Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,560,514,033 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000036104 | |
Current Fiscal Year End Date | --12-31 | |
Floating Rate Notes, Series CC (Senior), due May 21, 2028 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Floating Rate Notes, Series CC (Senior), due May 21, 2028 | |
Trading Symbol | USB/28 | |
Security Exchange Name | NYSE | |
4.009% Fixed-to-Floating Rate Notes, Series CC (Senior), due May 21, 2032 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 4.009% Fixed-to-Floating Rate Notes, Series CC (Senior), due May 21, 2032 | |
Trading Symbol | USB/32 | |
Security Exchange Name | NYSE | |
Common Stock, $.01 par value per share | ||
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 Pr | |
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 | Jun. 30, 2024 | Dec. 31, 2023 | |
Assets | |||
Cash and due from banks | $ 65,832 | $ 61,192 | |
Investment securities | |||
Held-to-maturity (fair value $69,311 and $74,088, respectively) | 81,486 | 84,045 | |
Available-for-sale ($290 and $338 pledged as collateral, respectively) | [1] | 79,799 | 69,706 |
Loans held for sale (including $2,550 and $2,011 of mortgage loans carried at fair value, respectively) | 2,582 | 2,201 | |
Loans | |||
Total loans | 376,133 | 373,835 | |
Less allowance for loan losses | (7,549) | (7,379) | |
Net loans | 368,584 | 366,456 | |
Premises and equipment | 3,570 | 3,623 | |
Goodwill | 12,476 | 12,489 | |
Other intangible assets | 5,757 | 6,084 | |
Other assets (including $5,554 and $3,548 of trading securities at fair value pledged as collateral, respectively) | [1] | 59,972 | 57,695 |
Total assets | 680,058 | 663,491 | |
Deposits | |||
Noninterest-bearing | 86,756 | 89,989 | |
Interest-bearing (including $6,089 and $2,818 of time deposits carried at fair value, respectively) | 437,029 | 422,323 | |
Total deposits | 523,785 | 512,312 | |
Short-term borrowings | 16,557 | 15,279 | |
Long-term debt | 52,720 | 51,480 | |
Other liabilities | 30,111 | 28,649 | |
Total liabilities | 623,173 | 607,720 | |
Shareholders’ equity | |||
Preferred stock | 6,808 | 6,808 | |
Common stock, $— par value per share, authorized: 4,000,000,000 shares; issued: 6/30/24 and 12/31/23—2,125,725,742 shares | 21 | 21 | |
Capital surplus | 8,688 | 8,673 | |
Retained earnings | 75,231 | 74,026 | |
Less cost of common stock in treasury: 6/30/24—565,238,392 shares; 12/31/23—567,732,687 shares | (24,020) | (24,126) | |
Accumulated other comprehensive income (loss) | (10,308) | (10,096) | |
Total U.S. Bancorp shareholders’ equity | 56,420 | 55,306 | |
Noncontrolling interests | 465 | 465 | |
Total equity | 56,885 | 55,771 | |
Total liabilities and equity | 680,058 | 663,491 | |
Commercial | Commercial | |||
Loans | |||
Total loans | 135,248 | 131,881 | |
Commercial | Commercial real estate | |||
Loans | |||
Total loans | 51,887 | 53,455 | |
Consumer | Residential mortgages | |||
Loans | |||
Total loans | 117,147 | 115,530 | |
Consumer | Credit card | |||
Loans | |||
Total loans | 28,715 | 28,560 | |
Consumer | Other retail | |||
Loans | |||
Total loans | $ 43,136 | $ 44,409 | |
[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 | Jun. 30, 2024 | Dec. 31, 2023 | |
Held-to-maturity, fair value | $ 69,311 | $ 74,088 | |
Available-for-sale securities | [1] | 79,799 | 69,706 |
Loans held-for-sale, mortgage loans carried at fair value | 2,550 | 2,011 | |
Time deposits carried at fair value | $ 6,089 | $ 2,818 | |
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) | 565,238,392 | 567,732,687 | |
Asset Pledged as Collateral with Right | |||
Available-for-sale securities | $ 290 | $ 338 | |
Trading securities at fair value | $ 5,554 | $ 3,548 | |
[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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest Income | ||||
Loans | $ 5,761 | $ 5,605 | $ 11,473 | $ 10,882 |
Loans held for sale | 41 | 38 | 78 | 69 |
Investment securities | 1,294 | 1,077 | 2,469 | 2,151 |
Other interest income | 889 | 806 | 1,729 | 1,388 |
Total interest income | 7,985 | 7,526 | 15,749 | 14,490 |
Interest Expense | ||||
Deposits | 3,028 | 1,939 | 5,912 | 3,444 |
Short-term borrowings | 296 | 740 | 566 | 1,189 |
Long-term debt | 638 | 432 | 1,263 | 808 |
Total interest expense | 3,962 | 3,111 | 7,741 | 5,441 |
Net interest income | 4,023 | 4,415 | 8,008 | 9,049 |
Provision for credit losses | 568 | 821 | 1,121 | 1,248 |
Net interest income after provision for credit losses | 3,455 | 3,594 | 6,887 | 7,801 |
Noninterest Income | ||||
Card revenue | 428 | 422 | 820 | 782 |
Corporate payment products revenue | 195 | 190 | 379 | 379 |
Merchant processing services | 454 | 436 | 855 | 823 |
Trust and investment management fees | 649 | 621 | 1,290 | 1,211 |
Service charges | 322 | 324 | 637 | 648 |
Commercial products revenue | 374 | 358 | 762 | 692 |
Mortgage banking revenue | 190 | 131 | 356 | 259 |
Investment products fees | 82 | 68 | 159 | 136 |
Securities gains (losses), net | (36) | 3 | (34) | (29) |
Other | 157 | 173 | 291 | 332 |
Total noninterest income | 2,815 | 2,726 | 5,515 | 5,233 |
Noninterest Expense | ||||
Compensation and employee benefits | 2,619 | 2,646 | 5,310 | 5,292 |
Net occupancy and equipment | 316 | 316 | 612 | 637 |
Professional services | 116 | 141 | 226 | 275 |
Marketing and business development | 158 | 122 | 294 | 244 |
Technology and communications | 509 | 522 | 1,016 | 1,025 |
Other intangibles | 142 | 159 | 288 | 319 |
Merger and integration charges | 0 | 310 | 155 | 554 |
Other | 354 | 353 | 772 | 778 |
Total noninterest expense | 4,214 | 4,569 | 8,673 | 9,124 |
Income before income taxes | 2,056 | 1,751 | 3,729 | 3,910 |
Applicable income taxes | 445 | 382 | 792 | 837 |
Net income | 1,611 | 1,369 | 2,937 | 3,073 |
Net (income) loss attributable to noncontrolling interests | (8) | (8) | (15) | (14) |
Net income attributable to U.S. Bancorp | 1,603 | 1,361 | 2,922 | 3,059 |
Net income applicable to U.S. Bancorp common shareholders | 1,518 | 1,281 | 2,727 | 2,873 |
Net income applicable to U.S. Bancorp common shareholders, diluted | $ 1,518 | $ 1,281 | $ 2,727 | $ 2,873 |
Earnings per common share (in dollars per share) | $ 0.97 | $ 0.84 | $ 1.75 | $ 1.87 |
Diluted earnings per common share (in dollars per share) | $ 0.97 | $ 0.84 | $ 1.75 | $ 1.87 |
Average common shares outstanding (in shares) | 1,560 | 1,533 | 1,560 | 1,532 |
Average diluted common shares outstanding (in shares) | 1,561 | 1,533 | 1,560 | 1,533 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,611 | $ 1,369 | $ 2,937 | $ 3,073 |
Other Comprehensive Income (Loss) | ||||
Changes in unrealized gains (losses) on investment securities available-for-sale | (78) | (460) | (249) | 845 |
Changes in unrealized gains (losses) on derivative hedges | (109) | (465) | (452) | (261) |
Foreign currency translation | (2) | 19 | 4 | 18 |
Changes in unrealized gains (losses) on retirement plans | 0 | 0 | 0 | 1 |
Reclassification to earnings of realized (gains) losses | 247 | 147 | 408 | 305 |
Income taxes related to other comprehensive income (loss) | (13) | 194 | 77 | (219) |
Total other comprehensive income (loss) | 45 | (565) | (212) | 689 |
Comprehensive income (loss) | 1,656 | 804 | 2,725 | 3,762 |
Comprehensive (income) loss attributable to noncontrolling interests | (8) | (8) | (15) | (14) |
Comprehensive income (loss) attributable to U.S. Bancorp | $ 1,648 | $ 796 | $ 2,710 | $ 3,748 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Change in accounting principle | [1] | Total U.S. Bancorp Shareholders’ Equity | Total U.S. Bancorp Shareholders’ Equity Change in accounting principle | [1] | Common Stock | Preferred Stock | Capital Surplus | Retained Earnings | Retained Earnings Change in accounting principle | [1] | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | |
Beginning Balance (in shares) at Dec. 31, 2022 | 1,531 | |||||||||||||||
Beginning Balance at Dec. 31, 2022 | $ 51,232 | $ 46 | $ 50,766 | $ 46 | $ 21 | $ 6,808 | $ 8,712 | $ 71,901 | $ 46 | $ (25,269) | $ (11,407) | $ 466 | ||||
Ending Balance (in shares) at Mar. 31, 2023 | 1,533 | |||||||||||||||
Ending Balance at Mar. 31, 2023 | $ 53,454 | 52,989 | $ 21 | 6,808 | 8,699 | 72,807 | (25,193) | (10,153) | 465 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2022-02 [Member] | |||||||||||||||
Beginning Balance (in shares) at Dec. 31, 2022 | 1,531 | |||||||||||||||
Beginning 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] | ||||||||||||||||
Net income (loss) | 3,073 | 3,059 | 3,059 | 14 | ||||||||||||
Other comprehensive income (loss) | 689 | 689 | 689 | |||||||||||||
Preferred stock dividends | [2] | (171) | (171) | (171) | ||||||||||||
Common stock dividends | (1,480) | (1,480) | (1,480) | |||||||||||||
Issuance of common and treasury stock (in shares) | 3 | |||||||||||||||
Issuance of common and treasury stock | 8 | 8 | (116) | 124 | ||||||||||||
Purchase of treasury stock (in shares) | (1) | |||||||||||||||
Purchase of treasury stock | (44) | (44) | (44) | |||||||||||||
Distributions to noncontrolling interests | (14) | (14) | ||||||||||||||
Net other changes in noncontrolling interests | (1) | (1) | ||||||||||||||
Stock option and restricted stock grants | 146 | 146 | 146 | |||||||||||||
Ending Balance (in shares) at Jun. 30, 2023 | 1,533 | |||||||||||||||
Ending Balance at Jun. 30, 2023 | 53,484 | 53,019 | $ 21 | 6,808 | 8,742 | 73,355 | (25,189) | (10,718) | 465 | |||||||
Beginning Balance (in shares) at Mar. 31, 2023 | 1,533 | |||||||||||||||
Beginning Balance at Mar. 31, 2023 | 53,454 | 52,989 | $ 21 | 6,808 | 8,699 | 72,807 | (25,193) | (10,153) | 465 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income (loss) | 1,369 | 1,361 | 1,361 | 8 | ||||||||||||
Other comprehensive income (loss) | (565) | (565) | (565) | |||||||||||||
Preferred stock dividends | [3] | (73) | (73) | (73) | ||||||||||||
Common stock dividends | (740) | (740) | (740) | |||||||||||||
Issuance of common and treasury stock | 2 | 2 | (2) | 4 | ||||||||||||
Distributions to noncontrolling interests | (7) | (7) | ||||||||||||||
Net other changes in noncontrolling interests | (1) | (1) | ||||||||||||||
Stock option and restricted stock grants | 45 | 45 | 45 | |||||||||||||
Ending Balance (in shares) at Jun. 30, 2023 | 1,533 | |||||||||||||||
Ending Balance at Jun. 30, 2023 | 53,484 | 53,019 | $ 21 | 6,808 | 8,742 | 73,355 | (25,189) | (10,718) | 465 | |||||||
Beginning Balance (in shares) at Dec. 31, 2023 | 1,558 | |||||||||||||||
Beginning 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] | ||||||||||||||||
Net income (loss) | 2,937 | 2,922 | 2,922 | 15 | ||||||||||||
Other comprehensive income (loss) | (212) | (212) | (212) | |||||||||||||
Preferred stock dividends | [4] | (177) | (177) | (177) | ||||||||||||
Common stock dividends | (1,540) | (1,540) | (1,540) | |||||||||||||
Issuance of common and treasury stock (in shares) | 3 | |||||||||||||||
Issuance of common and treasury stock | 14 | 14 | (142) | 156 | ||||||||||||
Purchase of treasury stock (in shares) | (1) | |||||||||||||||
Purchase of treasury stock | (50) | (50) | (50) | |||||||||||||
Distributions to noncontrolling interests | (15) | (15) | ||||||||||||||
Stock option and restricted stock grants | 157 | 157 | 157 | |||||||||||||
Ending Balance (in shares) at Jun. 30, 2024 | 1,560 | |||||||||||||||
Ending Balance at Jun. 30, 2024 | 56,885 | 56,420 | $ 21 | 6,808 | 8,688 | 75,231 | (24,020) | (10,308) | 465 | |||||||
Beginning Balance (in shares) at Mar. 31, 2024 | 1,560 | |||||||||||||||
Beginning Balance at Mar. 31, 2024 | 56,033 | 55,568 | $ 21 | 6,808 | 8,642 | 74,473 | (24,023) | (10,353) | 465 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income (loss) | 1,611 | 1,603 | 1,603 | 8 | ||||||||||||
Other comprehensive income (loss) | 45 | 45 | 45 | |||||||||||||
Preferred stock dividends | [5] | (75) | (75) | (75) | ||||||||||||
Common stock dividends | (770) | (770) | (770) | |||||||||||||
Issuance of common and treasury stock | 1 | 1 | (3) | 4 | ||||||||||||
Purchase of treasury stock | (1) | (1) | (1) | |||||||||||||
Distributions to noncontrolling interests | (8) | (8) | ||||||||||||||
Stock option and restricted stock grants | 49 | 49 | 49 | |||||||||||||
Ending Balance (in shares) at Jun. 30, 2024 | 1,560 | |||||||||||||||
Ending Balance at Jun. 30, 2024 | $ 56,885 | $ 56,420 | $ 21 | $ 6,808 | $ 8,688 | $ 75,231 | $ (24,020) | $ (10,308) | $ 465 | |||||||
[1] 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 $3,049.948, $709.695, $662.50, $687.50, $468.75, $500.00, $462.50 and $562.50, respectively. Reflects dividends declared per share on the Company’s Series A, Series B, Series K, Series L, Series M, Series N and Series O Non-Cumulative Perpetual Preferred Stock of $1,587.52, $370.338, $343.75 , $234.375, $250.00, $231.25 and $281.25, 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 $3,338.125, $781.448, $662.50, $687.50, $468.750, $500.00, $462.50 and $562.50, respectively. Reflects dividends declared per share on the Company’s Series A, Series B, Series K, Series L, Series M, Series N and Series O Non-Cumulative Perpetual Preferred Stock of $1,670.904, $391.184, $343.75, $234.375, $250.00, $231.25 and $281.25, respectively. |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Common stock dividends (in dollars per share) | $ 0.49 | $ 0.48 | $ 0.98 | $ 0.96 |
Series A | ||||
Preferred stock dividends declared (in dollars per share) | 1,670.904 | 1,587.52 | 3,338.125 | 3,049.948 |
Series B | ||||
Preferred stock dividends declared (in dollars per share) | 391.184 | 370.338 | 781.448 | 709.695 |
Series J | ||||
Preferred stock dividends declared (in dollars per share) | 662.50 | 662.50 | ||
Series K | ||||
Preferred stock dividends declared (in dollars per share) | 343.75 | 343.75 | 687.50 | 687.50 |
Series L | ||||
Preferred stock dividends declared (in dollars per share) | 234.375 | 234.375 | 468.750 | 468.75 |
Series M | ||||
Preferred stock dividends declared (in dollars per share) | 250 | 250 | 500 | 500 |
Series N | ||||
Preferred stock dividends declared (in dollars per share) | 231.25 | 231.25 | 462.50 | 462.50 |
Series O | ||||
Preferred stock dividends declared (in dollars per share) | $ 281.25 | $ 281.25 | $ 562.50 | $ 562.50 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating Activities | ||
Net income attributable to U.S. Bancorp | $ 2,922 | $ 3,059 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Provision for credit losses | 1,121 | 1,248 |
Depreciation and amortization of premises and equipment | 182 | 193 |
Amortization of intangibles | 288 | 319 |
(Gain) loss on sale of loans held for sale | (71) | 18 |
(Gain) loss on sale of securities and other assets | 15 | 24 |
Loans originated for sale, net of repayments | (10,725) | (14,639) |
Proceeds from sales of loans held for sale | 10,069 | 14,244 |
Other, net | 1,734 | (308) |
Net cash provided by operating activities | 5,535 | 4,158 |
Investing Activities | ||
Proceeds from sales of available-for-sale investment securities | 648 | 8,135 |
Proceeds from maturities of held-to-maturity investment securities | 2,973 | 2,995 |
Proceeds from maturities of available-for-sale investment securities | 2,949 | 3,048 |
Purchases of held-to-maturity investment securities | (156) | (924) |
Purchases of available-for-sale investment securities | (14,085) | (2,790) |
Net increase in loans outstanding | (3,063) | (613) |
Proceeds from sales of loans | 248 | 5,105 |
Purchases of loans | (567) | (608) |
Net increase in securities purchased under agreements to resell | (1,842) | (1,443) |
Other, net | (386) | (1,416) |
Net cash (used in) provided by investing activities | (13,281) | 11,489 |
Financing Activities | ||
Net increase (decrease) in deposits | 11,473 | (3,002) |
Net increase in short-term borrowings | 1,278 | 551 |
Proceeds from issuance of long-term debt | 4,947 | 7,230 |
Principal payments or redemption of long-term debt | (3,552) | (1,644) |
Proceeds from issuance of common stock | 14 | 6 |
Repurchase of common stock | (50) | (44) |
Cash dividends paid on preferred stock | (178) | (165) |
Cash dividends paid on common stock | (1,539) | (1,479) |
Other, net | (7) | 0 |
Net cash provided by financing activities | 12,386 | 1,453 |
Change in cash and due from banks | 4,640 | 17,100 |
Cash and due from banks at beginning of period | 61,192 | 53,542 |
Cash and due from banks at end of period | $ 65,832 | $ 70,642 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | NOTE 1 Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations and cash flow activity required in accordance with accounting principles generally accepted in the United States. In the opinion of management of U.S. Bancorp (the “Company”), all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of results for the interim periods have been made. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Accounting Changes
Accounting Changes | 6 Months Ended |
Jun. 30, 2024 | |
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. 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 In November 2023, the FASB issued guidance, effective for the Company for annual reporting periods beginning after December 15, 2023 and interim reporting periods beginning after December 15, 2024, related to segment disclosures. This guidance requires disclosures of significant segment expenses and other segment items and expands interim period disclosure requirements to include segment profit or loss and assets, which are currently only required to be disclosed annually. The guidance is required to be adopted retrospectively to all periods presented in the financial statements. The Company expects the adoption of this guidance will not be material to its financial statements. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | NOTE 3 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 were as follows: June 30, 2024 December 31, 2023 (Dollars in Millions) Amortized Unrealized Unrealized Fair Value Amortized Unrealized Unrealized Fair Value Held-to-Maturity U.S. Treasury and agencies $ 1,296 $ — $ (40) $ 1,256 $ 1,345 $ — $ (35) $ 1,310 Mortgage-backed securities Residential agency 78,327 — (12,105) 66,222 80,997 6 (9,929) 71,074 Commercial agency 1,700 — (30) 1,670 1,695 6 (5) 1,696 Other 163 — — 163 8 — — 8 Total held-to-maturity $ 81,486 $ — $ (12,175) $ 69,311 $ 84,045 $ 12 $ (9,969) $ 74,088 Available-for-Sale U.S. Treasury and agencies $ 30,251 $ 4 $ (2,205) $ 28,050 $ 21,768 $ 8 $ (2,234) $ 19,542 Mortgage-backed securities Residential agency 30,254 67 (2,364) 27,957 28,185 104 (2,211) 26,078 Commercial Agency 8,689 — (1,415) 7,274 8,703 — (1,360) 7,343 Non-agency 7 — — 7 7 — (1) 6 Asset-backed securities 6,595 13 (26) 6,582 6,713 25 (14) 6,724 Obligations of state and political subdivisions 10,808 18 (1,142) 9,684 10,867 36 (914) 9,989 Other 245 — — 245 24 — — 24 Total available-for-sale, excluding portfolio level basis adjustments 86,849 102 (7,152) 79,799 76,267 173 (6,734) 69,706 Portfolio level basis adjustments (a) 60 — (60) — 335 — (335) — Total available-for-sale $ 86,909 $ 102 $ (7,212) $ 79,799 $ 76,602 $ 173 $ (7,069) $ 69,706 (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 12. Investment securities with a fair value of $21.4 billion at June 30, 2024, and $20.5 billion at December 31, 2023, 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 $290 million at June 30, 2024, and $338 million at December 31, 2023. The following table provides information about the amount of interest income from taxable and non-taxable investment securities: Three Months Ended Six Months Ended (Dollars in Millions) 2024 2023 2024 2023 Taxable $ 1,218 $ 999 $ 2,317 $ 1,993 Non-taxable 76 78 152 158 Total interest income from investment securities $ 1,294 $ 1,077 $ 2,469 $ 2,151 The following table provides information about the amount of gross gains and losses realized through the sales of available-for-sale investment securities: Three Months Ended Six Months Ended (Dollars in Millions) 2024 2023 2024 2023 Realized gains $ — $ 5 $ 3 $ 65 Realized losses (36) (2) (37) (94) Net realized gains (losses) $ (36) $ 3 $ (34) $ (29) Income tax (benefit) on net realized gains (losses) $ (9) $ 1 $ (8) $ (7) 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 June 30, 2024 and December 31, 2023. At June 30, 2024, 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 June 30, 2024: 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 $ 7,891 $ (13) $ 17,447 $ (2,192) $ 25,338 $ (2,205) Mortgage-backed securities Residential agency 1,891 (16) 19,724 (2,348) 21,615 (2,364) Commercial Agency — — 7,274 (1,415) 7,274 (1,415) Non-agency — — 7 — 7 — Asset-backed securities 2,897 (8) 1,560 (18) 4,457 (26) Obligations of state and political subdivisions 1,540 (18) 7,706 (1,124) 9,246 (1,142) Other 134 — 4 — 138 — Total investment securities $ 14,353 $ (55) $ 53,722 $ (7,097) $ 68,075 $ (7,152) 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 June 30, 2024, 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 six months ended June 30, 2024 and 2023, the Company did not purchase any investment securities that had more-than-insignificant credit deterioration. Predominately 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 June 30, 2024: (Dollars in Millions) Amortized Cost Fair Value Weighted- Average Maturity in Years Weighted-Average Yield (e) Held-to-Maturity U.S. Treasury and agencies Maturing in one year or less $ 650 $ 637 0.9 2.71 % Maturing after one year through five years 646 619 2.8 3.00 Maturing after five years through ten years — — — — Maturing after ten years — — — — Total $ 1,296 $ 1,256 1.9 2.85 % Mortgage-backed securities (a) Maturing in one year or less $ 28 $ 27 0.7 4.44 % Maturing after one year through five years 1,507 1,488 3.0 4.54 Maturing after five years through ten years 73,202 62,203 8.9 2.16 Maturing after ten years 5,290 4,174 10.2 1.89 Total $ 80,027 $ 67,892 8.9 2.19 % Other Maturing in one year or less $ 16 $ 16 0.8 3.24 % Maturing after one year through five years 147 147 2.9 2.82 Maturing after five years through ten years — — — — Maturing after ten years — — — — Total $ 163 $ 163 2.7 2.86 % Total held-to-maturity (b) $ 81,486 $ 69,311 8.8 2.20 % Available-for-Sale U.S. Treasury and agencies Maturing in one year or less $ 435 $ 431 0.7 3.98 % Maturing after one year through five years 12,962 12,318 3.6 2.93 Maturing after five years through ten years 16,077 14,721 6.8 3.08 Maturing after ten years 777 580 11.0 1.92 Total $ 30,251 $ 28,050 5.4 3.00 % Mortgage-backed securities (a) Maturing in one year or less $ 99 $ 96 0.7 1.83 % Maturing after one year through five years 8,252 7,787 3.4 3.22 Maturing after five years through ten years 29,495 26,425 7.4 3.53 Maturing after ten years 1,104 930 10.8 3.40 Total $ 38,950 $ 35,238 6.6 3.46 % Asset-backed securities (a) Maturing in one year or less $ 8 $ 9 0.6 7.55 % Maturing after one year through five years 4,601 4,582 1.7 4.96 Maturing after five years through ten years 1,986 1,991 5.9 6.66 Maturing after ten years — — — — Total $ 6,595 $ 6,582 2.9 5.48 % Obligations of state and political subdivisions (c)(d) Maturing in one year or less $ 165 $ 165 0.3 5.11 % Maturing after one year through five years 2,080 2,064 2.8 4.74 Maturing after five years through ten years 1,560 1,480 7.3 3.79 Maturing after ten years 7,003 5,975 15.2 3.41 Total $ 10,808 $ 9,684 11.5 3.74 % Other Maturing in one year or less $ 4 $ 4 0.9 1.89 % Maturing after one year through five years 241 241 2.0 5.00 Maturing after five years through ten years — — — — Maturing after ten years — — — — Total $ 245 $ 245 2.0 4.95 % Total available-for-sale (b)(f) $ 86,849 $ 79,799 6.5 3.49 % (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 8.7 years at December 31, 2023, with a corresponding weighted-average yield of 2.22 percent. The weighted-average maturity of total available-for-sale investment securities was 6.3 years at December 31, 2023, with a corresponding weighted-average yield of 3.12 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 $60 million. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | NOTE 4 Loans and Allowance for Credit Losses The composition of the loan portfolio, by class and underlying specific portfolio type, was as follows: June 30, 2024 December 31, 2023 (Dollars in Millions) Amount Percent of Total Amount Percent of Total Commercial Commercial $ 131,043 34.9 % $ 127,676 34.2 % Lease financing 4,205 1.1 4,205 1.1 Total commercial 135,248 36.0 131,881 35.3 Commercial Real Estate Commercial mortgages 40,844 10.9 41,934 11.2 Construction and development 11,043 2.9 11,521 3.1 Total commercial real estate 51,887 13.8 53,455 14.3 Residential Mortgages Residential mortgages 110,680 29.4 108,605 29.0 Home equity loans, first liens 6,467 1.7 6,925 1.9 Total residential mortgages 117,147 31.1 115,530 30.9 Credit Card 28,715 7.6 28,560 7.6 Other Retail Retail leasing 4,178 1.1 4,135 1.1 Home equity and second mortgages 13,180 3.5 13,056 3.5 Revolving credit 3,597 1.0 3,668 1.0 Installment 14,169 3.8 13,889 3.7 Automobile 8,012 2.1 9,661 2.6 Total other retail 43,136 11.5 44,409 11.9 Total loans $ 376,133 100.0 % $ 373,835 100.0 % The Company had loans of $125.5 billion at June 30, 2024, and $123.1 billion at December 31, 2023, pledged at the Federal Home Loan Bank, and loans of $83.2 billion at June 30, 2024, and $82.8 billion at December 31, 2023, pledged at the Federal Reserve Bank. 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 June 30, 2024 and December 31, 2023. 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. 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. Activity in the allowance for credit losses by portfolio class was as follows: Three Months Ended June 30 Commercial Commercial Real Estate Residential Mortgages Credit Card Other Retail Total Loans 2024 Balance at beginning of period $ 2,159 $ 1,629 $ 843 $ 2,425 $ 848 $ 7,904 Add Provision for credit losses 164 3 (11) 388 24 568 Deduct Loans charged-off 180 38 3 358 73 652 Less recoveries of loans charged-off (37) (2) (7) (43) (25) (114) Net loan charge-offs (recoveries) 143 36 (4) 315 48 538 Balance at end of period $ 2,180 $ 1,596 $ 836 $ 2,498 $ 824 $ 7,934 2023 Balance at beginning of period $ 2,180 $ 1,359 $ 947 $ 2,112 $ 925 $ 7,523 Add Provision for credit losses 119 140 66 272 224 821 Deduct Loans charged-off 110 31 121 242 251 755 Less recoveries of loans charged-off (20) (5) (7) (43) (31) (106) Net loan charge-offs (recoveries) 90 26 114 199 220 649 Balance at end of period $ 2,209 $ 1,473 $ 899 $ 2,185 $ 929 $ 7,695 Six Months Ended June 30 Commercial Commercial Real Estate Residential Mortgages Credit Card Other Retail Total Loans 2024 Balance at beginning of period $ 2,119 $ 1,620 $ 827 $ 2,403 $ 870 $ 7,839 Add Provision for credit losses 320 33 5 706 57 1,121 Deduct Loans charged-off 319 72 7 695 154 1,247 Less recoveries of loans charged-off (60) (15) (11) (84) (51) (221) Net loan charge-offs (recoveries) 259 57 (4) 611 103 1,026 Balance at end of period $ 2,180 $ 1,596 $ 836 $ 2,498 $ 824 $ 7,934 2023 Balance at beginning of period $ 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 183 164 117 566 218 1,248 Deduct Loans charged-off 173 154 125 457 315 1,224 Less recoveries of loans charged-off (36) (11) (12) (83) (60) (202) Net loan charge-offs (recoveries) 137 143 113 374 255 1,022 Balance at end of period $ 2,209 $ 1,473 $ 899 $ 2,185 $ 929 $ 7,695 (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 acquired credit deteriorated and charged-off loans. The increase in the allowance for credit losses at June 30, 2024, compared with December 31, 2023, was primarily driven by credit migration in consumer and small business cards and portfolio growth. The following table provides a summary of loans charged-off by portfolio class and year of origination: Three Months Ended June 30 Commercial Commercial Residential Mortgages (b) Credit Card (c) Other Retail (d) Total Loans 2024 Originated in 2024 $ 3 $ 36 $ — $ — $ — $ 39 Originated in 2023 26 2 — — 11 39 Originated in 2022 66 — 1 — 14 81 Originated in 2021 7 — — — 10 17 Originated in 2020 2 — — — 5 7 Originated prior to 2020 11 — 2 — 8 21 Revolving 65 — — 358 25 448 Total charge-offs $ 180 $ 38 $ 3 $ 358 $ 73 $ 652 2023 Originated in 2023 $ 7 $ — $ — $ — $ 46 $ 53 Originated in 2022 34 — — — 89 123 Originated in 2021 4 17 5 — 46 72 Originated in 2020 6 — 8 — 19 33 Originated in 2019 2 — 15 — 13 30 Originated prior to 2019 17 14 93 — 5 129 Revolving 40 — — 242 5 287 Revolving converted to term — — — — 28 28 Total charge-offs $ 110 $ 31 $ 121 $ 242 $ 251 $ 755 Six Months Ended June 30 Commercial Commercial Real Estate (a) Residential Mortgages (b) Credit Card (c) Other Retail (d) Total Loans 2024 Originated in 2024 $ 3 $ 41 $ — $ — $ 2 $ 46 Originated in 2023 52 6 — — 21 79 Originated in 2022 84 24 1 — 28 137 Originated in 2021 15 — — — 21 36 Originated in 2020 6 — — — 13 19 Originated prior to 2020 21 1 6 — 19 47 Revolving 138 — — 695 50 883 Total charge-offs $ 319 $ 72 $ 7 $ 695 $ 154 $ 1,247 2023 Originated in 2023 $ 7 $ — $ — $ — $ 46 $ 53 Originated in 2022 40 88 — — 99 227 Originated in 2021 8 17 5 — 57 87 Originated in 2020 10 — 8 — 25 43 Originated in 2019 7 3 16 — 20 46 Originated prior to 2019 28 46 96 — 13 183 Revolving 73 — — 457 27 557 Revolving converted to term — — — — 28 28 Total charge-offs $ 173 $ 154 $ 125 $ 457 $ 315 $ 1,224 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 near term loan origination years for gross charge-offs relate to existing loans that have had recent maturity date, pricing or commitment amount amendments. (a) Includes $91 million of charge-offs in the first quarter of 2023 related to uncollectible amounts on acquired loans. (b) Includes $117 million of charge-offs related to balance sheet repositioning and capital management actions taken in the second quarter of 2023. (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 taken in the second quarter of 2023. 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 received 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 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 June 30, 2024 Commercial $ 134,317 $ 288 $ 87 $ 556 $ 135,248 Commercial real estate 50,897 22 9 959 51,887 Residential mortgages (a) 116,681 142 170 154 117,147 Credit card 27,957 384 374 — 28,715 Other retail 42,700 234 61 141 43,136 Total loans $ 372,552 $ 1,070 $ 701 $ 1,810 $ 376,133 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 (a) At June 30, 2024, $561 million of loans 30–89 days past due and $1.7 billion of loans 90 days or more past due 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, were classified as current, compared with $595 million and $2.0 billion at December 31, 2023, respectively. (b) Substantially all nonperforming loans at June 30, 2024 and December 31, 2023, had an associated allowance for credit losses. The Company recognized interest income on nonperforming loans of $6 million and $3 million for the three months ended June 30, 2024 and 2023, respectively, and $11 million and $7 million for the six months ended June 30, 2024 and 2023, respectively . At June 30, 2024, the amount of foreclosed residential real estate held by the Company, and included in OREO, was $23 million, compared with $26 million at December 31, 2023. These amounts excluded $49 million and $47 million at June 30, 2024 and December 31, 2023, 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 June 30, 2024 and December 31, 2023, was $605 million and $728 million, respectively, of which $379 million and $487 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 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. The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating: June 30, 2024 December 31, 2023 Criticized Criticized (Dollars in Millions) Pass Special Mention Classified (a) Total Criticized Total Pass Special Mention Classified (a) Total Criticized Total Commercial Originated in 2024 $ 27,054 $ 272 $ 496 $ 768 $ 27,822 $ — $ — $ — $ — $ — Originated in 2023 30,508 349 894 1,243 31,751 43,023 827 856 1,683 44,706 Originated in 2022 29,451 274 970 1,244 30,695 40,076 274 632 906 40,982 Originated in 2021 6,738 143 116 259 6,997 9,219 117 154 271 9,490 Originated in 2020 2,843 61 102 163 3,006 3,169 92 71 163 3,332 Originated prior to 2020 4,948 9 98 107 5,055 5,303 30 209 239 5,542 Revolving (b) 28,585 279 1,058 1,337 29,922 26,213 362 1,254 1,616 27,829 Total commercial 130,127 1,387 3,734 5,121 135,248 127,003 1,702 3,176 4,878 131,881 Commercial real estate Originated in 2024 4,385 194 912 1,106 5,491 — — — — — Originated in 2023 6,788 160 1,566 1,726 8,514 8,848 465 2,206 2,671 11,519 Originated in 2022 10,515 736 1,303 2,039 12,554 11,831 382 1,141 1,523 13,354 Originated in 2021 7,919 377 626 1,003 8,922 9,235 500 385 885 10,120 Originated in 2020 3,218 44 144 188 3,406 3,797 51 87 138 3,935 Originated prior to 2020 9,550 93 923 1,016 10,566 10,759 458 619 1,077 11,836 Revolving 2,365 11 58 69 2,434 2,613 6 70 76 2,689 Revolving converted to term — — — — — 2 — — — 2 Total commercial real estate 44,740 1,615 5,532 7,147 51,887 47,085 1,862 4,508 6,370 53,455 Residential mortgages (c) Originated in 2024 5,067 — 1 1 5,068 — — — — — Originated in 2023 9,343 — 9 9 9,352 9,734 — 5 5 9,739 Originated in 2022 28,891 — 24 24 28,915 29,146 — 17 17 29,163 Originated in 2021 35,541 — 25 25 35,566 36,365 — 16 16 36,381 Originated in 2020 14,245 — 12 12 14,257 14,773 — 9 9 14,782 Originated prior to 2020 23,731 — 258 258 23,989 25,202 — 262 262 25,464 Revolving — — — — — 1 — — — 1 Total residential mortgages 116,818 — 329 329 117,147 115,221 — 309 309 115,530 Credit card (d) 28,341 — 374 374 28,715 28,185 — 375 375 28,560 Other retail Originated in 2024 4,046 — 2 2 4,048 — — — — — Originated in 2023 4,554 — 6 6 4,560 5,184 — 4 4 5,188 Originated in 2022 4,830 — 11 11 4,841 5,607 — 12 12 5,619 Originated in 2021 8,396 — 14 14 8,410 10,398 — 15 15 10,413 Originated in 2020 3,434 — 7 7 3,441 4,541 — 9 9 4,550 Originated prior to 2020 3,339 2 16 18 3,357 4,008 — 20 20 4,028 Revolving 13,600 — 107 107 13,707 13,720 — 104 104 13,824 Revolving converted to term 725 — 47 47 772 735 — 52 52 787 Total other retail 42,924 2 210 212 43,136 44,193 — 216 216 44,409 Total loans $ 362,950 $ 3,004 $ 10,179 $ 13,183 $ 376,133 $ 361,687 $ 3,564 $ 8,584 $ 12,148 $ 373,835 Total outstanding commitments $ 764,699 $ 4,690 $ 12,170 $ 16,860 $ 781,559 $ 762,869 $ 5,053 $ 10,470 $ 15,523 $ 778,392 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. Predominately all current year and near 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 June 30, 2024, $1.7 billion of GNMA loans 90 days or more past due and $1.5 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 $2.0 billion and $1.2 billion at December 31, 2023, 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 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. The following table provides a summary of period-end balances of loans modified during the periods presented, by portfolio class and modification granted: Three Months Ended June 30 Interest Rate Reduction Payment Delay Term Extension Multiple Modifications (a) Total Modifications Percent of Class Total 2024 Commercial $ 23 $ — $ 253 $ — $ 276 .2 % Commercial real estate 78 — 391 7 476 .9 Residential mortgages (b) — 9 7 6 22 — Credit card 116 — — — 116 .4 Other retail 2 — 33 1 36 .1 Total loans, excluding loans purchased from GNMA mortgage pools 219 9 684 14 926 .2 Loans purchased from GNMA mortgage pools (b) — 474 109 122 705 .6 Total loans $ 219 $ 483 $ 793 $ 136 $ 1,631 .4 % 2023 Commercial $ 13 $ — $ 136 $ — $ 149 .1 % Commercial real estate — — 101 — 101 .2 Residential mortgages (b) — 79 6 4 89 .1 Credit card 91 — — — 91 .3 Other retail 2 14 39 1 56 .1 Total loans, excluding loans purchased from GNMA mortgage pools 106 93 282 5 486 .1 Loans purchased from GNMA mortgage pools (b) — 453 86 98 637 .6 Total loans $ 106 $ 546 $ 368 $ 103 $ 1,123 .3 % Six Months Ended June 30 Interest Rate Reduction Payment Delay Term Extension Multiple Modifications (a) Total Modifications Percent of Class Total 2024 Commercial $ 44 $ — $ 452 $ — $ 496 .4 % Commercial real estate 78 — 629 7 714 1.4 Residential mortgages (b) — 28 12 9 49 — Credit card 228 — — — 228 .8 Other retail 4 1 69 1 75 .2 Total loans, excluding loans purchased from GNMA mortgage pools 354 29 1,162 17 1,562 .4 Loans purchased from GNMA mortgage pools (b) 1 908 173 204 1,286 1.1 Total loans $ 355 $ 937 $ 1,335 $ 221 $ 2,848 .8 % 2023 Commercial $ 159 $ — $ 159 $ — $ 318 .2 % Commercial real estate — — 109 — 109 .2 Residential mortgages (b) — 202 15 16 233 .2 Credit card 174 — — — 174 .7 Other retail 4 18 81 3 106 .2 Total loans, excluding loans purchased from GNMA mortgage pools 337 220 364 19 940 .2 Loans purchased from GNMA mortgage pools (b) — 649 147 143 939 .8 Total loans $ 337 $ 869 $ 511 $ 162 $ 1,879 .5 % (a) Includes $111 million of total loans receiving a payment delay and term extension, $17 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 three months ended June 30, 2024, compared with $100 million, $2 million and $1 million for the three months ended June 30, 2023, respectively. Includes $189 million of total loans receiving a payment delay and term extension, $20 million of total loans receiving an interest rate reduction and term extension and $12 million of total loans receiving an interest rate reduction, payment delay and term extension for the six months ended June 30, 2024, compared with $151 million, $5 million and $6 million for the six months ended June 30, 2023, respectively. (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 June 30, 2024 the balance of loans modified in trial period arrangements was $43 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: Three Months Ended June 30 Weighted-Average Interest Rate Reduction Weighted-Average Months of Term Extension 2024 Commercial (a) 20.6 % 5 Commercial real estate 2.2 8 Residential mortgages .5 86 Credit card 16.3 — Other retail 7.6 5 Loans purchased from GNMA mortgage pools .5 119 2023 Commercial 21.3 % 8 Commercial real estate — 10 Residential mortgages 1.4 89 Credit card 16.4 — Other retail 8.6 108 Loans purchased from GNMA mortgage pools .7 87 Six Months Ended June 30 Weighted-Average Interest Rate Reduction Weighted-Average Months of Term Extension 2024 Commercial (a) 20.0 % 7 Commercial real estate 2.2 9 Residential mortgages .7 85 Credit card 16.3 — Other retail 8.4 4 Loans purchased from GNMA mortgage pools .5 116 2023 Commercial 3.3 % 7 Commercial real estate — 10 Residential mortgages 1.4 111 Credit card 16.2 — Other retail 7.3 134 Loans purchased from GNMA mortgage pools .7 79 Note: The weighted-average payment deferral for all portfolio classes was less than $1 million for the three and six months ended June 30, 2024 and 2023. Forbearance payments are required to be paid at the end of the original term loan. (a) The weighted-average interest rate reduction for commercial loans for the three and six months ended June 30, 2024, was primarily driven by commercial cards. 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 some instances, participation in residential mortgage loan modification 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. 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 June 30, 2024, which were modified during the prior twelve months, by portfolio class and delinquency status: (Dollars in Millions) Current 30-89 Days Past Due 90 Days or More Past Due Total Commercial $ 628 $ 17 $ 117 $ 762 Commercial real estate 847 — 419 1,266 Residential mortgages (a) 1,585 6 13 1,604 Credit card 293 64 34 391 Other retail 122 17 6 145 Total loans $ 3,475 $ 104 $ 589 $ 4,168 (a) At June 30, 2024, $462 million of loans 30-89 days past due and $196 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 loan balances at June 30, 2023, which were modified on or after January 1, 2023, the date the Company adopted accounting guidance which removed the separate recognition and measurement of troubled debt restruc |
Accounting for Transfers and Se
Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities | NOTE 5 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 15. 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 6. 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 is involved in various entities that are considered to be variable interest entities (“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 $144 million and $149 million for the three months ended June 30, 2024 and 2023, respectively, and $283 million and $287 million for the six months ended June 30, 2024 and 2023, respectively. The Company also recognized $120 million and $72 million of investment tax credits for the three months ended June 30, 2024 and 2023, respectively, and $178 million and $236 million for the six months ended June 30, 2024 and 2023, respectively. The Company recognized $145 million and $135 million of expenses related to all of these investments for the three months ended June 30, 2024 and 2023, respectively, which were primarily included in tax expense. The Company recognized $283 million and $265 million of expenses related to all of the these investments for the six months ended June 30, 2024 and 2023, 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: (Dollars in Millions) June 30, 2024 December 31, 2023 Investment carrying amount $ 7,374 $ 6,659 Unfunded capital and other commitments 4,337 3,619 Maximum exposure to loss 8,916 9,002 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 $254 million at June 30, 2024 and $219 million at December 31, 2023. The maximum exposure to loss related to these VIEs was $381 million at June 30, 2024 and $319 million at December 31, 2023, representing the Company’s investment balance and its unfunded commitments to invest additional amounts. The Company also held senior notes of $4.1 billion as available-for-sale investment securities at June 30, 2024, compared with $5.3 billion at December 31, 2023. These senior notes were issued by third-party securitization vehicles that held $4.8 billion at June 30, 2024 and $6.1 billion at December 31, 2023 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 $71 million at June 30, 2024, compared with less than $1 million to $86 million at December 31, 2023. 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 June 30, 2024, approximately $5.7 billion of the Company’s assets and $3.9 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 $6.1 billion and $4.4 billion, respectively, at December 31, 2023. 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. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 6 Months Ended |
Jun. 30, 2024 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights | NOTE 6 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 $225.8 billion of residential mortgage loans for others at June 30, 2024, and $233.4 billion at December 31, 2023, 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 gains of $24 million and net losses of $31 million for the three months ended June 30, 2024 and 2023, respectively, and net gains of $21 million and net losses of $42 million for the six months ended June 30, 2024 and 2023, respectively. Loan servicing and ancillary fees, not including valuation changes, included in mortgage banking revenue were $176 million and $187 million for the three months ended June 30, 2024 and 2023, respectively, and $356 million and $377 million for the six months ended June 30, 2024 and 2023, respectively. Changes in fair value of capitalized MSRs are summarized as follows: Three Months Ended Six Months Ended (Dollars in Millions) 2024 2023 2024 2023 Balance at beginning of period $ 3,462 $ 3,724 $ 3,377 $ 3,755 Rights purchased 1 1 1 2 Rights capitalized 64 99 119 195 Rights sold (189) (149) (189) (148) Changes in fair value of MSRs Due to fluctuations in market interest rates (a) 45 84 148 46 Due to revised assumptions or models (b) 33 (21) 41 (16) Other changes in fair value (c) (90) (105) (171) (201) Balance at end of period $ 3,326 $ 3,633 $ 3,326 $ 3,633 (a) Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits. (b) 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. (c) 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 was as follows: June 30, 2024 December 31, 2023 (Dollars in Millions) Down Down Down Up Up Up Down Down Down Up Up Up MSR portfolio $ (312) $ (145) $ (69) $ 63 $ 121 $ 220 $ (370) $ (173) $ (84) $ 77 $ 147 $ 268 Derivative instrument hedges 304 144 70 (65) (127) (240) 381 178 86 (79) (152) (289) Net sensitivity $ (8) $ (1) $ 1 $ (2) $ (6) $ (20) $ 11 $ 5 $ 2 $ (2) $ (5) $ (21) 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. The following table provides a summary of the Company’s MSRs and related characteristics by portfolio: June 30, 2024 December 31, 2023 (Dollars in Millions) HFA Government Conventional (d) Total HFA Government Conventional (d) Total Servicing portfolio (a) $ 50,185 $ 25,762 $ 137,716 $ 213,663 $ 48,286 $ 25,996 $ 151,056 $ 225,338 Fair value $ 824 $ 522 $ 1,980 $ 3,326 $ 769 $ 507 $ 2,101 $ 3,377 Value (bps) (b) 164 203 144 156 159 195 139 150 Weighted-average servicing fees (bps) 36 45 25 30 36 44 26 30 Multiple (value/servicing fees) 4.60 4.55 5.66 5.16 4.45 4.41 5.41 5.00 Weighted-average note rate 4.74 % 4.31 % 3.73 % 4.04 % 4.56 % 4.23 % 3.81 % 4.02 % Weighted-average age (in years) 4.4 5.8 4.8 4.8 4.3 5.5 4.3 4.4 Weighted-average expected prepayment (constant prepayment rate) 10.1 % 10.6 % 8.3 % 9.0 % 10.5 % 11.1 % 9.1 % 9.6 % Weighted-average expected life (in years) 7.3 6.7 7.2 7.2 7.2 6.5 7.0 7.0 Weighted-average option adjusted spread (c) 5.5 % 5.9 % 4.6 % 5.0 % 5.4 % 5.9 % 4.6 % 4.9 % (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) |
Preferred Stock
Preferred Stock | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Preferred Stock | NOTE 7 Preferred Stock At June 30, 2024 and December 31, 2023, the Company had authority to issue 50 million shares of preferred stock. The number of shares issued and outstanding and the carrying amount of each outstanding series of the Company’s preferred stock were as follows: June 30, 2024 December 31, 2023 (Dollars in Millions) Shares Issued and Outstanding Liquidation Preference Discount Carrying Amount Shares Issued and Outstanding Liquidation Preference Discount Carrying Amount 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) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | NOTE 8 Accumulated Other Comprehensive Income (Loss) 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 is as follows: Three Months Ended June 30 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 2024 Balance at beginning of period $ (5,279) $ (3,452) $ (461) $ (1,138) $ (23) $ (10,353) Changes in unrealized gains (losses) (78) — (109) — — (187) Foreign currency translation adjustment (a) — — — — (2) (2) Reclassification to earnings of realized (gains) losses 36 131 80 — — 247 Applicable income taxes 11 (33) 8 — 1 (13) Balance at end of period $ (5,310) $ (3,354) $ (482) $ (1,138) $ (24) $ (10,308) 2023 Balance at beginning of period $ (5,369) $ (3,843) $ 43 $ (940) $ (44) $ (10,153) Changes in unrealized gains (losses) (460) — (465) — — (925) Foreign currency translation adjustment (a) — — — — 19 19 Reclassification to earnings of realized (gains) losses (3) 141 11 (2) — 147 Applicable income taxes 116 (35) 117 1 (5) 194 Balance at end of period $ (5,716) $ (3,737) $ (294) $ (941) $ (30) $ (10,718) Six Months Ended June 30 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 2024 Balance at beginning of period $ (5,151) $ (3,537) $ (242) $ (1,138) $ (28) $ (10,096) Changes in unrealized gains (losses) (249) — (452) — — (701) Foreign currency translation adjustment (a) — — — — 4 4 Reclassification to earnings of realized (gains) losses 34 245 129 — — 408 Applicable income taxes 56 (62) 83 — — 77 Balance at end of period $ (5,310) $ (3,354) $ (482) $ (1,138) $ (24) $ (10,308) 2023 Balance at beginning of period $ (6,378) $ (3,933) $ (114) $ (939) $ (43) $ (11,407) Changes in unrealized gains (losses) 845 — (261) 1 — 585 Foreign currency translation adjustment (a) — — — — 18 18 Reclassification to earnings of realized (gains) losses 29 262 18 (4) — 305 Applicable income taxes (212) (66) 63 1 (5) (219) Balance at end of period $ (5,716) $ (3,737) $ (294) $ (941) $ (30) $ (10,718) (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 is as follows: Impact to Net Income Three Months Ended Six Months Ended Affected Line Item in the Consolidated Statement of Income (Dollars in Millions) 2024 2023 2024 2023 Unrealized gains (losses) on investment securities available-for-sale Realized gains (losses) on sale of investment securities $ (36) $ 3 $ (34) $ (29) Securities gains (losses), net 9 (1) 8 7 Applicable income taxes (27) 2 (26) (22) Net-of-tax Unrealized gains (losses) on investment securities transferred from available-for-sale to held-to-maturity Amortization of unrealized gains (losses) (131) (141) (245) (262) Interest income 33 35 62 66 Applicable income taxes (98) (106) (183) (196) Net-of-tax Unrealized gains (losses) on derivative hedges Realized gains (losses) on derivative hedges (80) (11) (129) (18) Net interest income 20 3 33 4 Applicable income taxes (60) (8) (96) (14) Net-of-tax Unrealized gains (losses) on retirement plans Actuarial gains (losses) and prior service cost (credit) amortization — 2 — 4 Other noninterest expense — (1) — (1) Applicable income taxes — 1 — 3 Net-of-tax Total impact to net income $ (185) $ (111) $ (305) $ (229) |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 9 Earnings Per Share The components of earnings per share were: Three Months Ended Six Months Ended (Dollars and Shares in Millions, Except Per Share Data) 2024 2023 2024 2023 Net income attributable to U.S. Bancorp $ 1,603 $ 1,361 $ 2,922 $ 3,059 Preferred dividends (75) (73) (177) (171) Earnings allocated to participating stock awards (10) (7) (18) (15) Net income applicable to U.S. Bancorp common shareholders $ 1,518 $ 1,281 $ 2,727 $ 2,873 Average common shares outstanding 1,560 1,533 1,560 1,532 Net effect of the exercise and assumed purchase of stock awards 1 — — 1 Average diluted common shares outstanding 1,561 1,533 1,560 1,533 Earnings per common share $ .97 $ .84 $ 1.75 $ 1.87 Diluted earnings per common share $ .97 $ .84 $ 1.75 $ 1.87 |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Employee Benefits | NOTE 10 Employee Benefits The components of net periodic benefit cost for the Company’s pension plans were: Three Months Ended June 30 Six Months Ended June 30 (Dollars in Millions) 2024 2023 2024 2023 Service cost $ 54 $ 56 $ 109 $ 112 Interest cost 94 93 188 185 Expected return on plan assets (146) (137) (292) (273) Prior service cost (credit) amortization (1) — (2) (1) Actuarial loss (gain) amortization 3 1 5 2 Net periodic benefit cost (a) $ 4 $ 13 $ 8 $ 25 (a) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 11 Income Taxes The components of income tax expense were: Three Months Ended Six Months Ended (Dollars in Millions) 2024 2023 2024 2023 Federal Current $ 321 $ 263 $ 501 $ 660 Deferred 49 33 182 1 Federal income tax 370 296 683 661 State Current 88 119 109 215 Deferred (13) (33) — (39) State income tax 75 86 109 176 Total income tax provision $ 445 $ 382 $ 792 $ 837 A reconciliation of expected income tax expense at the federal statutory rate of 21 percent to the Company’s applicable income tax expense follows: Three Months Ended Six Months Ended (Dollars in Millions) 2024 2023 2024 2023 Tax at statutory rate $ 432 $ 368 $ 783 $ 821 State income tax, at statutory rates, net of federal tax benefit 102 83 183 185 Tax effect of Tax credits and benefits, net of related expenses (83) (63) (144) (140) Exam resolutions (32) — (97) — Tax-exempt income (36) (41) (67) (75) Other items 62 35 134 46 Applicable income taxes $ 445 $ 382 $ 792 $ 837 The Company’s income tax returns are subject to review and examination by federal, state, local and foreign government authorities. On an ongoing basis, numerous federal, state, local and foreign examinations are in progress and cover multiple tax years. As of June 30, 2024, 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. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | NOTE 12 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 June 30, 2024, the Company had $482 million (net-of-tax) of realized and unrealized losses on derivatives classified as cash flow hedges recorded in other comprehensive income (loss), compared with $242 million (net-of-tax) of realized and unrealized losses at December 31, 2023. The estimated amount to be reclassified from other comprehensive income (loss) into earnings during the next 12 months is a loss of $208 million (net-of-tax). All cash flow hedges were highly effective for the three months ended June 30, 2024. 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 June 30, 2024 and December 31, 2023. 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 14 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: June 30, 2024 December 31, 2023 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 $ 15,700 $ — $ — $ 12,100 $ — $ 16 Pay fixed/receive floating swaps 28,581 — — 24,139 — — Cash flow hedges Interest rate contracts Receive fixed/pay floating swaps 24,400 — — 18,400 — — Net investment hedges Foreign exchange forward contracts 842 1 1 854 — 10 Other economic hedges Interest rate contracts Futures and forwards Buy 4,460 7 9 5,006 29 5 Sell 2,757 3 7 4,501 7 34 Options Purchased 5,090 182 — 6,085 237 — Written 2,331 17 53 3,696 14 75 Receive fixed/pay floating swaps 9,287 89 2 7,029 9 3 Pay fixed/receive floating swaps 3,354 — — 3,801 — — Foreign exchange forward contracts 704 1 — 734 2 5 Equity contracts 267 1 1 227 2 — Credit contracts 3,558 — 9 2,620 1 — Other (a) 2,070 8 120 2,136 11 93 Total $ 103,401 $ 309 $ 202 $ 91,328 $ 312 $ 241 (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 $1.4 billion and $119 million at June 30, 2024, respectively, compared to $2.0 billion and $91 million at December 31, 2023, respectively. In addition, includes short-term underwriting purchase and sale commitments with total notional values of $576 million at June 30, 2024, and $28 million at December 31, 2023. The following table summarizes the customer-related derivative positions of the Company: June 30, 2024 December 31, 2023 Notional Fair Value Notional Fair Value (Dollars in Millions) Assets Liabilities Assets Liabilities Interest rate contracts Receive fixed/pay floating swaps $ 369,671 $ 439 $ 5,184 $ 363,375 $ 791 $ 4,395 Pay fixed/receive floating swaps 345,929 2,147 170 330,539 1,817 280 Other (a) 76,713 15 50 82,209 17 51 Options Purchased 95,653 736 1 102,423 1,026 18 Written 91,365 9 953 97,690 20 1,087 Foreign exchange rate contracts Forwards, spots and swaps 109,853 2,054 1,836 121,119 2,252 1,942 Options Purchased 538 17 — 1,532 28 — Written 538 — 17 1,532 — 28 Commodity contracts Swaps 5,010 140 135 2,498 116 110 Options Purchased 3,080 205 1 1,936 151 — Written 3,079 1 205 1,936 — 151 Futures Sell 83 17 10 — — — Credit contracts 12,554 1 4 13,053 1 6 Total $ 1,114,066 $ 5,781 $ 8,566 $ 1,119,842 $ 6,219 $ 8,068 (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): Three Months Ended June 30 Six Months Ended June 30 Gains (Losses) Recognized in Other Comprehensive Income (Loss) Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings Gains (Losses) Recognized in Other Comprehensive Income (Loss) Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings (Dollars in Millions) 2024 2023 2024 2023 2024 2023 2024 2023 Asset and Liability Management Positions Cash flow hedges Interest rate contracts $ (81) $ (345) $ (60) $ (8) $ (336) $ (194) $ (96) $ (14) Net investment hedges Foreign exchange forward contracts 9 (6) — — 78 (9) — — Non-derivative debt instruments 7 1 — — 41 (17) — — 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: Three Months Ended June 30 Six Months Ended June 30 Interest Income Interest Expense Interest Income Interest Expense (Dollars in Millions) 2024 2023 2024 2023 2024 2023 2024 2023 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 $ 7,985 $ 7,526 $ 3,962 $ 3,111 $ 15,749 $ 14,490 $ 7,741 $ 5,441 Asset and Liability Management Positions Fair value hedges Interest rate contract derivatives (23) 334 69 243 445 156 12 129 Hedged items 22 (332) (69) (241) (447) (158) (12) (127) Cash flow hedges Interest rate contract derivatives (73) — 7 11 (115) — 14 18 Note: The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company reclassified losses of $7 million and $14 million into earnings during the three and six months ended June 30, 2024, respectively, as a result of realized cash flows on discontinued cash flow hedges, compared with $11 million and $18 million during the three and six months ended June 30, 2023, respectively. No amounts were reclassified into earnings on discontinued cash flow hedges because it is probable the original hedged forecasted cash flows will not occur. The table below shows cumulative hedging adjustments and the carrying amount of assets and liabilities currently designated in fair value hedges: Carrying Amount of the Hedged Assets Cumulative Hedging Adjustment (Dollars in Millions) June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 Line Item in the Consolidated Balance Sheet Available-for-sale investment securities (a) $ 27,933 $ 23,924 $ (446) $ (93) Long-term debt 15,650 12,034 (18) (32) Note: The table above excludes the cumulative hedging adjustment related to discontinued hedging relationships on available-for-sale investment securities and long-term debt of $(96) million and $(181) million, respectively, at June 30, 2024, compared with $(18) million and $(116) million at December 31, 2023, respectively. The carrying amount of available-for-sale investment securities and long-term debt related to discontinued hedging relationships was $6.7 billion and $9.2 billion, respectively, at June 30, 2024, compared with $830 million and $7.2 billion at December 31, 2023, respectively. (a) 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 June 30, 2024, the amortized cost of the closed portfolios used in these hedging relationships was $18.2 billion, of which $11.6 billion was designated as hedged. At June 30, 2024, the cumulative amount of basis adjustments associated with these hedging relationships was $60 million. At December 31, 2023, the amortized cost of the closed portfolios used in these hedging relationships was $15.6 billion, of which $9.6 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: Three Months Ended Six Months Ended (Dollars in Millions) Location of Gains (Losses) 2024 2023 2024 2023 Asset and Liability Management Positions Other economic hedges Interest rate contracts Futures and forwards Mortgage banking revenue $ (2) $ 31 $ (14) $ 38 Purchased and written options Mortgage banking revenue 9 17 48 15 Swaps Mortgage banking revenue/Interest expense 9 (38) (77) 20 Foreign exchange forward contracts Other noninterest income 4 (8) 8 (13) Equity contracts Compensation expense (2) — (2) (3) Credit contracts Commercial products revenue — — (2) — Other Other noninterest income 6 1 (69) (1) Customer-Related Positions Interest rate contracts Swaps Commercial products revenue 89 58 220 95 Purchased and written options Commercial products revenue (21) (1) (68) — Futures Commercial products revenue — — — (1) Foreign exchange rate contracts Forwards, spots and swaps Commercial products revenue 32 44 56 99 Commodity contracts Swaps Commercial products revenue (1) 2 1 2 Purchased and written options Commercial products revenue 2 — 4 — Futures Commercial products revenue 6 — 6 — Credit contracts Commercial products revenue 1 (1) — (1) 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 | 6 Months Ended |
Jun. 30, 2024 | |
Offsetting [Abstract] | |
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities | NOTE 13 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 June 30, 2024, $533.8 billion related to bilateral over-the-counter trades, $683.2 billion related to those centrally cleared through clearinghouses and $479 million 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 12 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 Less Than 30 Days 30-89 Days Greater Than 90 Days Total June 30, 2024 Repurchase agreements U.S. Treasury and agencies $ 4,171 $ 12 $ — $ — $ 4,183 Residential agency mortgage-backed securities 290 — — — 290 Corporate debt securities 1,000 14 — — 1,014 Asset-backed securities — 85 — — 85 Total repurchase agreements 5,461 111 — — 5,572 Securities loaned Corporate debt securities 264 — — — 264 Total securities loaned 264 — — — 264 Gross amount of recognized liabilities $ 5,725 $ 111 $ — $ — $ 5,836 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 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: 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 Net Amount (Dollars in Millions) Financial Instruments (b) Collateral Received (c) June 30, 2024 Derivative assets (d) $ 6,064 $ (3,379) $ 2,685 $ (113) $ (2) $ 2,570 Reverse repurchase agreements 4,361 — 4,361 (450) (3,903) 8 Securities borrowed 1,846 — 1,846 — (1,762) 84 Total $ 12,271 $ (3,379) $ 8,892 $ (563) $ (5,667) $ 2,662 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 (a) Includes $1.7 billion and $1.6 billion of cash collateral related payables that were netted against derivative assets at June 30, 2024 and December 31, 2023, 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 $26 million and $27 million at June 30, 2024 and December 31, 2023, respectively, of derivative assets not subject to netting arrangements. 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 (Dollars in Millions) Financial Instruments (b) Collateral Pledged (c) June 30, 2024 Derivative liabilities (d) $ 8,647 $ (3,944) $ 4,703 $ (113) $ — $ 4,590 Repurchase agreements 5,572 — 5,572 (450) (5,110) 12 Securities loaned 264 — 264 — (257) 7 Total $ 14,483 $ (3,944) $ 10,539 $ (563) $ (5,367) $ 4,609 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 (a) Includes $2.3 billion and $1.7 billion of cash collateral related receivables that were netted against derivative liabilities at June 30, 2024 and December 31, 2023, 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 | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Assets and Liabilities | NOTE 14 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. 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 six months ended June 30, 2024 and 2023, 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 $3 million and $30 million for the three months ended June 30, 2024 and 2023, respectively, and net losses of $4 million and $33 million for the six months ended June 30, 2024 and 2023, 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 $3 million and $11 million for the three and six months ended June 30, 2024, respectively, 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 6 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 15 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 June 30, 2024: Minimum Maximum Weighted- Average (a) Expected prepayment 7 % 21 % 9 % 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 June 30, 2024: Minimum Maximum Weighted- Average (a) Expected loan close rate 8 % 100 % 77 % Inherent MSR value (basis points per loan) 53 197 105 (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 June 30, 2024, 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, 297 percent and 1 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 June 30, 2024 Available-for-sale securities U.S. Treasury and agencies $ 23,364 $ 4,686 $ — $ — $ 28,050 Mortgage-backed securities Residential agency — 27,957 — — 27,957 Commercial Agency — 7,274 — — 7,274 Non-agency — 7 — — 7 Asset-backed securities — 6,582 — — 6,582 Obligations of state and political subdivisions — 9,684 — — 9,684 Other — 245 — — 245 Total available-for-sale 23,364 56,435 — — 79,799 Mortgage loans held for sale — 2,550 — — 2,550 Mortgage servicing rights — — 3,326 — 3,326 Derivative assets 16 4,773 1,301 (3,379) 2,711 Other assets 292 2,346 — — 2,638 Total $ 23,672 $ 66,104 $ 4,627 $ (3,379) $ 91,024 Time deposits $ — $ 6,089 $ — $ — $ 6,089 Derivative liabilities 11 5,153 3,604 (3,944) 4,824 Short-term borrowings and other liabilities (a) 483 1,859 — — 2,342 Total $ 494 $ 13,101 $ 3,604 $ (3,944) $ 13,255 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 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 $136 million and $133 million at June 30, 2024 and December 31, 2023, respectively, and reflect no impairment or observable price change adjustment at June 30, 2024, compared with a cumulative impairment of $5 million and no observable price change adjustment at December 31, 2023. The Company recorded a $5 million impairment on these equity investments during the first six months of 2023. The Company did not record any adjustments for observable price changes during the first six months of 2024 and 2023. (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): Three Months Ended June 30 Beginning of Period Balance Net Gains (Losses) Included in Net Income 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 2024 Mortgage servicing rights $ 3,462 $ (12) (a) $ 1 $ (189) $ — $ 64 (c) $ — $ 3,326 $ (12) (a) Net derivative assets and liabilities (2,361) (1,004) (b) 270 (3) — — 795 (2,303) 4 (d) 2023 Available-for-sale securities Obligations of state and political subdivisions $ 1 $ — $ — $ — $ (1) $ — $ — $ — $ — Total available-for-sale 1 — — — (1) — — — — Mortgage servicing rights 3,724 (42) (a) 1 (149) — 99 (c) — 3,633 (42) (a) Net derivative assets and liabilities (2,265) (1,927) (e) (18) (7) — — 798 (3,419) (1,631) (f) Six Months Ended June 30 Beginning Net Gains Purchases Sales Principal Issuances Settlements End Net Change 2024 Mortgage servicing rights $ 3,377 $ 18 (a) $ 1 $ (189) $ — $ 119 (c) $ — $ 3,326 $ 18 (a) Net derivative assets and liabilities (1,885) (2,687) (g) 648 (5) — — 1,626 (2,303) (676) (h) 2023 Available-for-sale securities Obligations of state and political subdivisions $ 1 $ — $ — $ — $ (1) $ — $ — $ — $ — Total available-for-sale 1 — — — (1) — — — — Mortgage servicing rights 3,755 (171) (a) 2 (148) — 195 (c) — 3,633 (171) (a) Net derivative assets and liabilities (3,199) (2,243) (i) 405 (19) — — 1,637 (3,419) (1,242) (j) (a) Included in mortgage banking revenue. (b) Approximately $52 million, $(1.0) billion and $6 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (c) Represents MSRs capitalized during the period. (d) Approximately $17 million, $(19) million and $6 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (e) Approximately $46 million, $(2.0) billion and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (f) Approximately $18 million, $(1.7) billion and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (g) Approximately $96 million, $(2.7) billion and $(69) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (h) Approximately $17 million, $(624) million and $(69) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (i) Approximately $98 million, $(2.3) billion and $(1) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (j) Approximately $18 million, $(1.3) billion and $(1) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. 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 the reporting date: June 30, 2024 December 31, 2023 (Dollars in Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Loans (a) $ — $ — $ 508 $ 508 $ — $ — $ 354 $ 354 Other assets (b) — — 21 21 — — 27 27 (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: Three Months Ended June 30 Six Months Ended June 30 (Dollars in Millions) 2024 2023 2024 2023 Loans (a) $ 96 $ 68 $ 163 $ 210 Other assets (b) 1 — 3 1 (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: June 30, 2024 December 31, 2023 (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) $ 2,550 $ 2,528 $ 22 $ 2,011 $ 1,994 $ 17 Time deposits 6,089 6,104 (15) 2,818 2,822 (4) (a) I ncludes nonaccrual loans of $1 million carried at fair value with contractual principal outstanding of $1 million at June 30, 2024 and $1 million carried at fair value with contractual principal outstanding of $1 million at December 31, 2023. Includes loans 90 days or more past due of $2 million carried at fair value with contractual principal outstanding of $2 million at June 30, 2024 and $4 million carried at fair value with contractual principal outstanding of $4 million at December 31, 2023. Fair Value of Financial Instruments The following section summarizes the estimated fair value for financial instruments accounted for at amortized cost as of June 30, 2024 and December 31, 2023. 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 are shown in the table below: June 30, 2024 December 31, 2023 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 $ 65,832 $ 65,832 $ — $ — $ 65,832 $ 61,192 $ 61,192 $ — $ — $ 61,192 Federal funds sold and securities purchased under resale agreements 4,408 — 4,408 — 4,408 2,543 — 2,543 — 2,543 Investment securities held-to-maturity 81,486 1,256 68,055 — 69,311 84,045 1,310 72,778 — 74,088 Loans held for sale (a) 32 — — 32 32 190 — — 190 190 Loans 368,584 — — 359,667 359,667 366,456 — — 362,849 362,849 Other (b) 2,084 — 1,556 528 2,084 2,377 — 1,863 514 2,377 Financial Liabilities Time deposits (c) 51,228 — 51,395 — 51,395 49,455 — 49,607 — 49,607 Short-term borrowings (d) 14,215 — 13,983 — 13,983 12,976 — 12,729 — 12,729 Long-term debt 52,720 — 51,171 — 51,171 51,480 — 49,697 — 49,697 Other (e) 4,860 — 1,359 3,501 4,860 5,432 — 1,406 4,026 5,432 (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. |
Guarantees and Contingent Liabi
Guarantees and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees and Contingent Liabilities | NOTE 15 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 June 30, 2024, 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 merchant 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”). The Damages Action was settled and is fully resolved. A number of merchants opted out of the Damages Action class settlement and filed individual cases in various federal district courts. Some of those cases have been settled and others are still being litigated. In March 2024, Visa signed a settlement agreement to resolve the Injunctive Action. In June 2024, the court declined to grant preliminary approval of the proposed settlement, which provided for lower interchange fees and various other rule changes for U.S. merchants. Accordingly, the Injunctive Action continues. Other Guarantees and Contingent Liabilities The following table is a summary of other guarantees and contingent liabilities of the Company at June 30, 2024: (Dollars in Millions) Collateral Held Carrying Amount Maximum Potential Future Payments Standby letters of credit $ — $ 20 $ 10,921 Securities lending indemnifications 6,769 — 6,586 Asset sales — 99 10,644 (a) Merchant processing 876 64 152,500 Tender option bond program guarantee 343 — 338 Other — 21 2,825 (a) 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. 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. 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 June 30, 2024, the value of airline tickets purchased to be delivered at a future date through card transactions processed by the Company was $12.9 billion. The Company held collateral of $758 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 June 30, 2024, the liability was $40 million primarily related to these airline processing arrangements. Asset Sales 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 June 30, 2024, the Company had reserved $10 million for potential losses from representation and warranty obligations, compared with $13 million at December 31, 2023. 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 June 30, 2024 and December 31, 2023, the Company had $14 million and $18 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. 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, U.S. Bank National Association (“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). Outlook Due to their complex nature, it can be years before litigation and regulatory matters are resolved. The Company may be unable to develop an estimate or range of loss where matters are in early stages, there are significant factual or legal issues to be resolved, damages are unspecified or uncertain, or there is uncertainty as to a litigation class being certified or the outcome of pending motions, appeals or proceedings. For those litigation and regulatory matters where the Company has information to develop an estimate or range of loss, the Company believes the upper end of the range of reasonably possible losses in aggregate, in excess of any reserves established for matters where a loss is considered probable, will not be material to its financial condition, results of operations or cash flows. The Company’s estimates are subject to significant judgment and uncertainties, and the matters underlying the estimates will change from time to time. Actual results may vary significantly from the current estimates. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Business Segments | NOTE 16 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 and functional activities in Treasury and Corporate Support: 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 2024 and 2023 , certain organization and methodology changes were made, including revising the Company’s line of business funds transfer-pricing methodology related to deposits and loans during the second quarter of 2024 and 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 of 2023 . Prior period results were restated and presented on a comparable basis. Business segment results for the three months ended June 30 were as follows: Wealth, Corporate, Commercial and Institutional Banking Consumer and Business Banking Payment Services (Dollars in Millions) 2024 2023 2024 2023 2024 2023 Condensed Income Statement Net interest income (taxable-equivalent basis) $ 1,906 $ 1,894 $ 1,922 $ 2,295 $ 673 $ 623 Noninterest income 1,131 1,071 413 431 1,094 (a) 1,050 (a) Total net revenue 3,037 2,965 2,335 2,726 1,767 1,673 Noninterest expense 1,374 1,380 1,622 1,764 983 941 Income (loss) before provision and income taxes 1,663 1,585 713 962 784 732 Provision for credit losses 100 162 30 16 388 314 Income (loss) before income taxes 1,563 1,423 683 946 396 418 Income taxes and taxable-equivalent adjustment 391 356 171 237 99 105 Net income (loss) 1,172 1,067 512 709 297 313 Net (income) loss attributable to noncontrolling interests — — — — — — Net income (loss) attributable to U.S. Bancorp $ 1,172 $ 1,067 $ 512 $ 709 $ 297 $ 313 Average Balance Sheet Loans $ 173,695 $ 178,749 $ 154,857 $ 167,002 $ 40,832 $ 37,913 Other earning assets 9,590 6,671 2,278 2,512 115 74 Goodwill 4,824 4,651 4,326 4,530 3,327 3,331 Other intangible assets 1,007 962 4,734 5,393 281 359 Assets 203,201 205,169 168,634 184,804 46,099 44,126 Noninterest-bearing deposits 57,299 73,512 20,900 34,120 2,706 3,179 Interest-bearing deposits 216,293 195,333 202,967 180,239 97 104 Total deposits 273,592 268,845 223,867 214,359 2,803 3,283 Total U.S. Bancorp shareholders’ equity 21,481 22,359 14,553 16,386 9,941 9,127 Treasury and Corporate Support Consolidated Company (Dollars in Millions) 2024 2023 2024 2023 Condensed Income Statement Net interest income (taxable-equivalent basis) $ (449) $ (363) $ 4,052 $ 4,449 Noninterest income 177 174 2,815 (b) 2,726 (b) Total net revenue (272) (189) 6,867 (c) 7,175 (c) Noninterest expense 235 484 4,214 4,569 Income (loss) before provision and income taxes (507) (673) 2,653 2,606 Provision for credit losses 50 329 568 821 Income (loss) before income taxes (557) (1,002) 2,085 1,785 Income taxes and taxable-equivalent adjustment (187) (282) 474 416 Net income (loss) (370) (720) 1,611 1,369 Net (income) loss attributable to noncontrolling interests (8) (8) (8) (8) Net income (loss) attributable to U.S. Bancorp $ (378) $ (728) $ 1,603 $ 1,361 Average Balance Sheet Loans $ 5,301 $ 5,153 $ 374,685 $ 388,817 Other earning assets 222,224 215,765 234,207 225,022 Goodwill — — 12,477 12,512 Other intangible assets 9 10 6,031 6,724 Assets 247,570 238,913 665,504 673,012 Noninterest-bearing deposits 2,513 2,947 83,418 113,758 Interest-bearing deposits 11,134 7,831 430,491 383,507 Total deposits 13,647 10,778 513,909 497,265 Total U.S. Bancorp shareholders’ equity 10,054 5,950 56,029 53,822 (a) Presented net of related rewards and rebate costs and certain partner payments of $776 million and $760 million for the three months ended June 30, 2024 and 2023, respectively. (b) Includes revenue generated from certain contracts with customers of $2.3 billion and $2.2 billion for the three months ended June 30, 2024 and 2023, respectively. (c) The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Under these arrangements, the Company recorded $195 million and $186 million of revenue for the three months ended June 30, 2024 and 2023, respectively, primarily consisting of interest income on sales-type and direct financing leases. Business segment results for the six months ended June 30 were as follows: Wealth, Corporate, Commercial and Institutional Banking Consumer and Business Banking Payment Services (Dollars in Millions) 2024 2023 2024 2023 2024 2023 Condensed Income Statement Net interest income (taxable-equivalent basis) $ 3,810 $ 3,857 $ 3,801 $ 4,684 $ 1,375 $ 1,270 Noninterest income 2,244 2,090 836 831 2,073 (a) 1,987 (a) Total net revenue 6,054 5,947 4,637 5,515 3,448 3,257 Noninterest expense 2,746 2,738 3,224 3,496 1,981 1,889 Income (loss) before provision and income taxes 3,308 3,209 1,413 2,019 1,467 1,368 Provision for credit losses 241 135 84 23 747 534 Income (loss) before income taxes 3,067 3,074 1,329 1,996 720 834 Income taxes and taxable-equivalent adjustment 767 769 333 500 180 209 Net income (loss) 2,300 2,305 996 1,496 540 625 Net (income) loss attributable to noncontrolling interests — — — — — — Net income (loss) attributable to U.S. Bancorp $ 2,300 $ 2,305 $ 996 $ 1,496 $ 540 $ 625 Average Balance Sheet Loans $ 172,381 $ 177,867 $ 154,845 $ 167,214 $ 40,318 $ 37,426 Other earning assets 9,164 6,349 2,078 2,346 134 187 Goodwill 4,825 4,633 4,326 4,512 3,329 3,323 Other intangible assets 1,033 998 4,714 5,492 291 372 Assets 201,196 203,168 168,854 185,032 46,458 43,492 Noninterest-bearing deposits 57,939 77,816 21,137 37,616 2,749 3,181 Interest-bearing deposits 212,068 197,372 201,131 177,227 97 106 Total deposits 270,007 275,188 222,268 214,843 2,846 3,287 Total U.S. Bancorp shareholders’ equity 21,619 21,949 14,699 16,476 9,953 9,048 Treasury and Corporate Support Consolidated Company (Dollars in Millions) 2024 2023 2024 2023 Condensed Income Statement Net interest income (taxable-equivalent basis) $ (919) $ (694) $ 8,067 $ 9,117 Noninterest income 362 325 5,515 (b) 5,233 (b) Total net revenue (557) (369) 13,582 (c) 14,350 (c) Noninterest expense 722 1,001 8,673 9,124 Income (loss) before provision and income taxes (1,279) (1,370) 4,909 5,226 Provision for credit losses 49 556 1,121 1,248 Income (loss) before income taxes (1,328) (1,926) 3,788 3,978 Income taxes and taxable-equivalent adjustment (429) (573) 851 905 Net income (loss) (899) (1,353) 2,937 3,073 Net (income) loss attributable to noncontrolling interests (15) (14) (15) (14) Net income (loss) attributable to U.S. Bancorp $ (914) $ (1,367) $ 2,922 $ 3,059 Average Balance Sheet Loans $ 5,334 $ 5,282 $ 372,878 $ 387,789 Other earning assets 218,259 214,073 229,635 222,955 Goodwill — — 12,480 12,468 Other intangible assets 10 23 6,048 6,885 Assets 243,199 237,559 659,707 669,251 Noninterest-bearing deposits 2,277 3,092 84,102 121,705 Interest-bearing deposits 11,087 7,348 424,383 382,053 Total deposits 13,364 10,440 508,485 503,758 Total U.S. Bancorp shareholders’ equity 9,578 5,775 55,849 53,248 (a) Presented net of related rewards and rebate costs and certain partner payments of $1.5 billion for both the six months ended June 30, 2024 and 2023. (b) Includes revenue generated from certain contracts with customers of $4.5 billion and $4.3 billion for the six months ended June 30, 2024 and 2023, respectively. (c) The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Under these arrangements, the Company recorded $382 million and $369 million of revenue for the six months ended June 30, 2024 and 2023, respectively, primarily consisting of interest income on sales-type and direct financing leases. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 17 Subsequent Events The Company has evaluated the impact of events that have occurred subsequent to June 30, 2024 through the date the consolidated financial statements were filed with the SEC. Based on this evaluation, the Company has determined none of these events were required to be recognized or disclosed in the consolidated financial statements and related notes. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations and cash flow activity required in accordance with accounting principles generally accepted in the United States. In the opinion of management of U.S. Bancorp (the “Company”), all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of results for the interim periods have been made. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
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. 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 In November 2023, the FASB issued guidance, effective for the Company for annual reporting periods beginning after December 15, 2023 and interim reporting periods beginning after December 15, 2024, related to segment disclosures. This guidance requires disclosures of significant segment expenses and other segment items and expands interim period disclosure requirements to include segment profit or loss and assets, which are currently only required to be disclosed annually. The guidance is required to be adopted retrospectively to all periods presented in the financial statements. The Company expects the adoption of this guidance will not be material to its financial statements. |
Loans and Allowance for Credit Losses | 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. 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. 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 received 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 some instances, participation in residential mortgage loan modification 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. |
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. 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. |
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 June 30, 2024, $533.8 billion related to bilateral over-the-counter trades, $683.2 billion related to those centrally cleared through clearinghouses and $479 million 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 12 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. 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 six months ended June 30, 2024 and 2023, 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 $3 million and $30 million for the three months ended June 30, 2024 and 2023, respectively, and net losses of $4 million and $33 million for the six months ended June 30, 2024 and 2023, 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 $3 million and $11 million for the three and six months ended June 30, 2024, respectively, 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 6 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. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 were as follows: June 30, 2024 December 31, 2023 (Dollars in Millions) Amortized Unrealized Unrealized Fair Value Amortized Unrealized Unrealized Fair Value Held-to-Maturity U.S. Treasury and agencies $ 1,296 $ — $ (40) $ 1,256 $ 1,345 $ — $ (35) $ 1,310 Mortgage-backed securities Residential agency 78,327 — (12,105) 66,222 80,997 6 (9,929) 71,074 Commercial agency 1,700 — (30) 1,670 1,695 6 (5) 1,696 Other 163 — — 163 8 — — 8 Total held-to-maturity $ 81,486 $ — $ (12,175) $ 69,311 $ 84,045 $ 12 $ (9,969) $ 74,088 Available-for-Sale U.S. Treasury and agencies $ 30,251 $ 4 $ (2,205) $ 28,050 $ 21,768 $ 8 $ (2,234) $ 19,542 Mortgage-backed securities Residential agency 30,254 67 (2,364) 27,957 28,185 104 (2,211) 26,078 Commercial Agency 8,689 — (1,415) 7,274 8,703 — (1,360) 7,343 Non-agency 7 — — 7 7 — (1) 6 Asset-backed securities 6,595 13 (26) 6,582 6,713 25 (14) 6,724 Obligations of state and political subdivisions 10,808 18 (1,142) 9,684 10,867 36 (914) 9,989 Other 245 — — 245 24 — — 24 Total available-for-sale, excluding portfolio level basis adjustments 86,849 102 (7,152) 79,799 76,267 173 (6,734) 69,706 Portfolio level basis adjustments (a) 60 — (60) — 335 — (335) — Total available-for-sale $ 86,909 $ 102 $ (7,212) $ 79,799 $ 76,602 $ 173 $ (7,069) $ 69,706 (a) |
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 were as follows: June 30, 2024 December 31, 2023 (Dollars in Millions) Amortized Unrealized Unrealized Fair Value Amortized Unrealized Unrealized Fair Value Held-to-Maturity U.S. Treasury and agencies $ 1,296 $ — $ (40) $ 1,256 $ 1,345 $ — $ (35) $ 1,310 Mortgage-backed securities Residential agency 78,327 — (12,105) 66,222 80,997 6 (9,929) 71,074 Commercial agency 1,700 — (30) 1,670 1,695 6 (5) 1,696 Other 163 — — 163 8 — — 8 Total held-to-maturity $ 81,486 $ — $ (12,175) $ 69,311 $ 84,045 $ 12 $ (9,969) $ 74,088 Available-for-Sale U.S. Treasury and agencies $ 30,251 $ 4 $ (2,205) $ 28,050 $ 21,768 $ 8 $ (2,234) $ 19,542 Mortgage-backed securities Residential agency 30,254 67 (2,364) 27,957 28,185 104 (2,211) 26,078 Commercial Agency 8,689 — (1,415) 7,274 8,703 — (1,360) 7,343 Non-agency 7 — — 7 7 — (1) 6 Asset-backed securities 6,595 13 (26) 6,582 6,713 25 (14) 6,724 Obligations of state and political subdivisions 10,808 18 (1,142) 9,684 10,867 36 (914) 9,989 Other 245 — — 245 24 — — 24 Total available-for-sale, excluding portfolio level basis adjustments 86,849 102 (7,152) 79,799 76,267 173 (6,734) 69,706 Portfolio level basis adjustments (a) 60 — (60) — 335 — (335) — Total available-for-sale $ 86,909 $ 102 $ (7,212) $ 79,799 $ 76,602 $ 173 $ (7,069) $ 69,706 (a) |
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: Three Months Ended Six Months Ended (Dollars in Millions) 2024 2023 2024 2023 Taxable $ 1,218 $ 999 $ 2,317 $ 1,993 Non-taxable 76 78 152 158 Total interest income from investment securities $ 1,294 $ 1,077 $ 2,469 $ 2,151 |
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: Three Months Ended Six Months Ended (Dollars in Millions) 2024 2023 2024 2023 Realized gains $ — $ 5 $ 3 $ 65 Realized losses (36) (2) (37) (94) Net realized gains (losses) $ (36) $ 3 $ (34) $ (29) Income tax (benefit) on net realized gains (losses) $ (9) $ 1 $ (8) $ (7) |
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 June 30, 2024: 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 $ 7,891 $ (13) $ 17,447 $ (2,192) $ 25,338 $ (2,205) Mortgage-backed securities Residential agency 1,891 (16) 19,724 (2,348) 21,615 (2,364) Commercial Agency — — 7,274 (1,415) 7,274 (1,415) Non-agency — — 7 — 7 — Asset-backed securities 2,897 (8) 1,560 (18) 4,457 (26) Obligations of state and political subdivisions 1,540 (18) 7,706 (1,124) 9,246 (1,142) Other 134 — 4 — 138 — Total investment securities $ 14,353 $ (55) $ 53,722 $ (7,097) $ 68,075 $ (7,152) |
Investment 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 June 30, 2024: (Dollars in Millions) Amortized Cost Fair Value Weighted- Average Maturity in Years Weighted-Average Yield (e) Held-to-Maturity U.S. Treasury and agencies Maturing in one year or less $ 650 $ 637 0.9 2.71 % Maturing after one year through five years 646 619 2.8 3.00 Maturing after five years through ten years — — — — Maturing after ten years — — — — Total $ 1,296 $ 1,256 1.9 2.85 % Mortgage-backed securities (a) Maturing in one year or less $ 28 $ 27 0.7 4.44 % Maturing after one year through five years 1,507 1,488 3.0 4.54 Maturing after five years through ten years 73,202 62,203 8.9 2.16 Maturing after ten years 5,290 4,174 10.2 1.89 Total $ 80,027 $ 67,892 8.9 2.19 % Other Maturing in one year or less $ 16 $ 16 0.8 3.24 % Maturing after one year through five years 147 147 2.9 2.82 Maturing after five years through ten years — — — — Maturing after ten years — — — — Total $ 163 $ 163 2.7 2.86 % Total held-to-maturity (b) $ 81,486 $ 69,311 8.8 2.20 % Available-for-Sale U.S. Treasury and agencies Maturing in one year or less $ 435 $ 431 0.7 3.98 % Maturing after one year through five years 12,962 12,318 3.6 2.93 Maturing after five years through ten years 16,077 14,721 6.8 3.08 Maturing after ten years 777 580 11.0 1.92 Total $ 30,251 $ 28,050 5.4 3.00 % Mortgage-backed securities (a) Maturing in one year or less $ 99 $ 96 0.7 1.83 % Maturing after one year through five years 8,252 7,787 3.4 3.22 Maturing after five years through ten years 29,495 26,425 7.4 3.53 Maturing after ten years 1,104 930 10.8 3.40 Total $ 38,950 $ 35,238 6.6 3.46 % Asset-backed securities (a) Maturing in one year or less $ 8 $ 9 0.6 7.55 % Maturing after one year through five years 4,601 4,582 1.7 4.96 Maturing after five years through ten years 1,986 1,991 5.9 6.66 Maturing after ten years — — — — Total $ 6,595 $ 6,582 2.9 5.48 % Obligations of state and political subdivisions (c)(d) Maturing in one year or less $ 165 $ 165 0.3 5.11 % Maturing after one year through five years 2,080 2,064 2.8 4.74 Maturing after five years through ten years 1,560 1,480 7.3 3.79 Maturing after ten years 7,003 5,975 15.2 3.41 Total $ 10,808 $ 9,684 11.5 3.74 % Other Maturing in one year or less $ 4 $ 4 0.9 1.89 % Maturing after one year through five years 241 241 2.0 5.00 Maturing after five years through ten years — — — — Maturing after ten years — — — — Total $ 245 $ 245 2.0 4.95 % Total available-for-sale (b)(f) $ 86,849 $ 79,799 6.5 3.49 % (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 8.7 years at December 31, 2023, with a corresponding weighted-average yield of 2.22 percent. The weighted-average maturity of total available-for-sale investment securities was 6.3 years at December 31, 2023, with a corresponding weighted-average yield of 3.12 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 $60 million. |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Composition of Loan Portfolio | The composition of the loan portfolio, by class and underlying specific portfolio type, was as follows: June 30, 2024 December 31, 2023 (Dollars in Millions) Amount Percent of Total Amount Percent of Total Commercial Commercial $ 131,043 34.9 % $ 127,676 34.2 % Lease financing 4,205 1.1 4,205 1.1 Total commercial 135,248 36.0 131,881 35.3 Commercial Real Estate Commercial mortgages 40,844 10.9 41,934 11.2 Construction and development 11,043 2.9 11,521 3.1 Total commercial real estate 51,887 13.8 53,455 14.3 Residential Mortgages Residential mortgages 110,680 29.4 108,605 29.0 Home equity loans, first liens 6,467 1.7 6,925 1.9 Total residential mortgages 117,147 31.1 115,530 30.9 Credit Card 28,715 7.6 28,560 7.6 Other Retail Retail leasing 4,178 1.1 4,135 1.1 Home equity and second mortgages 13,180 3.5 13,056 3.5 Revolving credit 3,597 1.0 3,668 1.0 Installment 14,169 3.8 13,889 3.7 Automobile 8,012 2.1 9,661 2.6 Total other retail 43,136 11.5 44,409 11.9 Total loans $ 376,133 100.0 % $ 373,835 100.0 % |
Activity in Allowance for Credit Losses by Portfolio Class | Activity in the allowance for credit losses by portfolio class was as follows: Three Months Ended June 30 Commercial Commercial Real Estate Residential Mortgages Credit Card Other Retail Total Loans 2024 Balance at beginning of period $ 2,159 $ 1,629 $ 843 $ 2,425 $ 848 $ 7,904 Add Provision for credit losses 164 3 (11) 388 24 568 Deduct Loans charged-off 180 38 3 358 73 652 Less recoveries of loans charged-off (37) (2) (7) (43) (25) (114) Net loan charge-offs (recoveries) 143 36 (4) 315 48 538 Balance at end of period $ 2,180 $ 1,596 $ 836 $ 2,498 $ 824 $ 7,934 2023 Balance at beginning of period $ 2,180 $ 1,359 $ 947 $ 2,112 $ 925 $ 7,523 Add Provision for credit losses 119 140 66 272 224 821 Deduct Loans charged-off 110 31 121 242 251 755 Less recoveries of loans charged-off (20) (5) (7) (43) (31) (106) Net loan charge-offs (recoveries) 90 26 114 199 220 649 Balance at end of period $ 2,209 $ 1,473 $ 899 $ 2,185 $ 929 $ 7,695 Six Months Ended June 30 Commercial Commercial Real Estate Residential Mortgages Credit Card Other Retail Total Loans 2024 Balance at beginning of period $ 2,119 $ 1,620 $ 827 $ 2,403 $ 870 $ 7,839 Add Provision for credit losses 320 33 5 706 57 1,121 Deduct Loans charged-off 319 72 7 695 154 1,247 Less recoveries of loans charged-off (60) (15) (11) (84) (51) (221) Net loan charge-offs (recoveries) 259 57 (4) 611 103 1,026 Balance at end of period $ 2,180 $ 1,596 $ 836 $ 2,498 $ 824 $ 7,934 2023 Balance at beginning of period $ 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 183 164 117 566 218 1,248 Deduct Loans charged-off 173 154 125 457 315 1,224 Less recoveries of loans charged-off (36) (11) (12) (83) (60) (202) Net loan charge-offs (recoveries) 137 143 113 374 255 1,022 Balance at end of period $ 2,209 $ 1,473 $ 899 $ 2,185 $ 929 $ 7,695 (a) Effective January 1, 2023, the Company adopted accounting guidance which removed the separate recognition and measurement of troubled debt restructurings. (b) |
Credit Quality Indicators | The following table provides a summary of loans charged-off by portfolio class and year of origination: Three Months Ended June 30 Commercial Commercial Residential Mortgages (b) Credit Card (c) Other Retail (d) Total Loans 2024 Originated in 2024 $ 3 $ 36 $ — $ — $ — $ 39 Originated in 2023 26 2 — — 11 39 Originated in 2022 66 — 1 — 14 81 Originated in 2021 7 — — — 10 17 Originated in 2020 2 — — — 5 7 Originated prior to 2020 11 — 2 — 8 21 Revolving 65 — — 358 25 448 Total charge-offs $ 180 $ 38 $ 3 $ 358 $ 73 $ 652 2023 Originated in 2023 $ 7 $ — $ — $ — $ 46 $ 53 Originated in 2022 34 — — — 89 123 Originated in 2021 4 17 5 — 46 72 Originated in 2020 6 — 8 — 19 33 Originated in 2019 2 — 15 — 13 30 Originated prior to 2019 17 14 93 — 5 129 Revolving 40 — — 242 5 287 Revolving converted to term — — — — 28 28 Total charge-offs $ 110 $ 31 $ 121 $ 242 $ 251 $ 755 Six Months Ended June 30 Commercial Commercial Real Estate (a) Residential Mortgages (b) Credit Card (c) Other Retail (d) Total Loans 2024 Originated in 2024 $ 3 $ 41 $ — $ — $ 2 $ 46 Originated in 2023 52 6 — — 21 79 Originated in 2022 84 24 1 — 28 137 Originated in 2021 15 — — — 21 36 Originated in 2020 6 — — — 13 19 Originated prior to 2020 21 1 6 — 19 47 Revolving 138 — — 695 50 883 Total charge-offs $ 319 $ 72 $ 7 $ 695 $ 154 $ 1,247 2023 Originated in 2023 $ 7 $ — $ — $ — $ 46 $ 53 Originated in 2022 40 88 — — 99 227 Originated in 2021 8 17 5 — 57 87 Originated in 2020 10 — 8 — 25 43 Originated in 2019 7 3 16 — 20 46 Originated prior to 2019 28 46 96 — 13 183 Revolving 73 — — 457 27 557 Revolving converted to term — — — — 28 28 Total charge-offs $ 173 $ 154 $ 125 $ 457 $ 315 $ 1,224 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 near term loan origination years for gross charge-offs relate to existing loans that have had recent maturity date, pricing or commitment amount amendments. (a) Includes $91 million of charge-offs in the first quarter of 2023 related to uncollectible amounts on acquired loans. (b) Includes $117 million of charge-offs related to balance sheet repositioning and capital management actions taken in the second quarter of 2023. (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 taken in the second quarter of 2023. The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating: June 30, 2024 December 31, 2023 Criticized Criticized (Dollars in Millions) Pass Special Mention Classified (a) Total Criticized Total Pass Special Mention Classified (a) Total Criticized Total Commercial Originated in 2024 $ 27,054 $ 272 $ 496 $ 768 $ 27,822 $ — $ — $ — $ — $ — Originated in 2023 30,508 349 894 1,243 31,751 43,023 827 856 1,683 44,706 Originated in 2022 29,451 274 970 1,244 30,695 40,076 274 632 906 40,982 Originated in 2021 6,738 143 116 259 6,997 9,219 117 154 271 9,490 Originated in 2020 2,843 61 102 163 3,006 3,169 92 71 163 3,332 Originated prior to 2020 4,948 9 98 107 5,055 5,303 30 209 239 5,542 Revolving (b) 28,585 279 1,058 1,337 29,922 26,213 362 1,254 1,616 27,829 Total commercial 130,127 1,387 3,734 5,121 135,248 127,003 1,702 3,176 4,878 131,881 Commercial real estate Originated in 2024 4,385 194 912 1,106 5,491 — — — — — Originated in 2023 6,788 160 1,566 1,726 8,514 8,848 465 2,206 2,671 11,519 Originated in 2022 10,515 736 1,303 2,039 12,554 11,831 382 1,141 1,523 13,354 Originated in 2021 7,919 377 626 1,003 8,922 9,235 500 385 885 10,120 Originated in 2020 3,218 44 144 188 3,406 3,797 51 87 138 3,935 Originated prior to 2020 9,550 93 923 1,016 10,566 10,759 458 619 1,077 11,836 Revolving 2,365 11 58 69 2,434 2,613 6 70 76 2,689 Revolving converted to term — — — — — 2 — — — 2 Total commercial real estate 44,740 1,615 5,532 7,147 51,887 47,085 1,862 4,508 6,370 53,455 Residential mortgages (c) Originated in 2024 5,067 — 1 1 5,068 — — — — — Originated in 2023 9,343 — 9 9 9,352 9,734 — 5 5 9,739 Originated in 2022 28,891 — 24 24 28,915 29,146 — 17 17 29,163 Originated in 2021 35,541 — 25 25 35,566 36,365 — 16 16 36,381 Originated in 2020 14,245 — 12 12 14,257 14,773 — 9 9 14,782 Originated prior to 2020 23,731 — 258 258 23,989 25,202 — 262 262 25,464 Revolving — — — — — 1 — — — 1 Total residential mortgages 116,818 — 329 329 117,147 115,221 — 309 309 115,530 Credit card (d) 28,341 — 374 374 28,715 28,185 — 375 375 28,560 Other retail Originated in 2024 4,046 — 2 2 4,048 — — — — — Originated in 2023 4,554 — 6 6 4,560 5,184 — 4 4 5,188 Originated in 2022 4,830 — 11 11 4,841 5,607 — 12 12 5,619 Originated in 2021 8,396 — 14 14 8,410 10,398 — 15 15 10,413 Originated in 2020 3,434 — 7 7 3,441 4,541 — 9 9 4,550 Originated prior to 2020 3,339 2 16 18 3,357 4,008 — 20 20 4,028 Revolving 13,600 — 107 107 13,707 13,720 — 104 104 13,824 Revolving converted to term 725 — 47 47 772 735 — 52 52 787 Total other retail 42,924 2 210 212 43,136 44,193 — 216 216 44,409 Total loans $ 362,950 $ 3,004 $ 10,179 $ 13,183 $ 376,133 $ 361,687 $ 3,564 $ 8,584 $ 12,148 $ 373,835 Total outstanding commitments $ 764,699 $ 4,690 $ 12,170 $ 16,860 $ 781,559 $ 762,869 $ 5,053 $ 10,470 $ 15,523 $ 778,392 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. Predominately all current year and near 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 June 30, 2024, $1.7 billion of GNMA loans 90 days or more past due and $1.5 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 $2.0 billion and $1.2 billion at December 31, 2023, respectively. (d) Predominately all credit card loans are considered revolving loans. Includes an immaterial amount of revolving converted to term loans. |
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 June 30, 2024 Commercial $ 134,317 $ 288 $ 87 $ 556 $ 135,248 Commercial real estate 50,897 22 9 959 51,887 Residential mortgages (a) 116,681 142 170 154 117,147 Credit card 27,957 384 374 — 28,715 Other retail 42,700 234 61 141 43,136 Total loans $ 372,552 $ 1,070 $ 701 $ 1,810 $ 376,133 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 (a) At June 30, 2024, $561 million of loans 30–89 days past due and $1.7 billion of loans 90 days or more past due 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, were classified as current, compared with $595 million and $2.0 billion at December 31, 2023, respectively. (b) |
Loans Modified | The following table provides a summary of period-end balances of loans modified during the periods presented, by portfolio class and modification granted: Three Months Ended June 30 Interest Rate Reduction Payment Delay Term Extension Multiple Modifications (a) Total Modifications Percent of Class Total 2024 Commercial $ 23 $ — $ 253 $ — $ 276 .2 % Commercial real estate 78 — 391 7 476 .9 Residential mortgages (b) — 9 7 6 22 — Credit card 116 — — — 116 .4 Other retail 2 — 33 1 36 .1 Total loans, excluding loans purchased from GNMA mortgage pools 219 9 684 14 926 .2 Loans purchased from GNMA mortgage pools (b) — 474 109 122 705 .6 Total loans $ 219 $ 483 $ 793 $ 136 $ 1,631 .4 % 2023 Commercial $ 13 $ — $ 136 $ — $ 149 .1 % Commercial real estate — — 101 — 101 .2 Residential mortgages (b) — 79 6 4 89 .1 Credit card 91 — — — 91 .3 Other retail 2 14 39 1 56 .1 Total loans, excluding loans purchased from GNMA mortgage pools 106 93 282 5 486 .1 Loans purchased from GNMA mortgage pools (b) — 453 86 98 637 .6 Total loans $ 106 $ 546 $ 368 $ 103 $ 1,123 .3 % Six Months Ended June 30 Interest Rate Reduction Payment Delay Term Extension Multiple Modifications (a) Total Modifications Percent of Class Total 2024 Commercial $ 44 $ — $ 452 $ — $ 496 .4 % Commercial real estate 78 — 629 7 714 1.4 Residential mortgages (b) — 28 12 9 49 — Credit card 228 — — — 228 .8 Other retail 4 1 69 1 75 .2 Total loans, excluding loans purchased from GNMA mortgage pools 354 29 1,162 17 1,562 .4 Loans purchased from GNMA mortgage pools (b) 1 908 173 204 1,286 1.1 Total loans $ 355 $ 937 $ 1,335 $ 221 $ 2,848 .8 % 2023 Commercial $ 159 $ — $ 159 $ — $ 318 .2 % Commercial real estate — — 109 — 109 .2 Residential mortgages (b) — 202 15 16 233 .2 Credit card 174 — — — 174 .7 Other retail 4 18 81 3 106 .2 Total loans, excluding loans purchased from GNMA mortgage pools 337 220 364 19 940 .2 Loans purchased from GNMA mortgage pools (b) — 649 147 143 939 .8 Total loans $ 337 $ 869 $ 511 $ 162 $ 1,879 .5 % (a) Includes $111 million of total loans receiving a payment delay and term extension, $17 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 three months ended June 30, 2024, compared with $100 million, $2 million and $1 million for the three months ended June 30, 2023, respectively. Includes $189 million of total loans receiving a payment delay and term extension, $20 million of total loans receiving an interest rate reduction and term extension and $12 million of total loans receiving an interest rate reduction, payment delay and term extension for the six months ended June 30, 2024, compared with $151 million, $5 million and $6 million for the six months ended June 30, 2023, respectively. (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: Three Months Ended June 30 Weighted-Average Interest Rate Reduction Weighted-Average Months of Term Extension 2024 Commercial (a) 20.6 % 5 Commercial real estate 2.2 8 Residential mortgages .5 86 Credit card 16.3 — Other retail 7.6 5 Loans purchased from GNMA mortgage pools .5 119 2023 Commercial 21.3 % 8 Commercial real estate — 10 Residential mortgages 1.4 89 Credit card 16.4 — Other retail 8.6 108 Loans purchased from GNMA mortgage pools .7 87 Six Months Ended June 30 Weighted-Average Interest Rate Reduction Weighted-Average Months of Term Extension 2024 Commercial (a) 20.0 % 7 Commercial real estate 2.2 9 Residential mortgages .7 85 Credit card 16.3 — Other retail 8.4 4 Loans purchased from GNMA mortgage pools .5 116 2023 Commercial 3.3 % 7 Commercial real estate — 10 Residential mortgages 1.4 111 Credit card 16.2 — Other retail 7.3 134 Loans purchased from GNMA mortgage pools .7 79 Note: The weighted-average payment deferral for all portfolio classes was less than $1 million for the three and six months ended June 30, 2024 and 2023. Forbearance payments are required to be paid at the end of the original term loan. (a) The weighted-average interest rate reduction for commercial loans for the three and six months ended June 30, 2024, was primarily driven by commercial cards. |
Loans Modified by Delinquency Status | The following table provides a summary of loan balances at June 30, 2024, which were modified during the prior twelve months, by portfolio class and delinquency status: (Dollars in Millions) Current 30-89 Days Past Due 90 Days or More Past Due Total Commercial $ 628 $ 17 $ 117 $ 762 Commercial real estate 847 — 419 1,266 Residential mortgages (a) 1,585 6 13 1,604 Credit card 293 64 34 391 Other retail 122 17 6 145 Total loans $ 3,475 $ 104 $ 589 $ 4,168 (a) At June 30, 2024, $462 million of loans 30-89 days past due and $196 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 loan balances at June 30, 2023, which were modified on or after January 1, 2023, the date the Company adopted accounting guidance which removed the separate recognition and measurement of troubled debt restructurings, through June 30, 2023, by portfolio class and delinquency status: (Dollars in Millions) Current 30-89 Days Past Due 90 Days or More Past Due Total Commercial $ 287 $ 7 $ 24 $ 318 Commercial real estate 43 — 66 109 Residential mortgages (a) 668 11 13 692 Credit card 125 34 15 174 Other retail 68 3 4 75 Total loans $ 1,191 $ 55 $ 122 $ 1,368 (a) |
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 within twelve months prior to default: (Dollars in Millions) Interest Rate Reduction Payment Delay Term Extension Multiple Modifications (a) Three Months Ended June 30, 2024 Commercial $ 7 $ — $ — $ — Commercial real estate — — 24 — Residential mortgages — 9 1 1 Credit card 30 — — — Other retail 1 — 5 — Total loans, excluding loans purchased from GNMA mortgage pools 38 9 30 1 Loans purchased from GNMA mortgage pools — 58 24 29 Total loans $ 38 $ 67 $ 54 $ 30 Six Months Ended June 30, 2024 Commercial $ 13 $ — $ — $ — Commercial real estate — — 24 — Residential mortgages — 13 4 3 Credit card 59 — — — Other retail 1 1 10 — Total loans, excluding loans purchased from GNMA mortgage pools 73 14 38 3 Loans purchased from GNMA mortgage pools — 96 43 57 Total loans $ 73 $ 110 $ 81 $ 60 (a) Includes $29 million of total loans receiving a payment delay and term extension and $1 million of total loans receiving an interest rate reduction and term extension for the three months ended June 30, 2024. Includes $58 million of total loans receiving a payment delay and term extension, $1 million of total loans receiving an interest rate reduction and term extension and $1 million of total loans receiving an interest rate reduction, payment delay and term extension for the six months ended June 30, 2024. 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 on or after January 1, 2023, the date the Company adopted accounting guidance which removed the separate recognition and measurement of troubled debt restructurings, through June 30, 2023: (Dollars in Millions) Interest Rate Reduction Payment Delay Term Extension Multiple Modifications (a) Three Months Ended June 30, 2023 Commercial $ 1 $ — $ — $ — Residential mortgages — 1 — 1 Credit card 5 — — — Other retail — 2 1 — Total loans, excluding loans purchased from GNMA mortgage pools 6 3 1 1 Loans purchased from GNMA mortgage pools — 6 1 2 Total loans $ 6 $ 9 $ 2 $ 3 Six Months Ended June 30, 2023 Commercial $ 1 $ — $ — $ — Residential mortgages — 1 — 1 Credit card 5 — — — Other retail — 2 1 — Total loans, excluding loans purchased from GNMA mortgage pools 6 3 1 1 Loans purchased from GNMA mortgage pools — 6 1 2 Total loans $ 6 $ 9 $ 2 $ 3 (a) Includes $2 million of total loans receiving a payment delay and term extension and $1 million of total loans receiving an interest rate reduction, payment delay and term extension for the three and six months ended June 30, 2023. |
Accounting for Transfers and _2
Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: (Dollars in Millions) June 30, 2024 December 31, 2023 Investment carrying amount $ 7,374 $ 6,659 Unfunded capital and other commitments 4,337 3,619 Maximum exposure to loss 8,916 9,002 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Transfers and Servicing [Abstract] | |
Changes in Fair Value of Capitalized MSRs | Changes in fair value of capitalized MSRs are summarized as follows: Three Months Ended Six Months Ended (Dollars in Millions) 2024 2023 2024 2023 Balance at beginning of period $ 3,462 $ 3,724 $ 3,377 $ 3,755 Rights purchased 1 1 1 2 Rights capitalized 64 99 119 195 Rights sold (189) (149) (189) (148) Changes in fair value of MSRs Due to fluctuations in market interest rates (a) 45 84 148 46 Due to revised assumptions or models (b) 33 (21) 41 (16) Other changes in fair value (c) (90) (105) (171) (201) Balance at end of period $ 3,326 $ 3,633 $ 3,326 $ 3,633 (a) Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits. (b) 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. (c) |
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 was as follows: June 30, 2024 December 31, 2023 (Dollars in Millions) Down Down Down Up Up Up Down Down Down Up Up Up MSR portfolio $ (312) $ (145) $ (69) $ 63 $ 121 $ 220 $ (370) $ (173) $ (84) $ 77 $ 147 $ 268 Derivative instrument hedges 304 144 70 (65) (127) (240) 381 178 86 (79) (152) (289) Net sensitivity $ (8) $ (1) $ 1 $ (2) $ (6) $ (20) $ 11 $ 5 $ 2 $ (2) $ (5) $ (21) |
MSRs and Related Characteristics by Portfolio | The following table provides a summary of the Company’s MSRs and related characteristics by portfolio: June 30, 2024 December 31, 2023 (Dollars in Millions) HFA Government Conventional (d) Total HFA Government Conventional (d) Total Servicing portfolio (a) $ 50,185 $ 25,762 $ 137,716 $ 213,663 $ 48,286 $ 25,996 $ 151,056 $ 225,338 Fair value $ 824 $ 522 $ 1,980 $ 3,326 $ 769 $ 507 $ 2,101 $ 3,377 Value (bps) (b) 164 203 144 156 159 195 139 150 Weighted-average servicing fees (bps) 36 45 25 30 36 44 26 30 Multiple (value/servicing fees) 4.60 4.55 5.66 5.16 4.45 4.41 5.41 5.00 Weighted-average note rate 4.74 % 4.31 % 3.73 % 4.04 % 4.56 % 4.23 % 3.81 % 4.02 % Weighted-average age (in years) 4.4 5.8 4.8 4.8 4.3 5.5 4.3 4.4 Weighted-average expected prepayment (constant prepayment rate) 10.1 % 10.6 % 8.3 % 9.0 % 10.5 % 11.1 % 9.1 % 9.6 % Weighted-average expected life (in years) 7.3 6.7 7.2 7.2 7.2 6.5 7.0 7.0 Weighted-average option adjusted spread (c) 5.5 % 5.9 % 4.6 % 5.0 % 5.4 % 5.9 % 4.6 % 4.9 % (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) |
Preferred Stock (Tables)
Preferred Stock (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 were as follows: June 30, 2024 December 31, 2023 (Dollars in Millions) Shares Issued and Outstanding Liquidation Preference Discount Carrying Amount Shares Issued and Outstanding Liquidation Preference Discount Carrying Amount 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) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Reconciliation of Accumulated Other Comprehensive Income (Loss) | The reconciliation of the transactions affecting accumulated other comprehensive income (loss) included in shareholders’ equity is as follows: Three Months Ended June 30 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 2024 Balance at beginning of period $ (5,279) $ (3,452) $ (461) $ (1,138) $ (23) $ (10,353) Changes in unrealized gains (losses) (78) — (109) — — (187) Foreign currency translation adjustment (a) — — — — (2) (2) Reclassification to earnings of realized (gains) losses 36 131 80 — — 247 Applicable income taxes 11 (33) 8 — 1 (13) Balance at end of period $ (5,310) $ (3,354) $ (482) $ (1,138) $ (24) $ (10,308) 2023 Balance at beginning of period $ (5,369) $ (3,843) $ 43 $ (940) $ (44) $ (10,153) Changes in unrealized gains (losses) (460) — (465) — — (925) Foreign currency translation adjustment (a) — — — — 19 19 Reclassification to earnings of realized (gains) losses (3) 141 11 (2) — 147 Applicable income taxes 116 (35) 117 1 (5) 194 Balance at end of period $ (5,716) $ (3,737) $ (294) $ (941) $ (30) $ (10,718) Six Months Ended June 30 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 2024 Balance at beginning of period $ (5,151) $ (3,537) $ (242) $ (1,138) $ (28) $ (10,096) Changes in unrealized gains (losses) (249) — (452) — — (701) Foreign currency translation adjustment (a) — — — — 4 4 Reclassification to earnings of realized (gains) losses 34 245 129 — — 408 Applicable income taxes 56 (62) 83 — — 77 Balance at end of period $ (5,310) $ (3,354) $ (482) $ (1,138) $ (24) $ (10,308) 2023 Balance at beginning of period $ (6,378) $ (3,933) $ (114) $ (939) $ (43) $ (11,407) Changes in unrealized gains (losses) 845 — (261) 1 — 585 Foreign currency translation adjustment (a) — — — — 18 18 Reclassification to earnings of realized (gains) losses 29 262 18 (4) — 305 Applicable income taxes (212) (66) 63 1 (5) (219) Balance at end of period $ (5,716) $ (3,737) $ (294) $ (941) $ (30) $ (10,718) (a) |
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 is as follows: Impact to Net Income Three Months Ended Six Months Ended Affected Line Item in the Consolidated Statement of Income (Dollars in Millions) 2024 2023 2024 2023 Unrealized gains (losses) on investment securities available-for-sale Realized gains (losses) on sale of investment securities $ (36) $ 3 $ (34) $ (29) Securities gains (losses), net 9 (1) 8 7 Applicable income taxes (27) 2 (26) (22) Net-of-tax Unrealized gains (losses) on investment securities transferred from available-for-sale to held-to-maturity Amortization of unrealized gains (losses) (131) (141) (245) (262) Interest income 33 35 62 66 Applicable income taxes (98) (106) (183) (196) Net-of-tax Unrealized gains (losses) on derivative hedges Realized gains (losses) on derivative hedges (80) (11) (129) (18) Net interest income 20 3 33 4 Applicable income taxes (60) (8) (96) (14) Net-of-tax Unrealized gains (losses) on retirement plans Actuarial gains (losses) and prior service cost (credit) amortization — 2 — 4 Other noninterest expense — (1) — (1) Applicable income taxes — 1 — 3 Net-of-tax Total impact to net income $ (185) $ (111) $ (305) $ (229) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Components of Earnings Per Share | The components of earnings per share were: Three Months Ended Six Months Ended (Dollars and Shares in Millions, Except Per Share Data) 2024 2023 2024 2023 Net income attributable to U.S. Bancorp $ 1,603 $ 1,361 $ 2,922 $ 3,059 Preferred dividends (75) (73) (177) (171) Earnings allocated to participating stock awards (10) (7) (18) (15) Net income applicable to U.S. Bancorp common shareholders $ 1,518 $ 1,281 $ 2,727 $ 2,873 Average common shares outstanding 1,560 1,533 1,560 1,532 Net effect of the exercise and assumed purchase of stock awards 1 — — 1 Average diluted common shares outstanding 1,561 1,533 1,560 1,533 Earnings per common share $ .97 $ .84 $ 1.75 $ 1.87 Diluted earnings per common share $ .97 $ .84 $ 1.75 $ 1.87 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost for the Company’s pension plans were: Three Months Ended June 30 Six Months Ended June 30 (Dollars in Millions) 2024 2023 2024 2023 Service cost $ 54 $ 56 $ 109 $ 112 Interest cost 94 93 188 185 Expected return on plan assets (146) (137) (292) (273) Prior service cost (credit) amortization (1) — (2) (1) Actuarial loss (gain) amortization 3 1 5 2 Net periodic benefit cost (a) $ 4 $ 13 $ 8 $ 25 (a) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense were: Three Months Ended Six Months Ended (Dollars in Millions) 2024 2023 2024 2023 Federal Current $ 321 $ 263 $ 501 $ 660 Deferred 49 33 182 1 Federal income tax 370 296 683 661 State Current 88 119 109 215 Deferred (13) (33) — (39) State income tax 75 86 109 176 Total income tax provision $ 445 $ 382 $ 792 $ 837 |
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: Three Months Ended Six Months Ended (Dollars in Millions) 2024 2023 2024 2023 Tax at statutory rate $ 432 $ 368 $ 783 $ 821 State income tax, at statutory rates, net of federal tax benefit 102 83 183 185 Tax effect of Tax credits and benefits, net of related expenses (83) (63) (144) (140) Exam resolutions (32) — (97) — Tax-exempt income (36) (41) (67) (75) Other items 62 35 134 46 Applicable income taxes $ 445 $ 382 $ 792 $ 837 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: June 30, 2024 December 31, 2023 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 $ 15,700 $ — $ — $ 12,100 $ — $ 16 Pay fixed/receive floating swaps 28,581 — — 24,139 — — Cash flow hedges Interest rate contracts Receive fixed/pay floating swaps 24,400 — — 18,400 — — Net investment hedges Foreign exchange forward contracts 842 1 1 854 — 10 Other economic hedges Interest rate contracts Futures and forwards Buy 4,460 7 9 5,006 29 5 Sell 2,757 3 7 4,501 7 34 Options Purchased 5,090 182 — 6,085 237 — Written 2,331 17 53 3,696 14 75 Receive fixed/pay floating swaps 9,287 89 2 7,029 9 3 Pay fixed/receive floating swaps 3,354 — — 3,801 — — Foreign exchange forward contracts 704 1 — 734 2 5 Equity contracts 267 1 1 227 2 — Credit contracts 3,558 — 9 2,620 1 — Other (a) 2,070 8 120 2,136 11 93 Total $ 103,401 $ 309 $ 202 $ 91,328 $ 312 $ 241 (a) |
Summary of Customer-Related Derivative Positions | The following table summarizes the customer-related derivative positions of the Company: June 30, 2024 December 31, 2023 Notional Fair Value Notional Fair Value (Dollars in Millions) Assets Liabilities Assets Liabilities Interest rate contracts Receive fixed/pay floating swaps $ 369,671 $ 439 $ 5,184 $ 363,375 $ 791 $ 4,395 Pay fixed/receive floating swaps 345,929 2,147 170 330,539 1,817 280 Other (a) 76,713 15 50 82,209 17 51 Options Purchased 95,653 736 1 102,423 1,026 18 Written 91,365 9 953 97,690 20 1,087 Foreign exchange rate contracts Forwards, spots and swaps 109,853 2,054 1,836 121,119 2,252 1,942 Options Purchased 538 17 — 1,532 28 — Written 538 — 17 1,532 — 28 Commodity contracts Swaps 5,010 140 135 2,498 116 110 Options Purchased 3,080 205 1 1,936 151 — Written 3,079 1 205 1,936 — 151 Futures Sell 83 17 10 — — — Credit contracts 12,554 1 4 13,053 1 6 Total $ 1,114,066 $ 5,781 $ 8,566 $ 1,119,842 $ 6,219 $ 8,068 (a) |
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): Three Months Ended June 30 Six Months Ended June 30 Gains (Losses) Recognized in Other Comprehensive Income (Loss) Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings Gains (Losses) Recognized in Other Comprehensive Income (Loss) Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings (Dollars in Millions) 2024 2023 2024 2023 2024 2023 2024 2023 Asset and Liability Management Positions Cash flow hedges Interest rate contracts $ (81) $ (345) $ (60) $ (8) $ (336) $ (194) $ (96) $ (14) Net investment hedges Foreign exchange forward contracts 9 (6) — — 78 (9) — — Non-derivative debt instruments 7 1 — — 41 (17) — — Note: The Company does not exclude components from effectiveness testing for cash flow and net investment hedges. |
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): Three Months Ended June 30 Six Months Ended June 30 Gains (Losses) Recognized in Other Comprehensive Income (Loss) Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings Gains (Losses) Recognized in Other Comprehensive Income (Loss) Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings (Dollars in Millions) 2024 2023 2024 2023 2024 2023 2024 2023 Asset and Liability Management Positions Cash flow hedges Interest rate contracts $ (81) $ (345) $ (60) $ (8) $ (336) $ (194) $ (96) $ (14) Net investment hedges Foreign exchange forward contracts 9 (6) — — 78 (9) — — Non-derivative debt instruments 7 1 — — 41 (17) — — Note: The Company does not exclude components from effectiveness testing for cash flow and net investment hedges. |
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: Three Months Ended June 30 Six Months Ended June 30 Interest Income Interest Expense Interest Income Interest Expense (Dollars in Millions) 2024 2023 2024 2023 2024 2023 2024 2023 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 $ 7,985 $ 7,526 $ 3,962 $ 3,111 $ 15,749 $ 14,490 $ 7,741 $ 5,441 Asset and Liability Management Positions Fair value hedges Interest rate contract derivatives (23) 334 69 243 445 156 12 129 Hedged items 22 (332) (69) (241) (447) (158) (12) (127) Cash flow hedges Interest rate contract derivatives (73) — 7 11 (115) — 14 18 |
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 currently designated in fair value hedges: Carrying Amount of the Hedged Assets Cumulative Hedging Adjustment (Dollars in Millions) June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 Line Item in the Consolidated Balance Sheet Available-for-sale investment securities (a) $ 27,933 $ 23,924 $ (446) $ (93) Long-term debt 15,650 12,034 (18) (32) Note: The table above excludes the cumulative hedging adjustment related to discontinued hedging relationships on available-for-sale investment securities and long-term debt of $(96) million and $(181) million, respectively, at June 30, 2024, compared with $(18) million and $(116) million at December 31, 2023, respectively. The carrying amount of available-for-sale investment securities and long-term debt related to discontinued hedging relationships was $6.7 billion and $9.2 billion, respectively, at June 30, 2024, compared with $830 million and $7.2 billion at December 31, 2023, respectively. (a) 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 June 30, 2024, the amortized cost of the closed portfolios used in these hedging relationships was $18.2 billion, of which $11.6 billion was designated as hedged. At June 30, 2024, the cumulative amount of basis adjustments associated with these hedging relationships was $60 million. At December 31, 2023, the amortized cost of the closed portfolios used in these hedging relationships was $15.6 billion, of which $9.6 billion was designated as hedged. At December 31, 2023, the cumulative amount of basis adjustments associated with these hedging relationships was $335 million. |
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: Three Months Ended Six Months Ended (Dollars in Millions) Location of Gains (Losses) 2024 2023 2024 2023 Asset and Liability Management Positions Other economic hedges Interest rate contracts Futures and forwards Mortgage banking revenue $ (2) $ 31 $ (14) $ 38 Purchased and written options Mortgage banking revenue 9 17 48 15 Swaps Mortgage banking revenue/Interest expense 9 (38) (77) 20 Foreign exchange forward contracts Other noninterest income 4 (8) 8 (13) Equity contracts Compensation expense (2) — (2) (3) Credit contracts Commercial products revenue — — (2) — Other Other noninterest income 6 1 (69) (1) Customer-Related Positions Interest rate contracts Swaps Commercial products revenue 89 58 220 95 Purchased and written options Commercial products revenue (21) (1) (68) — Futures Commercial products revenue — — — (1) Foreign exchange rate contracts Forwards, spots and swaps Commercial products revenue 32 44 56 99 Commodity contracts Swaps Commercial products revenue (1) 2 1 2 Purchased and written options Commercial products revenue 2 — 4 — Futures Commercial products revenue 6 — 6 — Credit contracts Commercial products revenue 1 (1) — (1) |
Netting Arrangements for Cert_2
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 Less Than 30 Days 30-89 Days Greater Than 90 Days Total June 30, 2024 Repurchase agreements U.S. Treasury and agencies $ 4,171 $ 12 $ — $ — $ 4,183 Residential agency mortgage-backed securities 290 — — — 290 Corporate debt securities 1,000 14 — — 1,014 Asset-backed securities — 85 — — 85 Total repurchase agreements 5,461 111 — — 5,572 Securities loaned Corporate debt securities 264 — — — 264 Total securities loaned 264 — — — 264 Gross amount of recognized liabilities $ 5,725 $ 111 $ — $ — $ 5,836 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 |
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: 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 Net Amount (Dollars in Millions) Financial Instruments (b) Collateral Received (c) June 30, 2024 Derivative assets (d) $ 6,064 $ (3,379) $ 2,685 $ (113) $ (2) $ 2,570 Reverse repurchase agreements 4,361 — 4,361 (450) (3,903) 8 Securities borrowed 1,846 — 1,846 — (1,762) 84 Total $ 12,271 $ (3,379) $ 8,892 $ (563) $ (5,667) $ 2,662 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 (a) Includes $1.7 billion and $1.6 billion of cash collateral related payables that were netted against derivative assets at June 30, 2024 and December 31, 2023, 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 | 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 (Dollars in Millions) Financial Instruments (b) Collateral Pledged (c) June 30, 2024 Derivative liabilities (d) $ 8,647 $ (3,944) $ 4,703 $ (113) $ — $ 4,590 Repurchase agreements 5,572 — 5,572 (450) (5,110) 12 Securities loaned 264 — 264 — (257) 7 Total $ 14,483 $ (3,944) $ 10,539 $ (563) $ (5,367) $ 4,609 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 (a) Includes $2.3 billion and $1.7 billion of cash collateral related receivables that were netted against derivative liabilities at June 30, 2024 and December 31, 2023, 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) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Valuation Assumption Ranges for MSRs | The following table shows the significant valuation assumption ranges for MSRs at June 30, 2024: Minimum Maximum Weighted- Average (a) Expected prepayment 7 % 21 % 9 % 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 June 30, 2024: Minimum Maximum Weighted- Average (a) Expected loan close rate 8 % 100 % 77 % Inherent MSR value (basis points per loan) 53 197 105 (a) Determined based on the relative fair value of the related mortgage loans. |
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 June 30, 2024 Available-for-sale securities U.S. Treasury and agencies $ 23,364 $ 4,686 $ — $ — $ 28,050 Mortgage-backed securities Residential agency — 27,957 — — 27,957 Commercial Agency — 7,274 — — 7,274 Non-agency — 7 — — 7 Asset-backed securities — 6,582 — — 6,582 Obligations of state and political subdivisions — 9,684 — — 9,684 Other — 245 — — 245 Total available-for-sale 23,364 56,435 — — 79,799 Mortgage loans held for sale — 2,550 — — 2,550 Mortgage servicing rights — — 3,326 — 3,326 Derivative assets 16 4,773 1,301 (3,379) 2,711 Other assets 292 2,346 — — 2,638 Total $ 23,672 $ 66,104 $ 4,627 $ (3,379) $ 91,024 Time deposits $ — $ 6,089 $ — $ — $ 6,089 Derivative liabilities 11 5,153 3,604 (3,944) 4,824 Short-term borrowings and other liabilities (a) 483 1,859 — — 2,342 Total $ 494 $ 13,101 $ 3,604 $ (3,944) $ 13,255 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 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 $136 million and $133 million at June 30, 2024 and December 31, 2023, respectively, and reflect no impairment or observable price change adjustment at June 30, 2024, compared with a cumulative impairment of $5 million and no observable price change adjustment at December 31, 2023. The Company recorded a $5 million impairment on these equity investments during the first six months of 2023. The Company did not record any adjustments for observable price changes during the first six months of 2024 and 2023. (a) |
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): Three Months Ended June 30 Beginning of Period Balance Net Gains (Losses) Included in Net Income 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 2024 Mortgage servicing rights $ 3,462 $ (12) (a) $ 1 $ (189) $ — $ 64 (c) $ — $ 3,326 $ (12) (a) Net derivative assets and liabilities (2,361) (1,004) (b) 270 (3) — — 795 (2,303) 4 (d) 2023 Available-for-sale securities Obligations of state and political subdivisions $ 1 $ — $ — $ — $ (1) $ — $ — $ — $ — Total available-for-sale 1 — — — (1) — — — — Mortgage servicing rights 3,724 (42) (a) 1 (149) — 99 (c) — 3,633 (42) (a) Net derivative assets and liabilities (2,265) (1,927) (e) (18) (7) — — 798 (3,419) (1,631) (f) Six Months Ended June 30 Beginning Net Gains Purchases Sales Principal Issuances Settlements End Net Change 2024 Mortgage servicing rights $ 3,377 $ 18 (a) $ 1 $ (189) $ — $ 119 (c) $ — $ 3,326 $ 18 (a) Net derivative assets and liabilities (1,885) (2,687) (g) 648 (5) — — 1,626 (2,303) (676) (h) 2023 Available-for-sale securities Obligations of state and political subdivisions $ 1 $ — $ — $ — $ (1) $ — $ — $ — $ — Total available-for-sale 1 — — — (1) — — — — Mortgage servicing rights 3,755 (171) (a) 2 (148) — 195 (c) — 3,633 (171) (a) Net derivative assets and liabilities (3,199) (2,243) (i) 405 (19) — — 1,637 (3,419) (1,242) (j) (a) Included in mortgage banking revenue. (b) Approximately $52 million, $(1.0) billion and $6 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (c) Represents MSRs capitalized during the period. (d) Approximately $17 million, $(19) million and $6 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (e) Approximately $46 million, $(2.0) billion and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (f) Approximately $18 million, $(1.7) billion and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (g) Approximately $96 million, $(2.7) billion and $(69) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (h) Approximately $17 million, $(624) million and $(69) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (i) Approximately $98 million, $(2.3) billion and $(1) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (j) Approximately $18 million, $(1.3) billion and $(1) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. |
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): Three Months Ended June 30 Beginning of Period Balance Net Gains (Losses) Included in Net Income 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 2024 Mortgage servicing rights $ 3,462 $ (12) (a) $ 1 $ (189) $ — $ 64 (c) $ — $ 3,326 $ (12) (a) Net derivative assets and liabilities (2,361) (1,004) (b) 270 (3) — — 795 (2,303) 4 (d) 2023 Available-for-sale securities Obligations of state and political subdivisions $ 1 $ — $ — $ — $ (1) $ — $ — $ — $ — Total available-for-sale 1 — — — (1) — — — — Mortgage servicing rights 3,724 (42) (a) 1 (149) — 99 (c) — 3,633 (42) (a) Net derivative assets and liabilities (2,265) (1,927) (e) (18) (7) — — 798 (3,419) (1,631) (f) Six Months Ended June 30 Beginning Net Gains Purchases Sales Principal Issuances Settlements End Net Change 2024 Mortgage servicing rights $ 3,377 $ 18 (a) $ 1 $ (189) $ — $ 119 (c) $ — $ 3,326 $ 18 (a) Net derivative assets and liabilities (1,885) (2,687) (g) 648 (5) — — 1,626 (2,303) (676) (h) 2023 Available-for-sale securities Obligations of state and political subdivisions $ 1 $ — $ — $ — $ (1) $ — $ — $ — $ — Total available-for-sale 1 — — — (1) — — — — Mortgage servicing rights 3,755 (171) (a) 2 (148) — 195 (c) — 3,633 (171) (a) Net derivative assets and liabilities (3,199) (2,243) (i) 405 (19) — — 1,637 (3,419) (1,242) (j) (a) Included in mortgage banking revenue. (b) Approximately $52 million, $(1.0) billion and $6 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (c) Represents MSRs capitalized during the period. (d) Approximately $17 million, $(19) million and $6 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (e) Approximately $46 million, $(2.0) billion and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (f) Approximately $18 million, $(1.7) billion and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (g) Approximately $96 million, $(2.7) billion and $(69) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (h) Approximately $17 million, $(624) million and $(69) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (i) Approximately $98 million, $(2.3) billion and $(1) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. (j) Approximately $18 million, $(1.3) billion and $(1) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. |
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 the reporting date: June 30, 2024 December 31, 2023 (Dollars in Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Loans (a) $ — $ — $ 508 $ 508 $ — $ — $ 354 $ 354 Other assets (b) — — 21 21 — — 27 27 (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: Three Months Ended June 30 Six Months Ended June 30 (Dollars in Millions) 2024 2023 2024 2023 Loans (a) $ 96 $ 68 $ 163 $ 210 Other assets (b) 1 — 3 1 (a) Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off. (b) |
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: June 30, 2024 December 31, 2023 (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) $ 2,550 $ 2,528 $ 22 $ 2,011 $ 1,994 $ 17 Time deposits 6,089 6,104 (15) 2,818 2,822 (4) (a) I |
Estimated Fair Values of Financial Instruments | The estimated fair values of the Company’s financial instruments are shown in the table below: June 30, 2024 December 31, 2023 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 $ 65,832 $ 65,832 $ — $ — $ 65,832 $ 61,192 $ 61,192 $ — $ — $ 61,192 Federal funds sold and securities purchased under resale agreements 4,408 — 4,408 — 4,408 2,543 — 2,543 — 2,543 Investment securities held-to-maturity 81,486 1,256 68,055 — 69,311 84,045 1,310 72,778 — 74,088 Loans held for sale (a) 32 — — 32 32 190 — — 190 190 Loans 368,584 — — 359,667 359,667 366,456 — — 362,849 362,849 Other (b) 2,084 — 1,556 528 2,084 2,377 — 1,863 514 2,377 Financial Liabilities Time deposits (c) 51,228 — 51,395 — 51,395 49,455 — 49,607 — 49,607 Short-term borrowings (d) 14,215 — 13,983 — 13,983 12,976 — 12,729 — 12,729 Long-term debt 52,720 — 51,171 — 51,171 51,480 — 49,697 — 49,697 Other (e) 4,860 — 1,359 3,501 4,860 5,432 — 1,406 4,026 5,432 (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. |
Guarantees and Contingent Lia_2
Guarantees and Contingent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Other Guarantees and Contingent Liabilities | The following table is a summary of other guarantees and contingent liabilities of the Company at June 30, 2024: (Dollars in Millions) Collateral Held Carrying Amount Maximum Potential Future Payments Standby letters of credit $ — $ 20 $ 10,921 Securities lending indemnifications 6,769 — 6,586 Asset sales — 99 10,644 (a) Merchant processing 876 64 152,500 Tender option bond program guarantee 343 — 338 Other — 21 2,825 (a) |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Business Segment Results | Business segment results for the three months ended June 30 were as follows: Wealth, Corporate, Commercial and Institutional Banking Consumer and Business Banking Payment Services (Dollars in Millions) 2024 2023 2024 2023 2024 2023 Condensed Income Statement Net interest income (taxable-equivalent basis) $ 1,906 $ 1,894 $ 1,922 $ 2,295 $ 673 $ 623 Noninterest income 1,131 1,071 413 431 1,094 (a) 1,050 (a) Total net revenue 3,037 2,965 2,335 2,726 1,767 1,673 Noninterest expense 1,374 1,380 1,622 1,764 983 941 Income (loss) before provision and income taxes 1,663 1,585 713 962 784 732 Provision for credit losses 100 162 30 16 388 314 Income (loss) before income taxes 1,563 1,423 683 946 396 418 Income taxes and taxable-equivalent adjustment 391 356 171 237 99 105 Net income (loss) 1,172 1,067 512 709 297 313 Net (income) loss attributable to noncontrolling interests — — — — — — Net income (loss) attributable to U.S. Bancorp $ 1,172 $ 1,067 $ 512 $ 709 $ 297 $ 313 Average Balance Sheet Loans $ 173,695 $ 178,749 $ 154,857 $ 167,002 $ 40,832 $ 37,913 Other earning assets 9,590 6,671 2,278 2,512 115 74 Goodwill 4,824 4,651 4,326 4,530 3,327 3,331 Other intangible assets 1,007 962 4,734 5,393 281 359 Assets 203,201 205,169 168,634 184,804 46,099 44,126 Noninterest-bearing deposits 57,299 73,512 20,900 34,120 2,706 3,179 Interest-bearing deposits 216,293 195,333 202,967 180,239 97 104 Total deposits 273,592 268,845 223,867 214,359 2,803 3,283 Total U.S. Bancorp shareholders’ equity 21,481 22,359 14,553 16,386 9,941 9,127 Treasury and Corporate Support Consolidated Company (Dollars in Millions) 2024 2023 2024 2023 Condensed Income Statement Net interest income (taxable-equivalent basis) $ (449) $ (363) $ 4,052 $ 4,449 Noninterest income 177 174 2,815 (b) 2,726 (b) Total net revenue (272) (189) 6,867 (c) 7,175 (c) Noninterest expense 235 484 4,214 4,569 Income (loss) before provision and income taxes (507) (673) 2,653 2,606 Provision for credit losses 50 329 568 821 Income (loss) before income taxes (557) (1,002) 2,085 1,785 Income taxes and taxable-equivalent adjustment (187) (282) 474 416 Net income (loss) (370) (720) 1,611 1,369 Net (income) loss attributable to noncontrolling interests (8) (8) (8) (8) Net income (loss) attributable to U.S. Bancorp $ (378) $ (728) $ 1,603 $ 1,361 Average Balance Sheet Loans $ 5,301 $ 5,153 $ 374,685 $ 388,817 Other earning assets 222,224 215,765 234,207 225,022 Goodwill — — 12,477 12,512 Other intangible assets 9 10 6,031 6,724 Assets 247,570 238,913 665,504 673,012 Noninterest-bearing deposits 2,513 2,947 83,418 113,758 Interest-bearing deposits 11,134 7,831 430,491 383,507 Total deposits 13,647 10,778 513,909 497,265 Total U.S. Bancorp shareholders’ equity 10,054 5,950 56,029 53,822 (a) Presented net of related rewards and rebate costs and certain partner payments of $776 million and $760 million for the three months ended June 30, 2024 and 2023, respectively. (b) Includes revenue generated from certain contracts with customers of $2.3 billion and $2.2 billion for the three months ended June 30, 2024 and 2023, respectively. (c) The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Under these arrangements, the Company recorded $195 million and $186 million of revenue for the three months ended June 30, 2024 and 2023, respectively, primarily consisting of interest income on sales-type and direct financing leases. Business segment results for the six months ended June 30 were as follows: Wealth, Corporate, Commercial and Institutional Banking Consumer and Business Banking Payment Services (Dollars in Millions) 2024 2023 2024 2023 2024 2023 Condensed Income Statement Net interest income (taxable-equivalent basis) $ 3,810 $ 3,857 $ 3,801 $ 4,684 $ 1,375 $ 1,270 Noninterest income 2,244 2,090 836 831 2,073 (a) 1,987 (a) Total net revenue 6,054 5,947 4,637 5,515 3,448 3,257 Noninterest expense 2,746 2,738 3,224 3,496 1,981 1,889 Income (loss) before provision and income taxes 3,308 3,209 1,413 2,019 1,467 1,368 Provision for credit losses 241 135 84 23 747 534 Income (loss) before income taxes 3,067 3,074 1,329 1,996 720 834 Income taxes and taxable-equivalent adjustment 767 769 333 500 180 209 Net income (loss) 2,300 2,305 996 1,496 540 625 Net (income) loss attributable to noncontrolling interests — — — — — — Net income (loss) attributable to U.S. Bancorp $ 2,300 $ 2,305 $ 996 $ 1,496 $ 540 $ 625 Average Balance Sheet Loans $ 172,381 $ 177,867 $ 154,845 $ 167,214 $ 40,318 $ 37,426 Other earning assets 9,164 6,349 2,078 2,346 134 187 Goodwill 4,825 4,633 4,326 4,512 3,329 3,323 Other intangible assets 1,033 998 4,714 5,492 291 372 Assets 201,196 203,168 168,854 185,032 46,458 43,492 Noninterest-bearing deposits 57,939 77,816 21,137 37,616 2,749 3,181 Interest-bearing deposits 212,068 197,372 201,131 177,227 97 106 Total deposits 270,007 275,188 222,268 214,843 2,846 3,287 Total U.S. Bancorp shareholders’ equity 21,619 21,949 14,699 16,476 9,953 9,048 Treasury and Corporate Support Consolidated Company (Dollars in Millions) 2024 2023 2024 2023 Condensed Income Statement Net interest income (taxable-equivalent basis) $ (919) $ (694) $ 8,067 $ 9,117 Noninterest income 362 325 5,515 (b) 5,233 (b) Total net revenue (557) (369) 13,582 (c) 14,350 (c) Noninterest expense 722 1,001 8,673 9,124 Income (loss) before provision and income taxes (1,279) (1,370) 4,909 5,226 Provision for credit losses 49 556 1,121 1,248 Income (loss) before income taxes (1,328) (1,926) 3,788 3,978 Income taxes and taxable-equivalent adjustment (429) (573) 851 905 Net income (loss) (899) (1,353) 2,937 3,073 Net (income) loss attributable to noncontrolling interests (15) (14) (15) (14) Net income (loss) attributable to U.S. Bancorp $ (914) $ (1,367) $ 2,922 $ 3,059 Average Balance Sheet Loans $ 5,334 $ 5,282 $ 372,878 $ 387,789 Other earning assets 218,259 214,073 229,635 222,955 Goodwill — — 12,480 12,468 Other intangible assets 10 23 6,048 6,885 Assets 243,199 237,559 659,707 669,251 Noninterest-bearing deposits 2,277 3,092 84,102 121,705 Interest-bearing deposits 11,087 7,348 424,383 382,053 Total deposits 13,364 10,440 508,485 503,758 Total U.S. Bancorp shareholders’ equity 9,578 5,775 55,849 53,248 (a) Presented net of related rewards and rebate costs and certain partner payments of $1.5 billion for both the six months ended June 30, 2024 and 2023. (b) Includes revenue generated from certain contracts with customers of $4.5 billion and $4.3 billion for the six months ended June 30, 2024 and 2023, respectively. (c) The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Under these arrangements, the Company recorded $382 million and $369 million of revenue for the six months ended June 30, 2024 and 2023, respectively, primarily consisting of interest income on sales-type and direct financing leases. |
Investment Securities - Held-to
Investment Securities - Held-to-Maturity Securities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | $ 81,486 | $ 84,045 |
Unrealized Gains | 0 | 12 |
Unrealized Losses | (12,175) | (9,969) |
Fair Value | 69,311 | 74,088 |
U.S. Treasury and agencies | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 1,296 | 1,345 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (40) | (35) |
Fair Value | 1,256 | 1,310 |
Residential mortgage-backed securities | Agency | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 78,327 | 80,997 |
Unrealized Gains | 0 | 6 |
Unrealized Losses | (12,105) | (9,929) |
Fair Value | 66,222 | 71,074 |
Commercial mortgage-backed securities | Agency | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 1,700 | 1,695 |
Unrealized Gains | 0 | 6 |
Unrealized Losses | (30) | (5) |
Fair Value | 1,670 | 1,696 |
Other | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 163 | 8 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 163 | $ 8 |
Investment Securities - Availab
Investment Securities - Available-For-Sale Securities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | $ 86,909 | $ 76,602 | |
Unrealized Gains | 102 | 173 | |
Unrealized Losses | (7,212) | (7,069) | |
Fair Value | [1] | 79,799 | 69,706 |
Portfolio level basis adjustments, Amortized Cost | 60 | 335 | |
Portfolio level basis adjustments, Unrealized Losses | (60) | (335) | |
U.S. Treasury and agencies | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 30,251 | 21,768 | |
Unrealized Gains | 4 | 8 | |
Unrealized Losses | (2,205) | (2,234) | |
Fair Value | 28,050 | 19,542 | |
Residential mortgage-backed securities | Agency | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 30,254 | 28,185 | |
Unrealized Gains | 67 | 104 | |
Unrealized Losses | (2,364) | (2,211) | |
Fair Value | 27,957 | 26,078 | |
Commercial mortgage-backed securities | Agency | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 8,689 | 8,703 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | (1,415) | (1,360) | |
Fair Value | 7,274 | 7,343 | |
Commercial mortgage-backed securities | Non-agency | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 7 | 7 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | (1) | |
Fair Value | 7 | 6 | |
Asset-backed securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 6,595 | 6,713 | |
Unrealized Gains | 13 | 25 | |
Unrealized Losses | (26) | (14) | |
Fair Value | 6,582 | 6,724 | |
Obligations of state and political subdivisions | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 10,808 | 10,867 | |
Unrealized Gains | 18 | 36 | |
Unrealized Losses | (1,142) | (914) | |
Fair Value | 9,684 | 9,989 | |
Other | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 245 | 24 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Fair Value | 245 | 24 | |
Excluding portfolio level basis adjustments | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 86,849 | 76,267 | |
Unrealized Gains | 102 | 173 | |
Unrealized Losses | (7,152) | (6,734) | |
Fair Value | $ 79,799 | $ 69,706 | |
[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 | Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Securities, Available-for-Sale [Line Items] | |||
Available-for-sale securities | [1] | $ 79,799 | $ 69,706 |
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 | 21,400 | 20,500 | |
Asset Pledged as Collateral with Right | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Available-for-sale securities | $ 290 | $ 338 | |
[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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Taxable | $ 1,218 | $ 999 | $ 2,317 | $ 1,993 |
Non-taxable | 76 | 78 | 152 | 158 |
Total interest income from investment securities | $ 1,294 | $ 1,077 | $ 2,469 | $ 2,151 |
Investment Securities - Gross G
Investment Securities - Gross Gains and Losses Realized through Sales of Available-for-Sale Investment Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Realized gains | $ 0 | $ 5 | $ 3 | $ 65 |
Realized losses | (36) | (2) | (37) | (94) |
Net realized gains (losses) | (36) | 3 | (34) | (29) |
Income tax (benefit) on net realized gains (losses) | $ (9) | $ 1 | $ (8) | $ (7) |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses and Fair Value of Investment Securities (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Schedule Of Fair Value And Gross Unrealized Losses [Line Items] | |
Less Than 12 Months, Fair Value | $ 14,353 |
Less Than 12 Months, Unrealized Losses | (55) |
12 Months or Greater, Fair Value | 53,722 |
12 Months or Greater, Unrealized Losses | (7,097) |
Total, Fair Value | 68,075 |
Total, Unrealized Losses | (7,152) |
U.S. Treasury and agencies | |
Schedule Of Fair Value And Gross Unrealized Losses [Line Items] | |
Less Than 12 Months, Fair Value | 7,891 |
Less Than 12 Months, Unrealized Losses | (13) |
12 Months or Greater, Fair Value | 17,447 |
12 Months or Greater, Unrealized Losses | (2,192) |
Total, Fair Value | 25,338 |
Total, Unrealized Losses | (2,205) |
Residential mortgage-backed securities | |
Schedule Of Fair Value And Gross Unrealized Losses [Line Items] | |
Less Than 12 Months, Fair Value | 1,891 |
Less Than 12 Months, Unrealized Losses | (16) |
12 Months or Greater, Fair Value | 19,724 |
12 Months or Greater, Unrealized Losses | (2,348) |
Total, Fair Value | 21,615 |
Total, Unrealized Losses | (2,364) |
Commercial mortgage-backed securities | Agency | |
Schedule Of Fair Value And Gross Unrealized Losses [Line Items] | |
Less Than 12 Months, Fair Value | 0 |
Less Than 12 Months, Unrealized Losses | 0 |
12 Months or Greater, Fair Value | 7,274 |
12 Months or Greater, Unrealized Losses | (1,415) |
Total, Fair Value | 7,274 |
Total, Unrealized Losses | (1,415) |
Commercial mortgage-backed securities | Non-agency | |
Schedule Of Fair Value And Gross Unrealized Losses [Line Items] | |
Less Than 12 Months, Fair Value | 0 |
Less Than 12 Months, Unrealized Losses | 0 |
12 Months or Greater, Fair Value | 7 |
12 Months or Greater, Unrealized Losses | 0 |
Total, Fair Value | 7 |
Total, Unrealized Losses | 0 |
Asset-backed securities | |
Schedule Of Fair Value And Gross Unrealized Losses [Line Items] | |
Less Than 12 Months, Fair Value | 2,897 |
Less Than 12 Months, Unrealized Losses | (8) |
12 Months or Greater, Fair Value | 1,560 |
12 Months or Greater, Unrealized Losses | (18) |
Total, Fair Value | 4,457 |
Total, Unrealized Losses | (26) |
Obligations of state and political subdivisions | |
Schedule Of Fair Value And Gross Unrealized Losses [Line Items] | |
Less Than 12 Months, Fair Value | 1,540 |
Less Than 12 Months, Unrealized Losses | (18) |
12 Months or Greater, Fair Value | 7,706 |
12 Months or Greater, Unrealized Losses | (1,124) |
Total, Fair Value | 9,246 |
Total, Unrealized Losses | (1,142) |
Other | |
Schedule Of Fair Value And Gross Unrealized Losses [Line Items] | |
Less Than 12 Months, Fair Value | 134 |
Less Than 12 Months, Unrealized Losses | 0 |
12 Months or Greater, Fair Value | 4 |
12 Months or Greater, Unrealized Losses | 0 |
Total, Fair Value | 138 |
Total, Unrealized Losses | $ 0 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost, Fair Value and Yield by Maturity Date (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | ||
Amortized Cost | ||||||
Amortized Cost | $ 81,486 | $ 81,486 | $ 84,045 | |||
Fair Value | ||||||
Fair Value | $ 69,311 | $ 69,311 | $ 74,088 | |||
Weighted- Average Maturity in Years | ||||||
Total | 8 years 9 months 18 days | |||||
Weighted-Average Yield | ||||||
Total | 2.20% | 2.20% | 2.22% | |||
Weighted average maturity of total held to maturity investment securities | 8 years 8 months 12 days | |||||
Amortized Cost | ||||||
Amortized Cost | $ 86,849 | $ 86,849 | ||||
Fair Value | ||||||
Fair Value | [1] | $ 79,799 | $ 79,799 | $ 69,706 | ||
Weighted- Average Maturity in Years | ||||||
Total | 6 years 6 months | 6 years 3 months 18 days | ||||
Weighted-Average Yield | ||||||
Total | 3.49% | 3.49% | 3.12% | |||
Federal statutory rate | 21% | 21% | 21% | 21% | ||
Portfolio basis adjustments excluded from amortized cost | $ 60 | $ 60 | ||||
U.S. Treasury and agencies | ||||||
Amortized Cost | ||||||
Maturing in one year or less | 650 | 650 | ||||
Maturing after one year through five years | 646 | 646 | ||||
Maturing after five years through ten years | 0 | 0 | ||||
Maturing after ten years | 0 | 0 | ||||
Amortized Cost | 1,296 | 1,296 | $ 1,345 | |||
Fair Value | ||||||
Maturing in one year or less | 637 | 637 | ||||
Maturing after one year through five years | 619 | 619 | ||||
Maturing after five years through ten years | 0 | 0 | ||||
Maturing after ten years | 0 | 0 | ||||
Fair Value | $ 1,256 | $ 1,256 | 1,310 | |||
Weighted- Average Maturity in Years | ||||||
Maturing in one year or less | 10 months 24 days | |||||
Maturing after one year through five years | 2 years 9 months 18 days | |||||
Total | 1 year 10 months 24 days | |||||
Weighted-Average Yield | ||||||
Maturing in one year or less | 2.71% | 2.71% | ||||
Maturing after one year through five years | 3% | 3% | ||||
Maturing after five years through ten years | 0% | 0% | ||||
Maturing after ten years | 0% | 0% | ||||
Total | 2.85% | 2.85% | ||||
Maturing in one year or less | 8 months 12 days | |||||
Amortized Cost | ||||||
Maturing in one year or less | $ 435 | $ 435 | ||||
Maturing after one year through five years | 12,962 | 12,962 | ||||
Maturing after five years through ten years | 16,077 | 16,077 | ||||
Maturing after ten years | 777 | 777 | ||||
Amortized Cost | 30,251 | 30,251 | ||||
Fair Value | ||||||
Maturing in one year or less | 431 | 431 | ||||
Maturing after one year through five years | 12,318 | 12,318 | ||||
Maturing after five years through ten years | 14,721 | 14,721 | ||||
Maturing after ten years | 580 | 580 | ||||
Fair Value | $ 28,050 | $ 28,050 | 19,542 | |||
Weighted- Average Maturity in Years | ||||||
Maturing in one year or less | 8 months 12 days | |||||
Maturing after one year through five years | 3 years 7 months 6 days | |||||
Maturing after five years through ten years | 6 years 9 months 18 days | |||||
Maturing after ten years | 11 years | |||||
Total | 5 years 4 months 24 days | |||||
Weighted-Average Yield | ||||||
Maturing in one year or less | 3.98% | 3.98% | ||||
Maturing after one year through five years | 2.93% | 2.93% | ||||
Maturing after five years through ten years | 3.08% | 3.08% | ||||
Maturing after ten years | 1.92% | 1.92% | ||||
Total | 3% | 3% | ||||
Mortgage-backed securities | ||||||
Amortized Cost | ||||||
Maturing in one year or less | $ 28 | $ 28 | ||||
Maturing after one year through five years | 1,507 | 1,507 | ||||
Maturing after five years through ten years | 73,202 | 73,202 | ||||
Maturing after ten years | 5,290 | 5,290 | ||||
Amortized Cost | 80,027 | 80,027 | ||||
Fair Value | ||||||
Maturing in one year or less | 27 | 27 | ||||
Maturing after one year through five years | 1,488 | 1,488 | ||||
Maturing after five years through ten years | 62,203 | 62,203 | ||||
Maturing after ten years | 4,174 | 4,174 | ||||
Fair Value | $ 67,892 | $ 67,892 | ||||
Weighted- Average Maturity in Years | ||||||
Maturing in one year or less | 8 months 12 days | |||||
Maturing after one year through five years | 3 years | |||||
Maturing after five years through ten years | 8 years 10 months 24 days | |||||
Maturing after ten years | 10 years 2 months 12 days | |||||
Total | 8 years 10 months 24 days | |||||
Weighted-Average Yield | ||||||
Maturing in one year or less | 4.44% | 4.44% | ||||
Maturing after one year through five years | 4.54% | 4.54% | ||||
Maturing after five years through ten years | 2.16% | 2.16% | ||||
Maturing after ten years | 1.89% | 1.89% | ||||
Total | 2.19% | 2.19% | ||||
Maturing in one year or less | 8 months 12 days | |||||
Amortized Cost | ||||||
Maturing in one year or less | $ 99 | $ 99 | ||||
Maturing after one year through five years | 8,252 | 8,252 | ||||
Maturing after five years through ten years | 29,495 | 29,495 | ||||
Maturing after ten years | 1,104 | 1,104 | ||||
Amortized Cost | 38,950 | 38,950 | ||||
Fair Value | ||||||
Maturing in one year or less | 96 | 96 | ||||
Maturing after one year through five years | 7,787 | 7,787 | ||||
Maturing after five years through ten years | 26,425 | 26,425 | ||||
Maturing after ten years | 930 | 930 | ||||
Fair Value | $ 35,238 | $ 35,238 | ||||
Weighted- Average Maturity in Years | ||||||
Maturing in one year or less | 8 months 12 days | |||||
Maturing after one year through five years | 3 years 4 months 24 days | |||||
Maturing after five years through ten years | 7 years 4 months 24 days | |||||
Maturing after ten years | 10 years 9 months 18 days | |||||
Total | 6 years 7 months 6 days | |||||
Weighted-Average Yield | ||||||
Maturing in one year or less | 1.83% | 1.83% | ||||
Maturing after one year through five years | 3.22% | 3.22% | ||||
Maturing after five years through ten years | 3.53% | 3.53% | ||||
Maturing after ten years | 3.40% | 3.40% | ||||
Total | 3.46% | 3.46% | ||||
Asset-backed securities | ||||||
Weighted-Average Yield | ||||||
Maturing in one year or less | 7 months 6 days | |||||
Amortized Cost | ||||||
Maturing in one year or less | $ 8 | $ 8 | ||||
Maturing after one year through five years | 4,601 | 4,601 | ||||
Maturing after five years through ten years | 1,986 | 1,986 | ||||
Maturing after ten years | 0 | 0 | ||||
Amortized Cost | 6,595 | 6,595 | ||||
Fair Value | ||||||
Maturing in one year or less | 9 | 9 | ||||
Maturing after one year through five years | 4,582 | 4,582 | ||||
Maturing after five years through ten years | 1,991 | 1,991 | ||||
Maturing after ten years | 0 | 0 | ||||
Fair Value | $ 6,582 | $ 6,582 | 6,724 | |||
Weighted- Average Maturity in Years | ||||||
Maturing in one year or less | 7 months 6 days | |||||
Maturing after one year through five years | 1 year 8 months 12 days | |||||
Maturing after five years through ten years | 5 years 10 months 24 days | |||||
Total | 2 years 10 months 24 days | |||||
Weighted-Average Yield | ||||||
Maturing in one year or less | 7.55% | 7.55% | ||||
Maturing after one year through five years | 4.96% | 4.96% | ||||
Maturing after five years through ten years | 6.66% | 6.66% | ||||
Maturing after ten years | 0% | 0% | ||||
Total | 5.48% | 5.48% | ||||
Obligations of state and political subdivisions | ||||||
Weighted-Average Yield | ||||||
Maturing in one year or less | 3 months 18 days | |||||
Amortized Cost | ||||||
Maturing in one year or less | $ 165 | $ 165 | ||||
Maturing after one year through five years | 2,080 | 2,080 | ||||
Maturing after five years through ten years | 1,560 | 1,560 | ||||
Maturing after ten years | 7,003 | 7,003 | ||||
Amortized Cost | 10,808 | 10,808 | ||||
Fair Value | ||||||
Maturing in one year or less | 165 | 165 | ||||
Maturing after one year through five years | 2,064 | 2,064 | ||||
Maturing after five years through ten years | 1,480 | 1,480 | ||||
Maturing after ten years | 5,975 | 5,975 | ||||
Fair Value | $ 9,684 | $ 9,684 | 9,989 | |||
Weighted- Average Maturity in Years | ||||||
Maturing in one year or less | 3 months 18 days | |||||
Maturing after one year through five years | 2 years 9 months 18 days | |||||
Maturing after five years through ten years | 7 years 3 months 18 days | |||||
Maturing after ten years | 15 years 2 months 12 days | |||||
Total | 11 years 6 months | |||||
Weighted-Average Yield | ||||||
Maturing in one year or less | 5.11% | 5.11% | ||||
Maturing after one year through five years | 4.74% | 4.74% | ||||
Maturing after five years through ten years | 3.79% | 3.79% | ||||
Maturing after ten years | 3.41% | 3.41% | ||||
Total | 3.74% | 3.74% | ||||
Other | ||||||
Amortized Cost | ||||||
Maturing in one year or less | $ 16 | $ 16 | ||||
Maturing after one year through five years | 147 | 147 | ||||
Maturing after five years through ten years | 0 | 0 | ||||
Maturing after ten years | 0 | 0 | ||||
Amortized Cost | 163 | 163 | 8 | |||
Fair Value | ||||||
Maturing in one year or less | 16 | 16 | ||||
Maturing after one year through five years | 147 | 147 | ||||
Maturing after five years through ten years | 0 | 0 | ||||
Maturing after ten years | 0 | 0 | ||||
Fair Value | $ 163 | $ 163 | 8 | |||
Weighted- Average Maturity in Years | ||||||
Maturing in one year or less | 9 months 18 days | |||||
Maturing after one year through five years | 2 years 10 months 24 days | |||||
Total | 2 years 8 months 12 days | |||||
Weighted-Average Yield | ||||||
Maturing in one year or less | 3.24% | 3.24% | ||||
Maturing after one year through five years | 2.82% | 2.82% | ||||
Maturing after five years through ten years | 0% | 0% | ||||
Maturing after ten years | 0% | 0% | ||||
Total | 2.86% | 2.86% | ||||
Maturing in one year or less | 10 months 24 days | |||||
Amortized Cost | ||||||
Maturing in one year or less | $ 4 | $ 4 | ||||
Maturing after one year through five years | 241 | 241 | ||||
Maturing after five years through ten years | 0 | 0 | ||||
Maturing after ten years | 0 | 0 | ||||
Amortized Cost | 245 | 245 | ||||
Fair Value | ||||||
Maturing in one year or less | 4 | 4 | ||||
Maturing after one year through five years | 241 | 241 | ||||
Maturing after five years through ten years | 0 | 0 | ||||
Maturing after ten years | 0 | 0 | ||||
Fair Value | $ 245 | $ 245 | $ 24 | |||
Weighted- Average Maturity in Years | ||||||
Maturing in one year or less | 10 months 24 days | |||||
Maturing after one year through five years | 2 years | |||||
Total | 2 years | |||||
Weighted-Average Yield | ||||||
Maturing in one year or less | 1.89% | 1.89% | ||||
Maturing after one year through five years | 5% | 5% | ||||
Maturing after five years through ten years | 0% | 0% | ||||
Maturing after ten years | 0% | 0% | ||||
Total | 4.95% | 4.95% | ||||
[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 | Jun. 30, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 376,133 | $ 373,835 |
Percent of Total | 100% | 100% |
Commercial | Total commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 135,248 | $ 131,881 |
Percent of Total | 36% | 35.30% |
Commercial | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 131,043 | $ 127,676 |
Percent of Total | 34.90% | 34.20% |
Commercial | Lease financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 4,205 | $ 4,205 |
Percent of Total | 1.10% | 1.10% |
Commercial | Total commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 51,887 | $ 53,455 |
Percent of Total | 13.80% | 14.30% |
Commercial | Commercial mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 40,844 | $ 41,934 |
Percent of Total | 10.90% | 11.20% |
Commercial | Construction and development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 11,043 | $ 11,521 |
Percent of Total | 2.90% | 3.10% |
Consumer | Total residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 117,147 | $ 115,530 |
Percent of Total | 31.10% | 30.90% |
Consumer | Residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 110,680 | $ 108,605 |
Percent of Total | 29.40% | 29% |
Consumer | Home equity loans, first liens | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 6,467 | $ 6,925 |
Percent of Total | 1.70% | 1.90% |
Consumer | Credit card | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 28,715 | $ 28,560 |
Percent of Total | 7.60% | 7.60% |
Consumer | Total other retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 43,136 | $ 44,409 |
Percent of Total | 11.50% | 11.90% |
Consumer | Retail leasing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 4,178 | $ 4,135 |
Percent of Total | 1.10% | 1.10% |
Consumer | Home equity and second mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 13,180 | $ 13,056 |
Percent of Total | 3.50% | 3.50% |
Consumer | Revolving credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 3,597 | $ 3,668 |
Percent of Total | 1% | 1% |
Consumer | Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 14,169 | $ 13,889 |
Percent of Total | 3.80% | 3.70% |
Consumer | Automobile | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 8,012 | $ 9,661 |
Percent of Total | 2.10% | 2.60% |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans pledged at the Federal Home Loan Bank | $ 368,584 | $ 368,584 | $ 366,456 | ||
Loans pledged at the Federal Reserve Bank | 83,200 | 83,200 | 82,800 | ||
Net unearned interest and deferred fees and costs on originated loans and unamortized premiums and discounts on purchased loans | $ 2,700 | $ 2,700 | 2,700 | ||
Reasonable and supportable period for allowance for credit loss | 3 years | 3 years | |||
Foreclosed residential real estate property included in other real estate owned | $ 23 | $ 23 | 26 | ||
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 | 49 | 49 | 47 | ||
Residential mortgage loans secured by residential real estate in process of foreclosure | 605 | 605 | 728 | ||
Modified loans | 1,631 | $ 1,123 | 2,848 | $ 1,879 | |
Commitments to lend | $ 371 | 371 | |||
Trial Modifications | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Modified loans | $ 43 | ||||
Credit card | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan modification amortization period | 60 months | 60 months | |||
GNMA loans upon foreclosure | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Residential mortgage loans secured by residential real estate in process of foreclosure | $ 379 | $ 379 | 487 | ||
Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan threshold when individually evaluated for allowance calculation | $ 5 | $ 5 | |||
Threshold period to be placed on nonaccrual status | 90 days | 90 days | |||
Consumer | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan modification amortization period | 60 months | 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 | 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 | 120 days | |||
Consumer | First Lien | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Threshold period to be placed on nonaccrual status | 180 days | 180 days | |||
Consumer | Credit card | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Threshold period past due for charge-off | 180 days | 180 days | |||
Modified loans | $ 116 | $ 91 | $ 228 | $ 174 | |
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 | 120 days | |||
Consumer | Revolving Consumer Lines | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Threshold period past due for charge-off | 180 days | 180 days | |||
Federal Home Loan Bank | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans pledged at the Federal Home Loan Bank | $ 125,500 | $ 125,500 | $ 123,100 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Activity in Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 7,904 | $ 7,523 | $ 7,839 | $ 7,404 |
Add | ||||
Allowance for acquired credit losses | 127 | |||
Provision for credit losses | 568 | 821 | 1,121 | 1,248 |
Deduct | ||||
Loans charged-off | 652 | 755 | 1,247 | 1,224 |
Less recoveries of loans charged-off | (114) | (106) | (221) | (202) |
Net loan charge-offs (recoveries) | 538 | 649 | 1,026 | 1,022 |
Balance at end of period | 7,934 | 7,695 | 7,934 | 7,695 |
Change in accounting principle | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | (62) | |||
Commercial | Commercial | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 2,159 | 2,180 | 2,119 | 2,163 |
Add | ||||
Allowance for acquired credit losses | 0 | |||
Provision for credit losses | 164 | 119 | 320 | 183 |
Deduct | ||||
Loans charged-off | 180 | 110 | 319 | 173 |
Less recoveries of loans charged-off | (37) | (20) | (60) | (36) |
Net loan charge-offs (recoveries) | 143 | 90 | 259 | 137 |
Balance at end of period | 2,180 | 2,209 | 2,180 | 2,209 |
Commercial | Commercial | Change in accounting principle | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 0 | |||
Commercial | Commercial real estate | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 1,629 | 1,359 | 1,620 | 1,325 |
Add | ||||
Allowance for acquired credit losses | 127 | |||
Provision for credit losses | 3 | 140 | 33 | 164 |
Deduct | ||||
Loans charged-off | 38 | 31 | 72 | 154 |
Less recoveries of loans charged-off | (2) | (5) | (15) | (11) |
Net loan charge-offs (recoveries) | 36 | 26 | 57 | 143 |
Balance at end of period | 1,596 | 1,473 | 1,596 | 1,473 |
Commercial | Commercial real estate | Change in accounting principle | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 0 | |||
Consumer | Residential mortgages | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 843 | 947 | 827 | 926 |
Add | ||||
Allowance for acquired credit losses | 0 | |||
Provision for credit losses | (11) | 66 | 5 | 117 |
Deduct | ||||
Loans charged-off | 3 | 121 | 7 | 125 |
Less recoveries of loans charged-off | (7) | (7) | (11) | (12) |
Net loan charge-offs (recoveries) | (4) | 114 | (4) | 113 |
Balance at end of period | 836 | 899 | 836 | 899 |
Consumer | Residential mortgages | Change in accounting principle | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | (31) | |||
Consumer | Credit card | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 2,425 | 2,112 | 2,403 | 2,020 |
Add | ||||
Allowance for acquired credit losses | 0 | |||
Provision for credit losses | 388 | 272 | 706 | 566 |
Deduct | ||||
Loans charged-off | 358 | 242 | 695 | 457 |
Less recoveries of loans charged-off | (43) | (43) | (84) | (83) |
Net loan charge-offs (recoveries) | 315 | 199 | 611 | 374 |
Balance at end of period | 2,498 | 2,185 | 2,498 | 2,185 |
Consumer | Credit card | Change in accounting principle | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | (27) | |||
Consumer | Other retail | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 848 | 925 | 870 | 970 |
Add | ||||
Allowance for acquired credit losses | 0 | |||
Provision for credit losses | 24 | 224 | 57 | 218 |
Deduct | ||||
Loans charged-off | 73 | 251 | 154 | 315 |
Less recoveries of loans charged-off | (25) | (31) | (51) | (60) |
Net loan charge-offs (recoveries) | 48 | 220 | 103 | 255 |
Balance at end of period | $ 824 | $ 929 | $ 824 | 929 |
Consumer | Other retail | Change in accounting principle | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ (4) |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Loans Charged-off (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Originated in 2024/2023 | $ 39 | $ 53 | $ 46 | $ 53 |
Originated in 2023/2022 | 39 | 123 | 79 | 227 |
Originated in 2022/2021 | 81 | 72 | 137 | 87 |
Originated in 2021/2020 | 17 | 33 | 36 | 43 |
Originated in 2020/2019 | 7 | 30 | 19 | 46 |
Originated prior to 2020/2019 | 21 | 129 | 47 | 183 |
Revolving | 448 | 287 | 883 | 557 |
Revolving converted to term | 28 | 28 | ||
Total charge-offs | 652 | 755 | 1,247 | 1,224 |
Commercial | Commercial | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Originated in 2024/2023 | 3 | 7 | 3 | 7 |
Originated in 2023/2022 | 26 | 34 | 52 | 40 |
Originated in 2022/2021 | 66 | 4 | 84 | 8 |
Originated in 2021/2020 | 7 | 6 | 15 | 10 |
Originated in 2020/2019 | 2 | 2 | 6 | 7 |
Originated prior to 2020/2019 | 11 | 17 | 21 | 28 |
Revolving | 65 | 40 | 138 | 73 |
Revolving converted to term | 0 | 0 | ||
Total charge-offs | 180 | 110 | 319 | 173 |
Commercial | Commercial real estate | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Originated in 2024/2023 | 36 | 0 | 41 | 0 |
Originated in 2023/2022 | 2 | 0 | 6 | 88 |
Originated in 2022/2021 | 0 | 17 | 24 | 17 |
Originated in 2021/2020 | 0 | 0 | 0 | 0 |
Originated in 2020/2019 | 0 | 0 | 0 | 3 |
Originated prior to 2020/2019 | 0 | 14 | 1 | 46 |
Revolving | 0 | 0 | 0 | 0 |
Revolving converted to term | 0 | 0 | ||
Total charge-offs | 38 | 31 | 72 | 154 |
Financing receivable charge offs relating to uncollectible amount on acquired loans | 91 | |||
Consumer | Residential mortgages | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Originated in 2024/2023 | 0 | 0 | 0 | 0 |
Originated in 2023/2022 | 0 | 0 | 0 | 0 |
Originated in 2022/2021 | 1 | 5 | 1 | 5 |
Originated in 2021/2020 | 0 | 8 | 0 | 8 |
Originated in 2020/2019 | 0 | 15 | 0 | 16 |
Originated prior to 2020/2019 | 2 | 93 | 6 | 96 |
Revolving | 0 | 0 | 0 | 0 |
Revolving converted to term | 0 | 0 | ||
Total charge-offs | 3 | 121 | 7 | 125 |
Financing receivables charge off relating to balance sheet repositioning and capital management actions | 117 | |||
Consumer | Credit card | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Originated in 2024/2023 | 0 | 0 | 0 | 0 |
Originated in 2023/2022 | 0 | 0 | 0 | 0 |
Originated in 2022/2021 | 0 | 0 | 0 | 0 |
Originated in 2021/2020 | 0 | 0 | 0 | 0 |
Originated in 2020/2019 | 0 | 0 | 0 | 0 |
Originated prior to 2020/2019 | 0 | 0 | 0 | 0 |
Revolving | 358 | 242 | 695 | 457 |
Revolving converted to term | 0 | 0 | ||
Total charge-offs | 358 | 242 | 695 | 457 |
Consumer | Other retail | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Originated in 2024/2023 | 0 | 46 | 2 | 46 |
Originated in 2023/2022 | 11 | 89 | 21 | 99 |
Originated in 2022/2021 | 14 | 46 | 28 | 57 |
Originated in 2021/2020 | 10 | 19 | 21 | 25 |
Originated in 2020/2019 | 5 | 13 | 13 | 20 |
Originated prior to 2020/2019 | 8 | 5 | 19 | 13 |
Revolving | 25 | 5 | 50 | 27 |
Revolving converted to term | 28 | 28 | ||
Total charge-offs | $ 73 | 251 | $ 154 | $ 315 |
Financing receivables charge off relating 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 | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | $ 376,133 | $ 376,133 | $ 373,835 | ||
Loans purchased from GNMA mortgage pools | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest income on nonperforming loans | 6 | $ 3 | 11 | $ 7 | |
Nonperforming | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 1,810 | 1,810 | 1,449 | ||
Current | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 372,552 | 372,552 | 370,316 | ||
30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 1,070 | 1,070 | 1,372 | ||
90 Days or More Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 701 | 701 | 698 | ||
Commercial | Commercial | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 135,248 | 135,248 | 131,881 | ||
Commercial | Commercial | Nonperforming | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 556 | 556 | 376 | ||
Commercial | Commercial | Current | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 134,317 | 134,317 | 130,925 | ||
Commercial | Commercial | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 288 | 288 | 464 | ||
Commercial | Commercial | 90 Days or More Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 87 | 87 | 116 | ||
Commercial | Commercial real estate | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 51,887 | 51,887 | 53,455 | ||
Commercial | Commercial real estate | Nonperforming | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 959 | 959 | 777 | ||
Commercial | Commercial real estate | Current | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 50,897 | 50,897 | 52,619 | ||
Commercial | Commercial real estate | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 22 | 22 | 55 | ||
Commercial | Commercial real estate | 90 Days or More Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 9 | 9 | 4 | ||
Consumer | Residential mortgages | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 117,147 | 117,147 | 115,530 | ||
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 Government National Mortgage Association mortgage pools, classified as current | 561 | 561 | 595 | ||
Loans 90 days or more past due purchased from Government National Mortgage Association mortgage pools, classified as current | 1,700 | 1,700 | 2,000 | ||
Consumer | Residential mortgages | Nonperforming | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 154 | 154 | 158 | ||
Consumer | Residential mortgages | Current | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 116,681 | 116,681 | 115,067 | ||
Consumer | Residential mortgages | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 142 | 142 | 169 | ||
Consumer | Residential mortgages | 90 Days or More Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 170 | 170 | 136 | ||
Consumer | Credit card | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 28,715 | 28,715 | 28,560 | ||
Consumer | Credit card | Nonperforming | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 0 | 0 | 0 | ||
Consumer | Credit card | Current | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 27,957 | 27,957 | 27,779 | ||
Consumer | Credit card | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 384 | 384 | 406 | ||
Consumer | Credit card | 90 Days or More Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 374 | 374 | 375 | ||
Consumer | Other retail | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 43,136 | 43,136 | 44,409 | ||
Consumer | Other retail | Nonperforming | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 141 | 141 | 138 | ||
Consumer | Other retail | Current | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 42,700 | 42,700 | 43,926 | ||
Consumer | Other retail | 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | 234 | 234 | 278 | ||
Consumer | Other retail | 90 Days or More Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total loans | $ 61 | $ 61 | $ 67 |
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 | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Loans by origination year | |||||
Total loans | $ 376,133 | $ 376,133 | $ 373,835 | ||
Total outstanding commitments | 781,559 | 781,559 | 778,392 | ||
Modified loans | 1,631 | $ 1,123 | 2,848 | $ 1,879 | |
Pass | |||||
Loans by origination year | |||||
Total loans | 362,950 | 362,950 | 361,687 | ||
Total outstanding commitments | 764,699 | 764,699 | 762,869 | ||
Total Criticized | |||||
Loans by origination year | |||||
Total loans | 13,183 | 13,183 | 12,148 | ||
Total outstanding commitments | 16,860 | 16,860 | 15,523 | ||
Special Mention | |||||
Loans by origination year | |||||
Total loans | 3,004 | 3,004 | 3,564 | ||
Total outstanding commitments | 4,690 | 4,690 | 5,053 | ||
Classified | |||||
Loans by origination year | |||||
Total loans | 10,179 | 10,179 | 8,584 | ||
Total outstanding commitments | 12,170 | 12,170 | 10,470 | ||
Loans purchased from GNMA mortgage pools | |||||
Loans by origination year | |||||
Modified loans | 705 | 637 | 1,286 | 939 | |
Commercial | Commercial | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 27,822 | 27,822 | 44,706 | ||
Originated in 2023/2022 | 31,751 | 31,751 | 40,982 | ||
Originated in 2022/2021 | 30,695 | 30,695 | 9,490 | ||
Originated in 2021/2020 | 6,997 | 6,997 | 3,332 | ||
Originated in 2020 | 3,006 | 3,006 | |||
Originated prior to 2020 | 5,055 | 5,055 | |||
Originated prior to 2020 | 5,542 | ||||
Revolving | 29,922 | 29,922 | 27,829 | ||
Total loans | 135,248 | 135,248 | 131,881 | ||
Modified loans | 276 | 149 | 496 | 318 | |
Commercial | Commercial | Pass | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 27,054 | 27,054 | 43,023 | ||
Originated in 2023/2022 | 30,508 | 30,508 | 40,076 | ||
Originated in 2022/2021 | 29,451 | 29,451 | 9,219 | ||
Originated in 2021/2020 | 6,738 | 6,738 | 3,169 | ||
Originated in 2020 | 2,843 | 2,843 | |||
Originated prior to 2020 | 4,948 | 4,948 | |||
Originated prior to 2020 | 5,303 | ||||
Revolving | 28,585 | 28,585 | 26,213 | ||
Total loans | 130,127 | 130,127 | 127,003 | ||
Commercial | Commercial | Total Criticized | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 768 | 768 | 1,683 | ||
Originated in 2023/2022 | 1,243 | 1,243 | 906 | ||
Originated in 2022/2021 | 1,244 | 1,244 | 271 | ||
Originated in 2021/2020 | 259 | 259 | 163 | ||
Originated in 2020 | 163 | 163 | |||
Originated prior to 2020 | 107 | 107 | |||
Originated prior to 2020 | 239 | ||||
Revolving | 1,337 | 1,337 | 1,616 | ||
Total loans | 5,121 | 5,121 | 4,878 | ||
Commercial | Commercial | Special Mention | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 272 | 272 | 827 | ||
Originated in 2023/2022 | 349 | 349 | 274 | ||
Originated in 2022/2021 | 274 | 274 | 117 | ||
Originated in 2021/2020 | 143 | 143 | 92 | ||
Originated in 2020 | 61 | 61 | |||
Originated prior to 2020 | 9 | 9 | |||
Originated prior to 2020 | 30 | ||||
Revolving | 279 | 279 | 362 | ||
Total loans | 1,387 | 1,387 | 1,702 | ||
Commercial | Commercial | Classified | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 496 | 496 | 856 | ||
Originated in 2023/2022 | 894 | 894 | 632 | ||
Originated in 2022/2021 | 970 | 970 | 154 | ||
Originated in 2021/2020 | 116 | 116 | 71 | ||
Originated in 2020 | 102 | 102 | |||
Originated prior to 2020 | 98 | 98 | |||
Originated prior to 2020 | 209 | ||||
Revolving | 1,058 | 1,058 | 1,254 | ||
Total loans | 3,734 | 3,734 | 3,176 | ||
Commercial | Commercial real estate | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 5,491 | 5,491 | 11,519 | ||
Originated in 2023/2022 | 8,514 | 8,514 | 13,354 | ||
Originated in 2022/2021 | 12,554 | 12,554 | 10,120 | ||
Originated in 2021/2020 | 8,922 | 8,922 | 3,935 | ||
Originated in 2020 | 3,406 | 3,406 | |||
Originated prior to 2020 | 10,566 | 10,566 | |||
Originated prior to 2020 | 11,836 | ||||
Revolving | 2,434 | 2,434 | 2,689 | ||
Revolving converted to term | 0 | 0 | 2 | ||
Total loans | 51,887 | 51,887 | 53,455 | ||
Modified loans | 476 | 101 | 714 | 109 | |
Commercial | Commercial real estate | Pass | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 4,385 | 4,385 | 8,848 | ||
Originated in 2023/2022 | 6,788 | 6,788 | 11,831 | ||
Originated in 2022/2021 | 10,515 | 10,515 | 9,235 | ||
Originated in 2021/2020 | 7,919 | 7,919 | 3,797 | ||
Originated in 2020 | 3,218 | 3,218 | |||
Originated prior to 2020 | 9,550 | 9,550 | |||
Originated prior to 2020 | 10,759 | ||||
Revolving | 2,365 | 2,365 | 2,613 | ||
Revolving converted to term | 0 | 0 | 2 | ||
Total loans | 44,740 | 44,740 | 47,085 | ||
Commercial | Commercial real estate | Total Criticized | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 1,106 | 1,106 | 2,671 | ||
Originated in 2023/2022 | 1,726 | 1,726 | 1,523 | ||
Originated in 2022/2021 | 2,039 | 2,039 | 885 | ||
Originated in 2021/2020 | 1,003 | 1,003 | 138 | ||
Originated in 2020 | 188 | 188 | |||
Originated prior to 2020 | 1,016 | 1,016 | |||
Originated prior to 2020 | 1,077 | ||||
Revolving | 69 | 69 | 76 | ||
Revolving converted to term | 0 | 0 | 0 | ||
Total loans | 7,147 | 7,147 | 6,370 | ||
Commercial | Commercial real estate | Special Mention | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 194 | 194 | 465 | ||
Originated in 2023/2022 | 160 | 160 | 382 | ||
Originated in 2022/2021 | 736 | 736 | 500 | ||
Originated in 2021/2020 | 377 | 377 | 51 | ||
Originated in 2020 | 44 | 44 | |||
Originated prior to 2020 | 93 | 93 | |||
Originated prior to 2020 | 458 | ||||
Revolving | 11 | 11 | 6 | ||
Revolving converted to term | 0 | 0 | 0 | ||
Total loans | 1,615 | 1,615 | 1,862 | ||
Commercial | Commercial real estate | Classified | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 912 | 912 | 2,206 | ||
Originated in 2023/2022 | 1,566 | 1,566 | 1,141 | ||
Originated in 2022/2021 | 1,303 | 1,303 | 385 | ||
Originated in 2021/2020 | 626 | 626 | 87 | ||
Originated in 2020 | 144 | 144 | |||
Originated prior to 2020 | 923 | 923 | |||
Originated prior to 2020 | 619 | ||||
Revolving | 58 | 58 | 70 | ||
Revolving converted to term | 0 | 0 | 0 | ||
Total loans | 5,532 | 5,532 | 4,508 | ||
Consumer | Residential mortgages | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 5,068 | 5,068 | 9,739 | ||
Originated in 2023/2022 | 9,352 | 9,352 | 29,163 | ||
Originated in 2022/2021 | 28,915 | 28,915 | 36,381 | ||
Originated in 2021/2020 | 35,566 | 35,566 | 14,782 | ||
Originated in 2020 | 14,257 | 14,257 | |||
Originated prior to 2020 | 23,989 | 23,989 | |||
Originated prior to 2020 | 25,464 | ||||
Revolving | 0 | 0 | 1 | ||
Total loans | 117,147 | 117,147 | 115,530 | ||
Modified loans | 22 | 89 | 49 | 233 | |
Consumer | Residential mortgages | Pass | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 5,067 | 5,067 | 9,734 | ||
Originated in 2023/2022 | 9,343 | 9,343 | 29,146 | ||
Originated in 2022/2021 | 28,891 | 28,891 | 36,365 | ||
Originated in 2021/2020 | 35,541 | 35,541 | 14,773 | ||
Originated in 2020 | 14,245 | 14,245 | |||
Originated prior to 2020 | 23,731 | 23,731 | |||
Originated prior to 2020 | 25,202 | ||||
Revolving | 0 | 0 | 1 | ||
Total loans | 116,818 | 116,818 | 115,221 | ||
Consumer | Residential mortgages | Total Criticized | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 1 | 1 | 5 | ||
Originated in 2023/2022 | 9 | 9 | 17 | ||
Originated in 2022/2021 | 24 | 24 | 16 | ||
Originated in 2021/2020 | 25 | 25 | 9 | ||
Originated in 2020 | 12 | 12 | |||
Originated prior to 2020 | 258 | 258 | |||
Originated prior to 2020 | 262 | ||||
Revolving | 0 | 0 | 0 | ||
Total loans | 329 | 329 | 309 | ||
Consumer | Residential mortgages | Special Mention | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 0 | 0 | 0 | ||
Originated in 2023/2022 | 0 | 0 | 0 | ||
Originated in 2022/2021 | 0 | 0 | 0 | ||
Originated in 2021/2020 | 0 | 0 | 0 | ||
Originated in 2020 | 0 | 0 | |||
Originated prior to 2020 | 0 | 0 | |||
Originated prior to 2020 | 0 | ||||
Revolving | 0 | 0 | 0 | ||
Total loans | 0 | 0 | 0 | ||
Consumer | Residential mortgages | Classified | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 1 | 1 | 5 | ||
Originated in 2023/2022 | 9 | 9 | 17 | ||
Originated in 2022/2021 | 24 | 24 | 16 | ||
Originated in 2021/2020 | 25 | 25 | 9 | ||
Originated in 2020 | 12 | 12 | |||
Originated prior to 2020 | 258 | 258 | |||
Originated prior to 2020 | 262 | ||||
Revolving | 0 | 0 | 0 | ||
Total loans | 329 | 329 | 309 | ||
Consumer | Residential mortgages | Loans purchased from GNMA mortgage pools | Pass | |||||
Loans by origination year | |||||
Loans 90 days or more past due | 1,700 | 1,700 | 2,000 | ||
Modified loans | 1,500 | 1,200 | |||
Consumer | Credit card | |||||
Loans by origination year | |||||
Total loans | 28,715 | 28,715 | 28,560 | ||
Modified loans | 116 | 91 | 228 | 174 | |
Consumer | Credit card | Pass | |||||
Loans by origination year | |||||
Total loans | 28,341 | 28,341 | 28,185 | ||
Consumer | Credit card | Total Criticized | |||||
Loans by origination year | |||||
Total loans | 374 | 374 | 375 | ||
Consumer | Credit card | Special Mention | |||||
Loans by origination year | |||||
Total loans | 0 | 0 | 0 | ||
Consumer | Credit card | Classified | |||||
Loans by origination year | |||||
Total loans | 374 | 374 | 375 | ||
Consumer | Other retail | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 4,048 | 4,048 | 5,188 | ||
Originated in 2023/2022 | 4,560 | 4,560 | 5,619 | ||
Originated in 2022/2021 | 4,841 | 4,841 | 10,413 | ||
Originated in 2021/2020 | 8,410 | 8,410 | 4,550 | ||
Originated in 2020 | 3,441 | 3,441 | |||
Originated prior to 2020 | 3,357 | 3,357 | |||
Originated prior to 2020 | 4,028 | ||||
Revolving | 13,707 | 13,707 | 13,824 | ||
Revolving converted to term | 772 | 772 | 787 | ||
Total loans | 43,136 | 43,136 | 44,409 | ||
Modified loans | 36 | $ 56 | 75 | $ 106 | |
Consumer | Other retail | Pass | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 4,046 | 4,046 | 5,184 | ||
Originated in 2023/2022 | 4,554 | 4,554 | 5,607 | ||
Originated in 2022/2021 | 4,830 | 4,830 | 10,398 | ||
Originated in 2021/2020 | 8,396 | 8,396 | 4,541 | ||
Originated in 2020 | 3,434 | 3,434 | |||
Originated prior to 2020 | 3,339 | 3,339 | |||
Originated prior to 2020 | 4,008 | ||||
Revolving | 13,600 | 13,600 | 13,720 | ||
Revolving converted to term | 725 | 725 | 735 | ||
Total loans | 42,924 | 42,924 | 44,193 | ||
Consumer | Other retail | Total Criticized | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 2 | 2 | 4 | ||
Originated in 2023/2022 | 6 | 6 | 12 | ||
Originated in 2022/2021 | 11 | 11 | 15 | ||
Originated in 2021/2020 | 14 | 14 | 9 | ||
Originated in 2020 | 7 | 7 | |||
Originated prior to 2020 | 18 | 18 | |||
Originated prior to 2020 | 20 | ||||
Revolving | 107 | 107 | 104 | ||
Revolving converted to term | 47 | 47 | 52 | ||
Total loans | 212 | 212 | 216 | ||
Consumer | Other retail | Special Mention | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 0 | 0 | 0 | ||
Originated in 2023/2022 | 0 | 0 | 0 | ||
Originated in 2022/2021 | 0 | 0 | 0 | ||
Originated in 2021/2020 | 0 | 0 | 0 | ||
Originated in 2020 | 0 | 0 | |||
Originated prior to 2020 | 2 | 2 | |||
Originated prior to 2020 | 0 | ||||
Revolving | 0 | 0 | 0 | ||
Revolving converted to term | 0 | 0 | 0 | ||
Total loans | 2 | 2 | 0 | ||
Consumer | Other retail | Classified | |||||
Loans by origination year | |||||
Originated in 2024/2023 | 2 | 2 | 4 | ||
Originated in 2023/2022 | 6 | 6 | 12 | ||
Originated in 2022/2021 | 11 | 11 | 15 | ||
Originated in 2021/2020 | 14 | 14 | 9 | ||
Originated in 2020 | 7 | 7 | |||
Originated prior to 2020 | 16 | 16 | |||
Originated prior to 2020 | 20 | ||||
Revolving | 107 | 107 | 104 | ||
Revolving converted to term | 47 | 47 | 52 | ||
Total loans | $ 210 | $ 210 | $ 216 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Loans Modified by Modification Type (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Modified [Line Items] | ||||
Modifications | $ 1,631 | $ 1,123 | $ 2,848 | $ 1,879 |
Percent of Class Total | 0.40% | 0.30% | 0.80% | 0.50% |
Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | $ 219 | $ 106 | $ 355 | $ 337 |
Payment Delay | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 483 | 546 | 937 | 869 |
Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 793 | 368 | 1,335 | 511 |
Multiple Modifications | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 136 | 103 | 221 | 162 |
Payment Delay and Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 111 | 100 | 189 | 151 |
Interest Rate Reduction and Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 17 | 2 | 20 | 5 |
Interest Rate Reduction, Payment Delay and Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 8 | 1 | 12 | 6 |
Total loans, excluding loans purchased from GNMA mortgage pools | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | $ 926 | $ 486 | $ 1,562 | $ 940 |
Percent of Class Total | 0.20% | 0.10% | 0.40% | 0.20% |
Total loans, excluding loans purchased from GNMA mortgage pools | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | $ 219 | $ 106 | $ 354 | $ 337 |
Total loans, excluding loans purchased from GNMA mortgage pools | Payment Delay | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 9 | 93 | 29 | 220 |
Total loans, excluding loans purchased from GNMA mortgage pools | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 684 | 282 | 1,162 | 364 |
Total loans, excluding loans purchased from GNMA mortgage pools | Multiple Modifications | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 14 | 5 | 17 | 19 |
Loans purchased from GNMA mortgage pools | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | $ 705 | $ 637 | $ 1,286 | $ 939 |
Percent of Class Total | 0.60% | 0.60% | 1.10% | 0.80% |
Loans purchased from GNMA mortgage pools | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | $ 0 | $ 0 | $ 1 | $ 0 |
Loans purchased from GNMA mortgage pools | Payment Delay | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 474 | 453 | 908 | 649 |
Loans purchased from GNMA mortgage pools | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 109 | 86 | 173 | 147 |
Loans purchased from GNMA mortgage pools | Multiple Modifications | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 122 | 98 | 204 | 143 |
Commercial | Commercial | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | $ 276 | $ 149 | $ 496 | $ 318 |
Percent of Class Total | 0.20% | 0.10% | 0.40% | 0.20% |
Commercial | Commercial | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | $ 23 | $ 13 | $ 44 | $ 159 |
Commercial | Commercial | Payment Delay | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 0 | 0 | 0 | 0 |
Commercial | Commercial | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 253 | 136 | 452 | 159 |
Commercial | Commercial | Multiple Modifications | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 0 | 0 | 0 | 0 |
Commercial | Commercial real estate | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | $ 476 | $ 101 | $ 714 | $ 109 |
Percent of Class Total | 0.90% | 0.20% | 1.40% | 0.20% |
Commercial | Commercial real estate | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | $ 78 | $ 0 | $ 78 | $ 0 |
Commercial | Commercial real estate | Payment Delay | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 0 | 0 | 0 | 0 |
Commercial | Commercial real estate | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 391 | 101 | 629 | 109 |
Commercial | Commercial real estate | Multiple Modifications | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 7 | 0 | 7 | 0 |
Consumer | Residential mortgages | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | $ 22 | $ 89 | $ 49 | $ 233 |
Percent of Class Total | 0% | 0.10% | 0% | 0.20% |
Consumer | Residential mortgages | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer | Residential mortgages | Payment Delay | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 9 | 79 | 28 | 202 |
Consumer | Residential mortgages | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 7 | 6 | 12 | 15 |
Consumer | Residential mortgages | Multiple Modifications | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 6 | 4 | 9 | 16 |
Consumer | Credit card | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | $ 116 | $ 91 | $ 228 | $ 174 |
Percent of Class Total | 0.40% | 0.30% | 0.80% | 0.70% |
Consumer | Credit card | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | $ 116 | $ 91 | $ 228 | $ 174 |
Consumer | Credit card | Payment Delay | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 0 | 0 | 0 | 0 |
Consumer | Credit card | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 0 | 0 | 0 | 0 |
Consumer | Credit card | Multiple Modifications | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 0 | 0 | 0 | 0 |
Consumer | Other retail | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | $ 36 | $ 56 | $ 75 | $ 106 |
Percent of Class Total | 0.10% | 0.10% | 0.20% | 0.20% |
Consumer | Other retail | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | $ 2 | $ 2 | $ 4 | $ 4 |
Consumer | Other retail | Payment Delay | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 0 | 14 | 1 | 18 |
Consumer | Other retail | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | 33 | 39 | 69 | 81 |
Consumer | Other retail | Multiple Modifications | ||||
Financing Receivable, Modified [Line Items] | ||||
Modifications | $ 1 | $ 1 | $ 1 | $ 3 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Effects of Loan Modifications (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Payment Delay | ||||
Financing Receivable, Modified [Line Items] | ||||
Weighted-average payment deferral (less than) | $ 1 | $ 1 | $ 1 | $ 1 |
Loans purchased from GNMA mortgage pools | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Weighted-Average Interest Rate Reduction | 0.50% | 0.70% | 0.50% | 0.70% |
Loans purchased from GNMA mortgage pools | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Weighted-Average Months of Term Extension | 119 months | 87 months | 116 months | 79 months |
Commercial | Commercial | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Weighted-Average Interest Rate Reduction | 20.60% | 21.30% | 20% | 3.30% |
Commercial | Commercial | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Weighted-Average Months of Term Extension | 5 months | 8 months | 7 months | 7 months |
Commercial | Commercial real estate | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Weighted-Average Interest Rate Reduction | 2.20% | 0% | 2.20% | 0% |
Commercial | Commercial real estate | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Weighted-Average Months of Term Extension | 8 months | 10 months | 9 months | 10 months |
Consumer | Residential mortgages | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Weighted-Average Interest Rate Reduction | 0.50% | 1.40% | 0.70% | 1.40% |
Consumer | Residential mortgages | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Weighted-Average Months of Term Extension | 86 months | 89 months | 85 months | 111 months |
Consumer | Credit card | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Weighted-Average Interest Rate Reduction | 16.30% | 16.40% | 16.30% | 16.20% |
Consumer | Other retail | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Weighted-Average Interest Rate Reduction | 7.60% | 8.60% | 8.40% | 7.30% |
Consumer | Other retail | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Weighted-Average Months of Term Extension | 5 months | 108 months | 4 months | 134 months |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Loan Modifications by Delinquency Status (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | $ 4,168 | $ 1,368 |
Current | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 3,475 | 1,191 |
30-89 Days Past Due | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 104 | 55 |
90 Days or More Past Due | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 589 | 122 |
Commercial | Commercial | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 762 | 318 |
Commercial | Commercial | Current | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 628 | 287 |
Commercial | Commercial | 30-89 Days Past Due | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 17 | 7 |
Commercial | Commercial | 90 Days or More Past Due | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 117 | 24 |
Commercial | Commercial real estate | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 1,266 | 109 |
Commercial | Commercial real estate | Current | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 847 | 43 |
Commercial | Commercial real estate | 30-89 Days Past Due | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 0 | 0 |
Commercial | Commercial real estate | 90 Days or More Past Due | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 419 | 66 |
Consumer | Residential mortgages | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 1,604 | 692 |
Consumer | Residential mortgages | Current | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 1,585 | 668 |
Consumer | Residential mortgages | 30-89 Days Past Due | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 6 | 11 |
Consumer | Residential mortgages | 30-89 Days Past Due | Loans purchased from GNMA mortgage pools | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 462 | 95 |
Consumer | Residential mortgages | 90 Days or More Past Due | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 13 | 13 |
Consumer | Residential mortgages | 90 Days or More Past Due | Loans purchased from GNMA mortgage pools | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 196 | 20 |
Consumer | Credit card | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 391 | 174 |
Consumer | Credit card | Current | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 293 | 125 |
Consumer | Credit card | 30-89 Days Past Due | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 64 | 34 |
Consumer | Credit card | 90 Days or More Past Due | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 34 | 15 |
Consumer | Other retail | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 145 | 75 |
Consumer | Other retail | Current | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 122 | 68 |
Consumer | Other retail | 30-89 Days Past Due | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | 17 | 3 |
Consumer | Other retail | 90 Days or More Past Due | ||
Financing Receivable, Modified [Line Items] | ||
Loan balances modified during the prior 12 months | $ 6 | $ 4 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Loan Modifications that Defaulted (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | $ 38 | $ 6 | $ 73 | $ 6 |
Payment Delay | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 67 | 9 | 110 | 9 |
Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 54 | 2 | 81 | 2 |
Multiple Modifications | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 30 | 3 | 60 | 3 |
Payment Delay and Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 29 | 2 | 58 | 2 |
Interest Rate Reduction and Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 1 | 1 | ||
Interest Rate Reduction, Payment Delay and Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 1 | 1 | 1 | |
Total loans, excluding loans purchased from GNMA mortgage pools | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 38 | 6 | 73 | 6 |
Total loans, excluding loans purchased from GNMA mortgage pools | Payment Delay | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 9 | 3 | 14 | 3 |
Total loans, excluding loans purchased from GNMA mortgage pools | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 30 | 1 | 38 | 1 |
Total loans, excluding loans purchased from GNMA mortgage pools | Multiple Modifications | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 1 | 1 | 3 | 1 |
Loans purchased from GNMA mortgage pools | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 0 | 0 | 0 | 0 |
Loans purchased from GNMA mortgage pools | Payment Delay | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 58 | 6 | 96 | 6 |
Loans purchased from GNMA mortgage pools | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 24 | 1 | 43 | 1 |
Loans purchased from GNMA mortgage pools | Multiple Modifications | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 29 | 2 | 57 | 2 |
Commercial | Commercial | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 7 | 1 | 13 | 1 |
Commercial | Commercial | Payment Delay | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 0 | 0 | 0 | 0 |
Commercial | Commercial | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 0 | 0 | 0 | 0 |
Commercial | Commercial | Multiple Modifications | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 0 | 0 | 0 | 0 |
Commercial | Commercial real estate | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 0 | 0 | ||
Commercial | Commercial real estate | Payment Delay | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 0 | 0 | ||
Commercial | Commercial real estate | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 24 | 24 | ||
Commercial | Commercial real estate | Multiple Modifications | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 0 | 0 | ||
Consumer | Residential mortgages | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 0 | 0 | 0 | 0 |
Consumer | Residential mortgages | Payment Delay | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 9 | 1 | 13 | 1 |
Consumer | Residential mortgages | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 1 | 0 | 4 | 0 |
Consumer | Residential mortgages | Multiple Modifications | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 1 | 1 | 3 | 1 |
Consumer | Credit card | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 30 | 5 | 59 | 5 |
Consumer | Credit card | Payment Delay | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 0 | 0 | 0 | 0 |
Consumer | Credit card | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 0 | 0 | 0 | 0 |
Consumer | Credit card | Multiple Modifications | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 0 | 0 | 0 | 0 |
Consumer | Other retail | Interest Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 1 | 0 | 1 | 0 |
Consumer | Other retail | Payment Delay | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 0 | 2 | 1 | 2 |
Consumer | Other retail | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | 5 | 1 | 10 | 1 |
Consumer | Other retail | Multiple Modifications | ||||
Financing Receivable, Modified [Line Items] | ||||
Loans that defaulted | $ 0 | $ 0 | $ 0 | $ 0 |
Accounting for Transfers and _3
Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | ||
Variable Interest Entity [Line Items] | ||||||
Tax credits related to tax-advantaged investments | $ 144 | $ 149 | $ 283 | $ 287 | ||
Investment tax credits | 120 | 72 | 178 | 236 | ||
Expense related to tax-advantaged investments | 145 | $ 135 | 283 | $ 265 | ||
Investments in VIEs | 680,058 | 680,058 | $ 663,491 | |||
Available-for-sale securities | [1] | 79,799 | 79,799 | 69,706 | ||
Liabilities related to VIEs | 623,173 | 623,173 | 607,720 | |||
Variable Interest Entity Not Primary Beneficiary | Minimum | ||||||
Variable Interest Entity [Line Items] | ||||||
Net investments in unconsolidated VIEs | 1 | 1 | 1 | |||
Variable Interest Entity Not Primary Beneficiary | Maximum | ||||||
Variable Interest Entity [Line Items] | ||||||
Net investments in unconsolidated VIEs | 71 | 71 | 86 | |||
Variable Interest Entity, Not Primary Beneficiary, Private Investment Funds and Partnerships | ||||||
Variable Interest Entity [Line Items] | ||||||
Investments in VIEs | 254 | 254 | 219 | |||
Maximum exposure to loss | 381 | 381 | 319 | |||
Variable Interest Entity, Not Primary Beneficiary, Securitization Vehicles | Senior Notes | ||||||
Variable Interest Entity [Line Items] | ||||||
Available-for-sale securities | 4,100 | 4,100 | 5,300 | |||
Collateral held related to senior notes | 4,800 | 4,800 | 6,100 | |||
Variable Interest Entity, Primary Beneficiary, Community Development and Tax-Advantaged Investments | ||||||
Variable Interest Entity [Line Items] | ||||||
Investments in VIEs | 5,700 | 5,700 | 6,100 | |||
Liabilities related to VIEs | 3,900 | 3,900 | 4,400 | |||
Variable Interest Entity, Primary Beneficiary, Tender Option Bond Program | ||||||
Variable Interest Entity [Line Items] | ||||||
Investments in VIEs | 343 | 343 | 607 | |||
Liabilities related to VIEs | $ 218 | $ 218 | $ 381 | |||
[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 | Jun. 30, 2024 | Dec. 31, 2023 |
Variable Interest Entity [Line Items] | ||
Investment carrying amount | $ 680,058 | $ 663,491 |
Unfunded capital and other commitments | 623,173 | 607,720 |
Variable Interest Entity, Not Primary Beneficiary, Community Development and Tax-Advantaged Investments | ||
Variable Interest Entity [Line Items] | ||
Investment carrying amount | 7,374 | 6,659 |
Unfunded capital and other commitments | 4,337 | 3,619 |
Maximum exposure to loss | $ 8,916 | $ 9,002 |
Mortgage Servicing Rights - Add
Mortgage Servicing Rights - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |||||
Residential mortgage loans serviced for others including subserviced mortgages with no corresponding MSRs asset | $ 225,800 | $ 225,800 | $ 233,400 | ||
Gains (losses) on fair value changes of MSRs due to changes in valuation assumptions and derivatives used to economically hedge MSRs | 24 | $ (31) | 21 | $ (42) | |
Loan servicing and ancillary fees | $ 176 | $ 187 | $ 356 | $ 377 |
Mortgage Servicing Rights - Cha
Mortgage Servicing Rights - Changes in Fair Value of Capitalized MSRs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Balance at beginning of period | $ 3,462 | $ 3,724 | $ 3,377 | $ 3,755 |
Rights purchased | 1 | 1 | 1 | 2 |
Rights capitalized | 64 | 99 | 119 | 195 |
Rights sold | (189) | (149) | (189) | (148) |
Changes in fair value of MSRs | ||||
Due to fluctuations in market interest rates | 45 | 84 | 148 | 46 |
Due to revised assumptions or models | 33 | (21) | 41 | (16) |
Other changes in fair value | (90) | (105) | (171) | (201) |
Balance at end of period | $ 3,326 | $ 3,633 | $ 3,326 | $ 3,633 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
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 | $ 304 | $ 381 |
Fair value 50 basis points change | 144 | 178 |
Fair value 25 basis points change | 70 | 86 |
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 | (8) | 11 |
Fair value 50 basis points change | (1) | 5 |
Fair value 25 basis points change | 1 | 2 |
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 | (312) | (370) |
Fair value 50 basis points change | (145) | (173) |
Fair value 25 basis points change | (69) | (84) |
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 | (240) | (289) |
Fair value 50 basis points change | (127) | (152) |
Fair value 25 basis points change | (65) | (79) |
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 | (20) | (21) |
Fair value 50 basis points change | (6) | (5) |
Fair value 25 basis points change | (2) | (2) |
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 | 220 | 268 |
Fair value 50 basis points change | 121 | 147 |
Fair value 25 basis points change | $ 63 | $ 77 |
Mortgage Servicing Rights - MSR
Mortgage Servicing Rights - MSRs and Related Characteristics by Portfolio (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2024 | Dec. 31, 2023 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Servicing Assets at Fair Value [Line Items] | ||||||
Fair value | $ 3,326 | $ 3,377 | $ 3,462 | $ 3,633 | $ 3,724 | $ 3,755 |
MSR portfolio | ||||||
Servicing Assets at Fair Value [Line Items] | ||||||
Servicing portfolio | 213,663 | 225,338 | ||||
Fair value | $ 3,326 | $ 3,377 | ||||
Value (bps) | 1.56% | 1.50% | ||||
Weighted-average servicing fees (bps) | 0.30% | 0.30% | ||||
Multiple (value/servicing fees) | 5.16 | 5 | ||||
Weighted-average note rate | 4.04% | 4.02% | ||||
Weighted-average age (in years) | 4 years 9 months 18 days | 4 years 4 months 24 days | ||||
Weighted-average expected prepayment (constant prepayment rate) | 9% | 9.60% | ||||
Weighted-average expected life (in years) | 7 years 2 months 12 days | 7 years | ||||
Weighted-average option adjusted spread | 5% | 4.90% | ||||
MSR portfolio | HFA | ||||||
Servicing Assets at Fair Value [Line Items] | ||||||
Servicing portfolio | $ 50,185 | $ 48,286 | ||||
Fair value | $ 824 | $ 769 | ||||
Value (bps) | 1.64% | 1.59% | ||||
Weighted-average servicing fees (bps) | 0.36% | 0.36% | ||||
Multiple (value/servicing fees) | 4.60 | 4.45 | ||||
Weighted-average note rate | 4.74% | 4.56% | ||||
Weighted-average age (in years) | 4 years 4 months 24 days | 4 years 3 months 18 days | ||||
Weighted-average expected prepayment (constant prepayment rate) | 10.10% | 10.50% | ||||
Weighted-average expected life (in years) | 7 years 3 months 18 days | 7 years 2 months 12 days | ||||
Weighted-average option adjusted spread | 5.50% | 5.40% | ||||
MSR portfolio | Government | ||||||
Servicing Assets at Fair Value [Line Items] | ||||||
Servicing portfolio | $ 25,762 | $ 25,996 | ||||
Fair value | $ 522 | $ 507 | ||||
Value (bps) | 2.03% | 1.95% | ||||
Weighted-average servicing fees (bps) | 0.45% | 0.44% | ||||
Multiple (value/servicing fees) | 4.55 | 4.41 | ||||
Weighted-average note rate | 4.31% | 4.23% | ||||
Weighted-average age (in years) | 5 years 9 months 18 days | 5 years 6 months | ||||
Weighted-average expected prepayment (constant prepayment rate) | 10.60% | 11.10% | ||||
Weighted-average expected life (in years) | 6 years 8 months 12 days | 6 years 6 months | ||||
Weighted-average option adjusted spread | 5.90% | 5.90% | ||||
MSR portfolio | Conventional | ||||||
Servicing Assets at Fair Value [Line Items] | ||||||
Servicing portfolio | $ 137,716 | $ 151,056 | ||||
Fair value | $ 1,980 | $ 2,101 | ||||
Value (bps) | 1.44% | 1.39% | ||||
Weighted-average servicing fees (bps) | 0.25% | 0.26% | ||||
Multiple (value/servicing fees) | 5.66 | 5.41 | ||||
Weighted-average note rate | 3.73% | 3.81% | ||||
Weighted-average age (in years) | 4 years 9 months 18 days | 4 years 3 months 18 days | ||||
Weighted-average expected prepayment (constant prepayment rate) | 8.30% | 9.10% | ||||
Weighted-average expected life (in years) | 7 years 2 months 12 days | 7 years | ||||
Weighted-average option adjusted spread | 4.60% | 4.60% |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Details) - shares shares in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Equity [Abstract] | ||
Preferred stock shares authorized (in shares) | 50 | 50 |
Preferred Stock - Shares Issued
Preferred Stock - Shares Issued and Outstanding and Carrying Amount of Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
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 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Reconciliation of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 56,033 | $ 53,454 | $ 55,771 | $ 51,232 |
Changes in unrealized gains (losses) | (78) | (460) | (249) | 845 |
Changes in unrealized gains (losses) | (109) | (465) | (452) | (261) |
Changes in unrealized gains (losses) | 0 | 0 | 0 | 1 |
Changes in unrealized gains (losses) | (187) | (925) | (701) | 585 |
Foreign currency translation adjustment | (2) | 19 | 4 | 18 |
Reclassification to earnings of realized (gains) losses | 247 | 147 | 408 | 305 |
Applicable income taxes | (13) | 194 | 77 | (219) |
Ending Balance | 56,885 | 53,484 | 56,885 | 53,484 |
Total | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (10,353) | (10,153) | (10,096) | (11,407) |
Ending Balance | (10,308) | (10,718) | (10,308) | (10,718) |
Unrealized Gains (Losses) on Investment Securities Available-for- Sale | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (5,279) | (5,369) | (5,151) | (6,378) |
Changes in unrealized gains (losses) | (78) | (460) | (249) | 845 |
Reclassification to earnings of realized (gains) losses | 36 | (3) | 34 | 29 |
Applicable income taxes | 11 | 116 | 56 | (212) |
Ending Balance | (5,310) | (5,716) | (5,310) | (5,716) |
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 | (3,452) | (3,843) | (3,537) | (3,933) |
Reclassification to earnings of realized (gains) losses | 131 | 141 | 245 | 262 |
Applicable income taxes | (33) | (35) | (62) | (66) |
Ending Balance | (3,354) | (3,737) | (3,354) | (3,737) |
Unrealized Gains (Losses) on Derivative Hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (461) | 43 | (242) | (114) |
Changes in unrealized gains (losses) | (109) | (465) | (452) | (261) |
Reclassification to earnings of realized (gains) losses | 80 | 11 | 129 | 18 |
Applicable income taxes | 8 | 117 | 83 | 63 |
Ending Balance | (482) | (294) | (482) | (294) |
Unrealized Gains (Losses) on Retirement Plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (1,138) | (940) | (1,138) | (939) |
Changes in unrealized gains (losses) | 1 | |||
Reclassification to earnings of realized (gains) losses | (2) | (4) | ||
Applicable income taxes | 1 | 1 | ||
Ending Balance | (1,138) | (941) | (1,138) | (941) |
Foreign Currency Translation | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (23) | (44) | (28) | (43) |
Foreign currency translation adjustment | (2) | 19 | 4 | 18 |
Applicable income taxes | 1 | (5) | (5) | |
Ending Balance | $ (24) | $ (30) | $ (24) | $ (30) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Impact to Net Income for Items Reclassified out of Accumulated Other Comprehensive Income into Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Securities gains (losses), net | $ (36) | $ 3 | $ (34) | $ (29) |
Interest income | 7,985 | 7,526 | 15,749 | 14,490 |
Net interest income | 4,023 | 4,415 | 8,008 | 9,049 |
Other noninterest expense | (354) | (353) | (772) | (778) |
Applicable income taxes | (445) | (382) | (792) | (837) |
Net income | 1,611 | 1,369 | 2,937 | 3,073 |
Reclassification Out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income | (185) | (111) | (305) | (229) |
Reclassification Out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Investment Securities Available-for- Sale | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Securities gains (losses), net | (36) | 3 | (34) | (29) |
Applicable income taxes | 9 | (1) | 8 | 7 |
Net income | (27) | 2 | (26) | (22) |
Reclassification Out of Accumulated Other Comprehensive Income | 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] | ||||
Interest income | (131) | (141) | (245) | (262) |
Applicable income taxes | 33 | 35 | 62 | 66 |
Net income | (98) | (106) | (183) | (196) |
Reclassification Out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivative Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net interest income | (80) | (11) | (129) | (18) |
Applicable income taxes | 20 | 3 | 33 | 4 |
Net income | (60) | (8) | (96) | (14) |
Reclassification Out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Retirement Plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other noninterest expense | 0 | 2 | 0 | 4 |
Applicable income taxes | 0 | (1) | 0 | (1) |
Net income | $ 0 | $ 1 | $ 0 | $ 3 |
Earnings Per Share - Components
Earnings Per Share - Components of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |||||
Earnings Per Share [Abstract] | ||||||||
Net income attributable to U.S. Bancorp | $ 1,603 | $ 1,361 | $ 2,922 | $ 3,059 | ||||
Preferred dividends | (75) | [1] | (73) | [2] | (177) | [3] | (171) | [4] |
Earnings allocated to participating stock awards | (10) | (7) | (18) | (15) | ||||
Net income applicable to U.S. Bancorp common shareholders | 1,518 | 1,281 | 2,727 | 2,873 | ||||
Net income applicable to U.S. Bancorp common shareholders, diluted | $ 1,518 | $ 1,281 | $ 2,727 | $ 2,873 | ||||
Average common shares outstanding (in shares) | 1,560 | 1,533 | 1,560 | 1,532 | ||||
Average diluted common shares outstanding (in shares) | 1,561 | 1,533 | 1,560 | 1,533 | ||||
Earnings per common share (in dollars per share) | $ 0.97 | $ 0.84 | $ 1.75 | $ 1.87 | ||||
Diluted earnings per common share (in dollars per share) | $ 0.97 | $ 0.84 | $ 1.75 | $ 1.87 | ||||
Net effect of the exercise and assumed purchase of stock awards (in shares) | 1 | 0 | 0 | 1 | ||||
[1] Reflects dividends declared per share on the Company’s Series A, Series B, Series K, Series L, Series M, Series N and Series O Non-Cumulative Perpetual Preferred Stock of $1,670.904, $391.184, $343.75, $234.375, $250.00, $231.25 and $281.25, respectively. Reflects dividends declared per share on the Company’s Series A, Series B, Series K, Series L, Series M, Series N and Series O Non-Cumulative Perpetual Preferred Stock of $1,587.52, $370.338, $343.75 , $234.375, $250.00, $231.25 and $281.25, 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 $3,338.125, $781.448, $662.50, $687.50, $468.750, $500.00, $462.50 and $562.50, 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 $3,049.948, $709.695, $662.50, $687.50, $468.75, $500.00, $462.50 and $562.50, respectively. |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2023 | |
Stock Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Options outstanding of common shares | 1 | 3 | 3 |
Employee Benefits (Details)
Employee Benefits (Details) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 54 | $ 56 | $ 109 | $ 112 |
Interest cost | 94 | 93 | 188 | 185 |
Expected return on plan assets | (146) | (137) | (292) | (273) |
Prior service cost (credit) amortization | (1) | 0 | (2) | (1) |
Actuarial loss (gain) amortization | 3 | 1 | 5 | 2 |
Net periodic benefit cost | $ 4 | $ 13 | $ 8 | $ 25 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Federal | ||||
Current | $ 321 | $ 263 | $ 501 | $ 660 |
Deferred | 49 | 33 | 182 | 1 |
Federal income tax | 370 | 296 | 683 | 661 |
State | ||||
Current | 88 | 119 | 109 | 215 |
Deferred | (13) | (33) | 0 | (39) |
State income tax | 75 | 86 | 109 | 176 |
Total income tax provision | $ 445 | $ 382 | $ 792 | $ 837 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Billions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |||||
Federal statutory rate | 21% | 21% | 21% | 21% | |
Net deferred tax asset | $ 6.3 | $ 6.3 | $ 6.4 |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Tax at statutory rate | $ 432 | $ 368 | $ 783 | $ 821 |
State income tax, at statutory rates, net of federal tax benefit | 102 | 83 | 183 | 185 |
Tax credits and benefits, net of related expenses | (83) | (63) | (144) | (140) |
Exam resolutions | (32) | 0 | (97) | 0 |
Tax-exempt income | (36) | (41) | (67) | (75) |
Other items | 62 | 35 | 134 | 46 |
Total income tax provision | $ 445 | $ 382 | $ 792 | $ 837 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Derivative [Line Items] | ||
Realized and unrealized losses on derivatives classified as cash flow hedges recorded in other comprehensive income (loss) | $ 482 | $ 242 |
Estimated loss to be reclassified from other comprehensive income (loss) into earnings | 208 | |
Fair value of derivatives under collateral agreements in a net liability position | 2,600 | |
Collateral posted by company netted against net liability position | 2,300 | |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Notional Value | $ 1,200,000 | |
Asset and Liability Management Positions | ||
Derivative [Line Items] | ||
Notional Value | 103,401 | $ 91,328 |
Fair Value, Assets | 309 | 312 |
Fair Value, Liabilities | 202 | 241 |
Asset and Liability Management Positions | Swaps | Visa Class B Shares | ||
Derivative [Line Items] | ||
Fair Value, Liabilities | 119 | 91 |
Derivative liability notional value | 1,400 | 2,000 |
Asset and Liability Management Positions | Underwriting Purchase and Sale Commitments | ||
Derivative [Line Items] | ||
Notional Value | 576 | 28 |
Asset and Liability Management Positions | Other | ||
Derivative [Line Items] | ||
Notional Value | 2,070 | 2,136 |
Fair Value, Assets | 8 | 11 |
Fair Value, Liabilities | 120 | 93 |
Asset and Liability Management Positions | Other economic hedges | Interest rate contracts | Receive fixed/pay floating swaps | ||
Derivative [Line Items] | ||
Notional Value | 9,287 | 7,029 |
Fair Value, Assets | 89 | 9 |
Fair Value, Liabilities | 2 | 3 |
Asset and Liability Management Positions | Other economic hedges | Interest rate contracts | Pay fixed/receive floating swaps | ||
Derivative [Line Items] | ||
Notional Value | 3,354 | 3,801 |
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 | 4,460 | 5,006 |
Fair Value, Assets | 7 | 29 |
Fair Value, Liabilities | 9 | 5 |
Asset and Liability Management Positions | Other economic hedges | Interest rate contracts | Futures and forwards | Sell/ Written | ||
Derivative [Line Items] | ||
Notional Value | 2,757 | 4,501 |
Fair Value, Assets | 3 | 7 |
Fair Value, Liabilities | 7 | 34 |
Asset and Liability Management Positions | Other economic hedges | Interest rate contracts | Options | Buy/ Purchased | ||
Derivative [Line Items] | ||
Notional Value | 5,090 | 6,085 |
Fair Value, Assets | 182 | 237 |
Fair Value, Liabilities | 0 | 0 |
Asset and Liability Management Positions | Other economic hedges | Interest rate contracts | Options | Sell/ Written | ||
Derivative [Line Items] | ||
Notional Value | 2,331 | 3,696 |
Fair Value, Assets | 17 | 14 |
Fair Value, Liabilities | 53 | 75 |
Asset and Liability Management Positions | Other economic hedges | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Notional Value | 704 | 734 |
Fair Value, Assets | 1 | 2 |
Fair Value, Liabilities | 0 | 5 |
Asset and Liability Management Positions | Other economic hedges | Equity contracts | ||
Derivative [Line Items] | ||
Notional Value | 267 | 227 |
Fair Value, Assets | 1 | 2 |
Fair Value, Liabilities | 1 | 0 |
Asset and Liability Management Positions | Other economic hedges | Credit contracts | ||
Derivative [Line Items] | ||
Notional Value | 3,558 | 2,620 |
Fair Value, Assets | 0 | 1 |
Fair Value, Liabilities | 9 | 0 |
Asset and Liability Management Positions | Fair value hedges | Interest rate contracts | Receive fixed/pay floating swaps | ||
Derivative [Line Items] | ||
Notional Value | 15,700 | 12,100 |
Fair Value, Assets | 0 | 0 |
Fair Value, Liabilities | 0 | 16 |
Asset and Liability Management Positions | Fair value hedges | Interest rate contracts | Pay fixed/receive floating swaps | ||
Derivative [Line Items] | ||
Notional Value | 28,581 | 24,139 |
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 | 24,400 | 18,400 |
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 | 842 | 854 |
Fair Value, Assets | 1 | 0 |
Fair Value, Liabilities | $ 1 | $ 10 |
Derivative Instruments - Custom
Derivative Instruments - Customer-Related Derivative Positions (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Notional Value | $ 1,200,000 | |
Customer-Related Positions | ||
Derivative [Line Items] | ||
Notional Value | 1,114,066 | $ 1,119,842 |
Fair Value, Assets | 5,781 | 6,219 |
Fair Value, Liabilities | 8,566 | 8,068 |
Customer-Related Positions | Interest rate contracts | Receive fixed/pay floating swaps | ||
Derivative [Line Items] | ||
Notional Value | 369,671 | 363,375 |
Fair Value, Assets | 439 | 791 |
Fair Value, Liabilities | 5,184 | 4,395 |
Customer-Related Positions | Interest rate contracts | Pay fixed/receive floating swaps | ||
Derivative [Line Items] | ||
Notional Value | 345,929 | 330,539 |
Fair Value, Assets | 2,147 | 1,817 |
Fair Value, Liabilities | 170 | 280 |
Customer-Related Positions | Interest rate contracts | Other | ||
Derivative [Line Items] | ||
Notional Value | 76,713 | 82,209 |
Fair Value, Assets | 15 | 17 |
Fair Value, Liabilities | 50 | 51 |
Customer-Related Positions | Interest rate contracts | Options | Buy/ Purchased | ||
Derivative [Line Items] | ||
Notional Value | 95,653 | 102,423 |
Fair Value, Assets | 736 | 1,026 |
Fair Value, Liabilities | 1 | 18 |
Customer-Related Positions | Interest rate contracts | Options | Sell/ Written | ||
Derivative [Line Items] | ||
Notional Value | 91,365 | 97,690 |
Fair Value, Assets | 9 | 20 |
Fair Value, Liabilities | 953 | 1,087 |
Customer-Related Positions | Foreign exchange rate contracts | Forwards, spots and swaps | ||
Derivative [Line Items] | ||
Notional Value | 109,853 | 121,119 |
Fair Value, Assets | 2,054 | 2,252 |
Fair Value, Liabilities | 1,836 | 1,942 |
Customer-Related Positions | Foreign exchange options | Buy/ Purchased | ||
Derivative [Line Items] | ||
Notional Value | 538 | 1,532 |
Fair Value, Assets | 17 | 28 |
Fair Value, Liabilities | 0 | 0 |
Customer-Related Positions | Foreign exchange options | Sell/ Written | ||
Derivative [Line Items] | ||
Notional Value | 538 | 1,532 |
Fair Value, Assets | 0 | 0 |
Fair Value, Liabilities | 17 | 28 |
Customer-Related Positions | Commodity contracts | Swaps | ||
Derivative [Line Items] | ||
Notional Value | 5,010 | 2,498 |
Fair Value, Assets | 140 | 116 |
Fair Value, Liabilities | 135 | 110 |
Customer-Related Positions | Commodity contracts | Futures | Sell/ Written | ||
Derivative [Line Items] | ||
Notional Value | 83 | 0 |
Fair Value, Assets | 17 | 0 |
Fair Value, Liabilities | 10 | 0 |
Customer-Related Positions | Commodity options | Buy/ Purchased | ||
Derivative [Line Items] | ||
Notional Value | 3,080 | 1,936 |
Fair Value, Assets | 205 | 151 |
Fair Value, Liabilities | 1 | 0 |
Customer-Related Positions | Commodity options | Sell/ Written | ||
Derivative [Line Items] | ||
Notional Value | 3,079 | 1,936 |
Fair Value, Assets | 1 | 0 |
Fair Value, Liabilities | 205 | 151 |
Customer-Related Positions | Credit contracts | ||
Derivative [Line Items] | ||
Notional Value | 12,554 | 13,053 |
Fair Value, Assets | 1 | 1 |
Fair Value, Liabilities | $ 4 | $ 6 |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flow hedges | Interest rate contracts | ||||
Cash flow hedges | ||||
Gains (Losses) Recognized in Other Comprehensive Income (Loss) | $ (81) | $ (345) | $ (336) | $ (194) |
Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings | (60) | (8) | (96) | (14) |
Net investment hedges | Foreign exchange forward contracts | ||||
Net investment hedges | ||||
Gains (Losses) Recognized in Other Comprehensive Income (Loss) | 9 | (6) | 78 | (9) |
Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings | 0 | 0 | 0 | 0 |
Net investment hedges | Non-derivative debt instruments | ||||
Net investment hedges | ||||
Gains (Losses) Recognized in Other Comprehensive Income (Loss) | 7 | 1 | 41 | (17) |
Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments - Effe_2
Derivative Instruments - Effect of Fair Value and Cash Flow Hedge Accounting on Consolidated Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Income | $ 7,985 | $ 7,526 | $ 15,749 | $ 14,490 |
Interest Expense | 3,962 | 3,111 | 7,741 | 5,441 |
Losses recognized in earnings related discontinuance of cash flow hedges | 7 | 11 | 14 | 18 |
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 | 22 | (332) | (447) | (158) |
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 | 69 | 241 | 12 | 127 |
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 | (23) | 334 | 445 | 156 |
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 | (69) | (243) | (12) | (129) |
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 | (73) | 0 | (115) | 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 | $ (7) | $ (11) | $ (14) | $ (18) |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Increase (decrease) in cumulative amount of basis adjustments | $ 60 | $ 335 |
Available-for-sale investment securities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Carrying amount of the hedged assets | 27,933 | 23,924 |
Cumulative hedging adjustment for hedged assets | (446) | (93) |
Cumulative hedging adjustment asset related to discontinued hedging relationships | (96) | (18) |
Carrying amount of assets related to discontinued hedging relationships | 6,700 | 830 |
Amortized cost of the closed portfolios | 18,200 | 15,600 |
Amortized cost of the closed portfolios designated as hedged | 11,600 | 9,600 |
Increase (decrease) in cumulative amount of basis adjustments | 60 | 335 |
Long-term debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Carrying amount of the hedged liabilities | 15,650 | 12,034 |
Cumulative hedging adjustment for hedged liabilities | (18) | (32) |
Cumulative hedging adjustment liability related to discontinued hedging relationships | (181) | (116) |
Carrying amount of liabilities related to discontinued hedging relationships | $ 9,200 | $ 7,200 |
Derivative Instruments - Gains
Derivative Instruments - Gains (Losses) Recognized in Earnings for Other Economic Hedges and Customer-Related Positions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Customer-Related Positions | Interest rate contracts | Purchased and written options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in earnings | $ (21) | $ (1) | $ (68) | $ 0 |
Customer-Related Positions | Interest rate contracts | Futures | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in earnings | 0 | 0 | 0 | (1) |
Customer-Related Positions | Swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in earnings | 89 | 58 | 220 | 95 |
Customer-Related Positions | Credit contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in earnings | 1 | (1) | 0 | (1) |
Customer-Related Positions | Foreign exchange rate contracts | Forwards, spots and swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in earnings | 32 | 44 | 56 | 99 |
Customer-Related Positions | Commodity contracts | Purchased and written options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in earnings | 2 | 0 | 4 | 0 |
Customer-Related Positions | Commodity contracts | Futures | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in earnings | 6 | 0 | 6 | 0 |
Customer-Related Positions | Commodity contracts | Swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in earnings | (1) | 2 | 1 | 2 |
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 | (2) | 31 | (14) | 38 |
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 | 9 | 17 | 48 | 15 |
Asset and Liability Management Positions | Other economic hedges | Swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in earnings | 9 | (38) | (77) | 20 |
Asset and Liability Management Positions | Other economic hedges | Foreign exchange forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in earnings | 4 | (8) | 8 | (13) |
Asset and Liability Management Positions | Other economic hedges | Equity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in earnings | (2) | 0 | (2) | (3) |
Asset and Liability Management Positions | Other economic hedges | Credit contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in earnings | 0 | 0 | (2) | 0 |
Asset and Liability Management Positions | Other economic hedges | Other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in earnings | $ 6 | $ 1 | $ (69) | $ (1) |
Netting Arrangements for Cert_3
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities - Additional Information (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |
Notional Value | $ 1,200,000 |
Over-the-Counter | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |
Notional Value | 533,800 |
Exchange Cleared | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |
Notional Value | 683,200 |
Exchange-Traded | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |
Notional Value | $ 479 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | $ 5,572 | $ 3,579 |
Securities loaned | 264 | 290 |
Gross amount of recognized liabilities | 5,836 | 3,869 |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 5,461 | 3,534 |
Securities loaned | 264 | 290 |
Gross amount of recognized liabilities | 5,725 | 3,824 |
Less Than 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 111 | 45 |
Securities loaned | 0 | 0 |
Gross amount of recognized liabilities | 111 | 45 |
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 | 4,183 | 2,375 |
U.S. Treasury and agencies | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 4,171 | 2,375 |
U.S. Treasury and agencies | Less Than 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 12 | 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 | 290 | 338 |
Residential mortgage-backed securities | Overnight and Continuous | Agency | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 290 | 338 |
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 | 1,014 | 821 |
Securities loaned | 264 | 290 |
Corporate debt securities | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 1,000 | 821 |
Securities loaned | 264 | 290 |
Corporate debt securities | Less Than 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 14 | 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 | 85 | 45 |
Asset-backed securities | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Asset-backed securities | Less Than 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 85 | 45 |
Asset-backed securities | 30-89 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Asset-backed securities | Greater Than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | $ 0 | $ 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 | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative assets | ||
Gross Recognized Assets | $ 6,064 | $ 6,504 |
Gross Amounts Offset on the Balance Sheet | (3,379) | (3,666) |
Net Amounts Presented on the Consolidated Balance Sheet | 2,685 | 2,838 |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Financial Instruments | (113) | (141) |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Collateral Received | (2) | (3) |
Net Amount | 2,570 | 2,694 |
Reverse repurchase agreements | ||
Gross Recognized Assets | 4,361 | 2,513 |
Net Amounts Presented on the Consolidated Balance Sheet | 4,361 | 2,513 |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Financial Instruments | (450) | (568) |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Collateral Received | (3,903) | (1,941) |
Net Amount | 8 | 4 |
Securities borrowed | ||
Gross Recognized Assets | 1,846 | 1,802 |
Net Amounts Presented on the Consolidated Balance Sheet | 1,846 | 1,802 |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Financial Instruments | 0 | (14) |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Collateral Received | (1,762) | (1,717) |
Net Amount | 84 | 71 |
Total | ||
Gross Recognized Assets | 12,271 | 10,819 |
Gross Amounts Offset on the Consolidated Balance Sheet | (3,379) | (3,666) |
Net Amounts Presented on the Consolidated Balance Sheet | 8,892 | 7,153 |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Financial Instruments | (563) | (723) |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Collateral Received | (5,667) | (3,661) |
Net Amount | 2,662 | 2,769 |
Cash collateral netted against derivative assets | 1,700 | 1,600 |
Derivative assets not subject to netting arrangements | $ 26 | $ 27 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative liabilities | ||
Gross Recognized Liabilities | $ 8,647 | $ 8,217 |
Gross Amounts Offset on the Consolidated Balance Sheet | (3,944) | (3,720) |
Net Amounts Presented on the Consolidated Balance Sheet | 4,703 | 4,497 |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Financial Instruments | (113) | (141) |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Collateral Pledged | 0 | 0 |
Net Amount | 4,590 | 4,356 |
Repurchase agreements | ||
Gross Recognized Liabilities | 5,572 | 3,579 |
Net Amounts Presented on the Consolidated Balance Sheet | 5,572 | 3,579 |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Financial Instruments | (450) | (568) |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Collateral Pledged | (5,110) | (3,008) |
Net Amount | 12 | 3 |
Securities loaned | ||
Securities loaned Gross recognized liabilities | 264 | 290 |
Net Amounts Presented on the Consolidated Balance Sheet | 264 | 290 |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Financial Instruments | 0 | (14) |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Collateral Pledged | (257) | (270) |
Net Amount | 7 | 6 |
Total | ||
Gross Recognized Liabilities | 14,483 | 12,086 |
Gross Amounts Offset on the Consolidated Balance Sheet | (3,944) | (3,720) |
Net Amounts Presented on the Consolidated Balance Sheet | 10,539 | 8,366 |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Financial Instruments | (563) | (723) |
Gross Amounts Not Offset on the Consolidated Balance Sheet, Collateral Pledged | (5,367) | (3,278) |
Net Amount | 4,609 | 4,365 |
Cash collateral netted against derivative liabilities | 2,300 | 1,700 |
Derivative liabilities not subject to netting arrangements | $ 121 | $ 92 |
Fair Values of Assets and Lia_3
Fair Values of Assets and Liabilities - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
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 | $ 416 | $ 416 | $ 489 | ||
Other guarantees carrying value | 184 | $ 184 | $ 198 | ||
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 | 297% | ||||
Weighted Average | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Credit valuation adjustment as percentage of derivative contract fair value | 1% | ||||
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 | (3) | $ (30) | $ (4) | $ (33) | |
Time Deposits | Level 2 | Interest Expense | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Net gains (losses) where the fair value option is elected | $ 3 | $ 11 |
Fair Values of Assets and Lia_4
Fair Values of Assets and Liabilities - Valuation Assumption Ranges for MSRs (Details) | Jun. 30, 2024 |
Minimum | Expected prepayment | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
MSRs measurement inputs | 0.07 |
Minimum | Option adjusted spread | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
MSRs measurement inputs | 0.04 |
Maximum | Expected prepayment | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
MSRs measurement inputs | 0.21 |
Maximum | Option adjusted spread | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
MSRs measurement inputs | 0.11 |
Weighted Average | Expected prepayment | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
MSRs measurement inputs | 0.09 |
Weighted Average | Option adjusted spread | |
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) | Jun. 30, 2024 |
Minimum | Expected loan close rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative commitments measurement inputs | 0.08 |
Minimum | Inherent MSR value (basis points per loan) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative commitments measurement inputs | 0.0053 |
Maximum | Expected loan close rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative commitments measurement inputs | 1 |
Maximum | Inherent MSR value (basis points per loan) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative commitments measurement inputs | 0.0197 |
Weighted Average | Expected loan close rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative commitments measurement inputs | 0.77 |
Weighted Average | Inherent MSR value (basis points per loan) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative commitments measurement inputs | 0.0105 |
Fair Values of Assets and Lia_6
Fair Values of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | 6 Months Ended | ||||||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Available-for-sale securities | [1] | $ 79,799 | $ 69,706 | ||||
Mortgage loans held for sale | 2,550 | 2,011 | |||||
Mortgage servicing rights | 3,326 | $ 3,633 | $ 3,462 | 3,377 | $ 3,724 | $ 3,755 | |
Derivative assets netting | (3,379) | (3,666) | |||||
Time deposits | 6,089 | 2,818 | |||||
Derivative liabilities netting | (3,944) | (3,720) | |||||
Equity investments without readily determinable fair values | 136 | 133 | |||||
Equity investments without readily determinable fair values impairment loss cumulative amount | 0 | 5 | |||||
Equity investments without readily determinable fair values impairment loss | 0 | $ 0 | |||||
U.S. Treasury and agencies | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Available-for-sale securities | 28,050 | 19,542 | |||||
Residential mortgage-backed securities | Agency | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Available-for-sale securities | 27,957 | 26,078 | |||||
Commercial mortgage-backed securities | Agency | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Available-for-sale securities | 7,274 | 7,343 | |||||
Commercial mortgage-backed securities | Non-agency | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Available-for-sale securities | 7 | 6 | |||||
Asset-backed securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Available-for-sale securities | 6,582 | 6,724 | |||||
Obligations of state and political subdivisions | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Available-for-sale securities | 9,684 | 9,989 | |||||
Other | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Available-for-sale securities | 245 | 24 | |||||
Fair Value, Measurements, Recurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Available-for-sale securities | 79,799 | 69,706 | |||||
Mortgage loans held for sale | 2,550 | 2,011 | |||||
Mortgage servicing rights | 3,326 | 3,377 | |||||
Derivative assets netting | (3,379) | (3,666) | |||||
Derivative assets | 2,711 | 2,865 | |||||
Other assets | 2,638 | 2,541 | |||||
Total assets | 91,024 | 80,500 | |||||
Time deposits | 6,089 | 2,818 | |||||
Derivative liabilities netting | (3,944) | (3,720) | |||||
Derivative liabilities | 4,824 | 4,589 | |||||
Short-term borrowings and other liabilities | 2,342 | 2,303 | |||||
Total liabilities | 13,255 | 9,710 | |||||
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 | 28,050 | 19,542 | |||||
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 | 27,957 | 26,078 | |||||
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 | 7,274 | 7,343 | |||||
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 | 7 | 6 | |||||
Fair Value, Measurements, Recurring | Asset-backed securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Available-for-sale securities | 6,582 | 6,724 | |||||
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 | 9,684 | 9,989 | |||||
Fair Value, Measurements, Recurring | Other | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Available-for-sale securities | 245 | 24 | |||||
Fair Value, Measurements, Recurring | Level 1 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Available-for-sale securities | 23,364 | 14,787 | |||||
Mortgage loans held for sale | 0 | 0 | |||||
Mortgage servicing rights | 0 | 0 | |||||
Derivative assets before netting | 16 | 0 | |||||
Other assets | 292 | 550 | |||||
Total assets | 23,672 | 15,337 | |||||
Time deposits | 0 | 0 | |||||
Derivative liabilities before netting | 11 | 16 | |||||
Short-term borrowings and other liabilities | 483 | 517 | |||||
Total liabilities | 494 | 533 | |||||
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 | 23,364 | 14,787 | |||||
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 | 56,435 | 54,919 | |||||
Mortgage loans held for sale | 2,550 | 2,011 | |||||
Mortgage servicing rights | 0 | 0 | |||||
Derivative assets before netting | 4,773 | 5,078 | |||||
Other assets | 2,346 | 1,991 | |||||
Total assets | 66,104 | 63,999 | |||||
Time deposits | 6,089 | 2,818 | |||||
Derivative liabilities before netting | 5,153 | 4,955 | |||||
Short-term borrowings and other liabilities | 1,859 | 1,786 | |||||
Total liabilities | 13,101 | 9,559 | |||||
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 | 4,686 | 4,755 | |||||
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 | 27,957 | 26,078 | |||||
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 | 7,274 | 7,343 | |||||
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 | 7 | 6 | |||||
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 | 6,582 | 6,724 | |||||
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 | 9,684 | 9,989 | |||||
Fair Value, Measurements, Recurring | Level 2 | Other | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Available-for-sale securities | 245 | 24 | |||||
Fair Value, Measurements, Recurring | Level 3 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Available-for-sale securities | 0 | 0 | |||||
Mortgage loans held for sale | 0 | 0 | |||||
Mortgage servicing rights | 3,326 | 3,377 | |||||
Derivative assets before netting | 1,301 | 1,453 | |||||
Other assets | 0 | 0 | |||||
Total assets | 4,627 | 4,830 | |||||
Time deposits | 0 | 0 | |||||
Derivative liabilities before netting | 3,604 | 3,338 | |||||
Short-term borrowings and other liabilities | 0 | 0 | |||||
Total liabilities | 3,604 | 3,338 | |||||
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 | 0 | |||||
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning of Period Balance | $ (2,361) | $ (2,265) | $ (1,885) | $ (3,199) |
Net Gains (Losses) Included in Net Income | (1,004) | (1,927) | (2,687) | (2,243) |
Purchases | 270 | (18) | 648 | 405 |
Sales | (3) | (7) | (5) | (19) |
Principal Payments | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 795 | 798 | 1,626 | 1,637 |
End of Period Balance | (2,303) | (3,419) | (2,303) | (3,419) |
Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period | 4 | (1,631) | (676) | (1,242) |
Available-for-sale investment securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning of Period Balance | 1 | 1 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Principal Payments | (1) | (1) | ||
Issuances | 0 | 0 | ||
Settlements | 0 | 0 | ||
End of Period Balance | 0 | 0 | ||
Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period | 0 | 0 | ||
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 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Principal Payments | (1) | (1) | ||
Issuances | 0 | 0 | ||
Settlements | 0 | 0 | ||
End of Period Balance | 0 | 0 | ||
Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period | 0 | 0 | ||
Mortgage servicing rights | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning of Period Balance | 3,462 | 3,724 | 3,377 | 3,755 |
Net Gains (Losses) Included in Net Income | (12) | (42) | 18 | (171) |
Purchases | 1 | 1 | 1 | 2 |
Sales | (189) | (149) | (189) | (148) |
Principal Payments | 0 | 0 | 0 | 0 |
Issuances | 64 | 99 | 119 | 195 |
Settlements | 0 | 0 | 0 | 0 |
End of Period Balance | 3,326 | 3,633 | 3,326 | 3,633 |
Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period | (12) | (42) | 18 | (171) |
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 | 52 | 46 | 96 | 98 |
Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period | 17 | 18 | 17 | 18 |
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 | (1,000) | (2,000) | (2,700) | (2,300) |
Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period | (19) | (1,700) | (624) | (1,300) |
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 | 6 | 1 | (69) | (1) |
Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period | $ 6 | $ 1 | $ (69) | $ (1) |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | $ 508 | $ 354 |
Other assets | 21 | 27 |
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 | 508 | 354 |
Other assets | $ 21 | $ 27 |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Losses recognized related to nonrecurring fair value measurements | $ 1 | $ 0 | $ 3 | $ 1 |
Loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Losses recognized related to nonrecurring fair value measurements | $ 96 | $ 68 | $ 163 | $ 210 |
Fair Values of Assets and Li_10
Fair Values of Assets and Liabilities - Fair Value Option (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value Disclosures [Abstract] | ||
Fair value carrying amount, total loans | $ 2,550 | $ 2,011 |
Contractual principal outstanding, total loans | 2,528 | 1,994 |
Carrying amount over (under) contractual principal outstanding, total loans | 22 | 17 |
Fair value carrying amount, time deposits | 6,089 | 2,818 |
Contractual principal outstanding, time deposits | 6,104 | 2,822 |
Carrying amount over (under) contractual principal outstanding, time deposits | (15) | (4) |
Fair value, nonaccrual loans | 1 | 1 |
Contractual principal outstanding, nonaccrual loans | 1 | 1 |
Fair value, loans 90 days or more past due | 2 | 4 |
Contractual principal outstanding, loans 90 days or more past due | $ 2 | $ 4 |
Fair Values of Assets and Li_11
Fair Values of Assets and Liabilities - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Financial Assets | ||
Cash and due from banks | $ 65,832 | $ 61,192 |
Investment securities held-to-maturity | 69,311 | 74,088 |
Financial Liabilities | ||
Long-term debt | 52,720 | 51,480 |
Carrying Amount | ||
Financial Assets | ||
Cash and due from banks | 65,832 | 61,192 |
Federal funds sold and securities purchased under resale agreements | 4,408 | 2,543 |
Investment securities held-to-maturity | 81,486 | 84,045 |
Loans held for sale | 32 | 190 |
Loans | 368,584 | 366,456 |
Other | 2,084 | 2,377 |
Financial Liabilities | ||
Time deposits | 51,228 | 49,455 |
Short-term borrowings | 14,215 | 12,976 |
Long-term debt | 52,720 | 51,480 |
Other | 4,860 | 5,432 |
Fair Value | ||
Financial Assets | ||
Cash and due from banks | 65,832 | 61,192 |
Federal funds sold and securities purchased under resale agreements | 4,408 | 2,543 |
Investment securities held-to-maturity | 69,311 | 74,088 |
Loans held for sale | 32 | 190 |
Loans | 359,667 | 362,849 |
Other | 2,084 | 2,377 |
Financial Liabilities | ||
Time deposits | 51,395 | 49,607 |
Short-term borrowings | 13,983 | 12,729 |
Long-term debt | 51,171 | 49,697 |
Other | 4,860 | 5,432 |
Fair Value | Level 1 | ||
Financial Assets | ||
Cash and due from banks | 65,832 | 61,192 |
Federal funds sold and securities purchased under resale agreements | 0 | 0 |
Investment securities held-to-maturity | 1,256 | 1,310 |
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 | 4,408 | 2,543 |
Investment securities held-to-maturity | 68,055 | 72,778 |
Loans held for sale | 0 | 0 |
Loans | 0 | 0 |
Other | 1,556 | 1,863 |
Financial Liabilities | ||
Time deposits | 51,395 | 49,607 |
Short-term borrowings | 13,983 | 12,729 |
Long-term debt | 51,171 | 49,697 |
Other | 1,359 | 1,406 |
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 | 32 | 190 |
Loans | 359,667 | 362,849 |
Other | 528 | 514 |
Financial Liabilities | ||
Time deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Other | $ 3,501 | $ 4,026 |
Guarantees and Contingent Lia_3
Guarantees and Contingent Liabilities - Other Guarantees and Contingent Liabilities (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Other | |
Guarantor Obligations [Line Items] | |
Collateral Held | $ 0 |
Carrying Amount | 21 |
Maximum Potential Future Payments | 2,825 |
Standby letters of credit | |
Guarantor Obligations [Line Items] | |
Collateral Held | 0 |
Carrying Amount | 20 |
Maximum Potential Future Payments | 10,921 |
Securities lending indemnifications | |
Guarantor Obligations [Line Items] | |
Collateral Held | 6,769 |
Carrying Amount | 0 |
Maximum Potential Future Payments | 6,586 |
Asset sales | |
Guarantor Obligations [Line Items] | |
Collateral Held | 0 |
Carrying Amount | 99 |
Maximum Potential Future Payments | 10,644 |
Merchant processing | |
Guarantor Obligations [Line Items] | |
Collateral Held | 876 |
Carrying Amount | 64 |
Maximum Potential Future Payments | 152,500 |
Tender option bond program guarantee | |
Guarantor Obligations [Line Items] | |
Collateral Held | 343 |
Carrying Amount | 0 |
Maximum Potential Future Payments | $ 338 |
Guarantees and Contingent Lia_4
Guarantees and Contingent Liabilities - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Airline Processing Arrangements | ||
Guarantor Obligations [Line Items] | ||
Value of airline tickets purchased to deliver at future date through card transactions | $ 12,900 | |
Amount reserved for guaranteed obligations | 40 | |
Airline Processing Arrangements | Escrow Deposits Letters of Credit Indemnities | ||
Guarantor Obligations [Line Items] | ||
Collateral held for guaranteed obligations | 758 | |
Representation and Warranty | ||
Guarantor Obligations [Line Items] | ||
Amount reserved for guaranteed obligations | 10 | $ 13 |
Unresolved claims | $ 14 | $ 18 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Condensed Income Statement | ||||
Net interest income (taxable-equivalent basis) | $ 4,052 | $ 4,449 | $ 8,067 | $ 9,117 |
Noninterest income | 2,815 | 2,726 | 5,515 | 5,233 |
Total net revenue | 6,867 | 7,175 | 13,582 | 14,350 |
Noninterest expense | 4,214 | 4,569 | 8,673 | 9,124 |
Income (loss) before provision and income taxes | 2,653 | 2,606 | 4,909 | 5,226 |
Provision for credit losses | 568 | 821 | 1,121 | 1,248 |
Income (loss) before income taxes | 2,085 | 1,785 | 3,788 | 3,978 |
Income taxes and taxable-equivalent adjustment | 474 | 416 | 851 | 905 |
Net income | 1,611 | 1,369 | 2,937 | 3,073 |
Net (income) loss attributable to noncontrolling interests | (8) | (8) | (15) | (14) |
Net income attributable to U.S. Bancorp | 1,603 | 1,361 | 2,922 | 3,059 |
Average Balance Sheet | ||||
Loans | 374,685 | 388,817 | 372,878 | 387,789 |
Other earning assets | 234,207 | 225,022 | 229,635 | 222,955 |
Goodwill | 12,477 | 12,512 | 12,480 | 12,468 |
Other intangible assets | 6,031 | 6,724 | 6,048 | 6,885 |
Assets | 665,504 | 673,012 | 659,707 | 669,251 |
Noninterest-bearing deposits | 83,418 | 113,758 | 84,102 | 121,705 |
Interest-bearing deposits | 430,491 | 383,507 | 424,383 | 382,053 |
Total deposits | 513,909 | 497,265 | 508,485 | 503,758 |
Total U.S. Bancorp shareholders’ equity | 56,029 | 53,822 | 55,849 | 53,248 |
Lease revenue | 195 | 186 | 382 | 369 |
Wealth, Corporate, Commercial and Institutional Banking | ||||
Condensed Income Statement | ||||
Net interest income (taxable-equivalent basis) | 1,906 | 1,894 | 3,810 | 3,857 |
Noninterest income | 1,131 | 1,071 | 2,244 | 2,090 |
Total net revenue | 3,037 | 2,965 | 6,054 | 5,947 |
Noninterest expense | 1,374 | 1,380 | 2,746 | 2,738 |
Income (loss) before provision and income taxes | 1,663 | 1,585 | 3,308 | 3,209 |
Provision for credit losses | 100 | 162 | 241 | 135 |
Income (loss) before income taxes | 1,563 | 1,423 | 3,067 | 3,074 |
Income taxes and taxable-equivalent adjustment | 391 | 356 | 767 | 769 |
Net income | 1,172 | 1,067 | 2,300 | 2,305 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to U.S. Bancorp | 1,172 | 1,067 | 2,300 | 2,305 |
Average Balance Sheet | ||||
Loans | 173,695 | 178,749 | 172,381 | 177,867 |
Other earning assets | 9,590 | 6,671 | 9,164 | 6,349 |
Goodwill | 4,824 | 4,651 | 4,825 | 4,633 |
Other intangible assets | 1,007 | 962 | 1,033 | 998 |
Assets | 203,201 | 205,169 | 201,196 | 203,168 |
Noninterest-bearing deposits | 57,299 | 73,512 | 57,939 | 77,816 |
Interest-bearing deposits | 216,293 | 195,333 | 212,068 | 197,372 |
Total deposits | 273,592 | 268,845 | 270,007 | 275,188 |
Total U.S. Bancorp shareholders’ equity | 21,481 | 22,359 | 21,619 | 21,949 |
Consumer and Business Banking | ||||
Condensed Income Statement | ||||
Net interest income (taxable-equivalent basis) | 1,922 | 2,295 | 3,801 | 4,684 |
Noninterest income | 413 | 431 | 836 | 831 |
Total net revenue | 2,335 | 2,726 | 4,637 | 5,515 |
Noninterest expense | 1,622 | 1,764 | 3,224 | 3,496 |
Income (loss) before provision and income taxes | 713 | 962 | 1,413 | 2,019 |
Provision for credit losses | 30 | 16 | 84 | 23 |
Income (loss) before income taxes | 683 | 946 | 1,329 | 1,996 |
Income taxes and taxable-equivalent adjustment | 171 | 237 | 333 | 500 |
Net income | 512 | 709 | 996 | 1,496 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to U.S. Bancorp | 512 | 709 | 996 | 1,496 |
Average Balance Sheet | ||||
Loans | 154,857 | 167,002 | 154,845 | 167,214 |
Other earning assets | 2,278 | 2,512 | 2,078 | 2,346 |
Goodwill | 4,326 | 4,530 | 4,326 | 4,512 |
Other intangible assets | 4,734 | 5,393 | 4,714 | 5,492 |
Assets | 168,634 | 184,804 | 168,854 | 185,032 |
Noninterest-bearing deposits | 20,900 | 34,120 | 21,137 | 37,616 |
Interest-bearing deposits | 202,967 | 180,239 | 201,131 | 177,227 |
Total deposits | 223,867 | 214,359 | 222,268 | 214,843 |
Total U.S. Bancorp shareholders’ equity | 14,553 | 16,386 | 14,699 | 16,476 |
Payment Services | ||||
Condensed Income Statement | ||||
Net interest income (taxable-equivalent basis) | 673 | 623 | 1,375 | 1,270 |
Noninterest income | 1,094 | 1,050 | 2,073 | 1,987 |
Total net revenue | 1,767 | 1,673 | 3,448 | 3,257 |
Noninterest expense | 983 | 941 | 1,981 | 1,889 |
Income (loss) before provision and income taxes | 784 | 732 | 1,467 | 1,368 |
Provision for credit losses | 388 | 314 | 747 | 534 |
Income (loss) before income taxes | 396 | 418 | 720 | 834 |
Income taxes and taxable-equivalent adjustment | 99 | 105 | 180 | 209 |
Net income | 297 | 313 | 540 | 625 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to U.S. Bancorp | 297 | 313 | 540 | 625 |
Average Balance Sheet | ||||
Loans | 40,832 | 37,913 | 40,318 | 37,426 |
Other earning assets | 115 | 74 | 134 | 187 |
Goodwill | 3,327 | 3,331 | 3,329 | 3,323 |
Other intangible assets | 281 | 359 | 291 | 372 |
Assets | 46,099 | 44,126 | 46,458 | 43,492 |
Noninterest-bearing deposits | 2,706 | 3,179 | 2,749 | 3,181 |
Interest-bearing deposits | 97 | 104 | 97 | 106 |
Total deposits | 2,803 | 3,283 | 2,846 | 3,287 |
Total U.S. Bancorp shareholders’ equity | 9,941 | 9,127 | 9,953 | 9,048 |
Rewards and rebate costs and certain partner payments | 776 | 760 | 1,500 | 1,500 |
Revenue generated from certain contracts with customers | 2,300 | 2,200 | 4,500 | 4,300 |
Treasury and Corporate Support | ||||
Condensed Income Statement | ||||
Net interest income (taxable-equivalent basis) | (449) | (363) | (919) | (694) |
Noninterest income | 177 | 174 | 362 | 325 |
Total net revenue | (272) | (189) | (557) | (369) |
Noninterest expense | 235 | 484 | 722 | 1,001 |
Income (loss) before provision and income taxes | (507) | (673) | (1,279) | (1,370) |
Provision for credit losses | 50 | 329 | 49 | 556 |
Income (loss) before income taxes | (557) | (1,002) | (1,328) | (1,926) |
Income taxes and taxable-equivalent adjustment | (187) | (282) | (429) | (573) |
Net income | (370) | (720) | (899) | (1,353) |
Net (income) loss attributable to noncontrolling interests | (8) | (8) | (15) | (14) |
Net income attributable to U.S. Bancorp | (378) | (728) | (914) | (1,367) |
Average Balance Sheet | ||||
Loans | 5,301 | 5,153 | 5,334 | 5,282 |
Other earning assets | 222,224 | 215,765 | 218,259 | 214,073 |
Goodwill | 0 | 0 | 0 | 0 |
Other intangible assets | 9 | 10 | 10 | 23 |
Assets | 247,570 | 238,913 | 243,199 | 237,559 |
Noninterest-bearing deposits | 2,513 | 2,947 | 2,277 | 3,092 |
Interest-bearing deposits | 11,134 | 7,831 | 11,087 | 7,348 |
Total deposits | 13,647 | 10,778 | 13,364 | 10,440 |
Total U.S. Bancorp shareholders’ equity | $ 10,054 | $ 5,950 | $ 9,578 | $ 5,775 |