over-the-counter or centrally cleared through clearinghouses and are valued using market standard cash flow valuation techniques. The models incorporate inputs, depending on the type of derivative, including interest rate curves, foreign exchange rates and volatility. All derivative values incorporate an assessment of the risk of counterparty nonperformance, measured based on the Company’s evaluation of credit risk including external assessments of credit risk. The Company monitors and manages its nonperformance risk by considering its ability to net derivative positions under master netting arrangements, as well as collateral received or provided under collateral arrangements. Accordingly, the Company has elected to measure the fair value of derivatives, at a counterparty level, on a net basis. The majority of the derivatives are classified within Level 2 of the fair value hierarchy, as the significant inputs to the models, including nonperformance risk, are observable. However, certain derivative transactions are with counterparties where risk of nonperformance cannot be observed in the market and, therefore, the credit valuation adjustments result in these derivatives being classified within Level 3 of the fair value hierarchy. The Company also has other derivative contracts that are created through its operations, including commitments |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Fair Value of the Identifiable Tangible and Intangible Assets and Liabilities | The following table includes the fair value of consideration transferred and the fair value of the identifiable tangible and intangible assets and liabilities from MUB: December 1, 2022 (Dollars in Millions) Acquisition consideration Cash $ 5,500 Market value of shares of common stock 2,014 Total consideration transferred at acquisition close date 7,514 Discounted liability to MUFG (a) 2,944 Total $ 10,458 Fair Value of MUB assets and liabilities Assets Cash and due from banks $ 17,754 Investment securities 22,725 Loans held for sale 2,220 Loans 53,395 Less allowance for loan losses (463) Net loans 52,932 Premises and equipment 646 Other intangible assets (excluding goodwill) 2,808 Other assets 4,764 Total assets $ 103,849 Liabilities Deposits $ 86,110 Short-term borrowings 4,777 Long-term debt 2,584 Other liabilities 2,243 Total liabilities 95,714 Less: Net assets $ 8,135 Goodwill $ 2,323 (a) Represents $3.5 billion of noninterest-bearing additional cash held by MUB upon close of the acquisition to be delivered to MUFG on or prior to December 1, 2027, discounted at the Company’s 5-year unsecured borrowing rate as of the acquisition date, per authoritative accounting guidance. |
Fair Value and Unpaid Principal Balance of the Loans | The following table includes the fair value and unpaid principal balance of the loans from the MUB acquisition: December 1, 2022 (Dollars in Millions) Unpaid Principal Balance Fair Value Commercial $ 11,771 $ 11,366 Commercial real estate 14,397 13,737 Residential mortgages 28,256 26,247 Credit card 299 212 Other retail 1,397 1,370 Total loans $ 56,120 $ 52,932 |
Other Intangible Assets Acquired | Other intangible assets from the MUB acquisition, as of December 1, 2022, consisted of the following: (Dollars in Millions) Weighted-Average Estimated Life Amortization Method Fair Value Mortgage servicing rights — (a) $ 147 Core deposit benefits 10 years Accelerated 2,635 Other 11 years Accelerated 26 Total other intangible assets (excluding goodwill) $ 2,808 (a) |
Financial Results Included in the Consolidated Statement of Income | The following table presents financial results of MUB included in the Consolidated Statement of Income from the date of acquisition through December 31, 2022. (Dollars in Millions) One Month Ended December 31, 2022 Net interest income $ 255 Noninterest income (38) (a) Net income (loss) (562) (a) |
Pro Forma Information | The pro forma information does not necessarily reflect the results that would have occurred had the Company acquired MUB on January 1, 2021. Year Ended December 31 (Dollars in Millions) 2022 2021 Net interest income $ 17,541 $ 14,958 Noninterest income 10,068 11,071 Net income 7,184 7,187 |
Purchase Price of PCD Loans Acquired | The following table provides information about the determination of the purchase price of PCD loans at the acquisition date: December 1, 2022 (Dollars in Millions) Principal balance $ 5,097 Allowance for credit losses at acquisition (463) Non-credit discount (213) Purchase price $ 4,421 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Held-to-Maturity Investment Securities | The amortized cost, gross unrealized holding gains and losses, and fair value of held-to-maturity and available-for-sale investment securities at December 31 were as follows: 2023 2022 (Dollars in Millions) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value Held-to-maturity U.S. Treasury and agencies $ 1,345 $ — $ (35) $ 1,310 $ 1,344 $ — $ (51) $ 1,293 Mortgage-backed securities Residential agency 80,997 6 (9,929) 71,074 85,693 2 (10,810) 74,885 Commercial agency 1,695 6 (5) 1,696 1,703 1 (8) 1,696 Other 8 — — 8 — — — — Total held-to-maturity $ 84,045 $ 12 $ (9,969) $ 74,088 $ 88,740 $ 3 $ (10,869) $ 77,874 Available-for-sale U.S. Treasury and agencies $ 21,768 $ 8 $ (2,234) $ 19,542 $ 24,801 $ 1 $ (2,769) $ 22,033 Mortgage-backed securities Residential agency 28,185 104 (2,211) 26,078 32,060 8 (2,797) 29,271 Commercial Agency 8,703 — (1,360) 7,343 8,736 — (1,591) 7,145 Non-agency 7 — (1) 6 7 — — 7 Asset-backed securities 6,713 25 (14) 6,724 4,356 5 (38) 4,323 Obligations of state and political subdivisions 10,867 36 (914) 9,989 11,484 12 (1,371) 10,125 Other 24 — — 24 6 — — 6 Total available-for-sale, excluding portfolio level basis adjustments 76,267 173 (6,734) 69,706 81,450 26 (8,566) 72,910 Portfolio level basis adjustments (a) 335 — (335) — — — — — Total available-for-sale $ 76,602 $ 173 $ (7,069) $ 69,706 $ 81,450 $ 26 $ (8,566) $ 72,910 (a) Represents fair value hedge basis adjustments related to active portfolio layer method hedges of available-for-sale investment securities, which are not allocated to individual securities in the portfolio. For additional information, refer to Note 20. |
Available-for-Sale Investment Securities | The amortized cost, gross unrealized holding gains and losses, and fair value of held-to-maturity and available-for-sale investment securities at December 31 were as follows: 2023 2022 (Dollars in Millions) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value Held-to-maturity U.S. Treasury and agencies $ 1,345 $ — $ (35) $ 1,310 $ 1,344 $ — $ (51) $ 1,293 Mortgage-backed securities Residential agency 80,997 6 (9,929) 71,074 85,693 2 (10,810) 74,885 Commercial agency 1,695 6 (5) 1,696 1,703 1 (8) 1,696 Other 8 — — 8 — — — — Total held-to-maturity $ 84,045 $ 12 $ (9,969) $ 74,088 $ 88,740 $ 3 $ (10,869) $ 77,874 Available-for-sale U.S. Treasury and agencies $ 21,768 $ 8 $ (2,234) $ 19,542 $ 24,801 $ 1 $ (2,769) $ 22,033 Mortgage-backed securities Residential agency 28,185 104 (2,211) 26,078 32,060 8 (2,797) 29,271 Commercial Agency 8,703 — (1,360) 7,343 8,736 — (1,591) 7,145 Non-agency 7 — (1) 6 7 — — 7 Asset-backed securities 6,713 25 (14) 6,724 4,356 5 (38) 4,323 Obligations of state and political subdivisions 10,867 36 (914) 9,989 11,484 12 (1,371) 10,125 Other 24 — — 24 6 — — 6 Total available-for-sale, excluding portfolio level basis adjustments 76,267 173 (6,734) 69,706 81,450 26 (8,566) 72,910 Portfolio level basis adjustments (a) 335 — (335) — — — — — Total available-for-sale $ 76,602 $ 173 $ (7,069) $ 69,706 $ 81,450 $ 26 $ (8,566) $ 72,910 (a) Represents fair value hedge basis adjustments related to active portfolio layer method hedges of available-for-sale investment securities, which are not allocated to individual securities in the portfolio. For additional information, refer to Note 20. |
Interest Income from Taxable and Non-Taxable Investment Securities | The following table provides information about the amount of interest income from taxable and non-taxable investment securities: Year Ended December 31 (Dollars in Millions) 2023 2022 2021 Taxable $ 4,171 $ 3,081 $ 2,103 Non-taxable 314 297 262 Total interest income from investment securities $ 4,485 $ 3,378 $ 2,365 |
Gross Gains and Losses Realized through Sales of Available-for-Sale Investment Securities | The following table provides information about the amount of gross gains and losses realized through the sales of available-for-sale investment securities: Year Ended December 31 (Dollars in Millions) 2023 2022 2021 Realized gains $ 74 $ 163 $ 122 Realized losses (219) (143) (19) Net realized gains (losses) $ (145) $ 20 $ 103 Income tax expense (benefit) on net realized gains (losses) $ (37) $ 5 $ 26 |
Gross Unrealized Losses and Fair Value of Investment Securities | The following table shows the gross unrealized losses excluding portfolio level basis adjustments and fair value of the Company’s available-for-sale investment securities with unrealized losses, aggregated by investment category and length of time the individual investment securities have been in continuous unrealized loss positions, at December 31, 2023: Less Than 12 Months 12 Months or Greater Total (Dollars in Millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury and agencies $ 874 $ (3) $ 17,270 $ (2,231) $ 18,144 $ (2,234) Mortgage-backed securities Residential agency 519 (8) 21,356 (2,203) 21,875 (2,211) Commercial Agency — — 7,343 (1,360) 7,343 (1,360) Non-agency — — 6 (1) 6 (1) Asset-backed securities 2,235 (14) — — 2,235 (14) Obligations of state and political subdivisions 544 (3) 7,464 (911) 8,008 (914) Other — — 4 — 4 — Total investment securities $ 4,172 $ (28) $ 53,443 $ (6,706) $ 57,615 $ (6,734) |
Amortized Cost, Fair Value and Yield by Maturity Date | The following table provides information about the amortized cost, fair value and yield by maturity date of the investment securities outstanding at December 31, 2023: (Dollars in Millions) Amortized Fair Value Weighted- Weighted-Average Yield (e) Held-to-maturity U.S. Treasury and Agencies Maturing in one year or less $ 50 $ 50 0.3 2.67 % Maturing after one year through five years 1,295 1,260 2.4 2.85 Maturing after five years through ten years — — — — Maturing after ten years — — — — Total $ 1,345 $ 1,310 2.3 2.85 % Mortgage-Backed Securities (a) Maturing in one year or less $ 22 $ 22 0.7 4.43 % Maturing after one year through five years 1,268 1,266 2.5 4.52 Maturing after five years through ten years 75,984 67,094 8.8 2.19 Maturing after ten years 5,418 4,388 10.2 1.91 Total $ 82,692 $ 72,770 8.8 2.21 % Other Maturing in one year or less $ — $ — — — % Maturing after one year through five years 8 8 2.8 2.56 Maturing after five years through ten years — — — — Maturing after ten years — — — — Total $ 8 $ 8 2.8 2.56 % Total held-to-maturity (b) $ 84,045 $ 74,088 8.7 2.22 % Available-for-sale U.S. Treasury and Agencies Maturing in one year or less $ 9 $ 9 0.3 5.28 % Maturing after one year through five years 8,882 8,378 3.7 2.35 Maturing after five years through ten years 11,165 9,827 6.8 2.08 Maturing after ten years 1,712 1,328 10.8 2.02 Total $ 21,768 $ 19,542 5.9 2.19 % Mortgage-Backed Securities (a) Maturing in one year or less $ 83 $ 81 0.8 2.26 % Maturing after one year through five years 11,196 10,860 3.5 3.80 Maturing after five years through ten years 24,455 21,483 7.3 2.76 Maturing after ten years 1,161 1,003 10.9 3.43 Total $ 36,895 $ 33,427 6.3 3.09 % Asset-Backed Securities (a) Maturing in one year or less $ — $ — — — % Maturing after one year through five years 5,834 5,844 1.7 5.05 Maturing after five years through ten years 879 880 5.8 7.15 Maturing after ten years — — — — Total $ 6,713 $ 6,724 2.2 5.33 % Obligations of State and Political Subdivisions (c) (d) Maturing in one year or less $ 225 $ 225 0.4 5.52 % Maturing after one year through five years 3,546 3,536 3.0 4.55 Maturing after five years through ten years 1,453 1,414 7.3 3.86 Maturing after ten years 5,643 4,814 15.3 3.14 Total $ 10,867 $ 9,989 9.9 3.75 % Other Maturing in one year or less $ — $ — — — % Maturing after one year through five years 24 24 1.7 4.51 Maturing after five years through ten years — — — — Maturing after ten years — — — — Total $ 24 $ 24 1.7 4.51 % Total available-for-sale (b) (f) $ 76,267 $ 69,706 6.3 3.12 % (a) Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future prepayments. (b) The weighted-average maturity of total held-to-maturity investment securities was 9.2 years at December 31, 2022, with a corresponding weighted-average yield of 2.18 percent. The weighted-average maturity of total available-for-sale investment securities was 7.4 years at December 31, 2022, with a corresponding weighted-average yield of 2.94 percent. (c) Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to maturity if the security is purchased at par or a discount. (d) Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity date for securities with a fair value equal to or below par. (e) Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent. Yields on investment securities are computed based on amortized cost balances, excluding any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to maturity. (f) Amortized cost excludes portfolio level basis adjustments of $335 million. |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Composition of Loan Portfolio | The composition of the loan portfolio at December 31, by class and underlying specific portfolio type, was as follows: (Dollars in Millions) 2023 2022 Commercial Commercial $ 127,676 $ 131,128 Lease financing 4,205 4,562 Total commercial 131,881 135,690 Commercial Real Estate Commercial mortgages 41,934 43,765 Construction and development 11,521 11,722 Total commercial real estate 53,455 55,487 Residential Mortgages Residential mortgages 108,605 107,858 Home equity loans, first liens 6,925 7,987 Total residential mortgages 115,530 115,845 Credit Card 28,560 26,295 Other Retail Retail leasing 4,135 5,519 Home equity and second mortgages 13,056 12,863 Revolving credit 3,668 3,983 Installment 13,889 14,592 Automobile 9,661 17,939 Total other retail 44,409 54,896 Total loans $ 373,835 $ 388,213 |
Activity in Allowance for Credit Losses by Portfolio Class | Activity in the allowance for credit losses by portfolio class was as follows: (Dollars in Millions) Commercial Commercial Real Estate Residential Mortgages Credit Other Total Balance at December 31, 2022 $ 2,163 $ 1,325 $ 926 $ 2,020 $ 970 $ 7,404 Add Change in accounting principle (a) — — (31) (27) (4) (62) Allowance for acquired credit losses (b) — 127 — — — 127 Provision for credit losses 270 431 41 1,259 274 2,275 Deduct Loans charged-off 389 281 129 1,014 478 2,291 Less recoveries of loans charged-off (75) (18) (20) (165) (108) (386) Net loan charge-offs (recoveries) 314 263 109 849 370 1,905 Balance at December 31, 2023 $ 2,119 $ 1,620 $ 827 $ 2,403 $ 870 $ 7,839 Balance at December 31, 2021 $ 1,849 $ 1,123 $ 565 $ 1,673 $ 945 $ 6,155 Add Allowance for acquired credit losses (b) 163 87 36 45 5 336 Provision for credit losses (c) 378 152 302 826 319 1,977 Deduct Loans charged-off (d) 319 54 13 696 418 1,500 Less recoveries of loans charged-off (92) (17) (36) (172) (120) (437) Net loan charge-offs (recoveries) 227 37 (23) 524 298 1,063 Other Changes — — — — (1) (1) Balance at December 31, 2022 $ 2,163 $ 1,325 $ 926 $ 2,020 $ 970 $ 7,404 Balance at December 31, 2020 $ 2,423 $ 1,544 $ 573 $ 2,355 $ 1,115 $ 8,010 Add Provision for credit losses (471) (419) (40) (170) (73) (1,173) Deduct Loans charged-off 222 29 18 686 253 1,208 Less recoveries of loans charged-off (119) (27) (50) (174) (156) (526) Net loan charge-offs (recoveries) 103 2 (32) 512 97 682 Balance at December 31, 2021 $ 1,849 $ 1,123 $ 565 $ 1,673 $ 945 $ 6,155 (a) Effective January 1, 2023, the Company adopted accounting guidance which removed the separate recognition and measurement of troubled debt restructurings. (b) Represents allowance for credit deteriorated and charged-off loans acquired from MUB. (c) Includes $662 million of provision for credit losses related to the acquisition of MUB. (d) |
Credit Quality Indicators | The following table provides a summary of loans charged-off during the year ended December 31, 2023, by portfolio class and year of origination: (Dollars in Millions) Commercial Commercial Real Estate (a) Residential Mortgages (b) Credit Card (c) Other Retail (d) Total Loans Originated in 2023 $ 48 $ 63 $ — $ — $ 57 $ 168 Originated in 2022 63 88 1 — 130 282 Originated in 2021 30 69 6 — 83 188 Originated in 2020 17 2 8 — 38 65 Originated in 2019 15 3 16 — 31 65 Originated prior to 2019 53 56 98 — 31 238 Revolving 163 — — 1,014 80 1,257 Revolving converted to term — — — — 28 28 Total charge-offs $ 389 $ 281 $ 129 $ 1,014 $ 478 $ 2,291 Note: Year of origination is based on the origination date of a loan, or for existing loans the date when the maturity date, pricing or commitment amount is amended. (a) Includes $91 million in charge-offs related to uncollectible amounts on acquired loans. (b) Includes $117 million of charge-offs related to balance sheet repositioning and capital management actions. (c) Predominantly all credit card loans are considered revolving loans. Includes an immaterial amount of charge-offs related to revolving converted to term loans. (d) Includes $192 million of charge-offs related to balance sheet repositioning and capital management actions. The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating: December 31, 2023 December 31, 2022 Criticized Criticized (Dollars in Millions) Pass Special Mention Classified (a) Total Criticized Total Pass Special Mention Classified (a) Total Criticized Total Commercial Originated in 2023 $ 43,023 $ 827 $ 856 $ 1,683 $ 44,706 $ — $ — $ — $ — $ — Originated in 2022 40,076 274 632 906 40,982 61,229 245 315 560 61,789 Originated in 2021 9,219 117 154 271 9,490 26,411 159 78 237 26,648 Originated in 2020 3,169 92 71 163 3,332 7,049 68 138 206 7,255 Originated in 2019 1,340 18 103 121 1,461 3,962 51 210 261 4,223 Originated prior to 2019 3,963 12 106 118 4,081 8,986 64 129 193 9,179 Revolving (b) 26,213 362 1,254 1,616 27,829 25,888 344 364 708 26,596 Total commercial 127,003 1,702 3,176 4,878 131,881 133,525 931 1,234 2,165 135,690 Commercial real estate Originated in 2023 8,848 465 2,206 2,671 11,519 — — — — — Originated in 2022 11,831 382 1,141 1,523 13,354 14,527 206 519 725 15,252 Originated in 2021 9,235 500 385 885 10,120 13,565 171 99 270 13,835 Originated in 2020 3,797 51 87 138 3,935 6,489 97 117 214 6,703 Originated in 2019 4,749 336 359 695 5,444 6,991 251 304 555 7,546 Originated prior to 2019 6,010 122 260 382 6,392 9,639 138 875 1,013 10,652 Revolving 2,613 6 70 76 2,689 1,489 — 10 10 1,499 Revolving converted to term 2 — — — 2 — — — — — Total commercial real estate 47,085 1,862 4,508 6,370 53,455 52,700 863 1,924 2,787 55,487 Residential mortgages (c) Originated in 2023 9,734 — 5 5 9,739 — — — — — Originated in 2022 29,146 — 17 17 29,163 28,452 — — — 28,452 Originated in 2021 36,365 — 16 16 36,381 39,527 — 7 7 39,534 Originated in 2020 14,773 — 9 9 14,782 16,556 — 8 8 16,564 Originated in 2019 5,876 — 16 16 5,892 7,222 — 18 18 7,240 Originated prior to 2019 19,326 — 246 246 19,572 23,658 — 397 397 24,055 Revolving 1 — — — 1 — — — — — Total residential mortgages 115,221 — 309 309 115,530 115,415 — 430 430 115,845 Credit card (d) 28,185 — 375 375 28,560 26,063 — 232 232 26,295 Other retail Originated in 2023 5,184 — 4 4 5,188 — — — — — Originated in 2022 5,607 — 12 12 5,619 9,563 — 6 6 9,569 Originated in 2021 10,398 — 15 15 10,413 15,352 — 12 12 15,364 Originated in 2020 4,541 — 9 9 4,550 7,828 — 11 11 7,839 Originated in 2019 1,793 — 7 7 1,800 3,418 — 13 13 3,431 Originated prior to 2019 2,215 — 13 13 2,228 3,689 — 31 31 3,720 Revolving 13,720 — 104 104 13,824 14,029 — 98 98 14,127 Revolving converted to term 735 — 52 52 787 800 — 46 46 846 Total other retail 44,193 — 216 216 44,409 54,679 — 217 217 54,896 Total loans $ 361,687 $ 3,564 $ 8,584 $ 12,148 $ 373,835 $ 382,382 $ 1,794 $ 4,037 $ 5,831 $ 388,213 Total outstanding commitments $ 762,869 $ 5,053 $ 10,470 $ 15,523 $ 778,392 $ 772,804 $ 2,825 $ 5,041 $ 7,866 $ 780,670 Note: Year of origination is based on the origination date of a loan, or for existing loans the date when the maturity date, pricing or commitment amount is amended. Predominantly all current year and nearer term loan origination years for criticized loans relate to existing loans that have had recent maturity date, pricing or commitment amount amendments. (a) Classified rating on consumer loans primarily based on delinquency status. (b) Includes an immaterial amount of revolving converted to term loans. (c) At December 31, 2023, $2.0 billion of GNMA loans 90 days or more past due and $1.2 billion of modified GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs were classified with a pass rating, compared with $2.2 billion and $1.0 billion at December 31, 2022, respectively. (d) |
Loans by Portfolio Class, Including Delinquency Status | The following table provides a summary of loans by portfolio class, including the delinquency status of those that continue to accrue interest, and those that are nonperforming: Accruing (Dollars in Millions) Current 30-89 Days Past Due 90 Days or More Past Due Nonperforming (b) Total December 31, 2023 Commercial $ 130,925 $ 464 $ 116 $ 376 $ 131,881 Commercial real estate 52,619 55 4 777 53,455 Residential mortgages (a) 115,067 169 136 158 115,530 Credit card 27,779 406 375 — 28,560 Other retail 43,926 278 67 138 44,409 Total loans $ 370,316 $ 1,372 $ 698 $ 1,449 $ 373,835 December 31, 2022 Commercial $ 135,077 $ 350 $ 94 $ 169 $ 135,690 Commercial real estate 55,057 87 5 338 55,487 Residential mortgages (a) 115,224 201 95 325 115,845 Credit card 25,780 283 231 1 26,295 Other retail 54,382 309 66 139 54,896 Total loans $ 385,520 $ 1,230 $ 491 $ 972 $ 388,213 (a) At December 31, 2023, $595 million of loans 30–89 days past due and $2.0 billion of loans 90 days or more past due purchased and that could be purchased from Government National Mortgage Association (“GNMA”) mortgage pools under delinquent loan repurchase options whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current, compared with $647 million and $2.2 billion at December 31, 2022, respectively. (b) |
Loans Modified | The following table provides a summary of loan balances at December 31, 2023, which were modified during the year ended December 31, 2023, by portfolio class and modification granted: (Dollars in Millions) Interest Rate Reduction Payment Delay Term Extension Multiple Modifications (a) Total Modifications Percent of Class Total Commercial $ 46 $ — $ 286 $ 33 $ 365 .3 % Commercial real estate — — 645 72 717 1.3 Residential mortgages (b) — 234 26 20 280 .2 Credit card 349 1 — — 350 1.2 Other retail 7 21 144 3 175 .4 Total loans, excluding loans purchased from GNMA mortgage pools 402 256 1,101 128 1,887 .5 Loans purchased from GNMA mortgage pools (b) — 1,263 255 321 1,839 1.6 Total loans $ 402 $ 1,519 $ 1,356 $ 449 $ 3,726 1.0 % (a) Includes $329 million of total loans receiving a payment delay and term extension, $112 million of total loans receiving an interest rate reduction and term extension and $8 million of total loans receiving an interest rate reduction, payment delay and term extension for the year ended December 31, 2023. (b) Percent of class total amounts expressed as a percent of total residential mortgage loan balances. The following table summarizes the effects of loan modifications made to borrowers on loans modified during the year ended December 31, 2023: (Dollars in Millions) Weighted-Average Interest Rate Reduction Weighted-Average Months of Term Extension Commercial 13.0 % 12 Commercial real estate 3.5 11 Residential mortgages 1.2 98 Credit card 15.4 — Other retail 7.9 4 Loans purchased from GNMA mortgage pools .6 103 Note: The weighted-average payment deferral for all portfolio classes was less than $1 million for the year ended December 31, 2023. Forbearance payments are required to be paid at the end of the original term loan. The following table provides a summary of loan balances at December 31, 2023, which were modified during the year ended December 31, 2023, by portfolio class and delinquency status: (Dollars in Millions) Current 30-89 Days Past Due 90 Days or More Past Due Total Commercial $ 255 $ 12 $ 98 $ 365 Commercial real estate 524 — 193 717 Residential mortgages (a) 1,385 24 16 1,425 Credit card 251 67 32 350 Other retail 133 21 8 162 Total loans $ 2,548 $ 124 $ 347 $ 3,019 (a) At December 31, 2023, $372 million of loans 30-89 days past due and $175 million of loans 90 days or more past due purchased and that could be purchased from GNMA mortgage pools under delinquent loan repurchase options whose payments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current. The following table provides a summary of loans modified as troubled debt restructurings for the years ended December 31, by portfolio class: (Dollars in Millions) Number of Loans Pre-Modification Outstanding Loan Balance Post-Modification Outstanding Loan Balance 2022 Commercial 2,259 $ 148 $ 134 Commercial real estate 75 50 47 Residential mortgages 1,699 475 476 Credit card 44,470 243 246 Other retail 2,514 89 85 Total loans, excluding loans purchased from GNMA mortgage pools 51,017 1,005 988 Loans purchased from GNMA mortgage pools 1,640 226 230 Total loans 52,657 $ 1,231 $ 1,218 2021 Commercial 2,156 $ 140 $ 127 Commercial real estate 112 193 179 Residential mortgages 977 329 328 Credit card 25,297 144 146 Other retail 2,576 74 67 Total loans, excluding loans purchased from GNMA mortgage pools 31,118 880 847 Loans purchased from GNMA mortgage pools 2,311 334 346 Total loans 33,429 $ 1,214 $ 1,193 |
Loans Modified During the year that Defaulted | The following table provides a summary of loans that defaulted (fully or partially charged-off or became 90 days or more past due) that were modified during the year ended December 31, 2023. (Dollars in Millions) Interest Rate Reduction Payment Delay Term Extension Multiple Modifications (a) Commercial $ 7 $ — $ — $ — Commercial real estate — — 1 — Residential mortgages — 8 2 1 Credit card 35 — — — Other retail 1 1 11 — Total loans, excluding loans purchased from GNMA mortgage pools 43 9 14 1 Loans purchased from GNMA mortgage pools — 67 30 37 Total loans $ 43 $ 76 $ 44 $ 38 (a) |
Loans Modified as Troubled Debt Restructurings that Defaulted | The following table provides a summary of troubled debt restructured loans that defaulted (fully or partially charged-off or became 90 days or more past due) for the years ended December 31, that were modified as troubled debt restructurings within 12 months previous to default: (Dollars in Millions) Number of Loans Amount Defaulted 2022 Commercial 767 $ 24 Commercial real estate 20 11 Residential mortgages 235 28 Credit card 7,904 42 Other retail 307 5 Total loans, excluding loans purchased from GNMA mortgage pools 9,233 110 Loans purchased from GNMA mortgage pools 282 59 Total loans 9,515 $ 169 2021 Commercial 1,084 $ 32 Commercial real estate 16 7 Residential mortgages 81 9 Credit card 7,700 43 Other retail 714 11 Total loans, excluding loans purchased from GNMA mortgage pools 9,595 102 Loans purchased from GNMA mortgage pools 176 26 Total loans 9,771 $ 128 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Components of Net Investment in Sales-Type and Direct Financing Leases | The components of the net investment in sales-type and direct financing leases, at December 31, were as follows: (Dollars in Millions) 2023 2022 Lease receivables $ 7,239 $ 8,731 Unguaranteed residual values accruing to the lessor’s benefit 1,082 1,323 Total net investment in sales-type and direct financing leases $ 8,321 $ 10,054 |
Schedule of Contractual Future Lease Payments to be Received for Sales-Type and Direct Financing Leases | The contractual future lease payments to be received by the Company, at December 31, 2023, were as follows: (Dollars in Millions) Sales-type and Direct Financing Leases Operating Leases 2024 $ 3,069 $ 138 2025 2,182 110 2026 1,333 66 2027 690 42 2028 260 27 Thereafter 369 57 Total lease payments 7,903 $ 440 Amounts representing interest (664) Lease receivables $ 7,239 |
Schedule of Contractual Future Lease Payments to be Received for Operating Leases | The contractual future lease payments to be received by the Company, at December 31, 2023, were as follows: (Dollars in Millions) Sales-type and Direct Financing Leases Operating Leases 2024 $ 3,069 $ 138 2025 2,182 110 2026 1,333 66 2027 690 42 2028 260 27 Thereafter 369 57 Total lease payments 7,903 $ 440 Amounts representing interest (664) Lease receivables $ 7,239 |
Schedule of Amounts Related to Assets Leased | The following table presents amounts relevant to the Company’s assets leased for use in its operations for the years ended December 31: (Dollars in Millions) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 409 $ 294 $ 288 Operating cash flows from finance leases 7 4 5 Financing cash flows from finance leases 49 14 12 Right of use assets obtained in exchange for new operating lease liabilities 230 239 164 Right of use assets obtained in exchange for new finance lease liabilities 25 91 75 The following table presents the weighted-average remaining lease terms and discount rates of the Company’s assets leased for use in its operations at December 31: 2023 2022 Weighted-average remaining lease term of operating leases (in years) 6.4 6.8 Weighted-average remaining lease term of finance leases (in years) 8.3 8.5 Weighted-average discount rate of operating leases 3.7 % 3.3 % Weighted-average discount rate of finance leases 7.7 % 7.9 % |
Schedule of Contractual Future Lease Obligations for Operating Leases | The contractual future lease obligations of the Company at December 31, 2023, were as follows: (Dollars in Millions) Operating Leases Finance 2024 $ 377 $ 41 2025 295 38 2026 245 36 2027 196 22 2028 144 8 Thereafter 360 23 Total lease payments 1,617 168 Amounts representing interest (211) (18) Lease liabilities $ 1,406 $ 150 |
Schedule of Contractual Future Lease Obligations for Finance Leases | The contractual future lease obligations of the Company at December 31, 2023, were as follows: (Dollars in Millions) Operating Leases Finance 2024 $ 377 $ 41 2025 295 38 2026 245 36 2027 196 22 2028 144 8 Thereafter 360 23 Total lease payments 1,617 168 Amounts representing interest (211) (18) Lease liabilities $ 1,406 $ 150 |
Accounting for Transfers and _2
Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table provides a summary of investments in community development and tax-advantaged VIEs that the Company has not consolidated: At December 31 (Dollars in Millions) 2023 2022 Investment carrying amount $ 6,659 $ 5,452 Unfunded capital and other commitments 3,619 2,416 Maximum exposure to loss 9,002 9,761 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment at December 31 consisted of the following: (Dollars in Millions) 2023 2022 Land $ 515 $ 535 Buildings and improvements 3,239 3,296 Furniture, fixtures and equipment 3,013 3,485 Right of use assets on operating leases 1,149 1,296 Right of use assets on finance leases 275 269 Construction in progress 68 46 8,259 8,927 Less accumulated depreciation and amortization (4,636) (5,069) Total $ 3,623 $ 3,858 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Changes in Fair Value of Capitalized MSRs | Changes in fair value of capitalized MSRs are summarized as follows: (Dollars in Millions) 2023 2022 2021 Balance at beginning of period $ 3,755 $ 2,953 $ 2,210 Rights purchased 5 156 42 Rights capitalized 373 590 1,136 Rights sold (a) (440) (255) 2 Changes in fair value of MSRs Due to fluctuations in market interest rates (b) 66 804 272 Due to revised assumptions or models (c) 12 (29) (196) Other changes in fair value (d) (394) (464) (513) Balance at end of period $ 3,377 $ 3,755 $ 2,953 (a) MSRs sold include those having a negative fair value, resulting from the loans being severely delinquent. (b) Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits. (c) Includes changes in MSR value not caused by changes in market interest rates, such as changes in assumed cost to service, ancillary income and option adjusted spread, as well as the impact of any model changes. (d) |
Sensitivity to Changes in Interest Rates of the Fair Value of MSR Portfolio and Related Derivative Instruments | The estimated sensitivity to changes in interest rates of the fair value of the MSR portfolio and the related derivative instruments as of December 31 follows: 2023 2022 (Dollars in Millions) Down Down Down Up Up Up Down Down Down Up Up Up MSR portfolio $ (370) $ (173) $ (84) $ 77 $ 147 $ 268 $ (334) $ (153) $ (73) $ 66 $ 125 $ 224 Derivative instrument hedges 381 178 86 (79) (152) (289) 337 153 73 (67) (127) (236) Net sensitivity $ 11 $ 5 $ 2 $ (2) $ (5) $ (21) $ 3 $ — $ — $ (1) $ (2) $ (12) |
MSRs and Related Characteristics by Portfolio | A summary of the Company’s MSRs and related characteristics by portfolio as of December 31 follows: 2023 2022 (Dollars in Millions) HFA Government Conventional (d) Total HFA Government Conventional (d) Total Servicing portfolio (a) $ 48,286 $ 25,996 $ 151,056 $ 225,338 $ 44,071 $ 23,141 $ 172,541 $ 239,753 Fair value $ 769 $ 507 $ 2,101 $ 3,377 $ 725 $ 454 $ 2,576 $ 3,755 Value (bps) (b) 159 195 139 150 165 196 149 157 Weighted-average servicing fees (bps) 36 44 26 30 36 42 27 30 Multiple (value/servicing fees) 4.45 4.41 5.41 5.00 4.56 4.69 5.52 5.20 Weighted-average note rate 4.56 % 4.23 % 3.81 % 4.02 % 4.16 % 3.81 % 3.52 % 3.67 % Weighted-average age (in years) 4.3 5.5 4.3 4.4 4.0 5.7 3.7 3.9 Weighted-average expected prepayment (constant prepayment rate) 10.5 % 11.1 % 9.1 % 9.6 % 7.4 % 8.5 % 7.8 % 7.8 % Weighted-average expected life (in years) 7.2 6.5 7.0 7.0 8.8 7.6 7.5 7.7 Weighted-average option adjusted spread (c) 5.4 % 5.9 % 4.6 % 4.9 % 7.6 % 6.9 % 5.1 % 5.8 % (a) Represents principal balance of mortgages having corresponding MSR asset. (b) Calculated as fair value divided by the servicing portfolio. (c) Option adjusted spread is the incremental spread added to the risk-free rate to reflect optionality and other risk inherent in the MSRs. (d) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets consisted of the following: At December 31 (Dollars in Millions) 2023 2022 Goodwill $ 12,489 $ 12,373 Merchant processing contracts 124 155 Core deposit benefits 2,134 2,706 Mortgage servicing rights 3,377 3,755 Trust relationships 41 50 Other identified intangibles 408 489 Total $ 18,573 $ 19,528 |
Aggregate Amortization Expense | Aggregate amortization expense consisted of the following: Year Ended December 31 (Dollars in Millions) 2023 2022 2021 Merchant processing contracts $ 31 $ 38 $ 45 Core deposit benefits 481 53 15 Trust relationships 10 12 10 Other identified intangibles 114 112 89 Total $ 636 $ 215 $ 159 |
Estimated Amortization Expense | The estimated amortization expense for the next five years is as follows: (Dollars in Millions) 2024 $ 566 2025 484 2026 415 2027 344 2028 281 |
Changes in Carrying Value of Goodwill | The following table reflects the changes in the carrying value of goodwill for the years ended December 31, 2023, 2022 and 2021: (Dollars in Millions) Wealth, Corporate, Commercial and Institutional Banking Consumer and Business Banking Payment Services Treasury and Corporate Support Consolidated Company Balance at December 31, 2020 $ 3,266 $ 3,475 $ 3,177 $ — $ 9,918 Goodwill acquired 144 35 192 — 371 Foreign exchange translation and other 263 (265) (25) — (27) Balance at December 31, 2021 $ 3,673 $ 3,245 $ 3,344 $ — $ 10,262 Goodwill acquired 918 1,220 11 — 2,149 Foreign exchange translation and other (2) — (36) — (38) Balance at December 31, 2022 $ 4,589 $ 4,465 $ 3,319 $ — $ 12,373 Goodwill acquired 235 (139) — — 96 Foreign exchange translation and other 1 — 19 — 20 Balance at December 31, 2023 $ 4,825 $ 4,326 $ 3,338 $ — $ 12,489 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Composition of Deposits | The composition of deposits at December 31 was as follows: (Dollars in Millions) 2023 2022 Noninterest-bearing deposits $ 89,989 $ 137,743 Interest-bearing deposits Interest checking 127,453 134,491 Money market savings 199,378 148,014 Savings accounts 43,219 71,782 Time deposits 52,273 32,946 Total interest-bearing deposits 422,323 387,233 Total deposits $ 512,312 $ 524,976 |
Maturities of Time Deposits Outstanding | The maturities of time deposits outstanding at December 31, 2023 were as follows: (Dollars in Millions) 2024 $ 44,570 2025 6,448 2026 798 2027 252 2028 197 Thereafter 8 Total $ 52,273 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Short-Term Borrowings | Short-term borrowings at December 31 consisted of the following: (Dollars in Millions) 2023 2022 Federal funds purchased $ 248 $ 226 Securities sold under agreements to repurchase 3,576 1,431 Commercial paper 7,773 8,145 Other short-term borrowings 3,682 21,414 (a) Total $ 15,279 $ 31,216 (a) Balance primarily includes short-term FHLB advances. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | Long-term debt (debt with original maturities of more than one year) at December 31 consisted of the following: (Dollars in Millions) Rate Type Rate (a) Maturity Date 2023 2022 U.S. Bancorp (Parent Company) Subordinated notes Fixed 3.600 % 2024 $ 1,000 $ 1,000 Fixed 7.500 % 2026 199 199 Fixed 3.100 % 2026 1,000 1,000 Fixed 3.000 % 2029 1,000 1,000 Fixed 4.967 % 2033 1,300 1,300 Fixed 2.491 % 2036 1,300 1,300 Medium-term notes Fixed .850% - 6.787% 2024 - 2034 26,618 18,468 Other (b) 1,915 2,716 Subtotal 34,332 26,983 Subsidiaries Federal Home Loan Bank advances Fixed 1.860% - 8.250% 2025 - 2026 9,051 2,051 Floating 6.080% - 6.100% 2025 - 2026 3,000 3,000 Bank notes Fixed 2.050% - 5.550% 2025 - 2032 2,289 4,800 Floating —% - 5.398% 2046 - 2062 1,324 1,352 Other (c) 1,484 1,643 Subtotal 17,148 12,846 Total $ 51,480 $ 39,829 (a) Weighted-average interest rates of medium-term notes, Federal Home Loan Bank advances and bank notes were 3.89 percent, 4.94 percent and 3.27 percent, respectively. (b) Includes $2.1 billion and $2.9 billion at December 31, 2023 and 2022, respectively, of discounted noninterest-bearing additional cash received by the Company upon close of the MUB acquisition to be delivered to MUFG on or prior to December 1, 2027, discounted at the Company’s 5-year unsecured borrowing rate as of the acquisition date, as well as debt issuance fees and unrealized gains and losses and deferred amounts relating to derivative instruments. (c) Includes consolidated community development and tax-advantaged investment VIEs, finance lease obligations, debt issuance fees, and unrealized gains and losses and deferred amounts relating to derivative instruments. |
Maturities of Long-term Debt | Maturities of long-term debt outstanding at December 31, 2023, were: (Dollars in Millions) Parent Company Consolidated 2024 $ 5,475 $ 6,663 2025 2,030 6,559 2026 3,906 13,381 2027 4,763 4,796 2028 3,824 3,835 Thereafter 14,334 16,246 Total $ 34,332 $ 51,480 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Shares Issued and Outstanding and Carrying Amount of Preferred Stock | The number of shares issued and outstanding and the carrying amount of each outstanding series of the Company’s preferred stock at December 31 were as follows: 2023 2022 (Dollars in Millions) Shares Liquidation Discount Carrying Shares Liquidation Discount Carrying Series A 12,510 $ 1,251 $ 145 $ 1,106 12,510 $ 1,251 $ 145 $ 1,106 Series B 40,000 1,000 — 1,000 40,000 1,000 — 1,000 Series J 40,000 1,000 7 993 40,000 1,000 7 993 Series K 23,000 575 10 565 23,000 575 10 565 Series L 20,000 500 14 486 20,000 500 14 486 Series M 30,000 750 21 729 30,000 750 21 729 Series N 60,000 1,500 8 1,492 60,000 1,500 8 1,492 Series O 18,000 450 13 437 18,000 450 13 437 Total preferred stock (a) 243,510 $ 7,026 $ 218 $ 6,808 243,510 $ 7,026 $ 218 $ 6,808 (a) The par value of all shares issued and outstanding at December 31, 2023 and 2022, was $1.00 per share. |
Common Stock Repurchased | The following table summarizes the Company’s common stock repurchased in each of the last three years: (Dollars and Shares in Millions) Shares Value 2023 1 $ 62 2022 1 69 2021 28 1,556 |
Reconciliation of Accumulated Other Comprehensive Income (Loss) | The reconciliation of the transactions affecting accumulated other comprehensive income (loss) included in shareholders’ equity for the years ended December 31, is as follows: (Dollars in Millions) Unrealized Gains (Losses) on Investment Securities Available-For-Sale Unrealized Gains (Losses) on Investment Securities Transferred From Available-For-Sale to Held-To-Maturity Unrealized Gains (Losses) on Derivative Hedges Unrealized Gains (Losses) on Retirement Plans Foreign Currency Translation Total 2023 Balance at beginning of period $ (6,378) $ (3,933) $ (114) $ (939) $ (43) $ (11,407) Changes in unrealized gains (losses) 1,500 — (252) (262) — 986 Foreign currency translation adjustment (a) — — — — 21 21 Reclassification to earnings of realized (gains) losses 145 530 80 (7) — 748 Applicable income taxes (418) (134) 44 70 (6) (444) Balance at end of period $ (5,151) $ (3,537) $ (242) $ (1,138) $ (28) $ (10,096) 2022 Balance at beginning of period $ 540 $ (935) $ (85) $ (1,426) $ (37) $ (1,943) Changes in unrealized gains (losses) (13,656) — (75) 526 — (13,205) Transfer of securities from available-for-sale to held-to-maturity 4,413 (4,413) — — — — Foreign currency translation adjustment (a) — — — — (10) (10) Reclassification to earnings of realized (gains) losses (20) 400 36 128 — 544 Applicable income taxes 2,345 1,015 10 (167) 4 3,207 Balance at end of period $ (6,378) $ (3,933) $ (114) $ (939) $ (43) $ (11,407) 2021 Balance at beginning of period $ 2,417 $ — $ (189) $ (1,842) $ (64) $ 322 Changes in unrealized gains and losses (3,698) — 125 400 — (3,173) Transfer of securities from available-for-sale to held-to-maturity 1,289 (1,289) — — — — Foreign currency translation adjustment (a) — — — — 35 35 Reclassification to earnings of realized (gains) losses (103) 36 14 157 — 104 Applicable income taxes 635 318 (35) (141) (8) 769 Balance at end of period $ 540 $ (935) $ (85) $ (1,426) $ (37) $ (1,943) (a) Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges. |
Impact to Net Income for Items Reclassified out of Accumulated Other Comprehensive Income into Earnings | Additional detail about the impact to net income for items reclassified out of accumulated other comprehensive income (loss) and into earnings for the years ended December 31 is as follows: Impact to Net Income Affected Line Item in the Consolidated Statement of Income (Dollars in Millions) 2023 2022 2021 Unrealized gains (losses) on investment securities available-for-sale Realized gains (losses) on sale of investment securities $ (145) $ 20 $ 103 Securities gains (losses), net 37 (5) (26) Applicable income taxes (108) 15 77 Net-of-tax Unrealized gains (losses) on investment securities transferred from available-for-sale to held-to-maturity Amortization of unrealized gains (losses) (530) (400) (36) Interest income 134 119 9 Applicable income taxes (396) (281) (27) Net-of-tax Unrealized gains (losses) on derivative hedges Realized gains (losses) on derivative hedges (80) (36) (14) Net interest income 21 9 4 Applicable income taxes (59) (27) (10) Net-of-tax Unrealized gains (losses) on retirement plans Actuarial gains (losses) and prior service cost (credit) amortization 7 (128) (157) Other noninterest expense (2) 33 40 Applicable income taxes 5 (95) (117) Net-of-tax Total impact to net income $ (558) $ (388) $ (77) |
Regulatory Capital | The following table provides a summary of the regulatory capital requirements in effect, along with the actual components and ratios for the Company and its bank subsidiaries, at December 31: U.S. Bancorp U.S. Bank National Association MUFG Union Bank National Association (a) (Dollars in Millions) 2023 2022 2023 2022 2022 Basel III Standardized Approach: Common equity tier 1 capital $ 44,947 $ 41,560 $ 58,194 $ 46,681 $ 10,888 Tier 1 capital 52,199 48,813 58,638 47,127 10,888 Total risk-based capital 61,921 59,015 68,817 56,736 11,565 Risk-weighted assets 453,390 496,500 445,829 436,764 58,641 Common equity tier 1 capital as a percent of risk-weighted assets 9.9 % 8.4 % 13.1 % 10.7 % 18.6 % Tier 1 capital as a percent of risk-weighted assets 11.5 9.8 13.2 10.8 18.6 Total risk-based capital as a percent of risk-weighted assets 13.7 11.9 15.4 13.0 19.7 Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) 8.1 7.9 9.2 8.1 10.9 Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure (total leverage exposure ratio) 6.6 6.4 7.5 6.5 10.1 Minimum (b) Well- Capitalized Bank Regulatory Capital Requirements Common equity tier 1 capital as a percent of risk-weighted assets 7.0 % 6.5 % Tier 1 capital as a percent of risk-weighted assets 8.5 8.0 Total risk-based capital as a percent of risk-weighted assets 10.5 10.0 Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) 4.0 5.0 Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure (total leverage exposure ratio) (c) 3.0 3.0 (a) MUFG Union Bank National Association merged into U.S. Bank National Association during 2023. (b) The minimum common equity tier 1 capital, tier 1 capital and total risk-based capital ratio requirements reflect a stress capital buffer requirement of 2.5 percent. Banks and financial services holding companies must maintain minimum capital levels, including a stress capital buffer requirement, to avoid limitations on capital distributions and certain discretionary compensation payments. (c) A minimum "well-capitalized" threshold does not apply to U.S. Bancorp for this ratio as it is not formally defined under applicable banking regulations for bank holding companies. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Components of Earnings Per Share | The components of earnings per share were: Year Ended December 31 (Dollars and Shares in Millions, Except Per Share Data) 2023 2022 2021 Net income attributable to U.S. Bancorp $ 5,429 $ 5,825 $ 7,963 Preferred dividends (350) (296) (303) Impact of preferred stock call and redemption — — (17) (a) Earnings allocated to participating stock awards (28) (28) (38) Net income applicable to U.S. Bancorp common shareholders $ 5,051 $ 5,501 $ 7,605 Average common shares outstanding 1,543 1,489 1,489 Net effect of the exercise and assumed purchase of stock awards — 1 1 Average diluted common shares outstanding 1,543 1,490 1,490 Earnings per common share $ 3.27 $ 3.69 $ 5.11 Diluted earnings per common share $ 3.27 $ 3.69 $ 5.10 (a) |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Changes in Benefit Obligation and Plan Assets | The following table summarizes the changes in benefit obligations and plan assets for the years ended December 31, and the funded status and amounts recognized in the Consolidated Balance Sheet at December 31 for the pension plans: (Dollars in Millions) 2023 2022 Change In Projected Benefit Obligation (a) Benefit obligation at beginning of measurement period $ 6,617 $ 8,030 Service cost 223 280 Interest cost 370 248 Plan amendments (23) 2 Actuarial (gain) loss 398 (2,250) Lump sum settlements (94) (76) Benefit payments (213) (195) Acquisitions — 578 Benefit obligation at end of measurement period (b) $ 7,278 $ 6,617 Change In Fair Value Of Plan Assets Fair value at beginning of measurement period $ 7,375 $ 8,113 Actual return on plan assets 658 (1,245) Employer contributions 28 28 Lump sum settlements (94) (76) Benefit payments (213) (195) Acquisitions (c) 25 750 Fair value at end of measurement period $ 7,779 $ 7,375 Funded Status $ 501 $ 758 Components Of The Consolidated Balance Sheet Noncurrent benefit asset $ 1,072 $ 1,286 Current benefit liability (26) (25) Noncurrent benefit liability (545) (503) Recognized amount $ 501 $ 758 Accumulated Other Comprehensive Income (Loss), Pretax Net actuarial loss $ (1,607) $ (1,326) Net prior service credit 34 12 Recognized amount $ (1,573) $ (1,314) Note: At December 31, 2023 and 2022, the postretirement welfare plans projected benefit obligation was $49 million and $51 million, respectively, the fair value of plan assets was $45 million and $42 million, respectively, and the amount recognized in accumulated other comprehensive income (loss), pretax was $52 million and $62 million, respectively. (a) The increase in the projected benefit obligation for 2023 was primarily due to a lower discount rate, and the decrease for 2022 was primarily due to a higher discount rate partially offset by the acquired MUB benefit obligations. (b) At December 31, 2023 and 2022, the accumulated benefit obligation for all pension plans was $6.8 billion and $5.0 billion, respectively. (c) |
Pension Plans with Benefit Obligations in Excess of Plan Assets | The following table provides information for pension plans with benefit obligations in excess of plan assets at December 31: (Dollars in Millions) 2023 2022 Plans with Projected Benefit Obligations in Excess of Plan Assets Projected benefit obligation $ 571 $ 528 Fair value of plan assets — — Plans with Accumulated Benefit Obligations in Excess of Plan Assets Accumulated benefit obligation $ 530 $ 487 Fair value of plan assets — — |
Components of Net Periodic Benefit Cost and Other Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | The following table sets forth the components of net periodic pension cost and other amounts recognized in accumulated other comprehensive income (loss) for the years ended December 31 for the pension plans: (Dollars in Millions) 2023 2022 2021 Components Of Net Periodic Pension Cost Service cost $ 223 $ 280 $ 265 Interest cost 370 248 219 Expected return on plan assets (546) (481) (450) Prior service credit amortization (1) (2) (2) Actuarial loss amortization 5 140 169 Net periodic pension cost $ 51 $ 185 $ 201 Other Changes In Plan Assets And Benefit Obligations Recognized In Other Comprehensive Income (Loss) Net actuarial (loss) gain arising during the year $ (286) $ 523 $ 398 Net actuarial loss amortized during the year 5 140 169 Net prior service credit (cost) arising during the year 23 (2) — Net prior service credit amortized during the year (1) (2) (2) Total recognized in other comprehensive income (loss) $ (259) $ 659 $ 565 Total recognized in net periodic pension cost and other comprehensive income (loss) $ (310) $ 474 $ 364 Note: The net periodic benefit for the postretirement welfare plans was $10 million, $9 million and $9 million for the years end December 31, 2023, 2022 and 2021, respectively. The total of other amounts recognized as other comprehensive loss was $10 million, $5 million and $8 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Weighted Average Assumptions to Determine Projected Benefit Obligations | The following table sets forth weighted-average assumptions used to determine the pension plans projected benefit obligations at December 31: 2023 2022 Discount rate 5.12 % 5.55 % Cash balance interest crediting rate 3.04 3.36 Rate of compensation increase (a) 3.72 4.13 (a) |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | The following table sets forth weighted-average assumptions used to determine net periodic pension cost for the years ended December 31: 2023 2022 2021 Discount rate 5.55 % 3.00 % 2.75 % Cash balance interest crediting rate 3.36 3.00 3.00 Expected return on plan assets (a) 6.75 6.50 6.50 Rate of compensation increase (b) 4.13 3.56 3.56 (a) With the help of an independent pension consultant, the Company considers several sources when developing its expected long-term rates of return on plan assets assumptions, including, but not limited to, past returns and estimates of future returns given the plans’ asset allocation, economic conditions, and peer group long-term rate of return information. The Company determines its expected long-term rates of return reflecting current economic conditions and plan assets. (b) |
Summary of Plan Investment Assets Measured at Fair Value | The following table summarizes qualified pension plans investment assets measured at fair value at December 31: 2023 2022 (Dollars in Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 68 $ — $ — $ 68 $ 202 $ — $ — $ 202 Debt securities — — — — 961 855 — 1,816 Mutual funds Debt securities — — — — — 382 — 382 Emerging markets equity securities — — — — — 156 — 156 Other — — — — — — 6 6 $ 68 $ — $ — 68 $ 1,163 $ 1,393 $ 6 2,562 Plan investment assets not classified in fair value hierarchy (a) : Collective investment funds Domestic equity securities 1,546 1,494 Domestic mid-small cap equity securities 406 313 International equity securities 981 620 Domestic real estate securities 142 144 Fixed income 2,295 — Real estate funds (b) 746 763 Hedge funds (c) 412 451 Private equity funds (d) 1,183 1,028 Total plan investment assets at fair value $ 7,779 $ 7,375 (a) These investments are valued based on net asset value per share as a practical expedient; fair values are provided to reconcile to total investment assets of the plans at fair value. (b) This category consists of several investment strategies diversified across several real estate managers. (c) This category consists of several investment strategies diversified across several hedge fund managers. (d) This category consists of several investment strategies diversified across several private equity fund managers. |
Summarizes the Changes for Qualified Pension Plan Assets Measured at Fair Value Using Significant Unobservable Inputs (Level 3) | The following table summarizes the changes in fair value for qualified pension plans investment assets measured at fair value using significant unobservable inputs (Level 3) for the years ended December 31: 2023 2022 2021 (Dollars in Millions) Other Other Other Balance at beginning of period $ 6 $ 4 $ 6 Unrealized gains (losses) relating to assets still held at end of year — 2 (2) Purchases, sales, and settlements, net (6) — — Balance at end of period $ — $ 6 $ 4 |
Expected Future Benefit Payments | The following benefit payments are expected to be paid from the pension plans for the years ended December 31: (Dollars in Millions) 2024 $ 332 2025 383 2026 391 2027 416 2028 430 2029-2033 2,439 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Options Outstanding and Exercised Under Stock Incentive Plans | The following is a summary of stock options outstanding and exercised under prior and existing stock incentive plans of the Company: Year Ended December 31 Stock Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) 2023 Number outstanding at beginning of period 3,253,090 $ 44.42 Exercised (399,329) 38.15 Cancelled (a) (15,476) 47.88 Number outstanding at end of period (b) 2,838,285 $ 45.28 2.0 $ — Exercisable at end of period 2,838,285 $ 45.28 2.0 $ — 2022 Number outstanding at beginning of period 3,890,131 $ 42.58 Exercised (624,729) 32.87 Cancelled (a) (12,312) 50.97 Number outstanding at end of period (b) 3,253,090 $ 44.42 2.7 $ — Exercisable at end of period 3,253,090 $ 44.42 2.7 $ — 2021 Number outstanding at beginning of period 5,180,391 $ 40.38 Exercised (1,281,646) 33.66 Cancelled (a) (8,614) 48.20 Number outstanding at end of period (b) 3,890,131 $ 42.58 3.3 $ 53 Exercisable at end of period 3,890,131 $ 42.58 3.3 $ 53 Note: The Company did not grant any stock option awards during 2023, 2022, and 2021. (a) Options cancelled include both non-vested (i.e., forfeitures) and vested options. (b) Outstanding options include stock-based awards that may be forfeited in future periods. The impact of the estimated forfeitures is reflected in compensation expense. |
Stock Option Activity | The following summarizes certain stock option activity of the Company: Year Ended December 31 (Dollars in Millions) 2023 2022 2021 Fair value of options vested $ — $ — $ 3 Intrinsic value of options exercised 2 15 27 Cash received from options exercised 15 21 43 Tax benefit realized from options exercised 1 4 7 |
Stock Options Outstanding Additional Information | Additional information regarding stock options outstanding as of December 31, 2023, is as follows: Outstanding Options Exercisable Options Range of Exercise Prices Shares Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Shares Weighted- Average Exercise Price $35.01—$40.00 1,008,046 2.1 $ 39.49 1,008,046 $ 39.49 $40.01—$45.00 988,880 0.8 42.95 988,880 42.95 $45.01—$50.00 — — — — — $50.01—$55.01 841,359 3.1 54.96 841,359 54.96 2,838,285 2.0 $ 45.28 2,838,285 $ 45.28 |
Summary of Restricted Shares of Stock and Unit Awards | A summary of the status of the Company’s restricted shares of stock and unit awards is presented below: 2023 2022 2021 Year Ended December 31 Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Outstanding at beginning of period 6,880,826 $ 52.59 6,812,753 $ 51.04 6,343,313 $ 51.38 Granted 5,565,634 45.87 4,109,793 55.62 4,512,995 52.54 Vested (3,872,874) 52.05 (3,690,666) 52.88 (3,793,978) 53.27 Cancelled (257,015) 50.00 (351,054) 54.95 (249,577) 52.83 Outstanding at end of period 8,316,571 $ 48.42 6,880,826 $ 52.59 6,812,753 $ 51.04 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense were: Year Ended December 31 (Dollars in Millions) 2023 2022 2021 Federal Current $ 1,434 $ 1,366 $ 1,203 Deferred (326) (108) 469 Federal income tax 1,108 1,258 1,672 State Current 482 401 398 Deferred (183) (196) 111 State income tax 299 205 509 Total income tax provision $ 1,407 $ 1,463 $ 2,181 |
Reconciliation of Expected Income Tax Expense at Federal Statutory Rate to the Applicable Income Tax Expense | A reconciliation of expected income tax expense at the federal statutory rate of 21 percent to the Company’s applicable income tax expense follows: Year Ended December 31 (Dollars in Millions) 2023 2022 2021 Tax at statutory rate $ 1,442 $ 1,533 $ 2,135 State income tax, at statutory rates, net of federal tax benefit 322 305 439 Tax effect of Tax credits and benefits, net of related expenses (272) (273) (331) Tax-exempt income (142) (121) (114) Revaluation of tax related assets and liabilities (a) 15 (79) — Nondeductible legal and regulatory expenses 76 37 24 Other items (34) 61 28 Applicable income taxes $ 1,407 $ 1,463 $ 2,181 (a) |
Reconciliation of Changes Unrecognized Tax Positions | A reconciliation of the changes in the federal, state and foreign uncertain tax position balances are summarized as follows: Year Ended December 31 (Dollars in Millions) 2023 2022 2021 Balance at beginning of period $ 513 $ 487 $ 474 Additions for tax positions taken in prior years 141 35 14 Additions for tax positions taken in the current year 3 3 7 Exam resolutions (302) (8) (1) Statute expirations (5) (4) (7) Balance at end of period $ 350 $ 513 $ 487 |
Significant Components of the Net Deferred Tax Asset (Liability) | The significant components of the Company’s net deferred tax asset (liability) follows: At December 31 (Dollars in Millions) 2023 2022 Deferred Tax Assets Securities available-for-sale and financial instruments $ 3,231 $ 3,992 Federal, state and foreign net operating loss, credit carryforwards and other carryforwards 2,836 2,677 Allowance for credit losses 2,051 1,980 Loans 1,013 1,287 Accrued expenses 838 618 Obligation for operating leases 348 368 Partnerships and other investment assets 271 112 Stock compensation 87 81 Other deferred tax assets, net 370 501 Gross deferred tax assets 11,045 11,616 Deferred Tax Liabilities Leasing activities (1,455) (1,813) Goodwill and other intangible assets (1,450) (1,575) Mortgage servicing rights (758) (815) Right of use operating leases (301) (325) Pension and postretirement benefits (115) (172) Fixed assets (44) (125) Other deferred tax liabilities, net (168) (234) Gross deferred tax liabilities (4,291) (5,059) Valuation allowance (364) (263) Net Deferred Tax Asset $ 6,390 $ 6,294 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Asset and Liability Management Derivative Positions | The following table summarizes the asset and liability management derivative positions of the Company at December 31: 2023 2022 Notional Value Fair Value Notional Value Fair Value (Dollars in Millions) Assets Liabilities Assets Liabilities Fair value hedges Interest rate contracts Receive fixed/pay floating swaps $ 12,100 $ — $ 16 $ 17,400 $ — $ 9 Pay fixed/receive floating swaps 24,139 — — 5,542 — — Cash flow hedges Interest rate contracts Receive fixed/pay floating swaps 18,400 — — 14,300 — — Net investment hedges Foreign exchange forward contracts 854 — 10 778 — — Other economic hedges Interest rate contracts Futures and forwards Buy 5,006 29 5 3,546 10 18 Sell 4,501 7 34 7,522 20 38 Options Purchased 6,085 237 — 11,434 346 — Written 3,696 14 75 7,849 7 148 Receive fixed/pay floating swaps 7,029 9 3 9,215 — 3 Pay fixed/receive floating swaps 3,801 — — 9,616 — — Foreign exchange forward contracts 734 2 5 962 2 6 Equity contracts 227 2 — 361 — 10 Credit contracts 2,620 1 — 330 — — Other (a) 2,136 11 93 1,908 11 190 Total $ 91,328 $ 312 $ 241 $ 90,763 $ 396 $ 422 (a) |
Summary of Customer-Related Derivative Positions | The following table summarizes the customer-related derivative positions of the Company at December 31: 2023 2022 Notional Value Fair Value Notional Value Fair Value (Dollars in Millions) Assets Liabilities Assets Liabilities Interest rate contracts Receive fixed/pay floating swaps $ 363,375 $ 791 $ 4,395 $ 301,690 $ 309 $ 5,689 Pay fixed/receive floating swaps 330,539 1,817 280 316,133 2,323 206 Other (a) 82,209 17 51 40,261 3 16 Options Purchased 102,423 1,026 18 103,489 1,794 5 Written 97,690 20 1,087 99,923 6 1,779 Futures Buy — — — 3,623 — 4 Sell — — — 2,376 8 — Foreign exchange rate contracts Forwards, spots and swaps 121,119 2,252 1,942 134,666 3,010 2,548 Options Purchased 1,532 28 — 954 22 — Written 1,532 — 28 954 — 22 Commodity contracts Swaps 2,498 116 110 — — — Options Purchased 1,936 151 — — — — Written 1,936 — 151 — — — Credit contracts 13,053 1 6 10,765 1 8 Total $ 1,119,842 $ 6,219 $ 8,068 $ 1,014,834 $ 7,476 $ 10,277 (a) Primarily represents floating rate interest rate swaps that pay based on differentials between specified interest rate indexes. |
Summary of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax) for the years ended December 31: Gains (Losses) Recognized in Other Comprehensive Income (Loss) Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings (Dollars in Millions) 2023 2022 2021 2023 2022 2021 Asset and Liability Management Positions Cash flow hedges Interest rate contracts $ (187) $ (56) $ 94 $ (59) $ (27) $ (10) Net investment hedges Foreign exchange forward contracts (11) 42 19 — — — Non-derivative debt instruments (33) 59 84 — — — |
Summary of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax) for the years ended December 31: Gains (Losses) Recognized in Other Comprehensive Income (Loss) Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings (Dollars in Millions) 2023 2022 2021 2023 2022 2021 Asset and Liability Management Positions Cash flow hedges Interest rate contracts $ (187) $ (56) $ 94 $ (59) $ (27) $ (10) Net investment hedges Foreign exchange forward contracts (11) 42 19 — — — Non-derivative debt instruments (33) 59 84 — — — |
Summary of Effect of Fair Value and Cash Flow Hedge Accounting on Consolidated Statement of Income | The table below shows the effect of fair value and cash flow hedge accounting on the Consolidated Statement of Income for the years ended December 31: Interest Income Interest Expense (Dollars in Millions) 2023 2022 2021 2023 2022 2021 Total amount of income and expense line items presented in the Consolidated Statement of Income in which the effects of fair value or cash flow hedges are recorded $ 30,007 $ 17,945 $ 13,487 $ 12,611 $ 3,217 $ 993 Asset and Liability Management Positions Fair value hedges Interest rate contract derivatives (430) 138 17 (458) 482 232 Hedged items 427 (139) (19) 461 (486) (232) Cash flow hedges Interest rate contract derivatives (52) — — 28 — 14 reclassified |
Summary of Cumulative Hedging Adjustments and the Carrying Amount of Assets and Liabilities Designated in Fair Value Hedges | The table below shows cumulative hedging adjustments and the carrying amount of assets and liabilities designated in fair value hedges at December 31: Carrying Amount of the Hedged Assets and Liabilities Cumulative Hedging Adjustment (a) (Dollars in Millions) 2023 2022 2023 2022 Line Item in the Consolidated Balance Sheet Available-for-sale investment securities (b) $ 11,795 $ 4,937 $ (448) $ (552) Long-term debt 11,987 17,190 (148) (142) (a) The cumulative hedging adjustment related to discontinued hedging relationships on available-for-sale investment securities and long-term debt was $(379) million and $(68) million, respectively, at December 31, 2023, compared with $(392) million and $399 million at December 31, 2022, respectively. (b) |
Summary of Gains (Losses) Recognized in Earnings for Other Economic Hedges and Customer-Related Positions | The table below shows the gains (losses) recognized in earnings for other economic hedges and the customer-related positions for the years ended December 31: (Dollars in Millions) Location of Gains (Losses) Recognized in Earnings 2023 2022 2021 Asset and Liability Management Positions Other economic hedges Interest rate contracts Futures and forwards Mortgage banking revenue $ 71 $ 407 $ 511 Purchased and written options Mortgage banking revenue 89 1 527 Swaps Mortgage banking revenue/Other noninterest income/Interest expense (19) (1,010) (197) Foreign exchange forward contracts Other noninterest income (7) (1) 1 Equity contracts Compensation expense (8) (8) 7 Other Other noninterest income 1 (181) 5 Customer-Related Positions Interest rate contracts Swaps Commercial products revenue 185 98 110 Purchased and written options Commercial products revenue 45 20 (5) Futures Commercial products revenue (1) 30 3 Foreign exchange rate contracts Forwards, spots and swaps Commercial products revenue 195 100 93 Purchased and written options Commercial products revenue 1 1 1 Commodity contracts Swaps Commercial products revenue 6 — — Credit contracts Commercial products revenue 1 20 (7) |
Netting Arrangements for Cert_2
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Offsetting [Abstract] | |
Summary of Maturities by Category of Collateral Pledged for Repurchase Agreements and Securities Loaned Transactions | The following table summarizes the maturities by category of collateral pledged for repurchase agreements and securities loaned transactions: (Dollars in Millions) Overnight and Continuous Less Than 30 Days 30-89 Days Greater Than 90 Days Total December 31, 2023 Repurchase agreements U.S. Treasury and agencies $ 2,375 $ — $ — $ — $ 2,375 Residential agency mortgage-backed securities 338 — — — 338 Corporate debt securities 821 — — — 821 Asset-backed securities — 45 — — 45 Total repurchase agreements 3,534 45 — — 3,579 Securities loaned Corporate debt securities 290 — — — 290 Total securities loaned 290 — — — 290 Gross amount of recognized liabilities $ 3,824 $ 45 $ — $ — $ 3,869 December 31, 2022 Repurchase agreements U.S. Treasury and agencies $ 147 $ — $ — $ — $ 147 Residential agency mortgage-backed securities 846 — — — 846 Corporate debt securities 439 — — — 439 Total repurchase agreements 1,432 — — — 1,432 Securities loaned Corporate debt securities 120 — — — 120 Total securities loaned 120 — — — 120 Gross amount of recognized liabilities $ 1,552 $ — $ — $ — $ 1,552 |
Netting Adjustments and Items Not Offset in Consolidated Balance Sheet, Assets | The following tables provide information on the Company’s netting adjustments, and items not offset on the Consolidated Balance Sheet but available for offset in the event of default: (Dollars in Millions) Gross Recognized Assets Gross Amounts Offset on the Consolidated Balance Sheet (a) Net Amounts Presented on the Consolidated Balance Sheet Gross Amounts Not Offset on the Consolidated Balance Sheet Financial Instruments (b) Collateral Received (c) Net Amount December 31, 2023 Derivative assets (d) $ 6,504 $ (3,666) $ 2,838 $ (141) $ (3) $ 2,694 Reverse repurchase agreements 2,513 — 2,513 (568) (1,941) 4 Securities borrowed 1,802 — 1,802 (14) (1,717) 71 Total $ 10,819 $ (3,666) $ 7,153 $ (723) $ (3,661) $ 2,769 December 31, 2022 Derivative assets (d) $ 7,852 $ (5,427) $ 2,425 $ (231) $ (80) $ 2,114 Reverse repurchase agreements 107 — 107 (102) (5) — Securities borrowed 1,606 — 1,606 — (1,548) 58 Total $ 9,565 $ (5,427) $ 4,138 $ (333) $ (1,633) $ 2,172 (a) Includes $1.6 billion and $3.0 billion of cash collateral related payables that were netted against derivative assets at December 31, 2023 and 2022, respectively. (b) For derivative assets this includes any derivative liability fair values that could be offset in the event of counterparty default; for reverse repurchase agreements this includes any repurchase agreement payables that could be offset in the event of counterparty default; for securities borrowed this includes any securities loaned payables that could be offset in the event of counterparty default. (c) Includes the fair value of securities received by the Company from the counterparty. These securities are not included on the Consolidated Balance Sheet unless the counterparty defaults. (d) |
Netting Adjustments and Items Not Offset in Consolidated Balance Sheet, Liabilities | (Dollars in Millions) Gross Recognized Liabilities Gross Amounts Offset on the Consolidated Balance Sheet (a) Net Amounts Presented on the Consolidated Balance Sheet Gross Amounts Not Offset on the Consolidated Balance Sheet Net Amount Financial Instruments (b) Collateral Pledged (c) December 31, 2023 Derivative liabilities (d) $ 8,217 $ (3,720) $ 4,497 $ (141) $ — $ 4,356 Repurchase agreements 3,579 — 3,579 (568) (3,008) 3 Securities loaned 290 — 290 (14) (270) 6 Total $ 12,086 $ (3,720) $ 8,366 $ (723) $ (3,278) $ 4,365 December 31, 2022 Derivative liabilities (d) $ 10,506 $ (4,551) $ 5,955 $ (231) $ — $ 5,724 Repurchase agreements 1,432 — 1,432 (102) (1,325) 5 Securities loaned 120 — 120 — (118) 2 Total $ 12,058 $ (4,551) $ 7,507 $ (333) $ (1,443) $ 5,731 (a) Includes $1.7 billion and $2.1 billion of cash collateral related receivables that were netted against derivative liabilities at December 31, 2023 and 2022, respectively. (b) For derivative liabilities this includes any derivative asset fair values that could be offset in the event of counterparty default; for repurchase agreements this includes any reverse repurchase agreement receivables that could be offset in the event of counterparty default; for securities loaned this includes any securities borrowed receivables that could be offset in the event of counterparty default. (c) Includes the fair value of securities pledged by the Company to the counterparty. These securities are included on the Consolidated Balance Sheet unless the Company defaults. (d) |
Fair Values of Assets and Lia_2
Fair Values of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Valuation Assumption Ranges for MSRs | The following table shows the significant valuation assumption ranges for MSRs at December 31, 2023: Minimum Maximum Weighted- Average (a) Expected prepayment 7 % 23 % 10 % Option adjusted spread 4 11 5 (a) |
Valuation Assumption Ranges for Derivative Commitments | The following table shows the significant valuation assumption ranges for the Company’s derivative commitments to purchase and originate mortgage loans at December 31, 2023: Minimum Maximum Weighted- Average (a) Expected loan close rate 17 % 99 % 74 % Inherent MSR value (basis points per loan) 48 177 97 (a) |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis: (Dollars in Millions) Level 1 Level 2 Level 3 Netting Total December 31, 2023 Available-for-sale securities U.S. Treasury and agencies $ 14,787 $ 4,755 $ — $ — $ 19,542 Mortgage-backed securities Residential agency — 26,078 — — 26,078 Commercial Agency — 7,343 — — 7,343 Non-agency — 6 — — 6 Asset-backed securities — 6,724 — — 6,724 Obligations of state and political subdivisions — 9,989 — — 9,989 Other — 24 — — 24 Total available-for-sale 14,787 54,919 — — 69,706 Mortgage loans held for sale — 2,011 — — 2,011 Mortgage servicing rights — — 3,377 — 3,377 Derivative assets — 5,078 1,453 (3,666) 2,865 Other assets 550 1,991 — — 2,541 Total $ 15,337 $ 63,999 $ 4,830 $ (3,666) $ 80,500 Time deposits $ — $ 2,818 $ — $ — $ 2,818 Derivative liabilities 16 4,955 3,338 (3,720) 4,589 Short-term borrowings and other liabilities (a) 517 1,786 — — 2,303 Total $ 533 $ 9,559 $ 3,338 $ (3,720) $ 9,710 December 31, 2022 Available-for-sale securities U.S. Treasury and agencies $ 13,723 $ 8,310 $ — $ — $ 22,033 Mortgage-backed securities Residential agency — 29,271 — — 29,271 Commercial Agency — 7,145 — — 7,145 Non-agency — 7 — — 7 Asset-backed securities — 4,323 — — 4,323 Obligations of state and political subdivisions — 10,124 1 — 10,125 Other — 6 — — 6 Total available-for-sale 13,723 59,186 1 — 72,910 Mortgage loans held for sale — 1,849 — — 1,849 Mortgage servicing rights — — 3,755 — 3,755 Derivative assets 9 6,608 1,255 (5,427) 2,445 Other assets 248 1,756 — — 2,004 Total $ 13,980 $ 69,399 $ 5,011 $ (5,427) $ 82,963 Derivative liabilities $ 4 $ 6,241 $ 4,454 $ (4,551) $ 6,148 Short-term borrowings and other liabilities (a) 125 1,564 — — 1,689 Total $ 129 $ 7,805 $ 4,454 $ (4,551) $ 7,837 Note: Excluded from the table above are equity investments without readily determinable fair values. The Company has elected to carry these investments at historical cost, adjusted for impairment and any changes resulting from observable price changes for identical or similar investments of the issuer. The aggregate carrying amount of these equity investments was $133 million and $104 million at December 31, 2023 and 2022, respectively. The Company recorded a $5 million impairment on these equity investments during 2023 , and the cumulative impairment on these equity investments is $5 million at December 31, 2023. The Company has not recorded adjustments for observable price changes on these equity investments during 2023 and 2022, or on a cumulative basis. (a) Primarily represents the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance. |
Changes in Fair Value for Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31: (Dollars in Millions) Beginning of Period Balance Net Gains (Losses) Included in Net Income Net Gains (Losses) Included in Other Comprehensive Income (Loss) Purchases Sales Principal Payments Issuances Settlements End of Period Balance Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period 2023 Available-for-sale securities Obligations of state and political subdivisions $ 1 $ — $ — $ — $ — $ (1) $ — $ — $ — $ — Total available-for-sale 1 — — — — (1) — — — — Mortgage servicing rights 3,755 (316) (a) — 5 (440) — 373 (c) — 3,377 (316) (a) Net derivative assets and liabilities (3,199) (2,696) (b) — 552 (45) — 1 3,502 (1,885) (183) (d) 2022 Available-for-sale securities Asset-backed securities $ 7 $ — $ (3) $ — $ (4) $ — $ — $ — $ — $ — Obligations of state and political subdivisions 1 — — — — — — — 1 — Total available-for-sale 8 — (3) — (4) — — — 1 — Mortgage servicing rights 2,953 311 (a) — 156 (255) — 590 (c) — 3,755 311 (a) Net derivative assets and liabilities 799 (5,940) (e) — 716 (36) — 11 1,251 (3,199) (3,538) (f) 2021 Available-for-sale securities Asset-backed securities $ 7 $ — $ 1 $ — $ — $ (1) $ — $ — $ 7 $ 1 Obligations of state and political subdivisions 1 — — — — — — — 1 — Total available-for-sale 8 — 1 — — (1) — — 8 1 Mortgage servicing rights 2,210 (437) (a) — 42 2 — 1,136 (c) — 2,953 (437) (a) Net derivative assets and liabilities 2,326 (924) (g) — 337 (3) — — (937) 799 (968) (h) (a) Included in mortgage banking revenue (b) Approximately $182 million, $(2.9) billion and $1 million included in mortgage banking revenue commercial products revenue other non-interest income (c) Represents MSRs capitalized during the period. (d) Approximately $15 million, $(199) million and $1 million included in mortgage banking revenue commercial products revenue other non-interest income (e) Approximately $(141) million, $(5.6) billion and $(181) million included in mortgage banking revenue commercial products revenue other non-interest income (f) Approximately $5 million, $(3.4) billion and $(181) million included in mortgage banking revenue commercial products revenue other non-interest income (g) Approximately $666 million, $(1.6) billion and $5 million included in mortgage banking revenue commercial products revenue other non-interest income (h) mortgage banking revenue commercial products revenue other non-interest income |
Changes in Fair Value for Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31: (Dollars in Millions) Beginning of Period Balance Net Gains (Losses) Included in Net Income Net Gains (Losses) Included in Other Comprehensive Income (Loss) Purchases Sales Principal Payments Issuances Settlements End of Period Balance Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period 2023 Available-for-sale securities Obligations of state and political subdivisions $ 1 $ — $ — $ — $ — $ (1) $ — $ — $ — $ — Total available-for-sale 1 — — — — (1) — — — — Mortgage servicing rights 3,755 (316) (a) — 5 (440) — 373 (c) — 3,377 (316) (a) Net derivative assets and liabilities (3,199) (2,696) (b) — 552 (45) — 1 3,502 (1,885) (183) (d) 2022 Available-for-sale securities Asset-backed securities $ 7 $ — $ (3) $ — $ (4) $ — $ — $ — $ — $ — Obligations of state and political subdivisions 1 — — — — — — — 1 — Total available-for-sale 8 — (3) — (4) — — — 1 — Mortgage servicing rights 2,953 311 (a) — 156 (255) — 590 (c) — 3,755 311 (a) Net derivative assets and liabilities 799 (5,940) (e) — 716 (36) — 11 1,251 (3,199) (3,538) (f) 2021 Available-for-sale securities Asset-backed securities $ 7 $ — $ 1 $ — $ — $ (1) $ — $ — $ 7 $ 1 Obligations of state and political subdivisions 1 — — — — — — — 1 — Total available-for-sale 8 — 1 — — (1) — — 8 1 Mortgage servicing rights 2,210 (437) (a) — 42 2 — 1,136 (c) — 2,953 (437) (a) Net derivative assets and liabilities 2,326 (924) (g) — 337 (3) — — (937) 799 (968) (h) (a) Included in mortgage banking revenue (b) Approximately $182 million, $(2.9) billion and $1 million included in mortgage banking revenue commercial products revenue other non-interest income (c) Represents MSRs capitalized during the period. (d) Approximately $15 million, $(199) million and $1 million included in mortgage banking revenue commercial products revenue other non-interest income (e) Approximately $(141) million, $(5.6) billion and $(181) million included in mortgage banking revenue commercial products revenue other non-interest income (f) Approximately $5 million, $(3.4) billion and $(181) million included in mortgage banking revenue commercial products revenue other non-interest income (g) Approximately $666 million, $(1.6) billion and $5 million included in mortgage banking revenue commercial products revenue other non-interest income (h) mortgage banking revenue commercial products revenue other non-interest income |
Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes the balances as of the measurement date of assets measured at fair value on a nonrecurring basis, and still held as of December 31: 2023 2022 (Dollars in Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Loans (a) $ — $ — $ 354 $ 354 $ — $ — $ 97 $ 97 Other assets (b) — — 27 27 — — 21 21 (a) Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully charged-off. (b) |
Losses Recognized Related to Nonrecurring Fair Value Measurements | The following table summarizes losses recognized related to nonrecurring fair value measurements of individual assets or portfolios for the years ended December 31: (Dollars in Millions) 2023 2022 2021 Loans (a) $ 368 $ 40 $ 60 Other assets (b) 32 20 25 (a) Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off. (b) |
Differences Between Aggregate Fair Value Carrying Amount of MLHFS for which Fair Value Option has been Elected and Aggregate Unpaid Principal Amount Contractually Obligated to Receive at Maturity | The following table summarizes the differences between the aggregate fair value carrying amount of the assets and liabilities for which the fair value option has been elected and the aggregate remaining contractual principal balance outstanding as of December 31: 2023 2022 (Dollars in Millions) Fair Value Carrying Amount Contractual Principal Outstanding Carrying Amount Over (Under) Contractual Principal Outstanding Fair Value Carrying Amount Contractual Principal Outstanding Carrying Amount Over (Under) Contractual Principal Outstanding Total loans (a) $ 2,011 $ 1,994 $ 17 $ 1,849 $ 1,848 $ 1 Time deposits 2,818 2,822 (4) — — — (a) |
Estimated Fair Values of Financial Instruments | The estimated fair values of the Company’s financial instruments as of December 31, are shown in the table below: 2023 2022 Carrying Amount Fair Value Carrying Amount Fair Value (Dollars in Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial Assets Cash and due from banks $ 61,192 $ 61,192 $ — $ — $ 61,192 $ 53,542 $ 53,542 $ — $ — $ 53,542 Federal funds sold and securities purchased under resale agreements 2,543 — 2,543 — 2,543 356 — 356 — 356 Investment securities held-to-maturity 84,045 1,310 72,778 — 74,088 88,740 1,293 76,581 — 77,874 Loans held for sale (a) 190 — — 190 190 351 — — 351 351 Loans 366,456 — — 362,849 362,849 381,277 — — 368,874 368,874 Other (b) 2,377 — 1,863 514 2,377 2,962 — 2,224 738 2,962 Financial Liabilities Time deposits (c) 49,455 — 49,607 — 49,607 32,946 — 32,338 — 32,338 Short-term borrowings (d) 12,976 — 12,729 — 12,729 29,527 — 29,145 — 29,145 Long-term debt 51,480 — 49,697 — 49,697 39,829 — 37,622 — 37,622 Other (e) 5,432 — 1,406 4,026 5,432 5,137 — 1,500 3,637 5,137 (a) Excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected. (b) Includes investments in Federal Reserve Bank and Federal Home Loan Bank stock and tax-advantaged investments. (c) Excludes time deposits for which the fair value option under applicable accounting guidance was elected. (d) Excludes the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance. (e) |
Guarantees and Contingent Lia_2
Guarantees and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contract or Notional Amounts of Unfunded Commitments to Extend Credit | The contract or notional amounts of unfunded commitments to extend credit at December 31, 2023, excluding those commitments considered derivatives, were as follows: Term (Dollars in Millions) Less Than One Year Greater Than One Year Total Commercial and commercial real estate loans $ 43,385 $ 137,155 $ 180,540 Corporate and purchasing card loans (a) 34,943 — 34,943 Residential mortgages 114 — 114 Retail credit card loans (a) 134,297 — 134,297 Other retail loans 15,616 27,430 43,046 Other 7,585 — 7,585 (a) Primarily cancellable at the Company’s discretion. |
Summary of Other Guarantees and Contingent Liabilities | The following table is a summary of other guarantees and contingent liabilities of the Company at December 31, 2023: (Dollars in Millions) Collateral Held Carrying Amount Maximum Potential Future Payments Standby letters of credit $ — $ 20 $ 10,999 Third party borrowing arrangements — — 5 Securities lending indemnifications 6,924 — 6,679 Asset sales — 106 10,263 Merchant processing 815 71 140,288 Tender option bond program guarantee 607 — 589 Other — 21 2,696 |
Contract or Notional Amount of Letters of Credit | The contract or notional amount of letters of credit at December 31, 2023, were as follows: Term (Dollars in Millions) Less Than One Year Greater Than One Year Total Standby $ 6,444 $ 4,555 $ 10,999 Commercial 559 59 618 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segment Results | Business segment results for the years ended December 31 were as follows: Wealth, Corporate, Commercial and Institutional Banking Consumer and Business Banking Payment Services (Dollars in Millions) 2023 2022 2023 2022 2023 2022 Condensed Income Statement Net interest income (taxable-equivalent basis) $ 6,129 $ 5,213 $ 8,331 $ 6,764 $ 2,702 $ 2,504 Noninterest income 4,143 3,561 1,662 1,536 4,056 (a) 3,794 (a) Total net revenue 10,272 8,774 9,993 8,300 6,758 6,298 Noninterest expense 5,183 4,135 6,964 5,779 3,772 3,525 Income (loss) before provision and income taxes 5,089 4,639 3,029 2,521 2,986 2,773 Provision for credit losses 334 154 79 75 1,394 980 Income (loss) before income taxes 4,755 4,485 2,950 2,446 1,592 1,793 Income taxes and taxable-equivalent adjustment 1,190 1,122 738 612 398 449 Net income (loss) 3,565 3,363 2,212 1,834 1,194 1,344 Net (income) loss attributable to noncontrolling interests — — — — — — Net income (loss) attributable to U.S. Bancorp $ 3,565 $ 3,363 $ 2,212 $ 1,834 $ 1,194 $ 1,344 Average Balance Sheet Loans $ 175,780 $ 150,512 $ 161,862 $ 144,441 $ 38,471 $ 34,627 Other earning assets 6,615 4,771 2,388 3,117 97 634 Goodwill 4,682 3,634 4,466 3,250 3,327 3,305 Other intangible assets 1,007 365 5,265 3,784 350 423 Assets 202,642 169,554 179,103 160,174 44,292 41,072 Noninterest-bearing deposits 70,977 82,671 31,082 31,719 2,981 3,410 Interest-bearing deposits 199,780 175,345 189,148 163,190 103 162 Total deposits 270,757 258,016 220,230 194,909 3,084 3,572 Total U.S. Bancorp shareholders’ equity 22,362 18,159 16,016 12,678 9,310 8,233 Treasury and Corporate Support Consolidated Company (Dollars in Millions) 2023 2022 2023 2022 Condensed Income Statement Net interest income (taxable-equivalent basis) $ 365 $ 365 $ 17,527 $ 14,846 Noninterest income 756 565 10,617 (b) 9,456 (b) Total net revenue 1,121 930 28,144 24,302 Noninterest expense 2,954 1,467 18,873 14,906 Income (loss) before provision and income taxes (1,833) (537) 9,271 9,396 Provision for credit losses 468 768 2,275 1,977 Income (loss) before income taxes (2,301) (1,305) 6,996 7,419 Income taxes and taxable-equivalent adjustment (788) (602) 1,538 1,581 Net income (loss) (1,513) (703) 5,458 5,838 Net (income) loss attributable to noncontrolling interests (29) (13) (29) (13) Net income (loss) attributable to U.S. Bancorp $ (1,542) $ (716) $ 5,429 $ 5,825 Average Balance Sheet Loans $ 5,162 $ 3,993 $ 381,275 $ 333,573 Other earning assets 214,824 203,248 223,924 211,770 Goodwill — — 12,475 10,189 Other intangible assets 17 5 6,639 4,577 Assets 237,403 221,349 663,440 592,149 Noninterest-bearing deposits 2,728 2,594 107,768 120,394 Interest-bearing deposits 8,864 3,293 397,895 341,990 Total deposits 11,592 5,887 505,663 462,384 Total U.S. Bancorp shareholders’ equity 5,972 11,346 53,660 50,416 (a) Presented net of related rewards and rebate costs and certain partner payments of $3.0 billion and $2.9 billion for 2023 and 2022, respectively. (b) |
U.S. Bancorp (Parent Company) (
U.S. Bancorp (Parent Company) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | Condensed Balance Sheet At December 31 (Dollars in Millions) 2023 2022 Assets Due from banks, principally interest-bearing $ 11,585 $ 5,288 Available-for-sale investment securities 662 672 Investments in bank subsidiaries 61,495 59,202 Investments in nonbank subsidiaries 3,884 3,575 Advances to bank subsidiaries 12,100 9,100 Advances to nonbank subsidiaries 159 150 Other assets 974 1,101 Total assets $ 90,859 $ 79,088 Liabilities and Shareholders’ Equity Long-term debt $ 34,332 $ 26,983 Other liabilities 1,221 1,339 Shareholders’ equity 55,306 50,766 Total liabilities and shareholders’ equity $ 90,859 $ 79,088 |
Condensed Income Statement | Condensed Income Statement Year Ended December 31 (Dollars in Millions) 2023 2022 2021 Income Dividends from bank subsidiaries $ 4,869 $ 4,750 $ 7,000 Dividends from nonbank subsidiaries 11 105 2 Interest from subsidiaries 606 119 112 Other income 51 31 46 Total income 5,537 5,005 7,160 Expense Interest expense 1,336 505 348 Other expense 137 162 154 Total expense 1,473 667 502 Income before income taxes and equity in undistributed income of subsidiaries 4,064 4,338 6,658 Applicable income taxes (170) (138) (53) Income of parent company 4,234 4,476 6,711 Equity in undistributed income of subsidiaries 1,195 1,349 1,252 Net income attributable to U.S. Bancorp $ 5,429 $ 5,825 $ 7,963 |
Condensed Statement of Cash Flows | Condensed Statement of Cash Flows Year Ended December 31 (Dollars in Millions) 2023 2022 2021 Operating Activities Net income attributable to U.S. Bancorp $ 5,429 $ 5,825 $ 7,963 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed income of subsidiaries (1,195) (1,349) (1,252) Other, net 83 (398) (85) Net cash provided by operating activities 4,317 4,078 6,626 Investing Activities Proceeds from sales and maturities of investment securities 25 423 200 Investments in subsidiaries — (5,030) — Net (increase) decrease in short-term advances to subsidiaries (9) 557 411 Long-term advances to subsidiaries (7,500) (2,000) (7,000) Principal collected on long-term advances to subsidiaries 4,500 2,500 1,250 Cash paid for acquisition — (5,500) — Other, net 172 (173) (269) Net cash used in investing activities (2,812) (9,223) (5,408) Financing Activities Proceeds from issuance of long-term debt 8,150 8,150 1,300 Principal payments or redemption of long-term debt (936) (2,300) (3,000) Proceeds from issuance of preferred stock — 437 2,221 Proceeds from issuance of common stock 951 21 43 Repurchase of preferred stock — (1,100) (1,250) Repurchase of common stock (62) (69) (1,555) Cash dividends paid on preferred stock (341) (299) (308) Cash dividends paid on common stock (2,970) (2,776) (2,579) Net cash provided by (used in) financing activities 4,792 2,064 (5,128) Change in cash and due from banks 6,297 (3,081) (3,910) Cash and due from banks at beginning of year 5,288 8,369 12,279 Cash and due from banks at end of year $ 11,585 $ 5,288 $ 8,369 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) portfolio_segment loan_class | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Number of loan portfolio segments | portfolio_segment | 2 |
Reasonable and supportable period for allowance for credit loss | 3 years |
Capitalized Software | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Intangible asset estimated useful life | 5 years |
Minimum | Capitalized Software | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Intangible asset estimated useful life | 3 years |
Maximum | Capitalized Software | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Intangible asset estimated useful life | 7 years |
Retail assets | Maximum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Lessor lease terms | 5 years |
Buildings | Maximum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Premises and equipment useful life | 40 years |
Furniture and equipment | Minimum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Premises and equipment useful life | 3 years |
Furniture and equipment | Maximum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Premises and equipment useful life | 25 years |
Pension Plans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Unrealized difference between actual experience and expected returns on plan assets. recognition period for active participants | 15 years |
Unrealized difference between actual experience and expected returns on plan assets. recognition period for inactive participants | 30 years |
Credit card | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loan modification amortization period | 60 months |
Commercial | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Number of loan portfolio classes | 2 |
Loan threshold when individually evaluated for allowance calculation | $ | $ 5 |
Threshold period to be placed on nonaccrual status | 90 days |
Consumer | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Number of loan portfolio classes | 2 |
Loan modification amortization period | 60 months |
Consumer | Residential Mortgages and Other Retail Loans Secured by 1-4 Family Properties | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Threshold period for charge-off to fair value of collateral less costs to sell | 180 days |
Consumer | Residential Mortgages Loans and Junior Liens Secured by 1-4 Family Properties | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Threshold period to be placed on nonaccrual status | 120 days |
Consumer | First Lien | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Threshold period to be placed on nonaccrual status | 180 days |
Consumer | Credit card | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Threshold period past due for charge-off | 180 days |
Consumer | Other Retail Loans not Secured by 1-4 Family Properties | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Threshold period past due for charge-off | 120 days |
Consumer | Revolving Consumer Lines | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Threshold period past due for charge-off | 180 days |
Business Combinations - Additio
Business Combinations - Additional Information (Details) shares in Millions | 1 Months Ended | 12 Months Ended | ||||
Dec. 01, 2022 USD ($) shares | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) branch shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) | |
Business Acquisition [Line Items] | ||||||
Repayment of debt | $ 4,084,000,000 | $ 6,926,000,000 | $ 11,432,000,000 | |||
Merger and integration charges | 1,009,000,000 | 329,000,000 | 0 | |||
Goodwill | $ 12,373,000,000 | 12,489,000,000 | 12,373,000,000 | $ 10,262,000,000 | $ 9,918,000,000 | |
Goodwill deductible for tax purposes | $ 0 | |||||
Financing receivable, allowance for credit loss | 6,936,000,000 | $ 7,379,000,000 | $ 6,936,000,000 | |||
MUFG Union Bank Branches | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Business Acquisition [Line Items] | ||||||
Number of branches divested | branch | 3 | |||||
Deposits divested | $ 400,000,000 | |||||
Loans divested | $ 22,000,000 | |||||
Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Issuance of stock (in shares) | shares | 28 | 48 | 5 | |||
Common Stock | Affiliate of MUFG | ||||||
Business Acquisition [Line Items] | ||||||
Issuance of stock (in shares) | shares | 24 | |||||
MUB | ||||||
Business Acquisition [Line Items] | ||||||
Cash portion of purchase price | 5,500,000,000 | |||||
Target tangible book value | 6,250,000,000 | |||||
Tangible book value | 3,500,000,000 | |||||
Repayment of debt | $ 936,000,000 | |||||
Merger and integration charges | $ 1,000,000,000 | $ 329,000,000 | ||||
Goodwill | 2,323,000,000 | |||||
Acquired receivables fair value | 52,932,000,000 | |||||
Acquired receivable unpaid principal balance | 56,120,000,000 | |||||
Increase to provision for credit losses | $ 662,000,000 | |||||
MUB | PCD Loans | ||||||
Business Acquisition [Line Items] | ||||||
Financing receivable, allowance for credit loss | 463,000,000 | |||||
Acquired receivables fair value | 4,400,000,000 | |||||
Acquired receivable unpaid principal balance | 5,100,000,000 | |||||
MUB | Non-PCD Loans | ||||||
Business Acquisition [Line Items] | ||||||
Acquired receivables fair value | 48,500,000,000 | |||||
Acquired receivable unpaid principal balance | $ 51,000,000,000 | |||||
Increase to provision for credit losses | $ 662,000,000 | |||||
MUB | Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Equity portion of purchase price (in shares) | shares | 44 |
Business Combinations - Fair Va
Business Combinations - Fair Value of the Identifiable Tangible and Intangible Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liabilities | |||||
Goodwill | $ 12,489 | $ 12,373 | $ 10,262 | $ 9,918 | |
MUB | |||||
Acquisition consideration | |||||
Cash | $ 5,500 | ||||
Market value of shares of common stock | 2,014 | ||||
Total consideration transferred at acquisition close date | 7,514 | ||||
Discounted liability to MUFG | 2,944 | $ 2,100 | $ 2,900 | ||
Total | 10,458 | ||||
Assets | |||||
Cash and due from banks | 17,754 | ||||
Investment securities | 22,725 | ||||
Loans held for sale | 2,220 | ||||
Loans | 53,395 | ||||
Less allowance for loan losses | (463) | ||||
Net loans | 52,932 | ||||
Premises and equipment | 646 | ||||
Other intangible assets (excluding goodwill) | 2,808 | ||||
Other assets | 4,764 | ||||
Total assets | 103,849 | ||||
Liabilities | |||||
Deposits | 86,110 | ||||
Short-term borrowings | 4,777 | ||||
Long-term debt | 2,584 | ||||
Other liabilities | 2,243 | ||||
Total liabilities | 95,714 | ||||
Less: Net assets | 8,135 | ||||
Goodwill | 2,323 | ||||
Additional cash to be received | $ 3,500 |
Business Combinations - Fair _2
Business Combinations - Fair Value and Unpaid Principal Balance of the Loans (Details) - MUB $ in Millions | Dec. 01, 2022 USD ($) |
Business Acquisition [Line Items] | |
Unpaid Principal Balance | $ 56,120 |
Fair Value | 52,932 |
Commercial | Commercial | |
Business Acquisition [Line Items] | |
Unpaid Principal Balance | 11,771 |
Fair Value | 11,366 |
Commercial | Commercial real estate | |
Business Acquisition [Line Items] | |
Unpaid Principal Balance | 14,397 |
Fair Value | 13,737 |
Consumer | Residential mortgages | |
Business Acquisition [Line Items] | |
Unpaid Principal Balance | 28,256 |
Fair Value | 26,247 |
Consumer | Credit card | |
Business Acquisition [Line Items] | |
Unpaid Principal Balance | 299 |
Fair Value | 212 |
Consumer | Other retail | |
Business Acquisition [Line Items] | |
Unpaid Principal Balance | 1,397 |
Fair Value | $ 1,370 |
Business Combinations - Other I
Business Combinations - Other Intangible Assets Acquired (Details) - MUB $ in Millions | Dec. 01, 2022 USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 2,808 |
Mortgage servicing rights | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 147 |
Core deposit benefits | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Estimated Life | 10 years |
Fair Value | $ 2,635 |
Other | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Estimated Life | 11 years |
Fair Value | $ 26 |
Business Combinations - Financi
Business Combinations - Financial Results Included in the Consolidated Statement of Income (Details) - MUB $ in Millions | 1 Months Ended |
Dec. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | |
Net interest income | $ 255 |
Noninterest income | (38) |
Net income (loss) | $ (562) |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - MUB - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition Pro Forma Information [Line Items] | ||
Net interest income | $ 17,541 | $ 14,958 |
Noninterest income | 10,068 | 11,071 |
Net income | $ 7,184 | $ 7,187 |
Business Combinations - Purchas
Business Combinations - Purchase Price of PCD Loans Acquired (Details) - MUB - PCD Loans $ in Millions | Dec. 01, 2022 USD ($) |
Business Acquisition [Line Items] | |
Principal balance | $ 5,097 |
Allowance for credit losses at acquisition | (463) |
Non-credit discount | (213) |
Purchase price | $ 4,421 |
Restrictions on Cash and Due _2
Restrictions on Cash and Due from Banks (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Abstract] | ||
Minimum Average Reserve Balances Required By Banking Regulators | $ 53 | $ 45 |
Balances held at the central banks and other financial institutions | $ 49,500 | $ 41,600 |
Investment Securities - Held-to
Investment Securities - Held-to-Maturity Securities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | $ 84,045 | $ 88,740 |
Unrealized Gains | 12 | 3 |
Unrealized Losses | (9,969) | (10,869) |
Fair Value | 74,088 | 77,874 |
U.S. Treasury and agencies | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 1,345 | 1,344 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (35) | (51) |
Fair Value | 1,310 | 1,293 |
Residential mortgage-backed securities | Agency | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 80,997 | 85,693 |
Unrealized Gains | 6 | 2 |
Unrealized Losses | (9,929) | (10,810) |
Fair Value | 71,074 | 74,885 |
Commercial mortgage-backed securities | Agency | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 1,695 | 1,703 |
Unrealized Gains | 6 | 1 |
Unrealized Losses | (5) | (8) |
Fair Value | 1,696 | 1,696 |
Other | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 8 | 0 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 8 | $ 0 |
Investment Securities - Availab
Investment Securities - Available-For-Sale Securities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | $ 76,602 | $ 81,450 | |
Unrealized Gains | 173 | 26 | |
Unrealized Losses | (7,069) | (8,566) | |
Fair Value | [1] | 69,706 | 72,910 |
Portfolio level basis adjustments, Amortized Cost | 335 | ||
Portfolio level basis adjustments, Unrealized Losses | (335) | ||
U.S. Treasury and agencies | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 21,768 | 24,801 | |
Unrealized Gains | 8 | 1 | |
Unrealized Losses | (2,234) | (2,769) | |
Fair Value | 19,542 | 22,033 | |
Residential mortgage-backed securities | Agency | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 28,185 | 32,060 | |
Unrealized Gains | 104 | 8 | |
Unrealized Losses | (2,211) | (2,797) | |
Fair Value | 26,078 | 29,271 | |
Commercial mortgage-backed securities | Agency | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 8,703 | 8,736 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | (1,360) | (1,591) | |
Fair Value | 7,343 | 7,145 | |
Commercial mortgage-backed securities | Non-agency | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 7 | 7 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | (1) | 0 | |
Fair Value | 6 | 7 | |
Asset-backed securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 6,713 | 4,356 | |
Unrealized Gains | 25 | 5 | |
Unrealized Losses | (14) | (38) | |
Fair Value | 6,724 | 4,323 | |
Obligations of state and political subdivisions | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 10,867 | 11,484 | |
Unrealized Gains | 36 | 12 | |
Unrealized Losses | (914) | (1,371) | |
Fair Value | 9,989 | 10,125 | |
Other | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 24 | 6 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Fair Value | 24 | 6 | |
Excluding portfolio level basis adjustments | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 76,267 | 81,450 | |
Unrealized Gains | 173 | 26 | |
Unrealized Losses | (6,734) | (8,566) | |
Fair Value | $ 69,706 | $ 72,910 | |
[1] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Securities, Available-for-Sale [Line Items] | |||
Available-for-sale securities | [1] | $ 69,706 | $ 72,910 |
Allowance for credit loss on held-to-maturity securities | 0 | ||
Asset Pledged as Collateral | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Available-for-sale securities | 20,500 | 15,300 | |
Asset Pledged as Collateral with Right | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Available-for-sale securities | $ 338 | $ 858 | |
[1] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
Investment Securities - Interes
Investment Securities - Interest Income from Taxable and Non-Taxable Investment Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Taxable | $ 4,171 | $ 3,081 | $ 2,103 |
Non-taxable | 314 | 297 | 262 |
Total interest income from investment securities | $ 4,485 | $ 3,378 | $ 2,365 |
Investment Securities - Gross G
Investment Securities - Gross Gains and Losses Realized through Sales of Available-for-Sale Investment Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Realized gains | $ 74 | $ 163 | $ 122 |
Realized losses | (219) | (143) | (19) |
Net realized gains (losses) | (145) | 20 | 103 |
Income tax expense (benefit) on net realized gains (losses) | $ (37) | $ 5 | $ 26 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses and Fair Value of Investment Securities (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |
Less Than 12 Months, Fair Value | $ 4,172 |
Less Than 12 Months, Unrealized Losses | (28) |
12 Months or Greater, Fair Value | 53,443 |
12 Months or Greater, Unrealized Losses | (6,706) |
Total, Fair Value | 57,615 |
Total, Unrealized Losses | (6,734) |
U.S. Treasury and agencies | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |
Less Than 12 Months, Fair Value | 874 |
Less Than 12 Months, Unrealized Losses | (3) |
12 Months or Greater, Fair Value | 17,270 |
12 Months or Greater, Unrealized Losses | (2,231) |
Total, Fair Value | 18,144 |
Total, Unrealized Losses | (2,234) |
Residential mortgage-backed securities | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |
Less Than 12 Months, Fair Value | 519 |
Less Than 12 Months, Unrealized Losses | (8) |
12 Months or Greater, Fair Value | 21,356 |
12 Months or Greater, Unrealized Losses | (2,203) |
Total, Fair Value | 21,875 |
Total, Unrealized Losses | (2,211) |
Commercial mortgage-backed securities | Agency | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |
Less Than 12 Months, Fair Value | 0 |
Less Than 12 Months, Unrealized Losses | 0 |
12 Months or Greater, Fair Value | 7,343 |
12 Months or Greater, Unrealized Losses | (1,360) |
Total, Fair Value | 7,343 |
Total, Unrealized Losses | (1,360) |
Commercial mortgage-backed securities | Non-agency | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |
Less Than 12 Months, Fair Value | 0 |
Less Than 12 Months, Unrealized Losses | 0 |
12 Months or Greater, Fair Value | 6 |
12 Months or Greater, Unrealized Losses | (1) |
Total, Fair Value | 6 |
Total, Unrealized Losses | (1) |
Asset-backed securities | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |
Less Than 12 Months, Fair Value | 2,235 |
Less Than 12 Months, Unrealized Losses | (14) |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Unrealized Losses | 0 |
Total, Fair Value | 2,235 |
Total, Unrealized Losses | (14) |
Obligations of state and political subdivisions | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |
Less Than 12 Months, Fair Value | 544 |
Less Than 12 Months, Unrealized Losses | (3) |
12 Months or Greater, Fair Value | 7,464 |
12 Months or Greater, Unrealized Losses | (911) |
Total, Fair Value | 8,008 |
Total, Unrealized Losses | (914) |
Other | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |
Less Than 12 Months, Fair Value | 0 |
Less Than 12 Months, Unrealized Losses | 0 |
12 Months or Greater, Fair Value | 4 |
12 Months or Greater, Unrealized Losses | 0 |
Total, Fair Value | 4 |
Total, Unrealized Losses | $ 0 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost, Fair Value and Yield by Maturity Date (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Amortized Cost | ||||
Amortized Cost | $ 84,045 | $ 88,740 | ||
Fair Value | ||||
Fair Value | $ 74,088 | $ 77,874 | ||
Weighted- Average Maturity in Years | ||||
Total | 8 years 8 months 12 days | |||
Weighted- Average Yield | ||||
Total | 2.22% | 2.18% | ||
Weighted average maturity of total held to maturity investment securities | 9 years 2 months 12 days | |||
Amortized Cost | ||||
Amortized Cost | $ 76,267 | |||
Fair Value | ||||
Fair Value | [1] | $ 69,706 | $ 72,910 | |
Weighted- Average Maturity in Years | ||||
Total | 6 years 3 months 18 days | 7 years 4 months 24 days | ||
Weighted- Average Yield | ||||
Total | 3.12% | 2.94% | ||
Federal statutory rate | 21% | 21% | 21% | |
Portfolio basis adjustments excluded from amortized cost | $ 335 | |||
U.S. Treasury and agencies | ||||
Amortized Cost | ||||
Maturing in one year or less | 50 | |||
Maturing after one year through five years | 1,295 | |||
Maturing after five years through ten years | 0 | |||
Maturing after ten years | 0 | |||
Amortized Cost | 1,345 | $ 1,344 | ||
Fair Value | ||||
Maturing in one year or less | 50 | |||
Maturing after one year through five years | 1,260 | |||
Maturing after five years through ten years | 0 | |||
Maturing after ten years | 0 | |||
Fair Value | $ 1,310 | 1,293 | ||
Weighted- Average Maturity in Years | ||||
Maturing in one year or less | 3 months 18 days | |||
Maturing after one year through five years | 2 years 4 months 24 days | |||
Total | 2 years 3 months 18 days | |||
Weighted- Average Yield | ||||
Maturing in one year or less | 2.67% | |||
Maturing after one year through five years | 2.85% | |||
Maturing after five years through ten years | 0% | |||
Maturing after ten years | 0% | |||
Total | 2.85% | |||
Amortized Cost | ||||
Maturing in one year or less | $ 9 | |||
Maturing after one year through five years | 8,882 | |||
Maturing after five years through ten years | 11,165 | |||
Maturing after ten years | 1,712 | |||
Amortized Cost | 21,768 | |||
Fair Value | ||||
Maturing in one year or less | 9 | |||
Maturing after one year through five years | 8,378 | |||
Maturing after five years through ten years | 9,827 | |||
Maturing after ten years | 1,328 | |||
Fair Value | $ 19,542 | 22,033 | ||
Weighted- Average Maturity in Years | ||||
Maturing in one year or less | 3 months 18 days | |||
Maturing after one year through five years | 3 years 8 months 12 days | |||
Maturing after five years through ten years | 6 years 9 months 18 days | |||
Maturing after ten years | 10 years 9 months 18 days | |||
Total | 5 years 10 months 24 days | |||
Weighted- Average Yield | ||||
Maturing in one year or less | 5.28% | |||
Maturing after one year through five years | 2.35% | |||
Maturing after five years through ten years | 2.08% | |||
Maturing after ten years | 2.02% | |||
Total | 2.19% | |||
Mortgage-backed securities | ||||
Amortized Cost | ||||
Maturing in one year or less | $ 22 | |||
Maturing after one year through five years | 1,268 | |||
Maturing after five years through ten years | 75,984 | |||
Maturing after ten years | 5,418 | |||
Amortized Cost | 82,692 | |||
Fair Value | ||||
Maturing in one year or less | 22 | |||
Maturing after one year through five years | 1,266 | |||
Maturing after five years through ten years | 67,094 | |||
Maturing after ten years | 4,388 | |||
Fair Value | $ 72,770 | |||
Weighted- Average Maturity in Years | ||||
Maturing in one year or less | 8 months 12 days | |||
Maturing after one year through five years | 2 years 6 months | |||
Maturing after five years through ten years | 8 years 9 months 18 days | |||
Maturing after ten years | 10 years 2 months 12 days | |||
Total | 8 years 9 months 18 days | |||
Weighted- Average Yield | ||||
Maturing in one year or less | 4.43% | |||
Maturing after one year through five years | 4.52% | |||
Maturing after five years through ten years | 2.19% | |||
Maturing after ten years | 1.91% | |||
Total | 2.21% | |||
Amortized Cost | ||||
Maturing in one year or less | $ 83 | |||
Maturing after one year through five years | 11,196 | |||
Maturing after five years through ten years | 24,455 | |||
Maturing after ten years | 1,161 | |||
Amortized Cost | 36,895 | |||
Fair Value | ||||
Maturing in one year or less | 81 | |||
Maturing after one year through five years | 10,860 | |||
Maturing after five years through ten years | 21,483 | |||
Maturing after ten years | 1,003 | |||
Fair Value | $ 33,427 | |||
Weighted- Average Maturity in Years | ||||
Maturing in one year or less | 9 months 18 days | |||
Maturing after one year through five years | 3 years 6 months | |||
Maturing after five years through ten years | 7 years 3 months 18 days | |||
Maturing after ten years | 10 years 10 months 24 days | |||
Total | 6 years 3 months 18 days | |||
Weighted- Average Yield | ||||
Maturing in one year or less | 2.26% | |||
Maturing after one year through five years | 3.80% | |||
Maturing after five years through ten years | 2.76% | |||
Maturing after ten years | 3.43% | |||
Total | 3.09% | |||
Asset-backed securities | ||||
Amortized Cost | ||||
Maturing in one year or less | $ 0 | |||
Maturing after one year through five years | 5,834 | |||
Maturing after five years through ten years | 879 | |||
Maturing after ten years | 0 | |||
Amortized Cost | 6,713 | |||
Fair Value | ||||
Maturing in one year or less | 0 | |||
Maturing after one year through five years | 5,844 | |||
Maturing after five years through ten years | 880 | |||
Maturing after ten years | 0 | |||
Fair Value | $ 6,724 | 4,323 | ||
Weighted- Average Maturity in Years | ||||
Maturing after one year through five years | 1 year 8 months 12 days | |||
Maturing after five years through ten years | 5 years 9 months 18 days | |||
Total | 2 years 2 months 12 days | |||
Weighted- Average Yield | ||||
Maturing in one year or less | 0% | |||
Maturing after one year through five years | 5.05% | |||
Maturing after five years through ten years | 7.15% | |||
Maturing after ten years | 0% | |||
Total | 5.33% | |||
Obligations of state and political subdivisions | ||||
Amortized Cost | ||||
Maturing in one year or less | $ 225 | |||
Maturing after one year through five years | 3,546 | |||
Maturing after five years through ten years | 1,453 | |||
Maturing after ten years | 5,643 | |||
Amortized Cost | 10,867 | |||
Fair Value | ||||
Maturing in one year or less | 225 | |||
Maturing after one year through five years | 3,536 | |||
Maturing after five years through ten years | 1,414 | |||
Maturing after ten years | 4,814 | |||
Fair Value | $ 9,989 | 10,125 | ||
Weighted- Average Maturity in Years | ||||
Maturing in one year or less | 4 months 24 days | |||
Maturing after one year through five years | 3 years | |||
Maturing after five years through ten years | 7 years 3 months 18 days | |||
Maturing after ten years | 15 years 3 months 18 days | |||
Total | 9 years 10 months 24 days | |||
Weighted- Average Yield | ||||
Maturing in one year or less | 5.52% | |||
Maturing after one year through five years | 4.55% | |||
Maturing after five years through ten years | 3.86% | |||
Maturing after ten years | 3.14% | |||
Total | 3.75% | |||
Other | ||||
Amortized Cost | ||||
Maturing in one year or less | $ 0 | |||
Maturing after one year through five years | 8 | |||
Maturing after five years through ten years | 0 | |||
Maturing after ten years | 0 | |||
Amortized Cost | 8 | 0 | ||
Fair Value | ||||
Maturing in one year or less | 0 | |||
Maturing after one year through five years | 8 | |||
Maturing after five years through ten years | 0 | |||
Maturing after ten years | 0 | |||
Fair Value | $ 8 | 0 | ||
Weighted- Average Maturity in Years | ||||
Maturing after one year through five years | 2 years 9 months 18 days | |||
Total | 2 years 9 months 18 days | |||
Weighted- Average Yield | ||||
Maturing in one year or less | 0% | |||
Maturing after one year through five years | 2.56% | |||
Maturing after five years through ten years | 0% | |||
Maturing after ten years | 0% | |||
Total | 2.56% | |||
Amortized Cost | ||||
Maturing in one year or less | $ 0 | |||
Maturing after one year through five years | 24 | |||
Maturing after five years through ten years | 0 | |||
Maturing after ten years | 0 | |||
Amortized Cost | 24 | |||
Fair Value | ||||
Maturing in one year or less | 0 | |||
Maturing after one year through five years | 24 | |||
Maturing after five years through ten years | 0 | |||
Maturing after ten years | 0 | |||
Fair Value | $ 24 | $ 6 | ||
Weighted- Average Maturity in Years | ||||
Maturing after one year through five years | 1 year 8 months 12 days | |||
Total | 1 year 8 months 12 days | |||
Weighted- Average Yield | ||||
Maturing in one year or less | 0% | |||
Maturing after one year through five years | 4.51% | |||
Maturing after five years through ten years | 0% | |||
Maturing after ten years | 0% | |||
Total | 4.51% | |||
[1] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Composition of Loan Portfolio (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 373,835 | $ 388,213 |
Commercial | Total commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 131,881 | 135,690 |
Commercial | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 127,676 | 131,128 |
Commercial | Lease financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,205 | 4,562 |
Commercial | Total commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 53,455 | 55,487 |
Commercial | Commercial mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 41,934 | 43,765 |
Commercial | Construction and development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 11,521 | 11,722 |
Consumer | Total residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 115,530 | 115,845 |
Consumer | Residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 108,605 | 107,858 |
Consumer | Home equity loans, first liens | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 6,925 | 7,987 |
Consumer | Credit card | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 28,560 | 26,295 |
Consumer | Total other retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 44,409 | 54,896 |
Consumer | Retail leasing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,135 | 5,519 |
Consumer | Home equity and second mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 13,056 | 12,863 |
Consumer | Revolving credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,668 | 3,983 |
Consumer | Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 13,889 | 14,592 |
Consumer | Automobile | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 9,661 | $ 17,939 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged at the Federal Home Loan Bank | $ 366,456 | $ 381,277 |
Loans pledged at the Federal Reserve Bank | 82,800 | 85,800 |
Net unearned interest and deferred fees and costs on originated loans and unamortized premiums and discounts on purchased loans | 2,700 | 3,100 |
Non-performing assets | 1,500 | 1,000 |
Nonperforming loans | 1,400 | 972 |
Non-performing OREO | 26 | 23 |
Non-performing assets other | 19 | 21 |
Foreclosed residential real estate property included in OREO | 26 | 23 |
Foreclosed residential real estate related to mortgage loans whose payments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs | 47 | 54 |
Residential mortgage loans secured by residential real estate in process of foreclosure | 728 | 1,100 |
Outstanding balance of loans in trial period | 39 | |
Commitments to lend | 283 | |
GNMA loans upon foreclosure | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential mortgage loans secured by residential real estate in process of foreclosure | 487 | 830 |
Federal Home Loan Bank | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged at the Federal Home Loan Bank | $ 123,100 | $ 134,600 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Activity in Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 7,404 | $ 6,155 | $ 8,010 |
Add | |||
Allowance for acquired credit losses | 127 | 336 | |
Provision for credit losses | 2,275 | 1,977 | (1,173) |
Deduct | |||
Loans charged-off | 2,291 | 1,500 | 1,208 |
Less recoveries of loans charged-off | (386) | (437) | (526) |
Net loan charge-offs (recoveries) | 1,905 | 1,063 | 682 |
Other Changes | (1) | ||
Balance at end of period | 7,839 | 7,404 | 6,155 |
MUB | |||
Deduct | |||
Loans charged-off | 179 | ||
Provision for credit losses related to loans acquired | 662 | ||
Change in accounting principle | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | (62) | ||
Deduct | |||
Balance at end of period | (62) | ||
Commercial | Commercial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 2,163 | 1,849 | 2,423 |
Add | |||
Allowance for acquired credit losses | 0 | 163 | |
Provision for credit losses | 270 | 378 | (471) |
Deduct | |||
Loans charged-off | 389 | 319 | 222 |
Less recoveries of loans charged-off | (75) | (92) | (119) |
Net loan charge-offs (recoveries) | 314 | 227 | 103 |
Other Changes | 0 | ||
Balance at end of period | 2,119 | 2,163 | 1,849 |
Commercial | Commercial | Change in accounting principle | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 0 | ||
Deduct | |||
Balance at end of period | 0 | ||
Commercial | Commercial real estate | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 1,325 | 1,123 | 1,544 |
Add | |||
Allowance for acquired credit losses | 127 | 87 | |
Provision for credit losses | 431 | 152 | (419) |
Deduct | |||
Loans charged-off | 281 | 54 | 29 |
Less recoveries of loans charged-off | (18) | (17) | (27) |
Net loan charge-offs (recoveries) | 263 | 37 | 2 |
Other Changes | 0 | ||
Balance at end of period | 1,620 | 1,325 | 1,123 |
Commercial | Commercial real estate | Change in accounting principle | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 0 | ||
Deduct | |||
Balance at end of period | 0 | ||
Consumer | Residential mortgages | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 926 | 565 | 573 |
Add | |||
Allowance for acquired credit losses | 0 | 36 | |
Provision for credit losses | 41 | 302 | (40) |
Deduct | |||
Loans charged-off | 129 | 13 | 18 |
Less recoveries of loans charged-off | (20) | (36) | (50) |
Net loan charge-offs (recoveries) | 109 | (23) | (32) |
Other Changes | 0 | ||
Balance at end of period | 827 | 926 | 565 |
Consumer | Residential mortgages | Change in accounting principle | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | (31) | ||
Deduct | |||
Balance at end of period | (31) | ||
Consumer | Credit card | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 2,020 | 1,673 | 2,355 |
Add | |||
Allowance for acquired credit losses | 0 | 45 | |
Provision for credit losses | 1,259 | 826 | (170) |
Deduct | |||
Loans charged-off | 1,014 | 696 | 686 |
Less recoveries of loans charged-off | (165) | (172) | (174) |
Net loan charge-offs (recoveries) | 849 | 524 | 512 |
Other Changes | 0 | ||
Balance at end of period | 2,403 | 2,020 | 1,673 |
Consumer | Credit card | Change in accounting principle | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | (27) | ||
Deduct | |||
Balance at end of period | (27) | ||
Consumer | Other retail | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 970 | 945 | 1,115 |
Add | |||
Allowance for acquired credit losses | 0 | 5 | |
Provision for credit losses | 274 | 319 | (73) |
Deduct | |||
Loans charged-off | 478 | 418 | 253 |
Less recoveries of loans charged-off | (108) | (120) | (156) |
Net loan charge-offs (recoveries) | 370 | 298 | 97 |
Other Changes | (1) | ||
Balance at end of period | 870 | 970 | $ 945 |
Consumer | Other retail | Change in accounting principle | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ (4) | ||
Deduct | |||
Balance at end of period | $ (4) |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Loans Charged-off (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Originated in 2023 | $ 168 | ||
Originated in 2022 | 282 | ||
Originated in 2021 | 188 | ||
Originated in 2020 | 65 | ||
Originated in 2019 | 65 | ||
Originated prior to 2019 | 238 | ||
Revolving | 1,257 | ||
Revolving converted to term | 28 | ||
Total charge-offs | 2,291 | $ 1,500 | $ 1,208 |
Commercial | Commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Originated in 2023 | 48 | ||
Originated in 2022 | 63 | ||
Originated in 2021 | 30 | ||
Originated in 2020 | 17 | ||
Originated in 2019 | 15 | ||
Originated prior to 2019 | 53 | ||
Revolving | 163 | ||
Revolving converted to term | 0 | ||
Total charge-offs | 389 | 319 | 222 |
Commercial | Commercial real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Originated in 2023 | 63 | ||
Originated in 2022 | 88 | ||
Originated in 2021 | 69 | ||
Originated in 2020 | 2 | ||
Originated in 2019 | 3 | ||
Originated prior to 2019 | 56 | ||
Revolving | 0 | ||
Revolving converted to term | 0 | ||
Total charge-offs | 281 | 54 | 29 |
Charge-offs related to uncollectible amounts on acquired loans | 91 | ||
Consumer | Residential mortgages | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Originated in 2023 | 0 | ||
Originated in 2022 | 1 | ||
Originated in 2021 | 6 | ||
Originated in 2020 | 8 | ||
Originated in 2019 | 16 | ||
Originated prior to 2019 | 98 | ||
Revolving | 0 | ||
Revolving converted to term | 0 | ||
Total charge-offs | 129 | 13 | 18 |
Charge-offs related to balance sheet repositioning and capital management actions | 117 | ||
Consumer | Credit card | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Originated in 2023 | 0 | ||
Originated in 2022 | 0 | ||
Originated in 2021 | 0 | ||
Originated in 2020 | 0 | ||
Originated in 2019 | 0 | ||
Originated prior to 2019 | 0 | ||
Revolving | 1,014 | ||
Revolving converted to term | 0 | ||
Total charge-offs | 1,014 | 696 | 686 |
Consumer | Other retail | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Originated in 2023 | 57 | ||
Originated in 2022 | 130 | ||
Originated in 2021 | 83 | ||
Originated in 2020 | 38 | ||
Originated in 2019 | 31 | ||
Originated prior to 2019 | 31 | ||
Revolving | 80 | ||
Revolving converted to term | 28 | ||
Total charge-offs | 478 | $ 418 | $ 253 |
Charge-offs related to balance sheet repositioning and capital management actions | $ 192 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Loans by Portfolio Class, Including Delinquency Status (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 373,835 | $ 388,213 |
Interest income on nonperforming loans | 22 | 19 |
Interest income on nonperforming loans if based on original contractual terms | 49 | 34 |
Nonperforming | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,449 | 972 |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 370,316 | 385,520 |
30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,372 | 1,230 |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 698 | 491 |
Commercial | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 131,881 | 135,690 |
Commercial | Commercial | Nonperforming | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 376 | 169 |
Commercial | Commercial | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 130,925 | 135,077 |
Commercial | Commercial | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 464 | 350 |
Commercial | Commercial | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 116 | 94 |
Commercial | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 53,455 | 55,487 |
Commercial | Commercial real estate | Nonperforming | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 777 | 338 |
Commercial | Commercial real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 52,619 | 55,057 |
Commercial | Commercial real estate | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 55 | 87 |
Commercial | Commercial real estate | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 4 | 5 |
Consumer | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 115,530 | 115,845 |
Consumer | Residential mortgages | Loans purchased from GNMA mortgage pools | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans 30-89 days past due purchased from GNMA mortgage pools, classified as current | 595 | 647 |
Loans 90 days or more past due purchased from GNMA mortgage pools, classified as current | 2,000 | 2,200 |
Consumer | Residential mortgages | Nonperforming | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 158 | 325 |
Consumer | Residential mortgages | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 115,067 | 115,224 |
Consumer | Residential mortgages | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 169 | 201 |
Consumer | Residential mortgages | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 136 | 95 |
Consumer | Credit card | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 28,560 | 26,295 |
Consumer | Credit card | Nonperforming | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 0 | 1 |
Consumer | Credit card | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 27,779 | 25,780 |
Consumer | Credit card | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 406 | 283 |
Consumer | Credit card | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 375 | 231 |
Consumer | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 44,409 | 54,896 |
Consumer | Other retail | Nonperforming | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 138 | 139 |
Consumer | Other retail | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 43,926 | 54,382 |
Consumer | Other retail | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 278 | 309 |
Consumer | Other retail | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 67 | $ 66 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Loans by Portfolio Class and Internal Credit Quality Rating (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans by origination year | ||
Total loans | $ 373,835 | $ 388,213 |
Total outstanding commitments | 778,392 | 780,670 |
Modified loans | 3,726 | |
Loans purchased from GNMA mortgage pools | ||
Loans by origination year | ||
Modified loans | 1,839 | |
Pass | ||
Loans by origination year | ||
Total loans | 361,687 | 382,382 |
Total outstanding commitments | 762,869 | 772,804 |
Total Criticized | ||
Loans by origination year | ||
Total loans | 12,148 | 5,831 |
Total outstanding commitments | 15,523 | 7,866 |
Special Mention | ||
Loans by origination year | ||
Total loans | 3,564 | 1,794 |
Total outstanding commitments | 5,053 | 2,825 |
Classified | ||
Loans by origination year | ||
Total loans | 8,584 | 4,037 |
Total outstanding commitments | 10,470 | 5,041 |
Residential mortgages | Pass | Loans purchased from GNMA mortgage pools | ||
Loans by origination year | ||
Loans 90 days or more past due | 2,000 | 2,200 |
Modified loans | 1,200 | 1,000 |
Commercial | Commercial | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 44,706 | 61,789 |
Originated in 2022/2021 | 40,982 | 26,648 |
Originated in 2021/2020 | 9,490 | 7,255 |
Originated in 2020/2019 | 3,332 | 4,223 |
Originated in 2019 | 1,461 | |
Originated prior to 2019 | 4,081 | |
Originated prior to 2019 | 9,179 | |
Revolving | 27,829 | 26,596 |
Total loans | 131,881 | 135,690 |
Modified loans | 365 | |
Commercial | Commercial | Pass | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 43,023 | 61,229 |
Originated in 2022/2021 | 40,076 | 26,411 |
Originated in 2021/2020 | 9,219 | 7,049 |
Originated in 2020/2019 | 3,169 | 3,962 |
Originated in 2019 | 1,340 | |
Originated prior to 2019 | 3,963 | |
Originated prior to 2019 | 8,986 | |
Revolving | 26,213 | 25,888 |
Total loans | 127,003 | 133,525 |
Commercial | Commercial | Total Criticized | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 1,683 | 560 |
Originated in 2022/2021 | 906 | 237 |
Originated in 2021/2020 | 271 | 206 |
Originated in 2020/2019 | 163 | 261 |
Originated in 2019 | 121 | |
Originated prior to 2019 | 118 | |
Originated prior to 2019 | 193 | |
Revolving | 1,616 | 708 |
Total loans | 4,878 | 2,165 |
Commercial | Commercial | Special Mention | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 827 | 245 |
Originated in 2022/2021 | 274 | 159 |
Originated in 2021/2020 | 117 | 68 |
Originated in 2020/2019 | 92 | 51 |
Originated in 2019 | 18 | |
Originated prior to 2019 | 12 | |
Originated prior to 2019 | 64 | |
Revolving | 362 | 344 |
Total loans | 1,702 | 931 |
Commercial | Commercial | Classified | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 856 | 315 |
Originated in 2022/2021 | 632 | 78 |
Originated in 2021/2020 | 154 | 138 |
Originated in 2020/2019 | 71 | 210 |
Originated in 2019 | 103 | |
Originated prior to 2019 | 106 | |
Originated prior to 2019 | 129 | |
Revolving | 1,254 | 364 |
Total loans | 3,176 | 1,234 |
Commercial | Commercial real estate | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 11,519 | 15,252 |
Originated in 2022/2021 | 13,354 | 13,835 |
Originated in 2021/2020 | 10,120 | 6,703 |
Originated in 2020/2019 | 3,935 | 7,546 |
Originated in 2019 | 5,444 | |
Originated prior to 2019 | 6,392 | |
Originated prior to 2019 | 10,652 | |
Revolving | 2,689 | 1,499 |
Revolving converted to term | 2 | 0 |
Total loans | 53,455 | 55,487 |
Modified loans | 717 | |
Commercial | Commercial real estate | Pass | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 8,848 | 14,527 |
Originated in 2022/2021 | 11,831 | 13,565 |
Originated in 2021/2020 | 9,235 | 6,489 |
Originated in 2020/2019 | 3,797 | 6,991 |
Originated in 2019 | 4,749 | |
Originated prior to 2019 | 6,010 | |
Originated prior to 2019 | 9,639 | |
Revolving | 2,613 | 1,489 |
Revolving converted to term | 2 | 0 |
Total loans | 47,085 | 52,700 |
Commercial | Commercial real estate | Total Criticized | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 2,671 | 725 |
Originated in 2022/2021 | 1,523 | 270 |
Originated in 2021/2020 | 885 | 214 |
Originated in 2020/2019 | 138 | 555 |
Originated in 2019 | 695 | |
Originated prior to 2019 | 382 | |
Originated prior to 2019 | 1,013 | |
Revolving | 76 | 10 |
Revolving converted to term | 0 | 0 |
Total loans | 6,370 | 2,787 |
Commercial | Commercial real estate | Special Mention | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 465 | 206 |
Originated in 2022/2021 | 382 | 171 |
Originated in 2021/2020 | 500 | 97 |
Originated in 2020/2019 | 51 | 251 |
Originated in 2019 | 336 | |
Originated prior to 2019 | 122 | |
Originated prior to 2019 | 138 | |
Revolving | 6 | 0 |
Revolving converted to term | 0 | 0 |
Total loans | 1,862 | 863 |
Commercial | Commercial real estate | Classified | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 2,206 | 519 |
Originated in 2022/2021 | 1,141 | 99 |
Originated in 2021/2020 | 385 | 117 |
Originated in 2020/2019 | 87 | 304 |
Originated in 2019 | 359 | |
Originated prior to 2019 | 260 | |
Originated prior to 2019 | 875 | |
Revolving | 70 | 10 |
Revolving converted to term | 0 | 0 |
Total loans | 4,508 | 1,924 |
Consumer | Residential mortgages | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 9,739 | 28,452 |
Originated in 2022/2021 | 29,163 | 39,534 |
Originated in 2021/2020 | 36,381 | 16,564 |
Originated in 2020/2019 | 14,782 | 7,240 |
Originated in 2019 | 5,892 | |
Originated prior to 2019 | 19,572 | |
Originated prior to 2019 | 24,055 | |
Revolving | 1 | 0 |
Total loans | 115,530 | 115,845 |
Modified loans | 280 | |
Consumer | Residential mortgages | Pass | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 9,734 | 28,452 |
Originated in 2022/2021 | 29,146 | 39,527 |
Originated in 2021/2020 | 36,365 | 16,556 |
Originated in 2020/2019 | 14,773 | 7,222 |
Originated in 2019 | 5,876 | |
Originated prior to 2019 | 19,326 | |
Originated prior to 2019 | 23,658 | |
Revolving | 1 | 0 |
Total loans | 115,221 | 115,415 |
Consumer | Residential mortgages | Total Criticized | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 5 | 0 |
Originated in 2022/2021 | 17 | 7 |
Originated in 2021/2020 | 16 | 8 |
Originated in 2020/2019 | 9 | 18 |
Originated in 2019 | 16 | |
Originated prior to 2019 | 246 | |
Originated prior to 2019 | 397 | |
Revolving | 0 | 0 |
Total loans | 309 | 430 |
Consumer | Residential mortgages | Special Mention | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 0 | 0 |
Originated in 2022/2021 | 0 | 0 |
Originated in 2021/2020 | 0 | 0 |
Originated in 2020/2019 | 0 | 0 |
Originated in 2019 | 0 | |
Originated prior to 2019 | 0 | |
Originated prior to 2019 | 0 | |
Revolving | 0 | 0 |
Total loans | 0 | 0 |
Consumer | Residential mortgages | Classified | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 5 | 0 |
Originated in 2022/2021 | 17 | 7 |
Originated in 2021/2020 | 16 | 8 |
Originated in 2020/2019 | 9 | 18 |
Originated in 2019 | 16 | |
Originated prior to 2019 | 246 | |
Originated prior to 2019 | 397 | |
Revolving | 0 | 0 |
Total loans | 309 | 430 |
Consumer | Credit card | ||
Loans by origination year | ||
Total loans | 28,560 | 26,295 |
Modified loans | 350 | |
Consumer | Credit card | Pass | ||
Loans by origination year | ||
Total loans | 28,185 | 26,063 |
Consumer | Credit card | Total Criticized | ||
Loans by origination year | ||
Total loans | 375 | 232 |
Consumer | Credit card | Special Mention | ||
Loans by origination year | ||
Total loans | 0 | 0 |
Consumer | Credit card | Classified | ||
Loans by origination year | ||
Total loans | 375 | 232 |
Consumer | Other retail | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 5,188 | 9,569 |
Originated in 2022/2021 | 5,619 | 15,364 |
Originated in 2021/2020 | 10,413 | 7,839 |
Originated in 2020/2019 | 4,550 | 3,431 |
Originated in 2019 | 1,800 | |
Originated prior to 2019 | 2,228 | |
Originated prior to 2019 | 3,720 | |
Revolving | 13,824 | 14,127 |
Revolving converted to term | 787 | 846 |
Total loans | 44,409 | 54,896 |
Modified loans | 175 | |
Consumer | Other retail | Pass | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 5,184 | 9,563 |
Originated in 2022/2021 | 5,607 | 15,352 |
Originated in 2021/2020 | 10,398 | 7,828 |
Originated in 2020/2019 | 4,541 | 3,418 |
Originated in 2019 | 1,793 | |
Originated prior to 2019 | 2,215 | |
Originated prior to 2019 | 3,689 | |
Revolving | 13,720 | 14,029 |
Revolving converted to term | 735 | 800 |
Total loans | 44,193 | 54,679 |
Consumer | Other retail | Total Criticized | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 4 | 6 |
Originated in 2022/2021 | 12 | 12 |
Originated in 2021/2020 | 15 | 11 |
Originated in 2020/2019 | 9 | 13 |
Originated in 2019 | 7 | |
Originated prior to 2019 | 13 | |
Originated prior to 2019 | 31 | |
Revolving | 104 | 98 |
Revolving converted to term | 52 | 46 |
Total loans | 216 | 217 |
Consumer | Other retail | Special Mention | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 0 | 0 |
Originated in 2022/2021 | 0 | 0 |
Originated in 2021/2020 | 0 | 0 |
Originated in 2020/2019 | 0 | 0 |
Originated in 2019 | 0 | |
Originated prior to 2019 | 0 | |
Originated prior to 2019 | 0 | |
Revolving | 0 | 0 |
Revolving converted to term | 0 | 0 |
Total loans | 0 | 0 |
Consumer | Other retail | Classified | ||
Loans by origination year | ||
Originated in 2023/ 2022 | 4 | 6 |
Originated in 2022/2021 | 12 | 12 |
Originated in 2021/2020 | 15 | 11 |
Originated in 2020/2019 | 9 | 13 |
Originated in 2019 | 7 | |
Originated prior to 2019 | 13 | |
Originated prior to 2019 | 31 | |
Revolving | 104 | 98 |
Revolving converted to term | 52 | 46 |
Total loans | $ 216 | $ 217 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Loans Modified by Modification Type (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Financing Receivable, Modified [Line Items] | |
Modifications | $ 3,726 |
Percent of Class Total | 1% |
Total loans, excluding loans purchased from GNMA mortgage pools | |
Financing Receivable, Modified [Line Items] | |
Modifications | $ 1,887 |
Percent of Class Total | 0.50% |
Loans purchased from GNMA mortgage pools | |
Financing Receivable, Modified [Line Items] | |
Modifications | $ 1,839 |
Percent of Class Total | 1.60% |
Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Modifications | $ 402 |
Interest Rate Reduction | Total loans, excluding loans purchased from GNMA mortgage pools | |
Financing Receivable, Modified [Line Items] | |
Modifications | 402 |
Interest Rate Reduction | Loans purchased from GNMA mortgage pools | |
Financing Receivable, Modified [Line Items] | |
Modifications | 0 |
Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Modifications | 1,519 |
Payment Delay | Total loans, excluding loans purchased from GNMA mortgage pools | |
Financing Receivable, Modified [Line Items] | |
Modifications | 256 |
Payment Delay | Loans purchased from GNMA mortgage pools | |
Financing Receivable, Modified [Line Items] | |
Modifications | 1,263 |
Term Extension | |
Financing Receivable, Modified [Line Items] | |
Modifications | 1,356 |
Term Extension | Total loans, excluding loans purchased from GNMA mortgage pools | |
Financing Receivable, Modified [Line Items] | |
Modifications | 1,101 |
Term Extension | Loans purchased from GNMA mortgage pools | |
Financing Receivable, Modified [Line Items] | |
Modifications | 255 |
Multiple Modifications | |
Financing Receivable, Modified [Line Items] | |
Modifications | 449 |
Multiple Modifications | Total loans, excluding loans purchased from GNMA mortgage pools | |
Financing Receivable, Modified [Line Items] | |
Modifications | 128 |
Multiple Modifications | Loans purchased from GNMA mortgage pools | |
Financing Receivable, Modified [Line Items] | |
Modifications | 321 |
Payment Delay and Term Extension | |
Financing Receivable, Modified [Line Items] | |
Modifications | 329 |
Interest Rate Reduction and Term Extension | |
Financing Receivable, Modified [Line Items] | |
Modifications | 112 |
Interest Rate Reduction, Payment Delay and Term Extension | |
Financing Receivable, Modified [Line Items] | |
Modifications | 8 |
Commercial | Commercial | |
Financing Receivable, Modified [Line Items] | |
Modifications | $ 365 |
Percent of Class Total | 0.30% |
Commercial | Commercial | Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Modifications | $ 46 |
Commercial | Commercial | Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Modifications | 0 |
Commercial | Commercial | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Modifications | 286 |
Commercial | Commercial | Multiple Modifications | |
Financing Receivable, Modified [Line Items] | |
Modifications | 33 |
Commercial | Commercial real estate | |
Financing Receivable, Modified [Line Items] | |
Modifications | $ 717 |
Percent of Class Total | 1.30% |
Commercial | Commercial real estate | Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Modifications | $ 0 |
Commercial | Commercial real estate | Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Modifications | 0 |
Commercial | Commercial real estate | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Modifications | 645 |
Commercial | Commercial real estate | Multiple Modifications | |
Financing Receivable, Modified [Line Items] | |
Modifications | 72 |
Consumer | Residential mortgages | |
Financing Receivable, Modified [Line Items] | |
Modifications | $ 280 |
Percent of Class Total | 0.20% |
Consumer | Residential mortgages | Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Modifications | $ 0 |
Consumer | Residential mortgages | Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Modifications | 234 |
Consumer | Residential mortgages | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Modifications | 26 |
Consumer | Residential mortgages | Multiple Modifications | |
Financing Receivable, Modified [Line Items] | |
Modifications | 20 |
Consumer | Credit card | |
Financing Receivable, Modified [Line Items] | |
Modifications | $ 350 |
Percent of Class Total | 1.20% |
Consumer | Credit card | Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Modifications | $ 349 |
Consumer | Credit card | Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Modifications | 1 |
Consumer | Credit card | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Modifications | 0 |
Consumer | Credit card | Multiple Modifications | |
Financing Receivable, Modified [Line Items] | |
Modifications | 0 |
Consumer | Other retail | |
Financing Receivable, Modified [Line Items] | |
Modifications | $ 175 |
Percent of Class Total | 0.40% |
Consumer | Other retail | Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Modifications | $ 7 |
Consumer | Other retail | Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Modifications | 21 |
Consumer | Other retail | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Modifications | 144 |
Consumer | Other retail | Multiple Modifications | |
Financing Receivable, Modified [Line Items] | |
Modifications | $ 3 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Effects of Loan Modifications (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Interest Rate Reduction | Loans purchased from GNMA mortgage pools | |
Financing Receivable, Modified [Line Items] | |
Weighted-Average Interest Rate Reduction | 0.60% |
Term Extension | Loans purchased from GNMA mortgage pools | |
Financing Receivable, Modified [Line Items] | |
Weighted-Average Months of Term Extension | 103 months |
Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Weighted-average payment deferral (less than) | $ 1 |
Commercial | Commercial | Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Weighted-Average Interest Rate Reduction | 13% |
Commercial | Commercial | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Weighted-Average Months of Term Extension | 12 months |
Commercial | Commercial real estate | Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Weighted-Average Interest Rate Reduction | 3.50% |
Commercial | Commercial real estate | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Weighted-Average Months of Term Extension | 11 months |
Consumer | Residential mortgages | Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Weighted-Average Interest Rate Reduction | 1.20% |
Consumer | Residential mortgages | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Weighted-Average Months of Term Extension | 98 months |
Consumer | Credit card | Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Weighted-Average Interest Rate Reduction | 15.40% |
Consumer | Other retail | Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Weighted-Average Interest Rate Reduction | 7.90% |
Consumer | Other retail | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Weighted-Average Months of Term Extension | 4 months |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Loan Modifications by Delinquency Status (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | $ 3,019 |
Current | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 2,548 |
30-89 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 124 |
30-89 Days Past Due | Loans purchased from GNMA mortgage pools | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 372 |
90 Days or More Past Due | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 347 |
90 Days or More Past Due | Loans purchased from GNMA mortgage pools | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 175 |
Commercial | Commercial | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 365 |
Commercial | Commercial | Current | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 255 |
Commercial | Commercial | 30-89 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 12 |
Commercial | Commercial | 90 Days or More Past Due | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 98 |
Commercial | Commercial real estate | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 717 |
Commercial | Commercial real estate | Current | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 524 |
Commercial | Commercial real estate | 30-89 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 0 |
Commercial | Commercial real estate | 90 Days or More Past Due | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 193 |
Consumer | Residential mortgages | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 1,425 |
Consumer | Residential mortgages | Current | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 1,385 |
Consumer | Residential mortgages | 30-89 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 24 |
Consumer | Residential mortgages | 90 Days or More Past Due | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 16 |
Consumer | Credit card | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 350 |
Consumer | Credit card | Current | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 251 |
Consumer | Credit card | 30-89 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 67 |
Consumer | Credit card | 90 Days or More Past Due | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 32 |
Consumer | Other retail | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 162 |
Consumer | Other retail | Current | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 133 |
Consumer | Other retail | 30-89 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | 21 |
Consumer | Other retail | 90 Days or More Past Due | |
Financing Receivable, Modified [Line Items] | |
Loan balances modified during the year | $ 8 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Loan Modifications that Defaulted (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | $ 43 |
Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 76 |
Term Extension | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 44 |
Multiple Modifications | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 38 |
Total loans, excluding loans purchased from GNMA mortgage pools | Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 43 |
Total loans, excluding loans purchased from GNMA mortgage pools | Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 9 |
Total loans, excluding loans purchased from GNMA mortgage pools | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 14 |
Total loans, excluding loans purchased from GNMA mortgage pools | Multiple Modifications | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 1 |
Loans purchased from GNMA mortgage pools | Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 0 |
Loans purchased from GNMA mortgage pools | Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 67 |
Loans purchased from GNMA mortgage pools | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 30 |
Loans purchased from GNMA mortgage pools | Multiple Modifications | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 37 |
Commercial | Commercial | Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 7 |
Commercial | Commercial | Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 0 |
Commercial | Commercial | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 0 |
Commercial | Commercial | Multiple Modifications | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 0 |
Commercial | Commercial real estate | Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 0 |
Commercial | Commercial real estate | Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 0 |
Commercial | Commercial real estate | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 1 |
Commercial | Commercial real estate | Multiple Modifications | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 0 |
Consumer | Residential mortgages | Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 0 |
Consumer | Residential mortgages | Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 8 |
Consumer | Residential mortgages | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 2 |
Consumer | Residential mortgages | Multiple Modifications | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 1 |
Consumer | Credit card | Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 35 |
Consumer | Credit card | Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 0 |
Consumer | Credit card | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 0 |
Consumer | Credit card | Multiple Modifications | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 0 |
Consumer | Other retail | Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 1 |
Consumer | Other retail | Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 1 |
Consumer | Other retail | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | 11 |
Consumer | Other retail | Multiple Modifications | |
Financing Receivable, Modified [Line Items] | |
Loans that defaulted | $ 0 |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses - Loans Modified as Troubled Debt Restructurings (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Financing Receivable, Modified [Line Items] | ||
Number of Loans | loan | 52,657 | 33,429 |
Pre-Modification Outstanding Loan Balance | $ 1,231 | $ 1,214 |
Post-Modification Outstanding Loan Balance | $ 1,218 | $ 1,193 |
Total loans, excluding loans purchased from GNMA mortgage pools | ||
Financing Receivable, Modified [Line Items] | ||
Number of Loans | loan | 51,017 | 31,118 |
Pre-Modification Outstanding Loan Balance | $ 1,005 | $ 880 |
Post-Modification Outstanding Loan Balance | $ 988 | $ 847 |
Loans purchased from GNMA mortgage pools | ||
Financing Receivable, Modified [Line Items] | ||
Number of Loans | loan | 1,640 | 2,311 |
Pre-Modification Outstanding Loan Balance | $ 226 | $ 334 |
Post-Modification Outstanding Loan Balance | $ 230 | $ 346 |
Commercial | Commercial | ||
Financing Receivable, Modified [Line Items] | ||
Number of Loans | loan | 2,259 | 2,156 |
Pre-Modification Outstanding Loan Balance | $ 148 | $ 140 |
Post-Modification Outstanding Loan Balance | $ 134 | $ 127 |
Commercial | Commercial real estate | ||
Financing Receivable, Modified [Line Items] | ||
Number of Loans | loan | 75 | 112 |
Pre-Modification Outstanding Loan Balance | $ 50 | $ 193 |
Post-Modification Outstanding Loan Balance | $ 47 | $ 179 |
Consumer | Residential mortgages | ||
Financing Receivable, Modified [Line Items] | ||
Number of Loans | loan | 1,699 | 977 |
Pre-Modification Outstanding Loan Balance | $ 475 | $ 329 |
Post-Modification Outstanding Loan Balance | $ 476 | $ 328 |
Consumer | Credit card | ||
Financing Receivable, Modified [Line Items] | ||
Number of Loans | loan | 44,470 | 25,297 |
Pre-Modification Outstanding Loan Balance | $ 243 | $ 144 |
Post-Modification Outstanding Loan Balance | $ 246 | $ 146 |
Consumer | Other retail | ||
Financing Receivable, Modified [Line Items] | ||
Number of Loans | loan | 2,514 | 2,576 |
Pre-Modification Outstanding Loan Balance | $ 89 | $ 74 |
Post-Modification Outstanding Loan Balance | $ 85 | $ 67 |
Loans and Allowance for Cred_14
Loans and Allowance for Credit Losses - Loans Modified as Troubled Debt Restructurings that Defaulted (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Financing Receivable, Modified [Line Items] | ||
Number of Loans | loan | 9,515 | 9,771 |
Amount Defaulted | $ | $ 169 | $ 128 |
Total loans, excluding loans purchased from GNMA mortgage pools | ||
Financing Receivable, Modified [Line Items] | ||
Number of Loans | loan | 9,233 | 9,595 |
Amount Defaulted | $ | $ 110 | $ 102 |
Loans purchased from GNMA mortgage pools | ||
Financing Receivable, Modified [Line Items] | ||
Number of Loans | loan | 282 | 176 |
Amount Defaulted | $ | $ 59 | $ 26 |
Commercial | Commercial | ||
Financing Receivable, Modified [Line Items] | ||
Number of Loans | loan | 767 | 1,084 |
Amount Defaulted | $ | $ 24 | $ 32 |
Commercial | Commercial real estate | ||
Financing Receivable, Modified [Line Items] | ||
Number of Loans | loan | 20 | 16 |
Amount Defaulted | $ | $ 11 | $ 7 |
Consumer | Residential mortgages | ||
Financing Receivable, Modified [Line Items] | ||
Number of Loans | loan | 235 | 81 |
Amount Defaulted | $ | $ 28 | $ 9 |
Consumer | Credit card | ||
Financing Receivable, Modified [Line Items] | ||
Number of Loans | loan | 7,904 | 7,700 |
Amount Defaulted | $ | $ 42 | $ 43 |
Consumer | Other retail | ||
Financing Receivable, Modified [Line Items] | ||
Number of Loans | loan | 307 | 714 |
Amount Defaulted | $ | $ 5 | $ 11 |
Leases - Components of Net Inve
Leases - Components of Net Investment in Sales-Type and Direct Financing Leases (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Lease receivables | $ 7,239 | $ 8,731 |
Unguaranteed residual values accruing to the lessor’s benefit | 1,082 | 1,323 |
Total net investment in sales-type and direct financing leases | $ 8,321 | $ 10,054 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Lease revenue | $ 738 | $ 764 | $ 888 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Premises and equipment | Premises and equipment | |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Long-term debt | ||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | ||
Right of use lease assets | $ 1,400 | $ 1,600 | |
Lease liabilities | 1,600 | 1,700 | |
Lease cost | $ 496 | $ 390 | $ 364 |
Leases - Contractual Future Lea
Leases - Contractual Future Lease Payments to be Received (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Sales-type and Direct Financing Leases | ||
2024 | $ 3,069 | |
2025 | 2,182 | |
2026 | 1,333 | |
2027 | 690 | |
2028 | 260 | |
Thereafter | 369 | |
Total lease payments | 7,903 | |
Amounts representing interest | (664) | |
Lease receivables | 7,239 | $ 8,731 |
Operating Leases | ||
2024 | 138 | |
2025 | 110 | |
2026 | 66 | |
2027 | 42 | |
2028 | 27 | |
Thereafter | 57 | |
Total lease payments | $ 440 |
Leases - Amounts Relevant to As
Leases - Amounts Relevant to Assets Leased for Use in its Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from operating leases | $ 409 | $ 294 | $ 288 |
Operating cash flows from finance leases | 7 | 4 | 5 |
Financing cash flows from finance leases | 49 | 14 | 12 |
Right of use assets obtained in exchange for new operating lease liabilities | 230 | 239 | 164 |
Right of use assets obtained in exchange for new finance lease liabilities | $ 25 | $ 91 | $ 75 |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Terms and Discount Rates (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted-average remaining lease term of operating leases (in years) | 6 years 4 months 24 days | 6 years 9 months 18 days |
Weighted-average remaining lease term of finance leases (in years) | 8 years 3 months 18 days | 8 years 6 months |
Weighted-average discount rate of operating leases | 3.70% | 3.30% |
Weighted-average discount rate of finance leases | 7.70% | 7.90% |
Leases - Contractual Future L_2
Leases - Contractual Future Lease Obligations (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Operating Leases | |
2024 | $ 377 |
2025 | 295 |
2026 | 245 |
2027 | 196 |
2028 | 144 |
Thereafter | 360 |
Total lease payments | 1,617 |
Amounts representing interest | (211) |
Lease liabilities | 1,406 |
Finance Leases | |
2024 | 41 |
2025 | 38 |
2026 | 36 |
2027 | 22 |
2028 | 8 |
Thereafter | 23 |
Total lease payments | 168 |
Amounts representing interest | (18) |
Lease liabilities | $ 150 |
Accounting for Transfers and _3
Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Variable Interest Entity [Line Items] | ||||
Tax credits related to tax-advantaged investments | $ 576 | $ 461 | $ 508 | |
Investment tax credits | 318 | 527 | 418 | |
Expense related to tax-advantaged investments | 582 | 424 | 468 | |
Investments in VIEs | 663,491 | 674,805 | ||
Available-for-sale securities | [1] | 69,706 | 72,910 | |
Liabilities related to VIEs | 607,720 | 623,573 | ||
Variable Interest Entity, Not Primary Beneficiary | Minimum | ||||
Variable Interest Entity [Line Items] | ||||
Net investments in unconsolidated VIEs | 1 | 1 | ||
Variable Interest Entity, Not Primary Beneficiary | Maximum | ||||
Variable Interest Entity [Line Items] | ||||
Net investments in unconsolidated VIEs | 86 | 116 | ||
Variable Interest Entity, Not Primary Beneficiary, Private Investment Funds and Partnerships | ||||
Variable Interest Entity [Line Items] | ||||
Investments in VIEs | 219 | 177 | ||
Maximum exposure to loss | 319 | 310 | ||
Variable Interest Entity, Not Primary Beneficiary, Securitization Vehicles | Senior Notes | ||||
Variable Interest Entity [Line Items] | ||||
Available-for-sale securities | 5,300 | 3,400 | ||
Proceeds from securitizations of loans held-for-investment | 6,100 | 4,000 | ||
Variable Interest Entity, Primary Beneficiary, Community Development and Tax-Advantaged Investments | ||||
Variable Interest Entity [Line Items] | ||||
Investments in VIEs | 6,100 | 5,900 | ||
Liabilities related to VIEs | 4,400 | 4,200 | ||
Variable Interest Entity, Primary Beneficiary, Tender Option Bond Program | ||||
Variable Interest Entity [Line Items] | ||||
Investments in VIEs | 607 | 1,500 | ||
Liabilities related to VIEs | $ 381 | 1,000 | ||
Fees Waived | ||||
Variable Interest Entity [Line Items] | ||||
Support provided to money market funds | $ 65 | $ 250 | ||
[1] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
Accounting for Transfers and _4
Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities - Investments in Community Development and Tax-advantaged VIEs (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Investment carrying amount | $ 663,491 | $ 674,805 |
Unfunded capital and other commitments | 607,720 | 623,573 |
Variable Interest Entity, Not Primary Beneficiary, Community Development and Tax-Advantaged investments | ||
Variable Interest Entity [Line Items] | ||
Investment carrying amount | 6,659 | 5,452 |
Unfunded capital and other commitments | 3,619 | 2,416 |
Maximum exposure to loss | $ 9,002 | $ 9,761 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Construction in progress | ||
Right of use assets on operating leases | $ 1,149 | $ 1,296 |
Right of use assets on finance leases | 275 | 269 |
Total gross premises and equipment | 8,259 | 8,927 |
Less accumulated depreciation and amortization | (4,636) | (5,069) |
Premises and equipment | 3,623 | 3,858 |
Land | ||
Construction in progress | ||
Gross premises and equipment excluding right-of-use assets | 515 | 535 |
Buildings and improvements | ||
Construction in progress | ||
Gross premises and equipment excluding right-of-use assets | 3,239 | 3,296 |
Furniture, fixtures and equipment | ||
Construction in progress | ||
Gross premises and equipment excluding right-of-use assets | 3,013 | 3,485 |
Construction in progress | ||
Construction in progress | ||
Gross premises and equipment excluding right-of-use assets | $ 68 | $ 46 |
Mortgage Servicing Rights - Add
Mortgage Servicing Rights - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Transfers and Servicing of Financial Assets [Abstract] | |||
Residential mortgage loans serviced for others including subserviced mortgages with no corresponding MSRs asset | $ 233,400 | $ 243,600 | |
Losses on fair value changes of MSRs due to changes in valuation assumptions and derivatives used to economically hedge MSRs | 41 | 45 | $ 183 |
Loan servicing and ancillary fees | $ 733 | $ 754 | $ 725 |
Mortgage Servicing Rights - Cha
Mortgage Servicing Rights - Changes in Fair Value of Capitalized MSRs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Balance at beginning of period | $ 3,755 | $ 2,953 | $ 2,210 |
Rights purchased | 5 | 156 | 42 |
Rights capitalized | 373 | 590 | 1,136 |
Rights sold | (440) | (255) | 2 |
Changes in fair value of MSRs | |||
Due to fluctuations in market interest rates | 66 | 804 | 272 |
Due to revised assumptions or models | 12 | (29) | (196) |
Other changes in fair value | (394) | (464) | (513) |
Balance at end of period | $ 3,377 | $ 3,755 | $ 2,953 |
Servicing Asset, Fair Value, Change in Fair Value, Other, Statement of Income or Comprehensive Income [Extensible Enumeration] | Mortgage banking revenue | Mortgage banking revenue | Mortgage banking revenue |
Mortgage Servicing Rights - Sen
Mortgage Servicing Rights - Sensitivity to Changes in Interest Rates of the Fair Value of MSR Portfolio and Related Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Down | Derivative instrument hedges | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Fair value 100 basis points change | $ 381 | $ 337 |
Fair value 50 basis points change | 178 | 153 |
Fair value 25 basis points change | 86 | 73 |
Down | Net sensitivity | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Fair value 100 basis points change | 11 | 3 |
Fair value 50 basis points change | 5 | 0 |
Fair value 25 basis points change | 2 | 0 |
Down | MSR portfolio | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Fair value 100 basis points change | (370) | (334) |
Fair value 50 basis points change | (173) | (153) |
Fair value 25 basis points change | (84) | (73) |
Up | Derivative instrument hedges | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Fair value 100 basis points change | (289) | (236) |
Fair value 50 basis points change | (152) | (127) |
Fair value 25 basis points change | (79) | (67) |
Up | Net sensitivity | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Fair value 100 basis points change | (21) | (12) |
Fair value 50 basis points change | (5) | (2) |
Fair value 25 basis points change | (2) | (1) |
Up | MSR portfolio | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Fair value 100 basis points change | 268 | 224 |
Fair value 50 basis points change | 147 | 125 |
Fair value 25 basis points change | $ 77 | $ 66 |
Mortgage Servicing Rights - MSR
Mortgage Servicing Rights - MSRs and Related Characteristics by Portfolio (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Servicing Assets at Fair Value [Line Items] | ||||
Fair value | $ 3,377 | $ 3,755 | $ 2,953 | $ 2,210 |
MSR portfolio | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing portfolio | 225,338 | 239,753 | ||
Fair value | $ 3,377 | $ 3,755 | ||
Value (bps) | 1.50% | 1.57% | ||
Weighted-average servicing fees (bps) | 0.30% | 0.30% | ||
Multiple (value/servicing fees) | 5 | 5.20 | ||
Weighted-average note rate | 4.02% | 3.67% | ||
Weighted-average age (in years) | 4 years 4 months 24 days | 3 years 10 months 24 days | ||
Weighted-average expected prepayment (constant prepayment rate) | 9.60% | 7.80% | ||
Weighted-average expected life (in years) | 7 years | 7 years 8 months 12 days | ||
Weighted-average option adjusted spread | 4.90% | 5.80% | ||
MSR portfolio | HFA | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing portfolio | $ 48,286 | $ 44,071 | ||
Fair value | $ 769 | $ 725 | ||
Value (bps) | 1.59% | 1.65% | ||
Weighted-average servicing fees (bps) | 0.36% | 0.36% | ||
Multiple (value/servicing fees) | 4.45 | 4.56 | ||
Weighted-average note rate | 4.56% | 4.16% | ||
Weighted-average age (in years) | 4 years 3 months 18 days | 4 years | ||
Weighted-average expected prepayment (constant prepayment rate) | 10.50% | 7.40% | ||
Weighted-average expected life (in years) | 7 years 2 months 12 days | 8 years 9 months 18 days | ||
Weighted-average option adjusted spread | 5.40% | 7.60% | ||
MSR portfolio | Government | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing portfolio | $ 25,996 | $ 23,141 | ||
Fair value | $ 507 | $ 454 | ||
Value (bps) | 1.95% | 1.96% | ||
Weighted-average servicing fees (bps) | 0.44% | 0.42% | ||
Multiple (value/servicing fees) | 4.41 | 4.69 | ||
Weighted-average note rate | 4.23% | 3.81% | ||
Weighted-average age (in years) | 5 years 6 months | 5 years 8 months 12 days | ||
Weighted-average expected prepayment (constant prepayment rate) | 11.10% | 8.50% | ||
Weighted-average expected life (in years) | 6 years 6 months | 7 years 7 months 6 days | ||
Weighted-average option adjusted spread | 5.90% | 6.90% | ||
MSR portfolio | Conventional | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing portfolio | $ 151,056 | $ 172,541 | ||
Fair value | $ 2,101 | $ 2,576 | ||
Value (bps) | 1.39% | 1.49% | ||
Weighted-average servicing fees (bps) | 0.26% | 0.27% | ||
Multiple (value/servicing fees) | 5.41 | 5.52 | ||
Weighted-average note rate | 3.81% | 3.52% | ||
Weighted-average age (in years) | 4 years 3 months 18 days | 3 years 8 months 12 days | ||
Weighted-average expected prepayment (constant prepayment rate) | 9.10% | 7.80% | ||
Weighted-average expected life (in years) | 7 years | 7 years 6 months | ||
Weighted-average option adjusted spread | 4.60% | 5.10% |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 12,489 | $ 12,373 | $ 10,262 | $ 9,918 |
Mortgage servicing rights | 3,377 | 3,755 | $ 2,953 | $ 2,210 |
Total | 18,573 | 19,528 | ||
Merchant processing contracts | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangibles | 124 | 155 | ||
Core deposit benefits | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangibles | 2,134 | 2,706 | ||
Trust relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangibles | 41 | 50 | ||
Other identified intangibles | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangibles | $ 408 | $ 489 |
Intangible Assets - Aggregate A
Intangible Assets - Aggregate Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Aggregate amortization expense | $ 636 | $ 215 | $ 159 |
Merchant processing contracts | |||
Finite-Lived Intangible Assets [Line Items] | |||
Aggregate amortization expense | 31 | 38 | 45 |
Core deposit benefits | |||
Finite-Lived Intangible Assets [Line Items] | |||
Aggregate amortization expense | 481 | 53 | 15 |
Trust relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Aggregate amortization expense | 10 | 12 | 10 |
Other identified intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Aggregate amortization expense | $ 114 | $ 112 | $ 89 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expense (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 566 |
2025 | 484 |
2026 | 415 |
2027 | 344 |
2028 | $ 281 |
Intangible Assets - Changes in
Intangible Assets - Changes in Carrying Value of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | |||
Goodwill Beginning Balance | $ 12,373 | $ 10,262 | $ 9,918 |
Goodwill acquired | 96 | 2,149 | 371 |
Foreign exchange translation and other | 20 | (38) | (27) |
Goodwill Ending Balance | 12,489 | 12,373 | 10,262 |
Wealth, Corporate, Commercial and Institutional Banking | |||
Goodwill [Roll Forward] | |||
Goodwill Beginning Balance | 4,589 | 3,673 | 3,266 |
Goodwill acquired | 235 | 918 | 144 |
Foreign exchange translation and other | 1 | (2) | 263 |
Goodwill Ending Balance | 4,825 | 4,589 | 3,673 |
Consumer and Business Banking | |||
Goodwill [Roll Forward] | |||
Goodwill Beginning Balance | 4,465 | 3,245 | 3,475 |
Goodwill acquired | (139) | 1,220 | 35 |
Foreign exchange translation and other | 0 | 0 | (265) |
Goodwill Ending Balance | 4,326 | 4,465 | 3,245 |
Payment Services | |||
Goodwill [Roll Forward] | |||
Goodwill Beginning Balance | 3,319 | 3,344 | 3,177 |
Goodwill acquired | 0 | 11 | 192 |
Foreign exchange translation and other | 19 | (36) | (25) |
Goodwill Ending Balance | 3,338 | 3,319 | 3,344 |
Treasury and Corporate Support | |||
Goodwill [Roll Forward] | |||
Goodwill Beginning Balance | 0 | 0 | 0 |
Goodwill acquired | 0 | 0 | 0 |
Foreign exchange translation and other | 0 | 0 | 0 |
Goodwill Ending Balance | $ 0 | $ 0 | $ 0 |
Deposits - Composition of Depos
Deposits - Composition of Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Noninterest-bearing deposits | $ 89,989 | $ 137,743 |
Interest-bearing deposits | ||
Interest checking | 127,453 | 134,491 |
Money market savings | 199,378 | 148,014 |
Savings accounts | 43,219 | 71,782 |
Time deposits | 52,273 | 32,946 |
Total interest-bearing deposits | 422,323 | 387,233 |
Total deposits | $ 512,312 | $ 524,976 |
Deposits - Maturities of Time D
Deposits - Maturities of Time Deposits Outstanding (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
2024 | $ 44,570 | |
2025 | 6,448 | |
2026 | 798 | |
2027 | 252 | |
2028 | 197 | |
Thereafter | 8 | |
Total | $ 52,273 | $ 32,946 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Short-Term Debt [Line Items] | ||
Short-term borrowings | $ 15,279 | $ 31,216 |
Federal funds purchased | ||
Short-Term Debt [Line Items] | ||
Short-term borrowings | 248 | 226 |
Securities sold under agreements to repurchase | ||
Short-Term Debt [Line Items] | ||
Short-term borrowings | 3,576 | 1,431 |
Commercial paper | ||
Short-Term Debt [Line Items] | ||
Short-term borrowings | 7,773 | 8,145 |
Other short-term borrowings | ||
Short-Term Debt [Line Items] | ||
Short-term borrowings | $ 3,682 | $ 21,414 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 51,480 | $ 39,829 | |
MUB | |||
Debt Instrument [Line Items] | |||
Discounted liability to MUFG | $ 2,944 | $ 2,100 | 2,900 |
Medium-term notes | |||
Debt Instrument [Line Items] | |||
Weighted-average interest rate | 3.89% | ||
Federal Home Loan Bank advances | |||
Debt Instrument [Line Items] | |||
Weighted-average interest rate | 4.94% | ||
Bank notes | |||
Debt Instrument [Line Items] | |||
Weighted-average interest rate | 3.27% | ||
U.S. Bancorp (Parent Company) | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 34,332 | 26,983 | |
U.S. Bancorp (Parent Company) | Other | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,915 | 2,716 | |
U.S. Bancorp (Parent Company) | Fixed | Subordinated notes, 3.600%, Maturity 2024 | |||
Debt Instrument [Line Items] | |||
Rate | 3.60% | ||
Long-term debt | $ 1,000 | 1,000 | |
U.S. Bancorp (Parent Company) | Fixed | Subordinated notes, 7.500%, Maturity 2026 | |||
Debt Instrument [Line Items] | |||
Rate | 7.50% | ||
Long-term debt | $ 199 | 199 | |
U.S. Bancorp (Parent Company) | Fixed | Subordinated notes, 3.100%, Maturity 2026 | |||
Debt Instrument [Line Items] | |||
Rate | 3.10% | ||
Long-term debt | $ 1,000 | 1,000 | |
U.S. Bancorp (Parent Company) | Fixed | Subordinated notes, 3.000%, Maturity 2029 | |||
Debt Instrument [Line Items] | |||
Rate | 3% | ||
Long-term debt | $ 1,000 | 1,000 | |
U.S. Bancorp (Parent Company) | Fixed | Subordinated notes, 4.967%, Maturity 2023 | |||
Debt Instrument [Line Items] | |||
Rate | 4.967% | ||
Long-term debt | $ 1,300 | 1,300 | |
U.S. Bancorp (Parent Company) | Fixed | Subordinated notes, 2.491%, Maturity 2036 | |||
Debt Instrument [Line Items] | |||
Rate | 2.491% | ||
Long-term debt | $ 1,300 | 1,300 | |
U.S. Bancorp (Parent Company) | Fixed | Medium-term notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 26,618 | 18,468 | |
U.S. Bancorp (Parent Company) | Fixed | Medium-term notes | Minimum | |||
Debt Instrument [Line Items] | |||
Rate | 0.85% | ||
U.S. Bancorp (Parent Company) | Fixed | Medium-term notes | Maximum | |||
Debt Instrument [Line Items] | |||
Rate | 6.787% | ||
Subsidiaries | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 17,148 | 12,846 | |
Subsidiaries | Other | |||
Debt Instrument [Line Items] | |||
Long-term debt | 1,484 | 1,643 | |
Subsidiaries | Fixed | Federal Home Loan Bank advances | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 9,051 | 2,051 | |
Subsidiaries | Fixed | Federal Home Loan Bank advances | Minimum | |||
Debt Instrument [Line Items] | |||
Rate | 1.86% | ||
Subsidiaries | Fixed | Federal Home Loan Bank advances | Maximum | |||
Debt Instrument [Line Items] | |||
Rate | 8.25% | ||
Subsidiaries | Fixed | Bank notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 2,289 | 4,800 | |
Subsidiaries | Fixed | Bank notes | Minimum | |||
Debt Instrument [Line Items] | |||
Rate | 2.05% | ||
Subsidiaries | Fixed | Bank notes | Maximum | |||
Debt Instrument [Line Items] | |||
Rate | 5.55% | ||
Subsidiaries | Floating | Federal Home Loan Bank advances | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 3,000 | 3,000 | |
Subsidiaries | Floating | Federal Home Loan Bank advances | Minimum | |||
Debt Instrument [Line Items] | |||
Rate | 6.08% | ||
Subsidiaries | Floating | Federal Home Loan Bank advances | Maximum | |||
Debt Instrument [Line Items] | |||
Rate | 6.10% | ||
Subsidiaries | Floating | Bank notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,324 | $ 1,352 | |
Subsidiaries | Floating | Bank notes | Minimum | |||
Debt Instrument [Line Items] | |||
Rate | 0% | ||
Subsidiaries | Floating | Bank notes | Maximum | |||
Debt Instrument [Line Items] | |||
Rate | 5.398% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) $ in Billions | Dec. 31, 2023 | Dec. 31, 2022 |
Federal Home Loan Bank and Federal Reserve Bank | ||
Debt Instrument [Line Items] | ||
Unused borrowing capacity | $ 215.8 | $ 114.8 |
Long-Term Debt - Maturities of
Long-Term Debt - Maturities of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
2024 | $ 6,663 | |
2025 | 6,559 | |
2026 | 13,381 | |
2027 | 4,796 | |
2028 | 3,835 | |
Thereafter | 16,246 | |
Total | 51,480 | $ 39,829 |
Parent Company | ||
Debt Instrument [Line Items] | ||
2024 | 5,475 | |
2025 | 2,030 | |
2026 | 3,906 | |
2027 | 4,763 | |
2028 | 3,824 | |
Thereafter | 14,334 | |
Total | $ 34,332 | $ 26,983 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - $ / shares | 12 Months Ended | 24 Months Ended | ||||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2006 | Dec. 31, 2011 | Dec. 31, 2023 | Dec. 31, 2010 | |
Class of Stock [Line Items] | ||||||||||
Common stock shares authorized (in shares) | 4,000,000,000 | 4,000,000,000 | ||||||||
Preferred stock shares authorized (in shares) | 50,000,000 | 50,000,000 | ||||||||
Common stock shares outstanding (in shares) | 1,500,000,000 | 1,600,000,000 | ||||||||
Common stock shares reserved for future issuance (in shares) | 27,000,000 | |||||||||
Preferred stock outstanding (in shares) | 243,510 | 243,510 | ||||||||
Series O | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock shares issued (in shares) | 18,000 | |||||||||
Liquidation preference per share (in dollars per share) | $ 25,000 | |||||||||
Preferred stock dividend rate fixed percentage | 4.50% | |||||||||
Redemption period of preferred stock | 90 days | |||||||||
Preferred stock outstanding (in shares) | 18,000 | 18,000 | ||||||||
Series N | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock shares issued (in shares) | 60,000 | |||||||||
Liquidation preference per share (in dollars per share) | $ 25,000 | |||||||||
Preferred stock dividend rate fixed percentage | 3.70% | |||||||||
Redemption period of preferred stock | 90 days | |||||||||
Preferred stock variable dividend rate spread | 2.541% | |||||||||
Preferred stock outstanding (in shares) | 60,000 | 60,000 | ||||||||
Series M | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock shares issued (in shares) | 30,000 | |||||||||
Liquidation preference per share (in dollars per share) | $ 25,000 | |||||||||
Preferred stock dividend rate fixed percentage | 4% | |||||||||
Redemption period of preferred stock | 90 days | |||||||||
Preferred stock outstanding (in shares) | 30,000 | 30,000 | ||||||||
Series L | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock shares issued (in shares) | 20,000 | |||||||||
Liquidation preference per share (in dollars per share) | $ 25,000 | |||||||||
Preferred stock dividend rate fixed percentage | 3.75% | |||||||||
Redemption period of preferred stock | 90 days | |||||||||
Preferred stock outstanding (in shares) | 20,000 | 20,000 | ||||||||
Series K | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock shares issued (in shares) | 23,000 | |||||||||
Liquidation preference per share (in dollars per share) | $ 25,000 | |||||||||
Preferred stock dividend rate fixed percentage | 5.50% | |||||||||
Preferred stock outstanding (in shares) | 23,000 | 23,000 | ||||||||
Series J | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock shares issued (in shares) | 40,000 | |||||||||
Liquidation preference per share (in dollars per share) | $ 25,000 | |||||||||
Preferred stock dividend rate fixed percentage | 5.30% | |||||||||
Redemption period of preferred stock | 90 days | |||||||||
Preferred stock variable dividend rate spread | 2.914% | |||||||||
Preferred stock outstanding (in shares) | 40,000 | 40,000 | ||||||||
Series A | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock shares issued (in shares) | 6,764 | 5,746 | ||||||||
Liquidation preference per share (in dollars per share) | $ 100,000 | |||||||||
Preferred stock dividend rate fixed percentage | 3.50% | |||||||||
Preferred stock variable dividend rate spread | 1.02% | |||||||||
Preferred stock outstanding (in shares) | 12,510 | 12,510 | ||||||||
Series A | Noncontrolling Interests | ||||||||||
Class of Stock [Line Items] | ||||||||||
Liquidation preference per share (in dollars per share) | $ 100,000 | |||||||||
Preferred stock variable dividend rate spread | 1.147% | |||||||||
Minority interest preferred stock, shares issued (in shares) | 5,000 | |||||||||
Stock repurchased during period (in shares) | 500 | |||||||||
Preferred stock outstanding (in shares) | 4,500 | |||||||||
Series B | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock shares issued (in shares) | 40,000 | |||||||||
Liquidation preference per share (in dollars per share) | $ 25,000 | |||||||||
Preferred stock dividend rate fixed percentage | 3.50% | |||||||||
Preferred stock variable dividend rate spread | 0.60% | |||||||||
Preferred stock outstanding (in shares) | 40,000 | 40,000 |
Shareholders' Equity - Shares I
Shareholders' Equity - Shares Issued and Outstanding and Carrying Amount of Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Class of Stock [Line Items] | ||
Shares Issued and Outstanding (in shares) | 243,510 | 243,510 |
Liquidation Preference | $ 7,026 | $ 7,026 |
Discount | 218 | 218 |
Carrying Amount | $ 6,808 | $ 6,808 |
Preferred Stock par value (in dollars per share) | $ 1 | $ 1 |
Series A | ||
Class of Stock [Line Items] | ||
Shares Issued and Outstanding (in shares) | 12,510 | 12,510 |
Liquidation Preference | $ 1,251 | $ 1,251 |
Discount | 145 | 145 |
Carrying Amount | $ 1,106 | $ 1,106 |
Series B | ||
Class of Stock [Line Items] | ||
Shares Issued and Outstanding (in shares) | 40,000 | 40,000 |
Liquidation Preference | $ 1,000 | $ 1,000 |
Discount | 0 | 0 |
Carrying Amount | $ 1,000 | $ 1,000 |
Series J | ||
Class of Stock [Line Items] | ||
Shares Issued and Outstanding (in shares) | 40,000 | 40,000 |
Liquidation Preference | $ 1,000 | $ 1,000 |
Discount | 7 | 7 |
Carrying Amount | $ 993 | $ 993 |
Series K | ||
Class of Stock [Line Items] | ||
Shares Issued and Outstanding (in shares) | 23,000 | 23,000 |
Liquidation Preference | $ 575 | $ 575 |
Discount | 10 | 10 |
Carrying Amount | $ 565 | $ 565 |
Series L | ||
Class of Stock [Line Items] | ||
Shares Issued and Outstanding (in shares) | 20,000 | 20,000 |
Liquidation Preference | $ 500 | $ 500 |
Discount | 14 | 14 |
Carrying Amount | $ 486 | $ 486 |
Series M | ||
Class of Stock [Line Items] | ||
Shares Issued and Outstanding (in shares) | 30,000 | 30,000 |
Liquidation Preference | $ 750 | $ 750 |
Discount | 21 | 21 |
Carrying Amount | $ 729 | $ 729 |
Series N | ||
Class of Stock [Line Items] | ||
Shares Issued and Outstanding (in shares) | 60,000 | 60,000 |
Liquidation Preference | $ 1,500 | $ 1,500 |
Discount | 8 | 8 |
Carrying Amount | $ 1,492 | $ 1,492 |
Series O | ||
Class of Stock [Line Items] | ||
Shares Issued and Outstanding (in shares) | 18,000 | 18,000 |
Liquidation Preference | $ 450 | $ 450 |
Discount | 13 | 13 |
Carrying Amount | $ 437 | $ 437 |
Shareholders' Equity - Common S
Shareholders' Equity - Common Stock Repurchased (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | |||
Shares | 1 | 1 | 28 |
Value | $ 62 | $ 69 | $ 1,556 |
Shareholders' Equity - Reconcil
Shareholders' Equity - Reconciliation of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 51,232 | $ 55,387 | $ 53,725 |
Changes in unrealized gains (losses) | 1,500 | (13,656) | (3,698) |
Changes in unrealized gains (losses) | (252) | (75) | 125 |
Changes in unrealized gains (losses) | (262) | 526 | 400 |
Changes in unrealized gains (losses) | 986 | (13,205) | (3,173) |
Transfer of securities from available-for-sale to held-to-maturity | 0 | 0 | |
Foreign currency translation adjustment | 21 | (10) | 35 |
Reclassification to earnings of realized (gains) losses | 748 | 544 | 104 |
Applicable income taxes | (444) | 3,207 | 769 |
Ending Balance | 55,771 | 51,232 | 55,387 |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (11,407) | (1,943) | 322 |
Ending Balance | (10,096) | (11,407) | (1,943) |
Unrealized Gains (Losses) on Investment Securities Available-For-Sale | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (6,378) | 540 | 2,417 |
Changes in unrealized gains (losses) | 1,500 | (13,656) | (3,698) |
Transfer of securities from available-for-sale to held-to-maturity | 4,413 | 1,289 | |
Reclassification to earnings of realized (gains) losses | 145 | (20) | (103) |
Applicable income taxes | (418) | 2,345 | 635 |
Ending Balance | (5,151) | (6,378) | 540 |
Unrealized Gains (Losses) on Investment Securities Transferred From Available-For-Sale to Held-To-Maturity | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (3,933) | (935) | 0 |
Transfer of securities from available-for-sale to held-to-maturity | (4,413) | (1,289) | |
Reclassification to earnings of realized (gains) losses | 530 | 400 | 36 |
Applicable income taxes | (134) | 1,015 | 318 |
Ending Balance | (3,537) | (3,933) | (935) |
Unrealized Gains (Losses) on Derivative Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (114) | (85) | (189) |
Changes in unrealized gains (losses) | (252) | (75) | 125 |
Reclassification to earnings of realized (gains) losses | 80 | 36 | 14 |
Applicable income taxes | 44 | 10 | (35) |
Ending Balance | (242) | (114) | (85) |
Unrealized Gains (Losses) on Retirement Plans | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (939) | (1,426) | (1,842) |
Changes in unrealized gains (losses) | (262) | 526 | 400 |
Reclassification to earnings of realized (gains) losses | (7) | 128 | 157 |
Applicable income taxes | 70 | (167) | (141) |
Ending Balance | (1,138) | (939) | (1,426) |
Foreign Currency Translation | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (43) | (37) | (64) |
Foreign currency translation adjustment | 21 | (10) | 35 |
Applicable income taxes | (6) | 4 | (8) |
Ending Balance | $ (28) | $ (43) | $ (37) |
Shareholders' Equity - Impact t
Shareholders' Equity - Impact to Net Income for Items Reclassified out of Accumulated Other Comprehensive Income into Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Realized gains (losses) on sale of investment securities | $ (145) | $ 20 | $ 103 |
Amortization of unrealized gains (losses) | 30,007 | 17,945 | 13,487 |
Realized gains (losses) on derivative hedges | 17,396 | 14,728 | 12,494 |
Actuarial gains (losses) and prior service cost (credit) amortization | (2,211) | (1,398) | (1,207) |
Applicable income taxes | (1,407) | (1,463) | (2,181) |
Net income (loss) | 5,458 | 5,838 | 7,985 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income (loss) | (558) | (388) | (77) |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Unrealized gains (losses) on investment securities available-for-sale | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Realized gains (losses) on sale of investment securities | (145) | 20 | 103 |
Applicable income taxes | 37 | (5) | (26) |
Net income (loss) | (108) | 15 | 77 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Unrealized gains (losses) on investment securities transferred from available-for-sale to held-to-maturity | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of unrealized gains (losses) | (530) | (400) | (36) |
Applicable income taxes | 134 | 119 | 9 |
Net income (loss) | (396) | (281) | (27) |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Unrealized gains (losses) on derivative hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Realized gains (losses) on derivative hedges | (80) | (36) | (14) |
Applicable income taxes | 21 | 9 | 4 |
Net income (loss) | (59) | (27) | (10) |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Unrealized gains (losses) on retirement plans | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Actuarial gains (losses) and prior service cost (credit) amortization | 7 | (128) | (157) |
Applicable income taxes | (2) | 33 | 40 |
Net income (loss) | $ 5 | $ (95) | $ (117) |
Shareholders' Equity - Regulato
Shareholders' Equity - Regulatory Capital (Details) $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Minimum | ||
Common equity tier 1 capital as a percent of risk-weighted assets | 0.070 | |
Tier 1 capital as a percent of risk-weighted assets | 0.085 | |
Total risk-based capital as a percent of risk-weighted assets | 0.105 | |
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) | 0.040 | |
Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure (total leverage exposure ratio) | 0.030 | |
Well- Capitalized | ||
Common equity tier 1 capital as a percent of risk-weighted assets | 0.065 | |
Tier 1 capital as a percent of risk-weighted assets | 0.080 | |
Total risk-based capital as a percent of risk-weighted assets | 0.100 | |
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) | 0.050 | |
Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure (total leverage exposure ratio) | 0.030 | |
U.S. Bancorp | Basel III standardized approach | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity tier 1 capital | $ 44,947 | $ 41,560 |
Tier 1 capital | 52,199 | 48,813 |
Total risk-based capital | 61,921 | 59,015 |
Risk-weighted assets | $ 453,390 | $ 496,500 |
Common equity tier 1 capital as a percent of risk-weighted assets | 0.099 | 0.084 |
Tier 1 capital as a percent of risk-weighted assets | 0.115 | 0.098 |
Total risk-based capital as a percent of risk-weighted assets | 0.137 | 0.119 |
Tier 1 capital as a percent of adjusted quarterly average assets | 0.081 | 0.079 |
Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure | 0.066 | 0.064 |
U.S. Bank National Association | Basel III standardized approach | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity tier 1 capital | $ 58,194 | $ 46,681 |
Tier 1 capital | 58,638 | 47,127 |
Total risk-based capital | 68,817 | 56,736 |
Risk-weighted assets | $ 445,829 | $ 436,764 |
Common equity tier 1 capital as a percent of risk-weighted assets | 0.131 | 0.107 |
Tier 1 capital as a percent of risk-weighted assets | 0.132 | 0.108 |
Total risk-based capital as a percent of risk-weighted assets | 0.154 | 0.130 |
Tier 1 capital as a percent of adjusted quarterly average assets | 0.092 | 0.081 |
Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure | 0.075 | 0.065 |
MUFG Union Bank National Association | Basel III standardized approach | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity tier 1 capital | $ 10,888 | |
Tier 1 capital | 10,888 | |
Total risk-based capital | 11,565 | |
Risk-weighted assets | $ 58,641 | |
Common equity tier 1 capital as a percent of risk-weighted assets | 0.186 | |
Tier 1 capital as a percent of risk-weighted assets | 0.186 | |
Total risk-based capital as a percent of risk-weighted assets | 0.197 | |
Tier 1 capital as a percent of adjusted quarterly average assets | 0.109 | |
Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure | 0.101 |
Earnings Per Share - Components
Earnings Per Share - Components of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Earnings Per Share [Abstract] | ||||||
Net income attributable to U.S. Bancorp | $ 5,429 | $ 5,825 | $ 7,963 | |||
Preferred dividends | (350) | [1] | (296) | [2] | (303) | [3] |
Impact of preferred stock call and redemption | 0 | 0 | (17) | |||
Earnings allocated to participating stock awards | (28) | (28) | (38) | |||
Net income attributable to U.S. Bancorp | 5,051 | 5,501 | 7,605 | |||
Net income applicable to U.S. Bancorp common shareholders | $ 5,051 | $ 5,501 | $ 7,605 | |||
Average common shares outstanding (in shares) | 1,543 | 1,489 | 1,489 | |||
Net effect of the exercise and assumed purchase of stock awards (in shares) | 0 | 1 | 1 | |||
Average diluted common shares outstanding (in shares) | 1,543 | 1,490 | 1,490 | |||
Earnings per common share (in dollars per share) | $ 3.27 | $ 3.69 | $ 5.11 | |||
Diluted earnings per common share (in dollars per share) | $ 3.27 | $ 3.69 | $ 5.10 | |||
[1] Reflects dividends declared per share on the Company’s Series A, Series B, Series J, Series K, Series L, Series M, Series N and Series O Non-Cumulative Perpetual Preferred Stock of $6,439.904, $1,503.518, $1,325.00, $1,375.00, $937.50, $1,000.00, $925.00, and $1,125.00, respectively. Reflects dividends declared per share on the Company’s Series A, Series B, Series J, Series K, Series L, Series M, Series N, and Series O Non-Cumulative Perpetual Preferred Stock of $3,965.458, $962.487, $1,325.00, $1,375.00, $937.50, $1,000.00, $925.00, and $1,050.00, respectively. Reflects dividends declared per share on the Company’s Series A, Series B, Series F, Series I, Series J, Series K, Series L, Series M, and Series N Non-Cumulative Perpetual Preferred Stock of $3,548.61, $887.153, $1,625.00, $232.953, $1,325.00, $1,375.00, $937.50, $952.778, $202.986, respectively. |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options outstanding of common shares | 3 | 1 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum employee contribution allowed as a percentage of annual compensation for retirement savings plan | 75% | ||
Company contribution match percentage for retirement savings plan | 100% | ||
Percent of employees' eligible annual compensation for employer matching contribution to retirement savings plan | 4% | ||
Employee matching expenses for retirement savings plan | $ 254 | $ 211 | $ 213 |
Vesting service period for pension plan | 3 years | ||
Related party | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 62.6 | 87.8 | |
Long-duration bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation percentage | 35% | ||
Global equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation percentage | 30% | ||
Real assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation percentage | 10% | ||
Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation percentage | 10% | ||
Domestic mid-small cap equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation percentage | 5% | ||
Emerging markets equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation percentage | 5% | ||
Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation percentage | 5% | ||
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 7,779 | 7,375 | $ 8,113 |
Pension Plans | Qualified plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions expected in the next fiscal year | 0 | ||
Pension Plans | Non-qualified plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions expected in the next fiscal year | 27 | ||
Postretirement Welfare Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 45 | $ 42 | |
Postretirement Welfare Plans | Non-qualified plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions expected in the next fiscal year | $ 0 |
Employee Benefits - Changes in
Employee Benefits - Changes in Benefit Obligation and Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Plans | |||
Change In Projected Benefit Obligation | |||
Benefit obligation at beginning of measurement period | $ 6,617 | $ 8,030 | |
Service cost | 223 | 280 | $ 265 |
Interest cost | 370 | 248 | 219 |
Plan amendments | (23) | 2 | |
Actuarial (gain) loss | 398 | (2,250) | |
Lump sum settlements | (94) | (76) | |
Benefit payments | (213) | (195) | |
Acquisitions | 0 | 578 | |
Benefit obligation at end of measurement period | 7,278 | 6,617 | 8,030 |
Change In Fair Value Of Plan Assets | |||
Balance at beginning of period | 7,375 | 8,113 | |
Actual return on plan assets | 658 | (1,245) | |
Employer contributions | 28 | 28 | |
Lump sum settlements | (94) | (76) | |
Benefit payments | (213) | (195) | |
Acquisitions | 25 | 750 | |
Balance at end of period | 7,779 | 7,375 | $ 8,113 |
Funded Status | 501 | 758 | |
Components Of The Consolidated Balance Sheet | |||
Noncurrent benefit asset | 1,072 | 1,286 | |
Current benefit liability | (26) | (25) | |
Noncurrent benefit liability | (545) | (503) | |
Recognized amount | 501 | 758 | |
Accumulated Other Comprehensive Income (Loss), Pretax | |||
Net actuarial loss | (1,607) | (1,326) | |
Net prior service credit | 34 | 12 | |
Recognized amount | (1,573) | (1,314) | |
Accumulated benefit obligation for all pension plans | 6,800 | 5,000 | |
Postretirement Welfare Plans | |||
Change In Projected Benefit Obligation | |||
Benefit obligation at beginning of measurement period | 51 | ||
Benefit obligation at end of measurement period | 49 | 51 | |
Change In Fair Value Of Plan Assets | |||
Balance at beginning of period | 42 | ||
Balance at end of period | 45 | 42 | |
Accumulated Other Comprehensive Income (Loss), Pretax | |||
Recognized amount | $ 52 | $ 62 |
Employee Benefits - Pension Pla
Employee Benefits - Pension Plans with Benefit Obligations in Excess of Plan Assets (Details) - Pension Plans - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Plans with Projected Benefit Obligations in Excess of Plan Assets | ||
Projected benefit obligation | $ 571 | $ 528 |
Fair value of plan assets | 0 | 0 |
Plans with Accumulated Benefit Obligations in Excess of Plan Assets | ||
Accumulated benefit obligation | 530 | 487 |
Fair value of plan assets | $ 0 | $ 0 |
Employee Benefits - Components
Employee Benefits - Components of Net Periodic Benefit Cost and Other Amounts Recognized in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Plans | |||
Components Of Net Periodic Pension Cost | |||
Service cost | $ 223 | $ 280 | $ 265 |
Interest cost | 370 | 248 | 219 |
Expected return on plan assets | (546) | (481) | (450) |
Prior service credit amortization | (1) | (2) | (2) |
Actuarial loss amortization | 5 | 140 | 169 |
Net periodic pension cost (benefit) | 51 | 185 | 201 |
Other Changes In Plan Assets And Benefit Obligations Recognized In Other Comprehensive Income (Loss) | |||
Net actuarial (loss) gain arising during the year | (286) | 523 | 398 |
Net actuarial loss amortized during the year | 5 | 140 | 169 |
Net prior service credit (cost) arising during the year | 23 | (2) | 0 |
Net prior service credit amortized during the year | (1) | (2) | (2) |
Total recognized in other comprehensive income (loss) | (259) | 659 | 565 |
Total recognized in net periodic pension cost and other comprehensive income (loss) | (310) | 474 | 364 |
Postretirement Welfare Plans | |||
Components Of Net Periodic Pension Cost | |||
Net periodic pension cost (benefit) | (10) | (9) | (9) |
Other Changes In Plan Assets And Benefit Obligations Recognized In Other Comprehensive Income (Loss) | |||
Total recognized in other comprehensive income (loss) | $ (10) | $ (5) | $ (8) |
Employee Benefits - Weighted Av
Employee Benefits - Weighted Average Assumptions to Determine Projected Benefit Obligations (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Cash balance interest crediting rate | 3.04% | 3.36% |
Rate of compensation increase | 3.72% | 4.13% |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.12% | 5.55% |
Employee Benefits - Weighted _2
Employee Benefits - Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Cash balance interest crediting rate | 3.36% | 3% | 3% |
Rate of compensation increase | 4.13% | 3.56% | 3.56% |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.55% | 3% | 2.75% |
Expected return on plan assets | 6.75% | 6.50% | 6.50% |
Employee Benefits - Plan Invest
Employee Benefits - Plan Investment Assets Measured at Fair Value (Details) - Pension Plans - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | $ 7,779 | $ 7,375 | $ 8,113 | |
Level 1, Level 2, and Level 3 total | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 68 | 2,562 | ||
Level 1, Level 2, and Level 3 total | Cash and cash equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 68 | 202 | ||
Level 1, Level 2, and Level 3 total | Debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 1,816 | ||
Level 1, Level 2, and Level 3 total | Mutual funds, Debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 382 | ||
Level 1, Level 2, and Level 3 total | Mutual funds, Emerging markets equity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 156 | ||
Level 1, Level 2, and Level 3 total | Other | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 6 | ||
Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 68 | 1,163 | ||
Level 1 | Cash and cash equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 68 | 202 | ||
Level 1 | Debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 961 | ||
Level 1 | Mutual funds, Debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 0 | ||
Level 1 | Mutual funds, Emerging markets equity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 0 | ||
Level 1 | Other | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 0 | ||
Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 1,393 | ||
Level 2 | Cash and cash equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 0 | ||
Level 2 | Debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 855 | ||
Level 2 | Mutual funds, Debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 382 | ||
Level 2 | Mutual funds, Emerging markets equity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 156 | ||
Level 2 | Other | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 0 | ||
Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 6 | $ 4 | $ 6 |
Level 3 | Cash and cash equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 0 | ||
Level 3 | Debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 0 | ||
Level 3 | Mutual funds, Debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 0 | ||
Level 3 | Mutual funds, Emerging markets equity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 0 | ||
Level 3 | Other | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 0 | 6 | ||
Net asset value per share | Collective investment funds, Domestic equity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 1,546 | 1,494 | ||
Net asset value per share | Collective investment funds, Domestic mid-small cap equity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 406 | 313 | ||
Net asset value per share | Collective investment funds, International equity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 981 | 620 | ||
Net asset value per share | Collective investment funds, Domestic real estate securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 142 | 144 | ||
Net asset value per share | Collective investment funds, Fixed income | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 2,295 | 0 | ||
Net asset value per share | Real estate funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 746 | 763 | ||
Net asset value per share | Hedge funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | 412 | 451 | ||
Net asset value per share | Private equity funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets | $ 1,183 | $ 1,028 |
Employee Benefits - Changes for
Employee Benefits - Changes for Qualified Pension Plan Investment Assets Measured at Fair Value Using Significant Unobservable Inputs (Level 3) (Details) - Pension Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |||
Balance at beginning of period | $ 7,375 | $ 8,113 | |
Unrealized gains (losses) relating to assets still held at end of year | 0 | 2 | $ (2) |
Purchases, sales, and settlements, net | (6) | 0 | 0 |
Balance at end of period | 7,779 | 7,375 | 8,113 |
Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |||
Balance at beginning of period | 6 | 4 | 6 |
Balance at end of period | $ 0 | $ 6 | $ 4 |
Employee Benefits - Expected Fu
Employee Benefits - Expected Future Benefit Payments (Details) - Pension Plans $ in Millions | Dec. 31, 2023 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 332 |
2025 | 383 |
2026 | 391 |
2027 | 416 |
2028 | 430 |
2029-2033 | $ 2,439 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares available for grant under the stock incentive plan (in shares) | 15 | ||
Fair value of shares vested | $ 180 | $ 198 | $ 191 |
Stock-based compensation expense | 224 | 202 | 207 |
Stock-based compensation expense on an after tax basis | 167 | $ 152 | $ 155 |
Unrecognized compensation cost related to nonvested share-based arrangements | $ 175 | ||
Period for recognition of unrecognized compensation cost related to nonvested share-based arrangements | 1 year 9 months 18 days | ||
Minimum | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Option grants exercisable period | 10 years | ||
Stock and unit awards vesting period | 3 years | ||
Maximum | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Stock and unit awards vesting period | 5 years |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options Outstanding and Exercised Under Stock Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock Options/Shares | |||
Outstanding at Beginning of the Period (in shares) | 3,253,090 | 3,890,131 | 5,180,391 |
Exercised (in shares) | (399,329) | (624,729) | (1,281,646) |
Cancelled (in shares) | (15,476) | (12,312) | (8,614) |
Outstanding at End of the Period (in shares) | 2,838,285 | 3,253,090 | 3,890,131 |
Stock Options/Shares, Exercisable (in shares) | 2,838,285 | 3,253,090 | 3,890,131 |
Weighted- Average Exercise Price | |||
Outstanding at Beginning of the Period (in dollars per share) | $ 44.42 | $ 42.58 | $ 40.38 |
Exercised (in dollars per share) | 38.15 | 32.87 | 33.66 |
Cancelled (in dollars per share) | 47.88 | 50.97 | 48.20 |
Outstanding at End of the Period (in dollars per share) | 45.28 | 44.42 | 42.58 |
Weighted-Average Exercise Price, Exercisable (in dollars per share) | $ 45.28 | $ 44.42 | $ 42.58 |
Weighted-Average Remaining Contractual Term, Outstanding | 2 years | 2 years 8 months 12 days | 3 years 3 months 18 days |
Weighted-Average Remaining Contractual Term, Exercisable | 2 years | 2 years 8 months 12 days | 3 years 3 months 18 days |
Aggregate Intrinsic Value, Outstanding | $ 0 | $ 0 | $ 53 |
Aggregate Intrinsic Value, Exercisable | $ 0 | $ 0 | $ 53 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Fair value of options vested | $ 0 | $ 0 | $ 3 |
Intrinsic value of options exercised | 2 | 15 | 27 |
Cash received from options exercised | 15 | 21 | 43 |
Tax benefit realized from options exercised | $ 1 | $ 4 | $ 7 |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock Options Outstanding Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding Options, Shares (in shares) | shares | 2,838,285 |
Outstanding Options, Weighted-Average Remaining Contractual Life (Years) | 2 years |
Outstanding Options, Weighted-Average Exercise Price (in dollars per share) | $ 45.28 |
Exercisable Options, Shares (in shares) | shares | 2,838,285 |
Exercisable Options, Weighted-Average Exercise Price (in dollars per share) | $ 45.28 |
$35.01—$40.00 | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Lower range limit of Exercise Prices (in dollars per share) | 35.01 |
Upper range limit of Exercise Prices (in dollars per share) | $ 40 |
Outstanding Options, Shares (in shares) | shares | 1,008,046 |
Outstanding Options, Weighted-Average Remaining Contractual Life (Years) | 2 years 1 month 6 days |
Outstanding Options, Weighted-Average Exercise Price (in dollars per share) | $ 39.49 |
Exercisable Options, Shares (in shares) | shares | 1,008,046 |
Exercisable Options, Weighted-Average Exercise Price (in dollars per share) | $ 39.49 |
$40.01—$45.00 | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Lower range limit of Exercise Prices (in dollars per share) | 40.01 |
Upper range limit of Exercise Prices (in dollars per share) | $ 45 |
Outstanding Options, Shares (in shares) | shares | 988,880 |
Outstanding Options, Weighted-Average Remaining Contractual Life (Years) | 9 months 18 days |
Outstanding Options, Weighted-Average Exercise Price (in dollars per share) | $ 42.95 |
Exercisable Options, Shares (in shares) | shares | 988,880 |
Exercisable Options, Weighted-Average Exercise Price (in dollars per share) | $ 42.95 |
$45.01—$50.00 | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Lower range limit of Exercise Prices (in dollars per share) | 45.01 |
Upper range limit of Exercise Prices (in dollars per share) | 50 |
$50.01—$55.01 | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Lower range limit of Exercise Prices (in dollars per share) | 50.01 |
Upper range limit of Exercise Prices (in dollars per share) | $ 55.01 |
Outstanding Options, Shares (in shares) | shares | 841,359 |
Outstanding Options, Weighted-Average Remaining Contractual Life (Years) | 3 years 1 month 6 days |
Outstanding Options, Weighted-Average Exercise Price (in dollars per share) | $ 54.96 |
Exercisable Options, Shares (in shares) | shares | 841,359 |
Exercisable Options, Weighted-Average Exercise Price (in dollars per share) | $ 54.96 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Shares of Stock and Unit Awards (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shares | |||
Outstanding at beginning of period (in shares) | 6,880,826 | 6,812,753 | 6,343,313 |
Granted (in shares) | 5,565,634 | 4,109,793 | 4,512,995 |
Vested (in shares) | (3,872,874) | (3,690,666) | (3,793,978) |
Cancelled (in shares) | (257,015) | (351,054) | (249,577) |
Outstanding at end of period (in shares) | 8,316,571 | 6,880,826 | 6,812,753 |
Weighted-Average Grant-Date Fair Value | |||
Outstanding at beginning of period (in dollars per share) | $ 52.59 | $ 51.04 | $ 51.38 |
Granted (in dollars per share) | 45.87 | 55.62 | 52.54 |
Vested (in dollars per share) | 52.05 | 52.88 | 53.27 |
Cancelled (in dollars per share) | 50 | 54.95 | 52.83 |
Outstanding at end of period (in dollars per share) | $ 48.42 | $ 52.59 | $ 51.04 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Federal | |||
Current | $ 1,434 | $ 1,366 | $ 1,203 |
Deferred | (326) | (108) | 469 |
Federal income tax | 1,108 | 1,258 | 1,672 |
State | |||
Current | 482 | 401 | 398 |
Deferred | (183) | (196) | 111 |
State income tax | 299 | 205 | 509 |
Total income tax provision | $ 1,407 | $ 1,463 | $ 2,181 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Expected Income Tax Expense at Federal Statutory Rate to the Applicable Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Federal statutory rate | 21% | 21% | 21% |
Tax at statutory rate | $ 1,442 | $ 1,533 | $ 2,135 |
State income tax, at statutory rates, net of federal tax benefit | 322 | 305 | 439 |
Tax credits and benefits, net of related expenses | (272) | (273) | (331) |
Tax-exempt income | (142) | (121) | (114) |
Revaluation of tax related assets and liabilities | 15 | (79) | 0 |
Nondeductible legal and regulatory expenses | 76 | 37 | 24 |
Other items | (34) | 61 | 28 |
Total income tax provision | $ 1,407 | 1,463 | $ 2,181 |
MUB | |||
Business Acquisition [Line Items] | |||
Revaluation of tax related assets and liabilities | $ (79) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Changes in Unrecognized Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $ 513 | $ 487 | $ 474 |
Additions for tax positions taken in prior years | 141 | 35 | 14 |
Additions for tax positions taken in the current year | 3 | 3 | 7 |
Exam resolutions | (302) | (8) | (1) |
Statute expirations | (5) | (4) | (7) |
Balance at end of period | $ 350 | $ 513 | $ 487 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Tax Credit Carryforward [Line Items] | |||
Unrecognized tax positions that if recognized would impact the effective tax rate | $ 276 | $ 294 | $ 285 |
Accrued interest and penalties included in uncertain tax positions | 40 | ||
Interest and penalties recorded on uncertain tax positions | (11) | $ 7 | $ 5 |
Net operating loss carryforwards | 2,700 | ||
Base year reserves included in retained earnings of acquired thrift institutions for which no deferred federal income tax liability has been recognized | 102 | ||
Federal [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Credit carryforwards | $ 1,300 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of the Net Deferred Tax Asset (Liability) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets | ||
Securities available-for-sale and financial instruments | $ 3,231 | $ 3,992 |
Federal, state and foreign net operating loss, credit carryforwards and other carryforwards | 2,836 | 2,677 |
Allowance for credit losses | 2,051 | 1,980 |
Loans | 1,013 | 1,287 |
Accrued expenses | 838 | 618 |
Obligation for operating leases | 348 | 368 |
Partnerships and other investment assets | 271 | 112 |
Stock compensation | 87 | 81 |
Other deferred tax assets, net | 370 | 501 |
Gross deferred tax assets | 11,045 | 11,616 |
Deferred Tax Liabilities | ||
Leasing activities | (1,455) | (1,813) |
Goodwill and other intangible assets | (1,450) | (1,575) |
Mortgage servicing rights | (758) | (815) |
Right of use operating leases | (301) | (325) |
Pension and postretirement benefits | (115) | (172) |
Fixed assets | (44) | (125) |
Other deferred tax liabilities, net | (168) | (234) |
Gross deferred tax liabilities | (4,291) | (5,059) |
Valuation allowance | (364) | (263) |
Net Deferred Tax Asset | $ 6,390 | $ 6,294 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | ||
Realized and unrealized losses on derivatives classified as cash flow hedges recorded in other comprehensive income (loss) | $ 242 | $ 114 |
Estimated loss to be reclassified from other comprehensive income (loss) into earnings | 78 | |
Fair value of derivatives under collateral agreements in a net liability position | 2,000 | |
Collateral posted by company netted against net liability position | 1,700 | |
Net investment hedges | ||
Derivative [Line Items] | ||
Non-derivative debt instruments | $ 1,300 | $ 1,300 |
Derivative Instruments - Asset
Derivative Instruments - Asset and Liability Management Derivative Positions (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Notional Value | $ 1,200,000 | |
Asset and liability management positions | ||
Derivative [Line Items] | ||
Notional Value | 91,328 | $ 90,763 |
Fair Value, Assets | 312 | 396 |
Fair Value, Liabilities | 241 | 422 |
Asset and liability management positions | Swaps | Visa Class B Shares | ||
Derivative [Line Items] | ||
Fair Value, Liabilities | 91 | 190 |
Derivative liability notional value | 2,000 | 1,800 |
Asset and liability management positions | Underwriting purchase and sale commitments | ||
Derivative [Line Items] | ||
Notional Value | 28 | 13 |
Asset and liability management positions | Other | ||
Derivative [Line Items] | ||
Notional Value | 2,136 | 1,908 |
Fair Value, Assets | 11 | 11 |
Fair Value, Liabilities | 93 | 190 |
Asset and liability management positions | Other economic hedges | Interest rate contracts | Receive fixed/pay floating swaps | ||
Derivative [Line Items] | ||
Notional Value | 7,029 | 9,215 |
Fair Value, Assets | 9 | 0 |
Fair Value, Liabilities | 3 | 3 |
Asset and liability management positions | Other economic hedges | Interest rate contracts | Pay fixed/receive floating swaps | ||
Derivative [Line Items] | ||
Notional Value | 3,801 | 9,616 |
Fair Value, Assets | 0 | 0 |
Fair Value, Liabilities | 0 | 0 |
Asset and liability management positions | Other economic hedges | Interest rate contracts | Futures and forwards | Buy/ Purchased | ||
Derivative [Line Items] | ||
Notional Value | 5,006 | 3,546 |
Fair Value, Assets | 29 | 10 |
Fair Value, Liabilities | 5 | 18 |
Asset and liability management positions | Other economic hedges | Interest rate contracts | Futures and forwards | Sell/ Written | ||
Derivative [Line Items] | ||
Notional Value | 4,501 | 7,522 |
Fair Value, Assets | 7 | 20 |
Fair Value, Liabilities | 34 | 38 |
Asset and liability management positions | Other economic hedges | Interest rate contracts | Options | Buy/ Purchased | ||
Derivative [Line Items] | ||
Notional Value | 6,085 | 11,434 |
Fair Value, Assets | 237 | 346 |
Fair Value, Liabilities | 0 | 0 |
Asset and liability management positions | Other economic hedges | Interest rate contracts | Options | Sell/ Written | ||
Derivative [Line Items] | ||
Notional Value | 3,696 | 7,849 |
Fair Value, Assets | 14 | 7 |
Fair Value, Liabilities | 75 | 148 |
Asset and liability management positions | Other economic hedges | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Notional Value | 734 | 962 |
Fair Value, Assets | 2 | 2 |
Fair Value, Liabilities | 5 | 6 |
Asset and liability management positions | Other economic hedges | Equity contracts | ||
Derivative [Line Items] | ||
Notional Value | 227 | 361 |
Fair Value, Assets | 2 | 0 |
Fair Value, Liabilities | 0 | 10 |
Asset and liability management positions | Other economic hedges | Credit contracts | ||
Derivative [Line Items] | ||
Notional Value | 2,620 | 330 |
Fair Value, Assets | 1 | 0 |
Fair Value, Liabilities | 0 | 0 |
Asset and liability management positions | Fair value hedges | Interest rate contracts | Receive fixed/pay floating swaps | ||
Derivative [Line Items] | ||
Notional Value | 12,100 | 17,400 |
Fair Value, Assets | 0 | 0 |
Fair Value, Liabilities | 16 | 9 |
Asset and liability management positions | Fair value hedges | Interest rate contracts | Pay fixed/receive floating swaps | ||
Derivative [Line Items] | ||
Notional Value | 24,139 | 5,542 |
Fair Value, Assets | 0 | 0 |
Fair Value, Liabilities | 0 | 0 |
Asset and liability management positions | Cash flow hedges | Interest rate contracts | Receive fixed/pay floating swaps | ||
Derivative [Line Items] | ||
Notional Value | 18,400 | 14,300 |
Fair Value, Assets | 0 | 0 |
Fair Value, Liabilities | 0 | 0 |
Asset and liability management positions | Net investment hedges | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Notional Value | 854 | 778 |
Fair Value, Assets | 0 | 0 |
Fair Value, Liabilities | $ 10 | $ 0 |
Derivative Instruments - Custom
Derivative Instruments - Customer-Related Derivative Positions (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Notional Value | $ 1,200,000 | |
Customer-related positions | ||
Derivative [Line Items] | ||
Notional Value | 1,119,842 | $ 1,014,834 |
Fair Value, Assets | 6,219 | 7,476 |
Fair Value, Liabilities | 8,068 | 10,277 |
Customer-related positions | Interest rate contracts | Receive fixed/pay floating swaps | ||
Derivative [Line Items] | ||
Notional Value | 363,375 | 301,690 |
Fair Value, Assets | 791 | 309 |
Fair Value, Liabilities | 4,395 | 5,689 |
Customer-related positions | Interest rate contracts | Pay fixed/receive floating swaps | ||
Derivative [Line Items] | ||
Notional Value | 330,539 | 316,133 |
Fair Value, Assets | 1,817 | 2,323 |
Fair Value, Liabilities | 280 | 206 |
Customer-related positions | Interest rate contracts | Other | ||
Derivative [Line Items] | ||
Notional Value | 82,209 | 40,261 |
Fair Value, Assets | 17 | 3 |
Fair Value, Liabilities | 51 | 16 |
Customer-related positions | Interest rate contracts | Options | Buy/ Purchased | ||
Derivative [Line Items] | ||
Notional Value | 102,423 | 103,489 |
Fair Value, Assets | 1,026 | 1,794 |
Fair Value, Liabilities | 18 | 5 |
Customer-related positions | Interest rate contracts | Options | Sell/ Written | ||
Derivative [Line Items] | ||
Notional Value | 97,690 | 99,923 |
Fair Value, Assets | 20 | 6 |
Fair Value, Liabilities | 1,087 | 1,779 |
Customer-related positions | Interest rate contracts | Futures | Buy/ Purchased | ||
Derivative [Line Items] | ||
Notional Value | 0 | 3,623 |
Fair Value, Assets | 0 | 0 |
Fair Value, Liabilities | 0 | 4 |
Customer-related positions | Interest rate contracts | Futures | Sell/ Written | ||
Derivative [Line Items] | ||
Notional Value | 0 | 2,376 |
Fair Value, Assets | 0 | 8 |
Fair Value, Liabilities | 0 | 0 |
Customer-related positions | Foreign exchange rate contracts | Forwards, spots and swaps | ||
Derivative [Line Items] | ||
Notional Value | 121,119 | 134,666 |
Fair Value, Assets | 2,252 | 3,010 |
Fair Value, Liabilities | 1,942 | 2,548 |
Customer-related positions | Options | Buy/ Purchased | ||
Derivative [Line Items] | ||
Notional Value | 1,532 | 954 |
Fair Value, Assets | 28 | 22 |
Fair Value, Liabilities | 0 | 0 |
Customer-related positions | Options | Sell/ Written | ||
Derivative [Line Items] | ||
Notional Value | 1,532 | 954 |
Fair Value, Assets | 0 | 0 |
Fair Value, Liabilities | 28 | 22 |
Customer-related positions | Commodity contracts | Swaps | ||
Derivative [Line Items] | ||
Notional Value | 2,498 | 0 |
Fair Value, Assets | 116 | 0 |
Fair Value, Liabilities | 110 | 0 |
Customer-related positions | Commodity Option | Buy/ Purchased | ||
Derivative [Line Items] | ||
Notional Value | 1,936 | 0 |
Fair Value, Assets | 151 | 0 |
Fair Value, Liabilities | 0 | 0 |
Customer-related positions | Commodity Option | Sell/ Written | ||
Derivative [Line Items] | ||
Notional Value | 1,936 | 0 |
Fair Value, Assets | 0 | 0 |
Fair Value, Liabilities | 151 | 0 |
Customer-related positions | Credit contracts | ||
Derivative [Line Items] | ||
Notional Value | 13,053 | 10,765 |
Fair Value, Assets | 1 | 1 |
Fair Value, Liabilities | $ 6 | $ 8 |
Derivative Instruments - Effect
Derivative Instruments - Effective Portion of Gains (Losses) Recognized in Other Comprehensive Income (Loss) and Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings (Details) - Asset and liability management positions - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flow hedges | Interest rate contracts | |||
Cash flow hedges | |||
Gains (Losses) Recognized in Other Comprehensive Income (Loss) | $ (187) | $ (56) | $ 94 |
Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings | (59) | (27) | (10) |
Net investment hedges | Foreign exchange forward contracts | |||
Net investment hedges | |||
Gains (Losses) Recognized in Other Comprehensive Income (Loss) | (11) | 42 | 19 |
Net investment hedges | Non-derivative debt instruments | |||
Net investment hedges | |||
Gains (Losses) Recognized in Other Comprehensive Income (Loss) | $ (33) | $ 59 | $ 84 |
Derivative Instruments - Effe_2
Derivative Instruments - Effect of Fair Value and Cash Flow Hedge Accounting on Consolidated Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest income | $ 30,007 | $ 17,945 | $ 13,487 |
Interest expense | 12,611 | 3,217 | 993 |
Losses recognized recognized in earnings, discontinuance of cash flow hedges | $ 28 | $ 36 | $ 53 |
OCI, Cash Flow Hedge, Reclassification for Discontinuance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest income, Interest expense | Interest income, Interest expense | Interest income, Interest expense |
Asset and liability management positions | Fair value hedges | Interest income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in earnings, fair value hedged item | $ 427 | $ (139) | $ (19) |
Asset and liability management positions | Fair value hedges | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in earnings, fair value hedged item | (461) | 486 | 232 |
Asset and liability management positions | Fair value hedges | Interest rate contracts | Interest income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in earnings, fair value hedging instruments | (430) | 138 | 17 |
Asset and liability management positions | Fair value hedges | Interest rate contracts | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in earnings, fair value hedging instruments | 458 | (482) | (232) |
Asset and liability management positions | Cash flow hedges | Interest rate contracts | Interest income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in earnings, cash flow hedging instruments | (52) | 0 | 0 |
Asset and liability management positions | Cash flow hedges | Interest rate contracts | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in earnings, cash flow hedging instruments | $ (28) | $ 0 | $ (14) |
Derivative Instruments - Cumula
Derivative Instruments - Cumulative Hedging Adjustments and the Carrying Amount of Assets and Liabilities Designated in Fair Value Hedges (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Increase (decrease) in cumulative amount of basis adjustments | $ 335 | |
Available-for-sale investment securities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Carrying amount of the hedged assets | 11,795 | $ 4,937 |
Cumulative hedging adjustment for hedged assets | (448) | (552) |
Cumulative hedging adjustment asset related to discontinued hedging relationships | (379) | (68) |
Amortized cost of the closed portfolios | 15,600 | |
Amortized cost of the closed portfolios designated as hedged | 9,100 | |
Increase (decrease) in cumulative amount of basis adjustments | (335) | |
Long-term debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Carrying amount of the hedged liabilities | 11,987 | 17,190 |
Cumulative hedging adjustment for hedged liabilities | (148) | (142) |
Cumulative hedging adjustment liability related to discontinued hedging relationships | $ (392) | $ 399 |
Derivative Instruments - Gains
Derivative Instruments - Gains (Losses) Recognized in Earnings for Other Economic Hedges and Customer-Related Positions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Customer-related positions | Interest rate contracts | Purchased and written options | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in earnings | $ 45 | $ 20 | $ (5) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Commercial products revenue | Commercial products revenue | Commercial products revenue |
Customer-related positions | Interest rate contracts | Futures | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in earnings | $ (1) | $ 30 | $ 3 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Commercial products revenue | Commercial products revenue | Commercial products revenue |
Customer-related positions | Swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in earnings | $ 185 | $ 98 | $ 110 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Commercial products revenue | Commercial products revenue | Commercial products revenue |
Customer-related positions | Credit contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in earnings | $ 1 | $ 20 | $ (7) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Commercial products revenue | Commercial products revenue | Commercial products revenue |
Customer-related positions | Foreign exchange rate contracts | Purchased and written options | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in earnings | $ 1 | $ 1 | $ 1 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Commercial products revenue | Commercial products revenue | Commercial products revenue |
Customer-related positions | Foreign exchange rate contracts | Forwards, spots and swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in earnings | $ 195 | $ 100 | $ 93 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Commercial products revenue | Commercial products revenue | Commercial products revenue |
Customer-related positions | Commodity contracts | Swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in earnings | $ 6 | $ 0 | $ 0 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Commercial products revenue | Commercial products revenue | Commercial products revenue |
Asset and liability management positions | Other economic hedges | Interest rate contracts | Futures and forwards | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in earnings | $ 71 | $ 407 | $ 511 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Mortgage banking revenue | Mortgage banking revenue | Mortgage banking revenue |
Asset and liability management positions | Other economic hedges | Interest rate contracts | Purchased and written options | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in earnings | $ 89 | $ 1 | $ 527 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Mortgage banking revenue | Mortgage banking revenue | Mortgage banking revenue |
Asset and liability management positions | Other economic hedges | Swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in earnings | $ (19) | $ (1,010) | $ (197) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Mortgage banking revenue, Interest Expense, Other | Mortgage banking revenue, Interest Expense, Other | Mortgage banking revenue, Interest Expense, Other |
Asset and liability management positions | Other economic hedges | Foreign exchange forward contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in earnings | $ (7) | $ (1) | $ 1 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other | Other | Other |
Asset and liability management positions | Other economic hedges | Equity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in earnings | $ (8) | $ (8) | $ 7 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Compensation and employee benefits | Compensation and employee benefits | Compensation and employee benefits |
Asset and liability management positions | Other economic hedges | Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in earnings | $ 1 | $ (181) | $ 5 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other | Other | Other |
Netting Arrangements for Cert_3
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities - Additional Information (Details) $ in Billions | Dec. 31, 2023 USD ($) |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |
Notional amount of derivative | $ 1,200 |
Over-the-counter | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |
Notional amount of derivative | 548.9 |
Centrally cleared | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |
Notional amount of derivative | 660.4 |
Exchange-traded | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |
Notional amount of derivative | $ 1.9 |
Netting Arrangements for Cert_4
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities - Maturities by Category of Collateral Pledged for Repurchase Agreements and Securities Loaned Transactions (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | $ 3,579 | $ 1,432 |
Securities loaned | 290 | 120 |
Gross amount of recognized liabilities | 3,869 | 1,552 |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 3,534 | 1,432 |
Securities loaned | 290 | 120 |
Gross amount of recognized liabilities | 3,824 | 1,552 |
Less Than 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 45 | 0 |
Securities loaned | 0 | 0 |
Gross amount of recognized liabilities | 45 | 0 |
30-89 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities loaned | 0 | 0 |
Gross amount of recognized liabilities | 0 | 0 |
Greater Than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities loaned | 0 | 0 |
Gross amount of recognized liabilities | 0 | 0 |
U.S. Treasury and agencies | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 2,375 | 147 |
U.S. Treasury and agencies | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 2,375 | 147 |
U.S. Treasury and agencies | Less Than 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
U.S. Treasury and agencies | 30-89 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
U.S. Treasury and agencies | Greater Than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Residential mortgage-backed securities | Agency | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 338 | 846 |
Residential mortgage-backed securities | Overnight and Continuous | Agency | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 338 | 846 |
Residential mortgage-backed securities | Less Than 30 Days | Agency | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Residential mortgage-backed securities | 30-89 Days | Agency | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Residential mortgage-backed securities | Greater Than 90 Days | Agency | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Corporate debt securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 821 | 439 |
Securities loaned | 290 | 120 |
Corporate debt securities | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 821 | 439 |
Securities loaned | 290 | 120 |
Corporate debt securities | Less Than 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities loaned | 0 | 0 |
Corporate debt securities | 30-89 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities loaned | 0 | 0 |
Corporate debt securities | Greater Than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities loaned | 0 | $ 0 |
Asset-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 45 | |
Asset-backed securities | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | |
Asset-backed securities | Less Than 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 45 | |
Asset-backed securities | 30-89 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | |
Asset-backed securities | Greater Than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | $ 0 |
Netting Arrangements for Cert_5
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities - Netting Adjustments and Items Not Offset in Consolidated Balance Sheet, Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative assets | ||
Gross Recognized Assets | $ 6,504 | $ 7,852 |
Gross Amounts Offset on the Consolidated Balance Sheet | (3,666) | (5,427) |
Net Amounts Presented on the Consolidated Balance Sheet | 2,838 | 2,425 |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Financial Instruments | (141) | (231) |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Collateral Received | (3) | (80) |
Net Amount | 2,694 | 2,114 |
Reverse repurchase agreements | ||
Gross Recognized Assets | 2,513 | 107 |
Net Amounts Presented on the Consolidated Balance Sheet | 2,513 | 107 |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Financial Instruments | (568) | (102) |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Collateral Received | (1,941) | (5) |
Net Amount | 4 | 0 |
Securities borrowed | ||
Gross Recognized Assets | 1,802 | 1,606 |
Net Amounts Presented on the Consolidated Balance Sheet | 1,802 | 1,606 |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Financial Instruments | (14) | 0 |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Collateral Received | (1,717) | (1,548) |
Net Amount | 71 | 58 |
Total | ||
Gross Recognized Assets | 10,819 | 9,565 |
Gross Amounts Offset on the Consolidated Balance Sheet | (3,666) | (5,427) |
Net Amounts Presented on the Consolidated Balance Sheet | 7,153 | 4,138 |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Financial Instruments | (723) | (333) |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Collateral Received | (3,661) | (1,633) |
Net Amount | 2,769 | 2,172 |
Cash collateral netted against derivative assets | 1,600 | 3,000 |
Derivative assets not subject to netting arrangements | $ 27 | $ 20 |
Netting Arrangements for Cert_6
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities - Netting Adjustments and Items Not Offset in Consolidated Balance Sheet, Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative liabilities | ||
Gross Recognized Liabilities | $ 8,217 | $ 10,506 |
Gross Amounts Offset on the Consolidated Balance Sheet | (3,720) | (4,551) |
Net Amounts Presented on the Consolidated Balance Sheet | 4,497 | 5,955 |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Financial Instruments | (141) | (231) |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Collateral Pledged | 0 | 0 |
Net Amount | 4,356 | 5,724 |
Repurchase agreements | ||
Gross Recognized Liabilities | 3,579 | 1,432 |
Net Amounts Presented on the Consolidated Balance Sheet | 3,579 | 1,432 |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Financial Instruments | (568) | (102) |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Collateral Pledged | (3,008) | (1,325) |
Net Amount | 3 | 5 |
Securities loaned | ||
Gross Recognized Liabilities | 290 | 120 |
Net Amounts Presented on the Consolidated Balance Sheet | 290 | 120 |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Financial Instruments | (14) | 0 |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Collateral Pledged | (270) | (118) |
Net Amount | 6 | 2 |
Total | ||
Gross Recognized Liabilities | 12,086 | 12,058 |
Gross Amounts Offset on the Consolidated Balance Sheet | (3,720) | (4,551) |
Net Amounts Presented on the Consolidated Balance Sheet | 8,366 | 7,507 |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Financial Instruments | (723) | (333) |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Collateral Pledged | (3,278) | (1,443) |
Net Amount | 4,365 | 5,731 |
Cash collateral netted against derivative liabilities | 1,700 | 2,100 |
Derivative liabilities not subject to netting arrangements | $ 92 | $ 193 |
Fair Values of Assets and Lia_3
Fair Values of Assets and Liabilities - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Carrying value of unfunded commitments, deferred non-yield related loan fees and standby letters of credit | $ 489 | $ 498 | |
Other guarantees carrying value | $ 198 | 241 | |
Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Credit valuation adjustment as percentage of derivative contract fair value | 0% | ||
Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Credit valuation adjustment as percentage of derivative contract fair value | 507% | ||
Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Credit valuation adjustment as percentage of derivative contract fair value | 2% | ||
Level 2 | Time Deposits | Interest expense | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Net gains (losses) where the fair value option is elected | $ 4 | ||
Mortgage Loans Held For Sale | Level 2 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Net gains (losses) where the fair value option is elected | $ (46) | $ (450) | $ (145) |
Fair Values of Assets and Lia_4
Fair Values of Assets and Liabilities - Valuation Assumption Ranges for MSRs (Details) | Dec. 31, 2023 |
Expected prepayment | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
MSRs measurement inputs | 0.07 |
Expected prepayment | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
MSRs measurement inputs | 0.23 |
Expected prepayment | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
MSRs measurement inputs | 0.10 |
Option adjusted spread | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
MSRs measurement inputs | 0.04 |
Option adjusted spread | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
MSRs measurement inputs | 0.11 |
Option adjusted spread | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
MSRs measurement inputs | 0.05 |
Fair Values of Assets and Lia_5
Fair Values of Assets and Liabilities - Valuation Assumption Ranges for Derivative Commitments (Details) | Dec. 31, 2023 |
Expected loan close rate | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative commitments measurement inputs | 0.17 |
Expected loan close rate | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative commitments measurement inputs | 0.99 |
Expected loan close rate | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative commitments measurement inputs | 0.74 |
Inherent MSR value (basis points per loan) | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative commitments measurement inputs | 0.0048 |
Inherent MSR value (basis points per loan) | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative commitments measurement inputs | 0.0177 |
Inherent MSR value (basis points per loan) | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative commitments measurement inputs | 0.0097 |
Fair Values of Assets and Lia_6
Fair Values of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | [1] | $ 69,706 | $ 72,910 | ||
Mortgage loans held for sale | 2,011 | 1,849 | |||
Mortgage servicing rights | 3,377 | 3,755 | $ 2,953 | $ 2,210 | |
Derivative assets netting | (3,666) | (5,427) | |||
Time deposits | 2,818 | 0 | |||
Derivative liabilities netting | (3,720) | (4,551) | |||
Equity investments without readily determinable fair values | 133 | 104 | |||
Equity investments without readily determinable fair values impairment loss | 5 | ||||
Equity investments without readily determinable fair values impairment loss cumulative amount | 5 | ||||
U.S. Treasury and agencies | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 19,542 | 22,033 | |||
Residential mortgage-backed securities | Agency | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 26,078 | 29,271 | |||
Commercial mortgage-backed securities | Agency | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 7,343 | 7,145 | |||
Commercial mortgage-backed securities | Non-agency | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 6 | 7 | |||
Asset-backed securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 6,724 | 4,323 | |||
Obligations of state and political subdivisions | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 9,989 | 10,125 | |||
Other | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 24 | 6 | |||
Fair value, measurements, recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 69,706 | 72,910 | |||
Mortgage loans held for sale | 2,011 | 1,849 | |||
Mortgage servicing rights | 3,377 | 3,755 | |||
Derivative assets netting | (3,666) | (5,427) | |||
Derivative assets | 2,865 | 2,445 | |||
Other assets | 2,541 | 2,004 | |||
Total assets | 80,500 | 82,963 | |||
Time deposits | 2,818 | ||||
Derivative liabilities netting | (3,720) | (4,551) | |||
Derivative liabilities | 4,589 | 6,148 | |||
Short-term borrowings and other liabilities | 2,303 | 1,689 | |||
Total liabilities | 9,710 | 7,837 | |||
Fair value, measurements, recurring | U.S. Treasury and agencies | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 19,542 | 22,033 | |||
Fair value, measurements, recurring | Residential mortgage-backed securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 26,078 | 29,271 | |||
Fair value, measurements, recurring | Commercial mortgage-backed securities | Agency | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 7,343 | 7,145 | |||
Fair value, measurements, recurring | Commercial mortgage-backed securities | Non-agency | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 6 | 7 | |||
Fair value, measurements, recurring | Asset-backed securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 6,724 | 4,323 | |||
Fair value, measurements, recurring | Obligations of state and political subdivisions | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 9,989 | 10,125 | |||
Fair value, measurements, recurring | Other | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 24 | 6 | |||
Fair value, measurements, recurring | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 14,787 | 13,723 | |||
Mortgage loans held for sale | 0 | 0 | |||
Mortgage servicing rights | 0 | 0 | |||
Derivative assets before netting | 0 | 9 | |||
Other assets | 550 | 248 | |||
Total assets | 15,337 | 13,980 | |||
Time deposits | 0 | ||||
Derivative liabilities before netting | 16 | 4 | |||
Short-term borrowings and other liabilities | 517 | 125 | |||
Total liabilities | 533 | 129 | |||
Fair value, measurements, recurring | Level 1 | U.S. Treasury and agencies | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 14,787 | 13,723 | |||
Fair value, measurements, recurring | Level 1 | Residential mortgage-backed securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 0 | |||
Fair value, measurements, recurring | Level 1 | Commercial mortgage-backed securities | Agency | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 0 | |||
Fair value, measurements, recurring | Level 1 | Commercial mortgage-backed securities | Non-agency | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 0 | |||
Fair value, measurements, recurring | Level 1 | Asset-backed securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 0 | |||
Fair value, measurements, recurring | Level 1 | Obligations of state and political subdivisions | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 0 | |||
Fair value, measurements, recurring | Level 1 | Other | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 0 | |||
Fair value, measurements, recurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 54,919 | 59,186 | |||
Mortgage loans held for sale | 2,011 | 1,849 | |||
Mortgage servicing rights | 0 | 0 | |||
Derivative assets before netting | 5,078 | 6,608 | |||
Other assets | 1,991 | 1,756 | |||
Total assets | 63,999 | 69,399 | |||
Time deposits | 2,818 | ||||
Derivative liabilities before netting | 4,955 | 6,241 | |||
Short-term borrowings and other liabilities | 1,786 | 1,564 | |||
Total liabilities | 9,559 | 7,805 | |||
Fair value, measurements, recurring | Level 2 | U.S. Treasury and agencies | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 4,755 | 8,310 | |||
Fair value, measurements, recurring | Level 2 | Residential mortgage-backed securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 26,078 | 29,271 | |||
Fair value, measurements, recurring | Level 2 | Commercial mortgage-backed securities | Agency | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 7,343 | 7,145 | |||
Fair value, measurements, recurring | Level 2 | Commercial mortgage-backed securities | Non-agency | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 6 | 7 | |||
Fair value, measurements, recurring | Level 2 | Asset-backed securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 6,724 | 4,323 | |||
Fair value, measurements, recurring | Level 2 | Obligations of state and political subdivisions | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 9,989 | 10,124 | |||
Fair value, measurements, recurring | Level 2 | Other | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 24 | 6 | |||
Fair value, measurements, recurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 1 | |||
Mortgage loans held for sale | 0 | 0 | |||
Mortgage servicing rights | 3,377 | 3,755 | |||
Derivative assets before netting | 1,453 | 1,255 | |||
Other assets | 0 | 0 | |||
Total assets | 4,830 | 5,011 | |||
Time deposits | 0 | ||||
Derivative liabilities before netting | 3,338 | 4,454 | |||
Short-term borrowings and other liabilities | 0 | 0 | |||
Total liabilities | 3,338 | 4,454 | |||
Fair value, measurements, recurring | Level 3 | U.S. Treasury and agencies | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 0 | |||
Fair value, measurements, recurring | Level 3 | Residential mortgage-backed securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 0 | |||
Fair value, measurements, recurring | Level 3 | Commercial mortgage-backed securities | Agency | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 0 | |||
Fair value, measurements, recurring | Level 3 | Commercial mortgage-backed securities | Non-agency | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 0 | |||
Fair value, measurements, recurring | Level 3 | Asset-backed securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 0 | |||
Fair value, measurements, recurring | Level 3 | Obligations of state and political subdivisions | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 1 | |||
Fair value, measurements, recurring | Level 3 | Other | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | $ 0 | $ 0 | |||
[1] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
Fair Values of Assets and Lia_7
Fair Values of Assets and Liabilities - Changes in Fair Value for Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Beginning of Period Balance | $ (3,199) | $ 799 | $ 2,326 |
Net Gains (Losses) Included in Net Income | (2,696) | (5,940) | (924) |
Purchases | 552 | 716 | 337 |
Sales | (45) | (36) | (3) |
Issuances | 1 | 11 | 0 |
Settlements | 3,502 | 1,251 | (937) |
End of Period Balance | (1,885) | (3,199) | 799 |
Net Change in net derivative asset and liability unrealized gains (losses) relating to assets still held at end of period | (183) | (3,538) | (968) |
Mortgage Banking Revenue | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net Gains (Losses) Included in Net Income | 182 | (141) | 666 |
Net Change in net derivative asset and liability unrealized gains (losses) relating to assets still held at end of period | $ 15 | $ 5 | $ 42 |
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Mortgage banking revenue | Mortgage banking revenue | Mortgage banking revenue |
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Mortgage banking revenue | Mortgage banking revenue | Mortgage banking revenue |
Commercial Products Revenue | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net Gains (Losses) Included in Net Income | $ (2,900) | $ (5,600) | $ (1,600) |
Net Change in net derivative asset and liability unrealized gains (losses) relating to assets still held at end of period | $ (199) | $ (3,400) | $ (1,000) |
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Commercial products revenue | Commercial products revenue | Commercial products revenue |
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Commercial products revenue | Commercial products revenue | Commercial products revenue |
Other Noninterest Income | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net Gains (Losses) Included in Net Income | $ 1 | $ (181) | $ 5 |
Net Change in net derivative asset and liability unrealized gains (losses) relating to assets still held at end of period | $ 1 | $ (181) | $ 5 |
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other | Other | Other |
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other | Other | Other |
Total available-for-sale | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning of Period Balance | $ 1 | $ 8 | $ 8 |
Net Gains (Losses) Included in Other Comprehensive Income (Loss) | 0 | (3) | 1 |
Purchases | 0 | 0 | 0 |
Sales | 0 | (4) | 0 |
Principal Payments | (1) | 0 | (1) |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
End of Period Balance | 0 | 1 | 8 |
Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period | 0 | 0 | 1 |
Asset-backed securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning of Period Balance | 0 | 7 | 7 |
Net Gains (Losses) Included in Other Comprehensive Income (Loss) | (3) | 1 | |
Purchases | 0 | 0 | |
Sales | (4) | 0 | |
Principal Payments | 0 | (1) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
End of Period Balance | 0 | 7 | |
Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period | 0 | 1 | |
Obligations of state and political subdivisions | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning of Period Balance | 1 | 1 | 1 |
Net Gains (Losses) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Principal Payments | (1) | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
End of Period Balance | 0 | 1 | 1 |
Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period | 0 | 0 | 0 |
Mortgage servicing rights | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning of Period Balance | 3,755 | 2,953 | 2,210 |
Net Gains (Losses) Included in Net Income | (316) | 311 | (437) |
Purchases | 5 | 156 | 42 |
Sales | (440) | (255) | 2 |
Issuances | 373 | 590 | 1,136 |
Settlements | 0 | 0 | 0 |
End of Period Balance | 3,377 | 3,755 | 2,953 |
Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period | $ (316) | $ 311 | $ (437) |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Mortgage banking revenue | Mortgage banking revenue | Mortgage banking revenue |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Mortgage banking revenue | Mortgage banking revenue | Mortgage banking revenue |
Fair Values of Assets and Lia_8
Fair Values of Assets and Liabilities - Assets Measured at Fair Value on Nonrecurring Basis (Details) - Fair value, measurements, nonrecurring - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | $ 354 | $ 97 |
Other assets | 27 | 21 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Other assets | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Other assets | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 354 | 97 |
Other assets | $ 27 | $ 21 |
Fair Values of Assets and Lia_9
Fair Values of Assets and Liabilities - Losses Recognized Related to Nonrecurring Fair Value Measurements (Details) - Fair value, measurements, nonrecurring - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Losses recognized related to nonrecurring fair value measurements | $ 32 | $ 20 | $ 25 |
Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Losses recognized related to nonrecurring fair value measurements | $ 368 | $ 40 | $ 60 |
Fair Values of Assets and Li_10
Fair Values of Assets and Liabilities - Fair Value Option (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Fair value carrying amount, total loans | $ 2,011 | $ 1,849 |
Aggregate unpaid principal, total loans | 1,994 | 1,848 |
Carrying amount over (under) unpaid principal outstanding, total loans | 17 | 1 |
Fair value carrying amount, time deposits | 2,818 | 0 |
Aggregate unpaid principal, time deposits | 2,822 | 0 |
Carrying amount over (under) unpaid principal outstanding, time deposits | (4) | 0 |
Fair value, nonaccrual loans | 1 | 1 |
Contractual principal outstanding, nonaccrual loans | 1 | 1 |
Fair value, loans 90 days or more past due | 4 | 1 |
Contractual principal outstanding, loans 90 days or more past due | $ 4 | $ 1 |
Fair Values of Assets and Li_11
Fair Values of Assets and Liabilities - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Assets | ||
Cash and due from banks | $ 61,192 | $ 53,542 |
Investment securities held-to-maturity | 74,088 | 77,874 |
Financial Liabilities | ||
Time deposits | 52,273 | 32,946 |
Long-term debt | 51,480 | 39,829 |
Carrying Amount | ||
Financial Assets | ||
Cash and due from banks | 61,192 | 53,542 |
Federal funds sold and securities purchased under resale agreements | 2,543 | 356 |
Investment securities held-to-maturity | 84,045 | 88,740 |
Loans held for sale | 190 | 351 |
Loans | 366,456 | 381,277 |
Other | 2,377 | 2,962 |
Financial Liabilities | ||
Time deposits | 49,455 | 32,946 |
Short-term borrowings | 12,976 | 29,527 |
Long-term debt | 51,480 | 39,829 |
Other | 5,432 | 5,137 |
Fair Value | ||
Financial Assets | ||
Cash and due from banks | 61,192 | 53,542 |
Federal funds sold and securities purchased under resale agreements | 2,543 | 356 |
Investment securities held-to-maturity | 74,088 | 77,874 |
Loans held for sale | 190 | 351 |
Loans | 362,849 | 368,874 |
Other | 2,377 | 2,962 |
Financial Liabilities | ||
Time deposits | 49,607 | 32,338 |
Short-term borrowings | 12,729 | 29,145 |
Long-term debt | 49,697 | 37,622 |
Other | 5,432 | 5,137 |
Fair Value | Level 1 | ||
Financial Assets | ||
Cash and due from banks | 61,192 | 53,542 |
Federal funds sold and securities purchased under resale agreements | 0 | 0 |
Investment securities held-to-maturity | 1,310 | 1,293 |
Loans held for sale | 0 | 0 |
Loans | 0 | 0 |
Other | 0 | 0 |
Financial Liabilities | ||
Time deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Other | 0 | 0 |
Fair Value | Level 2 | ||
Financial Assets | ||
Cash and due from banks | 0 | 0 |
Federal funds sold and securities purchased under resale agreements | 2,543 | 356 |
Investment securities held-to-maturity | 72,778 | 76,581 |
Loans held for sale | 0 | 0 |
Loans | 0 | 0 |
Other | 1,863 | 2,224 |
Financial Liabilities | ||
Time deposits | 49,607 | 32,338 |
Short-term borrowings | 12,729 | 29,145 |
Long-term debt | 49,697 | 37,622 |
Other | 1,406 | 1,500 |
Fair Value | Level 3 | ||
Financial Assets | ||
Cash and due from banks | 0 | 0 |
Federal funds sold and securities purchased under resale agreements | 0 | 0 |
Investment securities held-to-maturity | 0 | 0 |
Loans held for sale | 190 | 351 |
Loans | 362,849 | 368,874 |
Other | 514 | 738 |
Financial Liabilities | ||
Time deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Other | $ 4,026 | $ 3,637 |
Guarantees and Contingent Lia_3
Guarantees and Contingent Liabilities - Contract or Notional Amounts of Unfunded Commitments to Extend Credit (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Commercial and commercial real estate loans | |
Other Commitments [Line Items] | |
Contract or notional amounts of unfunded commitments to extend credit | $ 180,540 |
Corporate and purchasing card loans | |
Other Commitments [Line Items] | |
Contract or notional amounts of unfunded commitments to extend credit | 34,943 |
Residential mortgages | |
Other Commitments [Line Items] | |
Contract or notional amounts of unfunded commitments to extend credit | 114 |
Retail credit card loans | |
Other Commitments [Line Items] | |
Contract or notional amounts of unfunded commitments to extend credit | 134,297 |
Other retail loans | |
Other Commitments [Line Items] | |
Contract or notional amounts of unfunded commitments to extend credit | 43,046 |
Other | |
Other Commitments [Line Items] | |
Contract or notional amounts of unfunded commitments to extend credit | 7,585 |
Less Than One Year | Commercial and commercial real estate loans | |
Other Commitments [Line Items] | |
Contract or notional amounts of unfunded commitments to extend credit | 43,385 |
Less Than One Year | Corporate and purchasing card loans | |
Other Commitments [Line Items] | |
Contract or notional amounts of unfunded commitments to extend credit | 34,943 |
Less Than One Year | Residential mortgages | |
Other Commitments [Line Items] | |
Contract or notional amounts of unfunded commitments to extend credit | 114 |
Less Than One Year | Retail credit card loans | |
Other Commitments [Line Items] | |
Contract or notional amounts of unfunded commitments to extend credit | 134,297 |
Less Than One Year | Other retail loans | |
Other Commitments [Line Items] | |
Contract or notional amounts of unfunded commitments to extend credit | 15,616 |
Less Than One Year | Other | |
Other Commitments [Line Items] | |
Contract or notional amounts of unfunded commitments to extend credit | 7,585 |
Greater Than One Year | Commercial and commercial real estate loans | |
Other Commitments [Line Items] | |
Contract or notional amounts of unfunded commitments to extend credit | 137,155 |
Greater Than One Year | Corporate and purchasing card loans | |
Other Commitments [Line Items] | |
Contract or notional amounts of unfunded commitments to extend credit | 0 |
Greater Than One Year | Residential mortgages | |
Other Commitments [Line Items] | |
Contract or notional amounts of unfunded commitments to extend credit | 0 |
Greater Than One Year | Retail credit card loans | |
Other Commitments [Line Items] | |
Contract or notional amounts of unfunded commitments to extend credit | 0 |
Greater Than One Year | Other retail loans | |
Other Commitments [Line Items] | |
Contract or notional amounts of unfunded commitments to extend credit | 27,430 |
Greater Than One Year | Other | |
Other Commitments [Line Items] | |
Contract or notional amounts of unfunded commitments to extend credit | $ 0 |
Guarantees and Contingent Lia_4
Guarantees and Contingent Liabilities - Other Guarantees and Contingent Liabilities (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Other | |
Guarantor Obligations [Line Items] | |
Collateral Held | $ 0 |
Carrying Amount | 21 |
Maximum Potential Future Payments | 2,696 |
Standby letters of credit | |
Guarantor Obligations [Line Items] | |
Collateral Held | 0 |
Carrying Amount | 20 |
Maximum Potential Future Payments | 10,999 |
Third party borrowing arrangements | |
Guarantor Obligations [Line Items] | |
Collateral Held | 0 |
Carrying Amount | 0 |
Maximum Potential Future Payments | 5 |
Securities lending indemnifications | |
Guarantor Obligations [Line Items] | |
Collateral Held | 6,924 |
Carrying Amount | 0 |
Maximum Potential Future Payments | 6,679 |
Asset sales | |
Guarantor Obligations [Line Items] | |
Collateral Held | 0 |
Carrying Amount | 106 |
Maximum Potential Future Payments | 10,263 |
Merchant processing | |
Guarantor Obligations [Line Items] | |
Collateral Held | 815 |
Carrying Amount | 71 |
Maximum Potential Future Payments | 140,288 |
Tender option bond program guarantee | |
Guarantor Obligations [Line Items] | |
Collateral Held | 607 |
Carrying Amount | 0 |
Maximum Potential Future Payments | $ 589 |
Guarantees and Contingent Lia_5
Guarantees and Contingent Liabilities - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
USB Capital, IX, a wholly-owned unconsolidated trust | ||
Guarantor Obligations [Line Items] | ||
Maximum potential future payments guaranteed | $ 685 | |
Percentage of common equity in wholly owned USB Capital IX | 100% | |
Assets held in trust | $ 686 | |
Operations of subsidiaries | ||
Guarantor Obligations [Line Items] | ||
Maximum potential future payments guaranteed | 2,000 | |
Standby letters of credit | ||
Guarantor Obligations [Line Items] | ||
Maximum potential future payments guaranteed | $ 10,999 | |
Term of guaranteed obligations | 16 months | |
Fair value of guaranteed obligations | $ 20 | |
Collateral held for guaranteed obligations | 0 | |
Third party borrowing arrangements | ||
Guarantor Obligations [Line Items] | ||
Maximum potential future payments guaranteed | 5 | |
Fair value of guaranteed obligations | 0 | |
Collateral held for guaranteed obligations | 0 | |
Securities lending indemnifications | ||
Guarantor Obligations [Line Items] | ||
Maximum potential future payments guaranteed | 6,679 | |
Fair value of guaranteed obligations | 0 | |
Collateral held for guaranteed obligations | 6,924 | |
Asset sales | ||
Guarantor Obligations [Line Items] | ||
Maximum potential future payments guaranteed | 10,263 | |
Fair value of guaranteed obligations | 106 | |
Collateral held for guaranteed obligations | 0 | |
Syndication of tax-advantaged investments | ||
Guarantor Obligations [Line Items] | ||
Fair value of guaranteed obligations | 93 | |
Representation and warranty | ||
Guarantor Obligations [Line Items] | ||
Fair value of guaranteed obligations | 13 | $ 17 |
Unresolved claims | 18 | $ 39 |
Merchant processing | ||
Guarantor Obligations [Line Items] | ||
Maximum potential future payments guaranteed | 140,288 | |
Fair value of guaranteed obligations | 71 | |
Collateral held for guaranteed obligations | 815 | |
Airline processing arrangements | ||
Guarantor Obligations [Line Items] | ||
Fair value of guaranteed obligations | 50 | |
Value of airline tickets purchased to deliver at future date through card transactions | 13,100 | |
Airline processing arrangements | Escrow deposits letters of credit and indemnities | ||
Guarantor Obligations [Line Items] | ||
Collateral held for guaranteed obligations | 679 | |
Unresolved merchant charge-backs | ||
Guarantor Obligations [Line Items] | ||
Fair value of guaranteed obligations | 21 | |
Unresolved merchant charge-backs | Merchant escrow deposits | ||
Guarantor Obligations [Line Items] | ||
Collateral held for guaranteed obligations | 135 | |
Tender option bond program guarantee | ||
Guarantor Obligations [Line Items] | ||
Maximum potential future payments guaranteed | 589 | |
Fair value of guaranteed obligations | 0 | |
Collateral held for guaranteed obligations | $ 607 |
Guarantees and Contingent Lia_6
Guarantees and Contingent Liabilities - Contract or Notional Amount of Letters of Credit (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Commercial | |
Letters Of Credit [Line Items] | |
Contract or notional amount of letters of credit | $ 618 |
Commercial | Less Than One Year | |
Letters Of Credit [Line Items] | |
Contract or notional amount of letters of credit | 559 |
Commercial | Greater Than One Year | |
Letters Of Credit [Line Items] | |
Contract or notional amount of letters of credit | 59 |
Standby | |
Letters Of Credit [Line Items] | |
Contract or notional amount of letters of credit | 10,999 |
Standby | Less Than One Year | |
Letters Of Credit [Line Items] | |
Contract or notional amount of letters of credit | 6,444 |
Standby | Greater Than One Year | |
Letters Of Credit [Line Items] | |
Contract or notional amount of letters of credit | $ 4,555 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Income Statement | |||
Net interest income (taxable-equivalent basis) | $ 17,527 | $ 14,846 | |
Noninterest income | 10,617 | 9,456 | $ 10,227 |
Total net revenue | 28,144 | 24,302 | |
Noninterest Expense | 18,873 | 14,906 | 13,728 |
Income (loss) before provision and income taxes | 9,271 | 9,396 | |
Provision for credit losses | 2,275 | 1,977 | (1,173) |
Income (loss) before income taxes | 6,996 | 7,419 | |
Income taxes and taxable-equivalent adjustment | 1,538 | 1,581 | |
Net income (loss) | 5,458 | 5,838 | 7,985 |
Net (income) loss attributable to noncontrolling interests | (29) | (13) | (22) |
Net income (loss) attributable to U.S. Bancorp | 5,429 | 5,825 | $ 7,963 |
Average Balance Sheet | |||
Loans | 381,275 | 333,573 | |
Other earning assets | 223,924 | 211,770 | |
Goodwill | 12,475 | 10,189 | |
Other intangible assets | 6,639 | 4,577 | |
Assets | 663,440 | 592,149 | |
Noninterest-bearing deposits | 107,768 | 120,394 | |
Interest-bearing deposits | 397,895 | 341,990 | |
Total deposits | 505,663 | 462,384 | |
Total U.S. Bancorp shareholders’ equity | 53,660 | 50,416 | |
Wealth, Corporate, Commercial and Institutional Banking | |||
Condensed Income Statement | |||
Net interest income (taxable-equivalent basis) | 6,129 | 5,213 | |
Noninterest income | 4,143 | 3,561 | |
Total net revenue | 10,272 | 8,774 | |
Noninterest Expense | 5,183 | 4,135 | |
Income (loss) before provision and income taxes | 5,089 | 4,639 | |
Provision for credit losses | 334 | 154 | |
Income (loss) before income taxes | 4,755 | 4,485 | |
Income taxes and taxable-equivalent adjustment | 1,190 | 1,122 | |
Net income (loss) | 3,565 | 3,363 | |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | |
Net income (loss) attributable to U.S. Bancorp | 3,565 | 3,363 | |
Average Balance Sheet | |||
Loans | 175,780 | 150,512 | |
Other earning assets | 6,615 | 4,771 | |
Goodwill | 4,682 | 3,634 | |
Other intangible assets | 1,007 | 365 | |
Assets | 202,642 | 169,554 | |
Noninterest-bearing deposits | 70,977 | 82,671 | |
Interest-bearing deposits | 199,780 | 175,345 | |
Total deposits | 270,757 | 258,016 | |
Total U.S. Bancorp shareholders’ equity | 22,362 | 18,159 | |
Consumer and Business Banking | |||
Condensed Income Statement | |||
Net interest income (taxable-equivalent basis) | 8,331 | 6,764 | |
Noninterest income | 1,662 | 1,536 | |
Total net revenue | 9,993 | 8,300 | |
Noninterest Expense | 6,964 | 5,779 | |
Income (loss) before provision and income taxes | 3,029 | 2,521 | |
Provision for credit losses | 79 | 75 | |
Income (loss) before income taxes | 2,950 | 2,446 | |
Income taxes and taxable-equivalent adjustment | 738 | 612 | |
Net income (loss) | 2,212 | 1,834 | |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | |
Net income (loss) attributable to U.S. Bancorp | 2,212 | 1,834 | |
Average Balance Sheet | |||
Loans | 161,862 | 144,441 | |
Other earning assets | 2,388 | 3,117 | |
Goodwill | 4,466 | 3,250 | |
Other intangible assets | 5,265 | 3,784 | |
Assets | 179,103 | 160,174 | |
Noninterest-bearing deposits | 31,082 | 31,719 | |
Interest-bearing deposits | 189,148 | 163,190 | |
Total deposits | 220,230 | 194,909 | |
Total U.S. Bancorp shareholders’ equity | 16,016 | 12,678 | |
Payment Services | |||
Condensed Income Statement | |||
Net interest income (taxable-equivalent basis) | 2,702 | 2,504 | |
Noninterest income | 4,056 | 3,794 | |
Total net revenue | 6,758 | 6,298 | |
Noninterest Expense | 3,772 | 3,525 | |
Income (loss) before provision and income taxes | 2,986 | 2,773 | |
Provision for credit losses | 1,394 | 980 | |
Income (loss) before income taxes | 1,592 | 1,793 | |
Income taxes and taxable-equivalent adjustment | 398 | 449 | |
Net income (loss) | 1,194 | 1,344 | |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | |
Net income (loss) attributable to U.S. Bancorp | 1,194 | 1,344 | |
Average Balance Sheet | |||
Loans | 38,471 | 34,627 | |
Other earning assets | 97 | 634 | |
Goodwill | 3,327 | 3,305 | |
Other intangible assets | 350 | 423 | |
Assets | 44,292 | 41,072 | |
Noninterest-bearing deposits | 2,981 | 3,410 | |
Interest-bearing deposits | 103 | 162 | |
Total deposits | 3,084 | 3,572 | |
Total U.S. Bancorp shareholders’ equity | 9,310 | 8,233 | |
Rewards and rebate costs and certain partner payments | 3,000 | 2,900 | |
Revenue generated from certain contracts with customers | 8,800 | 8,000 | |
Treasury and Corporate Support | |||
Condensed Income Statement | |||
Net interest income (taxable-equivalent basis) | 365 | 365 | |
Noninterest income | 756 | 565 | |
Total net revenue | 1,121 | 930 | |
Noninterest Expense | 2,954 | 1,467 | |
Income (loss) before provision and income taxes | (1,833) | (537) | |
Provision for credit losses | 468 | 768 | |
Income (loss) before income taxes | (2,301) | (1,305) | |
Income taxes and taxable-equivalent adjustment | (788) | (602) | |
Net income (loss) | (1,513) | (703) | |
Net (income) loss attributable to noncontrolling interests | (29) | (13) | |
Net income (loss) attributable to U.S. Bancorp | (1,542) | (716) | |
Average Balance Sheet | |||
Loans | 5,162 | 3,993 | |
Other earning assets | 214,824 | 203,248 | |
Goodwill | 0 | 0 | |
Other intangible assets | 17 | 5 | |
Assets | 237,403 | 221,349 | |
Noninterest-bearing deposits | 2,728 | 2,594 | |
Interest-bearing deposits | 8,864 | 3,293 | |
Total deposits | 11,592 | 5,887 | |
Total U.S. Bancorp shareholders’ equity | $ 5,972 | $ 11,346 |
U.S. Bancorp (Parent Company) -
U.S. Bancorp (Parent Company) - Condensed Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Available-for-sale securities | [1] | $ 69,706 | $ 72,910 |
Other assets | [1] | 57,695 | 52,750 |
Total assets | 663,491 | 674,805 | |
Liabilities and Shareholders’ Equity | |||
Other liabilities | 28,649 | 27,552 | |
Shareholders’ equity | 55,306 | 50,766 | |
Total liabilities and equity | 663,491 | 674,805 | |
Parent Company | |||
Assets | |||
Due from banks, principally interest-bearing | 11,585 | 5,288 | |
Available-for-sale securities | 662 | 672 | |
Other assets | 974 | 1,101 | |
Total assets | 90,859 | 79,088 | |
Liabilities and Shareholders’ Equity | |||
Long-term debt | 34,332 | 26,983 | |
Other liabilities | 1,221 | 1,339 | |
Shareholders’ equity | 55,306 | 50,766 | |
Total liabilities and equity | 90,859 | 79,088 | |
Parent Company | Bank subsidiaries | |||
Assets | |||
Investments in subsidiaries | 61,495 | 59,202 | |
Advances to subsidiaries | 12,100 | 9,100 | |
Parent Company | Nonbank subsidiaries | |||
Assets | |||
Investments in subsidiaries | 3,884 | 3,575 | |
Advances to subsidiaries | $ 159 | $ 150 | |
[1] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
U.S. Bancorp (Parent Company)_2
U.S. Bancorp (Parent Company) - Condensed Income Statement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income | |||
Other income | $ 758 | $ 273 | $ 721 |
Total net revenue | 28,144 | 24,302 | |
Expense | |||
Interest expense | 12,611 | 3,217 | 993 |
Other expense | 2,211 | 1,398 | 1,207 |
Income before income taxes | 6,865 | 7,301 | 10,166 |
Applicable income taxes | 1,407 | 1,463 | 2,181 |
Net income (loss) attributable to U.S. Bancorp | 5,429 | 5,825 | 7,963 |
Parent Company | |||
Income | |||
Interest from subsidiaries | 606 | 119 | 112 |
Other income | 51 | 31 | 46 |
Total net revenue | 5,537 | 5,005 | 7,160 |
Expense | |||
Interest expense | 1,336 | 505 | 348 |
Other expense | 137 | 162 | 154 |
Total expense | 1,473 | 667 | 502 |
Income before income taxes | 4,064 | 4,338 | 6,658 |
Applicable income taxes | (170) | (138) | (53) |
Income of parent company | 4,234 | 4,476 | 6,711 |
Equity in undistributed income of subsidiaries | 1,195 | 1,349 | 1,252 |
Net income (loss) attributable to U.S. Bancorp | 5,429 | 5,825 | 7,963 |
Parent Company | Bank subsidiaries | |||
Income | |||
Dividends from subsidiaries | 4,869 | 4,750 | 7,000 |
Parent Company | Nonbank subsidiaries | |||
Income | |||
Dividends from subsidiaries | $ 11 | $ 105 | $ 2 |
U.S. Bancorp (Parent Company)_3
U.S. Bancorp (Parent Company) - Condensed Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Activities | |||
Net income attributable to U.S. Bancorp | $ 5,429 | $ 5,825 | $ 7,963 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Other, net | (151) | 6,790 | 2,428 |
Net cash provided by operating activities | 8,447 | 21,119 | 9,870 |
Investing Activities | |||
Other, net | (1,184) | (5,392) | 664 |
Net cash provided by (used in) investing activities | 18,925 | 7,500 | (57,487) |
Financing Activities | |||
Proceeds from issuance of long-term debt | 15,583 | 8,732 | 2,626 |
Principal payments or redemption of long-term debt | (4,084) | (6,926) | (11,432) |
Proceeds from issuance of preferred stock | 0 | 437 | 2,221 |
Proceeds from issuance of common stock | 951 | 21 | 43 |
Repurchase of preferred stock | 0 | (1,100) | (1,250) |
Repurchase of common stock | (62) | (69) | (1,555) |
Cash dividends paid on preferred stock | (341) | (299) | (308) |
Cash dividends paid on common stock | (2,970) | (2,776) | (2,579) |
Net cash (used in) provided by financing activities | (19,722) | (3,982) | 13,942 |
Change in cash and due from banks | 7,650 | 24,637 | (33,675) |
Cash and due from banks at beginning of period | 53,542 | ||
Cash and due from banks at end of period | 61,192 | 53,542 | |
Parent Company | |||
Operating Activities | |||
Net income attributable to U.S. Bancorp | 5,429 | 5,825 | 7,963 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Equity in undistributed income of subsidiaries | (1,195) | (1,349) | (1,252) |
Other, net | 83 | (398) | (85) |
Net cash provided by operating activities | 4,317 | 4,078 | 6,626 |
Investing Activities | |||
Proceeds from sales and maturities of investment securities | 25 | 423 | 200 |
Investments in subsidiaries | 0 | (5,030) | 0 |
Net (increase) decrease in short-term advances to subsidiaries | (9) | 557 | 411 |
Long-term advances to subsidiaries | (7,500) | (2,000) | (7,000) |
Principal collected on long-term advances to subsidiaries | 4,500 | 2,500 | 1,250 |
Cash paid for acquisition | 0 | (5,500) | 0 |
Other, net | 172 | (173) | (269) |
Net cash provided by (used in) investing activities | (2,812) | (9,223) | (5,408) |
Financing Activities | |||
Proceeds from issuance of long-term debt | 8,150 | 8,150 | 1,300 |
Principal payments or redemption of long-term debt | (936) | (2,300) | (3,000) |
Proceeds from issuance of preferred stock | 0 | 437 | 2,221 |
Proceeds from issuance of common stock | 951 | 21 | 43 |
Repurchase of preferred stock | 0 | (1,100) | (1,250) |
Repurchase of common stock | (62) | (69) | (1,555) |
Cash dividends paid on preferred stock | (341) | (299) | (308) |
Cash dividends paid on common stock | (2,970) | (2,776) | (2,579) |
Net cash (used in) provided by financing activities | 4,792 | 2,064 | (5,128) |
Change in cash and due from banks | 6,297 | (3,081) | (3,910) |
Cash and due from banks at beginning of period | 5,288 | 8,369 | 12,279 |
Cash and due from banks at end of period | $ 11,585 | $ 5,288 | $ 8,369 |
U.S. Bancorp (Parent Company)_4
U.S. Bancorp (Parent Company) - Additional Information (Details) | Dec. 31, 2023 |
Receivables | |
Loan Limits to the company or individual affiliate | 10% |
Maximum limit of loans to the Company and all affiliates | 20% |