Cover page
Cover page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 03, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-09718 | ||
Entity Registrant Name | PNC FINANCIAL SERVICES GROUP, INC | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 25-1435979 | ||
Entity Address, Address Line One | The Tower at PNC Plaza | ||
Entity Address, Address Line Two | 300 Fifth Avenue | ||
Entity Address, City or Town | Pittsburgh | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 15222-2401 | ||
City Area Code | 888 | ||
Local Phone Number | 762-2265 | ||
Title of 12(b) Security | Common Stock, par value $5.00 | ||
Trading Symbol | PNC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 64.6 | ||
Entity Common Stock, Shares Outstanding | 399,682,159 | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement of The PNC Financial Services Group, Inc. to be filed pursuant to Regulation 14A for the 2023 annual meeting of shareholders (Proxy Statement) are incorporated by reference into Part III of this Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000713676 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Pittsburgh, Pennsylvania |
Auditor Firm ID | 238 |
Consolidated Income Statement
Consolidated Income Statement - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest Income | |||
Loans | $ 11,795 | $ 9,007 | $ 8,927 |
Investment securities | 2,726 | 1,834 | 2,041 |
Other | 915 | 293 | 339 |
Total interest income | 15,436 | 11,134 | 11,307 |
Interest Expense | |||
Deposits | 1,267 | 126 | 643 |
Borrowed funds | 1,155 | 361 | 718 |
Total interest expense | 2,422 | 487 | 1,361 |
Net interest income | 13,014 | 10,647 | 9,946 |
Noninterest Income | |||
Total noninterest income | 8,106 | 8,564 | 6,955 |
Total revenue | 21,120 | 19,211 | 16,901 |
Provision For (Recapture of) Credit Losses | 477 | (779) | 3,175 |
Noninterest Expense | |||
Personnel | 7,244 | 7,141 | 5,673 |
Occupancy | 992 | 940 | 826 |
Equipment | 1,395 | 1,411 | 1,176 |
Marketing | 355 | 319 | 236 |
Other | 3,184 | 3,191 | 2,386 |
Total noninterest expense | 13,170 | 13,002 | 10,297 |
Income from continuing operations before income taxes and noncontrolling interests | 7,473 | 6,988 | 3,429 |
Income taxes from continuing operations | 1,360 | 1,263 | 426 |
Net income from continuing operations | 6,113 | 5,725 | 3,003 |
Income from discontinued operations before taxes | 5,777 | ||
Income taxes from discontinued operations | 1,222 | ||
Net income from discontinued operations | 4,555 | ||
Net income | 6,113 | 5,725 | 7,558 |
Less: Net income attributable to noncontrolling interests | 72 | 51 | 41 |
Preferred stock dividends | 301 | 233 | 229 |
Preferred stock discount accretion and redemptions | 5 | 5 | 4 |
Net income attributable to common shareholders | $ 5,735 | $ 5,436 | $ 7,284 |
Total basic earnings | |||
Basic earnings from continuing operations (dollars per share) | $ 13.86 | $ 12.71 | $ 6.37 |
Basic earnings from discontinued operations (dollars per share) | 10.62 | ||
Basic earnings per common share (dollars per share) | 13.86 | 12.71 | 16.99 |
Total diluted earnings | |||
Diluted earnings from continuing operations (dollars per share) | 13.85 | 12.70 | 6.36 |
Diluted earnings from discontinued operations (dollars per share) | 10.60 | ||
Diluted earnings per common share (dollars per share) | $ 13.85 | $ 12.70 | $ 16.96 |
Average Common Shares Outstanding | |||
Basic (shares) | 412 | 426 | 427 |
Diluted (shares) | 412 | 426 | 427 |
Asset management and brokerage | |||
Noninterest Income | |||
Total noninterest income | $ 1,444 | $ 1,438 | $ 1,203 |
Capital markets and advisory | |||
Noninterest Income | |||
Total noninterest income | 1,296 | 1,577 | 1,259 |
Card and cash management | |||
Noninterest Income | |||
Total noninterest income | 2,633 | 2,398 | 1,913 |
Lending and deposit services | |||
Noninterest Income | |||
Total noninterest income | 1,134 | 1,102 | 1,026 |
Residential and commercial mortgage | |||
Noninterest Income | |||
Total noninterest income | 647 | 850 | 946 |
Other | |||
Noninterest Income | |||
Total noninterest income | $ 952 | $ 1,199 | $ 608 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net income from continuing operations | $ 6,113 | $ 5,725 | $ 3,003 |
Other comprehensive income (loss), before tax and net of reclassifications into Net income | |||
Net change in Other | (5) | 4 | 10 |
Other comprehensive income (loss), before tax and net of reclassifications into Net income | (13,787) | (3,087) | 2,548 |
Income tax benefit (expense) related to items of other comprehensive income | 3,206 | 726 | (577) |
Other comprehensive income (loss), after tax and net of reclassifications into Net income | (10,581) | (2,361) | 1,971 |
Net income from discontinued operations | 4,555 | ||
Other comprehensive income (loss), after tax and net of reclassifications into Net income | (10,581) | (2,361) | 1,971 |
Comprehensive income (loss) | (4,468) | 3,364 | 9,529 |
Less: Comprehensive income attributable to noncontrolling interests | 72 | 51 | 41 |
Comprehensive income (loss) attributable to PNC | (4,540) | 3,313 | 9,488 |
Discontinued Operations, Disposed of by Sale | |||
Other comprehensive income (loss), before tax and net of reclassifications into Net income | |||
Other comprehensive income (loss), before tax and net of reclassifications into Net income | 148 | ||
Income tax benefit (expense) related to items of other comprehensive income | (33) | ||
Other comprehensive income (loss), after tax and net of reclassifications into Net income | 115 | ||
Continuing Operations | |||
Other comprehensive income (loss), before tax and net of reclassifications into Net income | |||
Net change in debt securities | (10,143) | (2,451) | 1,811 |
Net change in cash flow hedge derivatives | (3,276) | (1,126) | 497 |
Pension and other postretirement benefit plan adjustments | (363) | 486 | 82 |
Net change in Other | (5) | 4 | 10 |
Other comprehensive income (loss), before tax and net of reclassifications into Net income | (13,787) | (3,087) | 2,400 |
Income tax benefit (expense) related to items of other comprehensive income | 3,206 | 726 | (544) |
Other comprehensive income (loss), after tax and net of reclassifications into Net income | $ (10,581) | $ (2,361) | $ 1,856 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets | |||
Cash and due from banks | $ 7,043 | $ 8,004 | |
Interest-earning deposits with banks | 27,320 | 74,250 | |
Loans held for sale | [1] | 1,010 | 2,231 |
Investment securities – available for sale | 44,159 | 131,536 | |
Investment securities – held to maturity | 95,175 | 1,426 | |
Loans | [1] | 326,025 | 288,372 |
Allowance for loan and lease losses | (4,741) | (4,868) | |
Net loans | 321,284 | 283,504 | |
Equity investments | 8,437 | 8,180 | |
Mortgage servicing rights | 3,423 | 1,818 | |
Goodwill | 10,987 | 10,916 | |
Other | [1] | 38,425 | 35,326 |
Total assets | 557,263 | 557,191 | |
Deposits | |||
Noninterest-bearing | 124,486 | 155,175 | |
Interest-bearing | 311,796 | 302,103 | |
Total deposits | 436,282 | 457,278 | |
Borrowed funds | |||
Federal Home Loan Bank borrowings | 32,075 | ||
Senior debt | 16,657 | 20,661 | |
Subordinated debt | 6,307 | 6,996 | |
Other | [2] | 3,674 | 3,127 |
Total borrowed funds | 58,713 | 30,784 | |
Allowance for unfunded lending related commitments | 694 | 662 | |
Accrued expenses and other liabilities | 15,762 | 12,741 | |
Total liabilities | 511,451 | 501,465 | |
Equity | |||
Preferred stock | [3] | ||
Common stock ($5 par value, Authorized 800 shares, issued 543 shares) | 2,714 | 2,713 | |
Capital surplus | 18,376 | 17,457 | |
Retained earnings | 53,572 | 50,228 | |
Accumulated other comprehensive income (loss) | (10,172) | 409 | |
Common stock held in treasury at cost: 142 and 123 shares | (18,716) | (15,112) | |
Total shareholders’ equity | 45,774 | 55,695 | |
Noncontrolling interests | 38 | 31 | |
Total equity | [4] | 45,812 | 55,726 |
Total liabilities and equity | $ 557,263 | $ 557,191 | |
[1]Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $0.9 billion, Loans of $1.3 billion and Other assets of $0.1 billion at December 31, 2022 and Loans held for sale of $1.9 billion, Loans of $1.5 billion and Other assets of $0.1 billion at December 31, 2021.[2]Our consolidated liabilities included the following for which we have elected the fair value option: Other borrowed funds of less than $0.1 billion and Other liabilities of $0.2 billion at December 31, 2022. Comparable amounts at December 31, 2021 were less than $0.1 billion and zero.[3]Par value less than $0.5 million at each date.[4]The par value of our preferred stock outstanding was less than $0.5 million at each date and, therefore, is excluded from this presentation. |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Common stock, par value (in dollars per share) | $ 5 | $ 5 | |
Common stock, authorized (shares) | 800,000,000 | 800,000,000 | |
Common stock, issued (shares) | 543,000,000 | 543,000,000 | |
Common stock held in treasury at cost (shares) | 142,000,000 | 123,000,000 | |
Loans held for sale | [1] | $ 1,010 | $ 2,231 |
Preferred stock | 0.5 | 0.5 | |
Portion at Fair Value Measurement | |||
Loans held for sale | 900 | 1,900 | |
Loans, fair value | 1,300 | 1,500 | |
Other assets, fair value | 100 | 100 | |
Other borrowed funds, fair value (less than) | 100 | 100 | |
Other liabilites, fair value (less than) | 200 | 0 | |
Preferred stock | $ 0.5 | $ 0.5 | |
[1]Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $0.9 billion, Loans of $1.3 billion and Other assets of $0.1 billion at December 31, 2022 and Loans held for sale of $1.9 billion, Loans of $1.5 billion and Other assets of $0.1 billion at December 31, 2021. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | [2] | Cumulative Effect, Period of Adoption, Adjusted Balance | [1] | Common stock | Common stock Cumulative Effect, Period of Adoption, Adjusted Balance | Capital Surplus - Preferred Stock | Capital Surplus - Preferred Stock Cumulative Effect, Period of Adoption, Adjusted Balance | [1] | Capital Surplus - Common Stock and Other | Capital Surplus - Common Stock and Other Cumulative Effect, Period of Adoption, Adjusted Balance | [1] | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | [2] | Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance | [1] | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjusted Balance | [1] | Treasury Stock | Treasury Stock Cumulative Effect, Period of Adoption, Adjusted Balance | [1] | Noncontrolling Interests | Noncontrolling Interests Cumulative Effect, Period of Adoption, Adjusted Balance | [1] | ||||||||||
Beginning Balance (in shares) at Dec. 31, 2019 | [1] | 433 | 433 | ||||||||||||||||||||||||||||||||||
Common Stock [Abstract] | |||||||||||||||||||||||||||||||||||||
Treasury stock activity, shares | (9) | ||||||||||||||||||||||||||||||||||||
Ending Balance, (in shares) at Dec. 31, 2020 | [1] | 424 | |||||||||||||||||||||||||||||||||||
Total Equity, Beginning Balance at Dec. 31, 2019 | $ 49,343 | [1] | $ (671) | $ 48,672 | $ 2,712 | [1] | $ 2,712 | [1] | $ 3,993 | [1] | $ 3,993 | $ 12,376 | [1] | $ 12,376 | $ 42,215 | [1] | $ (671) | $ 41,544 | $ 799 | [1] | $ 799 | $ (12,781) | [1] | $ (12,781) | $ 29 | [1] | $ 29 | ||||||||||
Common Stock [Abstract] | |||||||||||||||||||||||||||||||||||||
Net income | 7,558 | 7,517 | 41 | ||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | 1,971 | 1,971 | |||||||||||||||||||||||||||||||||||
Dividends, Cash [Abstract] | |||||||||||||||||||||||||||||||||||||
Common | (1,980) | (1,980) | |||||||||||||||||||||||||||||||||||
Preferred | (229) | (229) | |||||||||||||||||||||||||||||||||||
Preferred stock discount accretion | 4 | (4) | |||||||||||||||||||||||||||||||||||
Common stock activity | [3] | 24 | 1 | 23 | |||||||||||||||||||||||||||||||||
Treasury stock activity | (1,370) | 54 | (1,424) | ||||||||||||||||||||||||||||||||||
Preferred stock redemption | [4] | (480) | (480) | ||||||||||||||||||||||||||||||||||
Other | (125) | (86) | (39) | ||||||||||||||||||||||||||||||||||
Total Equity, Ending Balance at Dec. 31, 2020 | [1] | 54,041 | $ 2,713 | 3,517 | 12,367 | 46,848 | 2,770 | (14,205) | 31 | ||||||||||||||||||||||||||||
Common Stock [Abstract] | |||||||||||||||||||||||||||||||||||||
Treasury stock activity, shares | (4) | ||||||||||||||||||||||||||||||||||||
Ending Balance, (in shares) at Dec. 31, 2021 | [1] | 420 | |||||||||||||||||||||||||||||||||||
Common Stock [Abstract] | |||||||||||||||||||||||||||||||||||||
Net income | 5,725 | 5,674 | 51 | ||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (2,361) | (2,361) | |||||||||||||||||||||||||||||||||||
Dividends, Cash [Abstract] | |||||||||||||||||||||||||||||||||||||
Common | (2,056) | (2,056) | |||||||||||||||||||||||||||||||||||
Preferred | (233) | (233) | |||||||||||||||||||||||||||||||||||
Preferred stock discount accretion | 5 | (5) | |||||||||||||||||||||||||||||||||||
Common stock activity | [3] | 25 | 25 | ||||||||||||||||||||||||||||||||||
Treasury stock activity | (823) | 84 | (907) | ||||||||||||||||||||||||||||||||||
Preferred stock issuance | [5] | 1,487 | 1,487 | ||||||||||||||||||||||||||||||||||
Other | (79) | (28) | (51) | ||||||||||||||||||||||||||||||||||
Total Equity, Ending Balance at Dec. 31, 2021 | [1] | 55,726 | $ 2,713 | 5,009 | 12,448 | 50,228 | 409 | (15,112) | 31 | ||||||||||||||||||||||||||||
Common Stock [Abstract] | |||||||||||||||||||||||||||||||||||||
Treasury stock activity, shares | (19) | ||||||||||||||||||||||||||||||||||||
Ending Balance, (in shares) at Dec. 31, 2022 | [1] | 401 | |||||||||||||||||||||||||||||||||||
Common Stock [Abstract] | |||||||||||||||||||||||||||||||||||||
Net income | 6,113 | 6,041 | 72 | ||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (10,581) | (10,581) | |||||||||||||||||||||||||||||||||||
Dividends, Cash [Abstract] | |||||||||||||||||||||||||||||||||||||
Common | (2,391) | (2,391) | |||||||||||||||||||||||||||||||||||
Preferred | (301) | (301) | |||||||||||||||||||||||||||||||||||
Preferred stock discount accretion | 5 | (5) | |||||||||||||||||||||||||||||||||||
Common stock activity | [3] | 31 | $ 1 | 30 | |||||||||||||||||||||||||||||||||
Treasury stock activity | (3,543) | 61 | (3,604) | ||||||||||||||||||||||||||||||||||
Preferred stock redemption | [6] | (1,500) | (1,500) | ||||||||||||||||||||||||||||||||||
Preferred stock issuance | [7],[8] | 2,232 | 2,232 | ||||||||||||||||||||||||||||||||||
Other | 26 | 91 | (65) | ||||||||||||||||||||||||||||||||||
Total Equity, Ending Balance at Dec. 31, 2022 | [1] | $ 45,812 | $ 2,714 | $ 5,746 | $ 12,630 | $ 53,572 | $ (10,172) | [9] | $ (18,716) | $ 38 | |||||||||||||||||||||||||||
[1]The par value of our preferred stock outstanding was less than $0.5 million at each date and, therefore, is excluded from this presentation.[2] Represents the impact of the adoption of ASU 2016-13 - Financial Instruments - Credit Losses . |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Operating Activities | ||||
Net income | $ 6,113 | $ 5,725 | $ 7,558 | |
Adjustments to reconcile net income to net cash provided (used) by operating activities | ||||
Provision For (Recapture of) Credit Losses | 477 | (779) | 3,175 | |
Depreciation, amortization and accretion | 651 | 1,773 | 1,497 | |
Deferred income taxes (benefit) | 351 | 178 | (2,239) | |
Net losses (gains) on sales of securities | 7 | (64) | (305) | |
Changes in fair value of mortgage servicing rights | (543) | 85 | 799 | |
Gain on sale of BlackRock | (5,740) | |||
Undistributed earnings of BlackRock | (174) | |||
Net change in | ||||
Trading securities and other short-term investments | 433 | 671 | 957 | |
Loans held for sale and related securitization activity | 1,041 | (480) | (372) | |
Other assets | (877) | (454) | (927) | |
Accrued expenses and other liabilities | 599 | 753 | (254) | |
Other | 831 | (194) | 684 | |
Net cash provided (used) by operating activities | 9,083 | 7,214 | 4,659 | |
Sales | ||||
Securities available for sale | 4,137 | 26,329 | 13,851 | |
Net proceeds from sale of BlackRock | 14,225 | |||
Loans | 5,643 | 1,843 | 1,894 | |
Repayments/maturities | ||||
Securities available for sale | 13,324 | 30,691 | 30,901 | |
Securities held to maturity | 5,115 | 131 | 60 | |
Purchases | ||||
Securities available for sale | (25,582) | (85,496) | (45,356) | |
Securities held to maturity | (15,423) | (87) | (53) | |
Loans | (2,074) | (1,891) | (1,982) | |
Net change in | ||||
Federal funds sold and resale agreements | (718) | (24) | 1,738 | |
Interest-earning deposits with banks | 46,930 | 24,236 | (61,760) | |
Loans | (41,735) | 15,616 | (3,376) | |
Net cash paid for acquisition | [1] | (10,511) | ||
Purchases of bank owned life insurance | (50) | (950) | ||
Other | (2,995) | (2,682) | (1,264) | |
Net cash provided (used) by investing activities | (13,428) | (2,795) | (51,122) | |
Net change in | ||||
Noninterest-bearing deposits | (30,662) | 6,697 | 39,851 | |
Interest-bearing deposits | 9,693 | (320) | 36,947 | |
Federal funds purchased and repurchase agreements | (2) | (46) | (5,861) | |
Short-term Federal Home Loan Bank borrowings | (6,300) | |||
Other borrowed funds | 636 | 44 | 123 | |
Sales/issuances | ||||
Federal Home Loan Bank borrowings | 32,075 | 9,060 | ||
Senior debt | 3,688 | 1,692 | 3,487 | |
Subordinated debt | 847 | |||
Other borrowed funds | 796 | 822 | 647 | |
Preferred stock | 2,225 | 1,484 | ||
Common and treasury stock | 68 | 66 | 65 | |
Repayments/maturities | ||||
Federal Home Loan Bank borrowings | (3,680) | (15,601) | ||
Senior debt | (6,250) | (6,000) | (9,047) | |
Subordinated debt | (1,000) | |||
Other borrowed funds | (807) | (823) | (639) | |
Preferred stock redemption | (1,500) | (480) | ||
Acquisition of treasury stock | (3,731) | (1,079) | (1,624) | |
Preferred stock cash dividends paid | (301) | (233) | (229) | |
Common stock cash dividends paid | (2,391) | (2,056) | (1,980) | |
Net cash provided (used) by financing activities | 3,384 | (3,432) | 48,419 | |
Net Increase (Decrease) In Cash And Due From Banks And Restricted Cash | (961) | 987 | 1,956 | |
Net Cash Provided By Discontinued Operations | 11,542 | |||
Net Cash Provided (Used) By Continuing Operations | (961) | 987 | (9,586) | |
Cash and due from banks and restricted cash at beginning of period | 8,004 | 7,017 | 5,061 | |
Cash and due from banks and restricted cash at end of period | 7,043 | 8,004 | 7,017 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and due from banks at end of period (unrestricted cash) | 6,446 | 7,431 | 6,636 | |
Restricted cash | 597 | 573 | 381 | |
Cash and due from banks and restricted cash at end of period | 7,043 | 8,004 | 7,017 | |
Supplemental Disclosures | ||||
Interest paid | 2,172 | 582 | 1,292 | |
Income taxes paid | 197 | 675 | 3,410 | |
Income taxes refunded | 26 | 73 | 10 | |
Leased assets obtained in exchange for new operating lease liabilities | 326 | 337 | 122 | |
Non-cash Investing And Financing Items | ||||
Transfer from securities available for sale to securities held to maturity | [1] | 88,605 | ||
Transfer from trading securities to investment securities | 289 | |||
Transfer from loans to loans held for sale, net | 435 | 869 | 1,379 | |
Transfer from loans to foreclosed assets | $ 58 | $ 27 | $ 64 | |
[1]During the year ended December 31, 2022, we transferred securities from available for sale to held to maturity in non-cash transactions. The amount of $88.6 billion includes the aggregate fair value of the securities of $82.7 billion and aggregate net pretax unrealized losses of $5.9 billion included in AOCI at transfer. See Note 3 Investment Securities for more detailed information on the transfers. |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Parenthetical) $ in Millions | 12 Months Ended | ||||||
Aug. 19, 2022 $ / shares shares | Sep. 13, 2021 $ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | Nov. 01, 2022 shares | Sep. 01, 2020 shares | |
Par value less than $.5 million at each date | $ | $ 0.5 | $ 0.5 | $ 0.5 | ||||
Common stock held in treasury at cost (shares) | 142,000,000 | 123,000,000 | |||||
Common stock | |||||||
Common stock activity, shares | 500,000 | 500,000 | 500,000 | ||||
Series Q Preferred Stock | |||||||
Treasury stock, preferred (shares) | 4,800 | ||||||
Depositary Shares | |||||||
Common stock held in treasury at cost (shares) | 60,000,000 | 19,200,000 | |||||
Series T Preferred Stock | |||||||
Common stock activity, shares | 1,500,000 | ||||||
Depositary shares, conversion ratio | 0.01 | ||||||
Preferred stock, dividend rate, percentage | 3.40% | ||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 1 | ||||||
Series V Preferred Stock | |||||||
Common stock activity, shares | 1,250,000 | ||||||
Depositary shares, conversion ratio | 0.01 | ||||||
Preferred stock, dividend rate, percentage | 6.20% | ||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 1 | ||||||
Series P Preferred Stock | |||||||
Treasury stock, preferred (shares) | 15,000 | ||||||
Depositary shares, conversion ratio | 0.01 |
Consolidated Statement of Cas_2
Consolidated Statement of Cash Flows (Parenthetical) $ in Billions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Statement of Cash Flows [Abstract] | |
Transfer from securities available for sale to securities held to maturity | $ 88.6 |
Transferred securities at fair value from available for sale to held to maturity | 82.7 |
Net unrealized losses, related to securities transferred to held to maturity | $ 5.9 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Accounting Policies | B USINESS PNC is one of the largest diversified financial services companies in the U.S. and is headquartered in Pittsburgh, Pennsylvania. We have businesses engaged in retail banking, including residential mortgage, corporate and institutional banking and asset management, providing many of our products and services nationally. Our retail branch network is located coast-to-coast. We also have strategic international offices in four countries outside the U.S. CCOUNTING P OLICIES Basis of Financial Statement Presentation Our consolidated financial statements include the accounts of the parent company and its subsidiaries, most of which are wholly-owned, certain partnership interests and VIEs. On June 1, 2021, we acquired BBVA, a U.S. financial holding company conducting its business operations primarily through its U.S. banking subsidiary, BBVA USA. Our results of operations and balance sheets for all periods presented in this Report reflect the benefit of BBVA’s acquired businesses for the period since the acquisition closed on June 1, 2021. See Note 2 Acquisition and Divestiture Activity for additional information related to this acquisition. We prepared these consolidated financial statements in accordance with GAAP. We have eliminated intercompany accounts and transactions. We have also reclassified certain prior-year amounts to conform to the current period presentation, which did not have a material impact on our consolidated financial condition or results of operations. We have also considered the impact of subsequent events on these consolidated financial statements. Noninterest Income Presentation Effective for the first quarter of 2022, PNC updated the presentation of its noninterest income categorization to be based on product and service type, and accordingly, has changed the basis of presentation of its noninterest income revenue streams to: (i) Asset management and brokerage, (ii) Capital markets related, (iii) Card and cash management, (iv) Lending and deposit services, (v) Residential and commercial mortgage and (vi) Other noninterest income. Additionally, in the fourth quarter of 2022, PNC updated the name of the noninterest income line item “Capital markets related” to “Capital markets and advisory.” This update did not impact the components of the category. A description of each revenue stream follows: Asset management and brokerage includes revenue from our asset management and retail brokerage businesses. Asset management services include investment management, custody, retirement planning, family planning, trust management and retirement administration. Brokerage services offer retail customers a wide range of investment options, including mutual funds, annuities, stock, bonds and managed accounts. Capital markets and advisory includes revenue from services and activities primarily related to merger and acquisition advisory, equity capital markets advisory, asset-backed financing, loan syndication, securities underwriting, credit valuation adjustments related to the derivatives portfolio and customer-related trading. Card and cash management includes revenue primarily from debit and credit card activities, inclusive of credit card points and rewards, treasury management services and ATM fees. Debit and credit card activities include interchange revenue and merchant service fees. Treasury management services include cash and investment management, receivables and disbursement management, funds transfer, international payment and access to online/mobile information management and reporting. Lending and deposit services includes revenue primarily related to service charges on deposits, loan commitment and usage fees, the issuance of standby letters of credit, operating lease income and long-term care and insurance products. Residential and commercial mortgage includes the gain and loss on sale of mortgages, revenue related to our mortgage servicing responsibilities, mortgage servicing rights valuation adjustments and net gains on originations and sales of loans held for sale. Other noninterest income is primarily composed of private equity revenue, net securities gains and losses, activity related to our equity investment in Visa and gains and losses on asset sales. See Note 24 Fee-based Revenue from Contracts with Customers for additional details related to these revenue streams within the scope of ASC 606 - Revenue from Contracts with Customers . Use of Estimates We prepared these consolidated financial statements using financial information available at the time of preparation, which requires us to make estimates and assumptions that affect the amounts reported. Our most significant estimates pertain to the ACL and our fair value measurements, including for the BBVA acquisition. Actual results may differ from the estimates and the differences may be material to the consolidated financial statements. Cash, Cash Equivalents and Restricted Cash Cash and due from banks are considered cash and cash equivalents for financial reporting purposes because they represent a primary source of liquidity. Certain cash balances within Cash and due from banks on our Consolidated Balance Sheet are restricted as to withdrawal or usage by legally binding contractual agreements or regulatory requirements. Investments We hold interests in various types of investments. The accounting for these investments is dependent on a number of factors including, but not limited to, items such as: • Ownership interest, • Our plans for the investment, and • The nature of the investment. Debt Securities Debt securities are recorded on a trade-date basis. We classify debt securities as either trading, held to maturity, or available for sale. Debt securities that we purchase for certain risk management activities or customer-related trading activities are classified as trading securities, are reported in the Other assets line item on our Consolidated Balance Sheet and are carried at fair value. Realized and unrealized gains and losses on trading securities are included in Other noninterest income. We classify debt securities as held to maturity when we have the positive intent and ability to hold the securities to maturity, and carry them at amortized cost, less any allowance. Debt securities not classified as held to maturity or trading are classified as securities available for sale and are carried at fair value. Unrealized gains and losses on available for sale securities are included in AOCI net of income taxes. We include all interest on debt securities, including amortization of premiums and accretion of discounts on investment securities, in net interest income using the constant effective yield method generally calculated over the contractual lives of the securities. Effective yields reflect either the effective interest rate implicit in the security at the date of acquisition or, for debt securities where an OTTI was recorded, the effective interest rate determined based on improved cash flows subsequent to an impairment. We compute gains and losses realized on the sale of available for sale debt securities on a specific security basis. These securities gains and losses are included in Other noninterest income on the Consolidated Income Statement. The CECL standard requires expected credit losses on both held to maturity and available for sale securities to be recognized through a valuation allowance, ACL, instead of as a direct write-down to the amortized cost basis of the security. An available for sale security is considered impaired if the fair value is less than its amortized cost basis. If any portion of the decline in fair value is related to credit, the amount of allowance is determined as the portion related to credit, limited to the difference between the amortized cost basis and the fair value of the security. If we have the intent to sell or believe it is more likely than not we will be required to sell an impaired available for sale security before recovery of the amortized cost basis, the credit loss is recorded as a direct write-down of the amortized cost basis. Credit losses on investment securities are recognized through the Provision for credit losses on our Consolidated Income Statement. Declines in the fair value of available for sale securities that are not considered credit related are recognized in AOCI on our Consolidated Balance Sheet. We consider a security to be past due in terms of payment based on its contractual terms. A security may be placed on nonaccrual, with interest no longer recognized until received, when collectability of principal or interest is doubtful. As of December 31, 2022, nonaccrual or past due held-to-maturity and available-for-sale securities were immaterial. A security may be partially or fully charged off against the allowance if it is determined to be uncollectible, including, for an available for sale security, if we have the intent to sell or believe it is more likely than not we will be required to sell the security before recovery of the amortized cost basis. Recoveries of previously charged-off available for sale securities are recognized when received, while recoveries on held to maturity securities are recognized when expected. See the Allowance for Credit Losses section of this Note 1 for further discussion regarding the methodologies used to determine the allowance for investment securities. See Note 3 Investment Securities for additional information about the investment securities portfolio and the related ACL. Equity Securities and Partnership Interests We account for equity securities, equity investments, private equity investments, and investments in limited partnerships, limited liability companies and other investments that are not required to be consolidated under one of the following methods: • We use the equity method for general and limited partner ownership interests and limited liability companies in which we are considered to have significant influence over the operations of the investee. Under the equity method, we record our equity ownership share of net income or loss of the investee in Noninterest income and any dividends received on equity method investments are recorded as a reduction to the investment balance. When an equity investment experiences an other-than-temporary decline in value, we may be required to record a loss on the investment. • We measure equity securities that have a readily determinable fair value at fair value through Net income. Both realized and unrealized gains and losses are included in Noninterest income. Dividend income on these equity securities is included in Other interest income on our Consolidated Income Statement. • We generally use the practicability exception to fair value measurement for all other investments without a readily determinable fair value. When we elect this alternative measurement method, the investment is recorded at cost and the carrying value is adjusted for impairment, if any, plus or minus changes in value resulting from observable price changes in orderly transactions for identical or similar instruments of the same issuer. Adjustments to fair value based on changes in observable price are recorded in Other noninterest income. These investments are written down to fair value if a qualitative assessment indicates impairment and the fair value is less than the carrying value. The amount of the write-down is accounted for as a loss included in Other noninterest income. Distributions received on these investments are included in Noninterest income. Investments described above are included in Equity investments on our Consolidated Balance Sheet. Private Equity Investments We report private equity investments, which include direct investments in companies, affiliated partnership interests and indirect investments in private equity funds, at estimated fair value. These estimates are based on available information and may not necessarily represent amounts that we will ultimately realize through distribution, sale or liquidation of the investments. Fair values of publicly-traded direct investments are determined using quoted market prices and are subject to various discount factors arising from security level restrictions, when appropriate. The valuation procedures applied to direct investments and indirect investments are detailed in Note 15 Fair Value. We include all private equity investments within Equity investments on our Consolidated Balance Sheet. Changes in fair value of private equity investments are recognized in Other noninterest income. We consolidate affiliated partnerships when we have determined that we have control of the partnership or are the primary beneficiary if the entity is a VIE. The portion we do not own is reflected in Noncontrolling interests on our Consolidated Balance Sheet. Loans Loans are classified as held for investment when management has both the intent and ability to hold the loan for the foreseeable future, or until maturity or payoff. Management’s intent and view of the foreseeable future may change based on changes in business strategies, the economic environment, market conditions and the availability of government programs. Measurement of delinquency status is based on the contractual terms of each loan. Loans that are 30 days or more past due in terms of payment are considered delinquent. See Note 4 Loans and Related Allowance for Credit Losses for additional information on how COVID-19 hardship related loan modifications are reported from a delinquency perspective as of December 31, 2022 and 2021. Loans held for investment, excluding PCD loans, are recorded at amortized cost basis unless we elect to measure these under the fair value option. Amortized cost basis represents principal amounts outstanding, net of unearned income, unamortized deferred fees and costs on originated loans, premiums or discounts on purchased loans and charge-offs. Amortized cost basis does not include accrued interest, as we include accrued interest in Other assets on our Consolidated Balance Sheet. Interest on performing loans is accrued based on the principal amount outstanding and recorded in Interest income as earned using the constant effective yield method over the contractual life. Loan origination fees, direct loan origination costs, and loan premiums and discounts are deferred and accreted or amortized into Net interest income using the constant effective yield method, over the contractual life of the loan. The processing fee received for loans originated through PPP lending under the CARES Act is deferred and accreted into Net interest income using the effective yield method, over the contractual life of the loan. Loans under the fair value option are reported at their fair value, with any changes to fair value reported as Noninterest income on the Consolidated Income Statement, and are excluded from measurement of ALLL. In addition to originating loans, we also acquire loans through the secondary loan market, portfolio purchases or acquisitions of other financial services companies. Certain acquired loans that have experienced a more-than-insignificant deterioration of credit quality since origination ( i.e. , PCD) are recognized at an amortized cost basis equal to their purchase price plus an ALLL measured at the acquisition date. PNC considers a variety of factors in connection with the identification of more-than-insignificant deterioration in credit quality, including but not limited to nonperforming status, delinquency, risk ratings, TDR classification and other qualitative factors that indicate deterioration in credit quality since origination. Subsequent decreases in expected cash flows that are attributable, at least in part, to credit quality are recognized through a charge to the provision for credit losses resulting in an increase in the ALLL. Subsequent increases in expected cash flows are recognized as a provision recapture of previously recorded ALLL . We consider a loan to be collateral dependent when we determine that substantially all of the expected cash flows will be generated from the operation or sale of the collateral underlying the loan, or when the borrower is experiencing financial difficulty and we have elected to measure the loan at the estimated fair value of collateral (less costs to sell if sale or foreclosure of the property is expected). Additionally, we consider a loan to be collateral dependent when foreclosure or liquidation of the underlying collateral is probable. A TDR is a loan whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulty. A concession has been granted when we do not expect to collect all amounts due, including original interest accrued at the original contract rate, as a result of the restructuring, or there is a delay in payment that is more-than-insignificant. TDRs result from our loss mitigation activities, and include rate reductions, principal forgiveness, postponement/reduction of scheduled amortization, and extensions, which are intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Additionally, TDRs also result from borrowers that have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to us. In those situations where principal is forgiven, the amount of such principal forgiveness is immediately charged off. Potential incremental losses or recoveries on TDRs have been factored into the ALLL estimates for each loan class under the methodologies described in this Note. Once a loan becomes a TDR, it will continue to be reported as a TDR until it is ultimately repaid in full, the collateral is foreclosed upon or it is fully charged off. PNC excludes loans held for sale, loans accounted for under the fair value option and certain government insured or guaranteed loans from our TDR population. PCD loans do not require additional considerations and thus are evaluated for inclusion in our TDR population. Prior to the expiration of TDR relief on January 1, 2022, PNC elected not to apply a TDR designation to loans that were restructured due to a COVID-19 hardship pursuant to specific criteria under the CARES Act. Since loans restructured due to a COVID-19 related hardship were not identified as TDRs, they were not placed on nonaccrual at the time of modification unless payment in full of principal or interest was not expected. These loans continued to be subject to our existing nonaccrual policy. See the following for additional information related to loans, including further discussion regarding our policies, the methodologies and significant inputs used to determine the ALLL and additional details on the composition of our loan portfolio: • Nonperforming Loans and Leases section of this Note 1, • Allowance for Credit Losses section of this Note 1, and • Note 4 Loans and Related Allowance for Credit Losses. Nonperforming Loans and Leases The matrix that follows summarizes our policies for classifying certain loans as nonperforming loans and/or discontinuing the accrual of loan interest income. Commercial Loans classified as nonperforming and accounted for as nonaccrual • Loans accounted for at amortized cost where: – The loan is 90 days or more past due. – The loan is rated substandard or worse due to the determination that full collection of principal and interest is not probable as demonstrated by the following conditions: • The collection of principal or interest is 90 days or more past due, • Reasonable doubt exists as to the certainty of the borrower’s future debt service ability, according to the terms of the credit arrangement, regardless of whether 90 days have passed or not, • The borrower has filed or will likely file for bankruptcy, • The bank advances additional funds to cover principal or interest, • We are in the process of liquidating a commercial borrower or • We are pursuing remedies under a guarantee. Loans excluded from nonperforming classification but accounted for as nonaccrual • Loans accounted for under the fair value option and full collection of principal and interest is not probable. • Loans accounted for at the lower of cost or market less costs to sell (held for sale) and full collection of principal and interest is not probable. Loans excluded from nonperforming classification and nonaccrual accounting • Loans that are well secured and in the process of collection. • Certain government insured loans where substantially all principal and interest is insured. • Commercial purchasing card assets which do not accrue interest. Consumer Loans classified as nonperforming and accounted for as nonaccrual • Loans accounted for at amortized cost where full collection of contractual principal and interest is not deemed probable as demonstrated in the policies below: – The loan is 90 days past due for home equity and installment loans, and 180 days past due for well secured residential real estate loans, – The loan has been modified and classified as a TDR, – The loan has been modified to defer prior payments in forbearance to the end of the loan term, – Notification of bankruptcy has been received, – The bank holds a subordinate lien position in the loan and the first lien mortgage loan is seriously stressed ( i.e. , 90 days or more past due), – Other loans within the same borrower relationship have been placed on nonaccrual or charge-offs have been taken on them, – The bank has ordered the repossession of non-real estate collateral securing the loan or – The bank has charged-off the loan to the value of the collateral. Loans excluded from nonperforming classification but accounted for as nonaccrual • Loans accounted for under the fair value option and full collection of principal and interest is not probable. • Loans accounted for at the lower of cost or market less costs to sell (held for sale) and full collection of principal and interest is not probable. Loans excluded from nonperforming classification and nonaccrual accounting • Certain government insured loans where substantially all principal and interest is insured. • Residential real estate loans that are well secured and in the process of collection. • Consumer loans and lines of credit, not secured by residential real estate or automobiles, as permitted by regulatory guidance. Commercial We generally charge-off commercial (commercial and industrial, commercial real estate and equipment lease financing) nonperforming loans when we determine that a specific loan, or portion thereof, is uncollectible. This determination is based on the specific facts and circumstances of the individual loans. In making this determination, we consider the viability of the business or project as a going concern, the past due status when the asset is not well-secured, the expected cash flows to repay the loan, the value of the collateral and the ability and willingness of any guarantors to perform. For commercial loans and leases less than a defined dollar threshold, balances are charged-off in full after pre-determined days past due. Consumer We generally charge-off secured consumer (home equity, residential real estate and automobile) nonperforming loans to the fair value of collateral less costs to sell, if lower than the amortized cost basis of the loan outstanding, when delinquency of the loan, combined with other risk factors ( e.g. , bankruptcy, lien position or troubled debt restructuring), indicates that the loan, or some portion thereof, is uncollectible as per our historical experience, or the collateral has been repossessed. We charge-off secured consumer loans no later than 180 days past due. Most consumer loans and lines of credit, not secured by automobiles or residential real estate, are charged-off once they have reached 120-180 days past due. For secured collateral dependent loans, collateral values are updated at least annually and subsequent declines in collateral values are charged-off resulting in incremental provision for credit loss. Subsequent increases in collateral values may be reflected as an adjustment to the ALLL to reflect the expectation of recoveries in an amount greater than previously expected, limited to amounts previously charged-off. Accounting for Nonperforming Assets and Leases and Other Nonaccrual Loans For nonaccrual loans, interest income accrual and deferred fee/cost recognition is discontinued. Additionally, depending on whether the accrued interest has been incorporated into the ACL estimates, as discussed in the Accrued Interest section of this Note 1, the accrued and uncollected interest is either reversed through Net interest income (if a CECL reserve is not maintained for accrued interest) or charged-off against the allowance (if a CECL reserve is maintained for accrued interest), except for credit cards, where we reverse any accrued interest through Net interest income at the time of charge-off, as per industry standard practice. Nonaccrual loans that are also collateral dependent may be charged-off to reduce the basis to the fair value of collateral less costs to sell. If payment is received on a nonaccrual loan, generally the payment is first applied to the remaining principal balance; payments are then applied to recover any charged-off amounts related to the loan. Finally, if both principal balance and any charge-offs have been recovered, then the payment will be recorded as fee and interest income. For certain consumer loans, the receipt of interest payments is recognized as interest income on a cash basis. Cash basis income recognition is applied if a loan’s amortized cost basis is deemed fully collectible and the loan has performed for at least six months. For TDRs, payments are applied based upon their contractual terms unless the related loan is deemed non-performing. TDRs are generally included in nonperforming and nonaccrual loans. However, after a reasonable period of time, generally six months, in which the loan performs under restructured terms and meets other performance indicators, it is returned to performing/accruing status. This return to performing/accruing status demonstrates that the bank expects to collect all of the loan’s remaining contractual principal and interest. TDRs resulting from (i) borrowers that have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to us, and (ii) borrowers that are not currently obligated to make both principal and interest payments under the restructured terms are not returned to accrual status. Other nonaccrual loans are generally not returned to accrual status until the borrower has performed in accordance with the contractual terms and other performance indicators for at least six months, the period of time which was determined to demonstrate the expected collection of the loan’s remaining contractual principal and interest. Nonaccrual loans with partially charged-off principal are not returned to accrual. When a nonperforming loan is returned to accrual status, it is then considered a performing loan. Foreclosed assets consist of any asset seized or property acquired through a foreclosure proceeding or acceptance of a deed-in-lieu of foreclosure. OREO comprises principally commercial and residential real estate properties obtained in partial or total satisfaction of loan obligations. After obtaining a foreclosure judgment, or in some jurisdictions the initiation of proceedings under a power of sale in the loan instruments, the property will be sold. When we are awarded title or completion of deed-in-lieu of foreclosure, we transfer the loan to foreclosed assets included in Other assets on our Consolidated Balance Sheet. Property obtained in satisfaction of a loan is initially recorded at estimated fair value less cost to sell. Based upon the estimated fair value less cost to sell, the amortized cost basis of the loan is adjusted and a charge-off/recovery is recognized to the ALLL. We estimate fair values primarily based on appraisals, or sales agreements with third parties. Subsequently, foreclosed assets are valued at the lower of the amount recorded at acquisition date or estimated fair value less cost to sell. Valuation adjustments on these assets and gains or losses realized from disposition of such property are reflected in Other noninterest expense. For certain mortgage loans that have a government guarantee, we establish a separate other receivable upon foreclosure. The receivable is measured based on the loan balance (inclusive of principal and interest) that is expected to be recovered from the guarantor. See Note 4 Loans and Related Allowance for Credit Losses for additional information on nonperforming assets, TDRs and credit quality indicators related to our loan portfolio. Allowance for Credit Losses Our ACL, in accordance with the CECL standard adopted on January 1, 2020, is based on historical loss experience, current borrower risk characteristics, current economic conditions, reasonable and supportable forecasts of future conditions and other relevant factors. We maintain the ACL at an appropriate level for expected losses on our existing investment securities, loans, equipment finance leases, other financial assets and unfunded lending related commitments, for the estimated contractual term of the assets or exposures as of the balance sheet date. The remaining contractual term of assets in scope of CECL is estimated considering contractual maturity dates, prepayment expectations, utilization or draw expectations and any embedded extension options that do not allow us to unilaterally cancel the extension options. For products without a fixed contractual maturity date ( e.g ., credit cards), we rely on historical payment behavior to determine the length of the paydown or default time period. We estimate expected losses on a pooled basis using a combination of (i) the expected losses over a reasonable and supportable forecast period, (ii) a period of reversion to long-run average expected losses where applicable and (iii) the long run average expected losses for the remaining estimated contractual term. For all assets and unfunded lending related commitments in the scope of CECL, the ACL also includes individually assessed reserves and qualitative reserves, as applicable. We use forward-looking information in estimating expected credit losses for our reasonable and supportable forecast period. For this purpose, we use forecasted scenarios produced by PNC’s Economics Team, which are designed to reflect business cycles and their related estimated probabilities. The forecast length that we have determined to be reasonable and supportable is three years. As noted in the methodology discussions that follow, forward-looking information is incorporated into the expected credit loss estimates. Such forward looking information includes forecasted relevant macroeconomic variables, which are estimated using quantitative macroeconomic models, analysis from PNC economists and management judgment. The reversion period is used to bridge our three year reasonable and supportable forecast period and the long run average expected credit losses. We consider a number of factors in determining the duration of the reversion period, such as contractual maturity of the asset, observed historical patterns and the estimated credit loss rates at the end of the forecast period relative to the beginning of the long run average period. The reversion period is typically 1-3 years, if not immediate. The long-run average expected credit losses are derived from long run historical credit loss information adjusted for the credit quality of the current portfolio, and therefore do not consider current and forecasted economic conditions. See the following sections related to investment securities, loans, trade receivables, other financial assets and unfunded lending related commitments for details about specific methodologies. Allowance for Investment Securities A significant portion of our investment securities are issued or guaranteed by either the U.S. government (U.S. Treasury or GNMA) or a government-sponsored agency (FNMA or FHLMC). Taking into consideration historical information and current and forecasted conditions, we do not expect to incur any credit losses on these securities. Investment securities that are not issued or guaranteed by the U.S. government or a government-sponsored agency consist of both securitized products, such as non-agency mortgage and asset-backed securities, as well as non-securitized products, such as corporate and |
Acquisition and Divestiture Act
Acquisition and Divestiture Activity | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisition and Divestiture Activity | A CQUISITION A ND D IVESTITURE A CTIVITY Acquisition of BBVA USA Bancshares, Inc. On June 1, 2021, PNC acquired BBVA including its U.S. banking subsidiary, BBVA USA, for $11.5 billion in cash. PNC did not acquire the following entities as part of the acquisition: BBVA Securities, Inc., Propel Venture Partners Fund I, L.P. and BBVA Processing Services, Inc. This transaction has been accounted for as a business combination. Accordingly, the assets and liabilities from BBVA were recorded at fair value as of the acquisition date. The determination of fair value requires management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. Fair value estimates related to the assets and liabilities from BBVA were subject to adjustment for up to one year after the closing date of the acquisition as additional information became available. Valuations subject to adjustment included, but were not limited to, loans, certain deposits, certain other assets, customer relationships and the core deposit intangibles. On October 12, 2021, PNC converted approximately 2.6 million customers, 9,000 employees and over 600 branches across seven states, merging BBVA USA into PNC Bank. PNC incurred merger and integration costs of $55 million for the twelve months ended December 31, 2022, in connection with the transaction. These costs are recorded as contra-revenue and expense on the Consolidated Income Statement. The integration expenses are primarily related to retail services and realty expenses. Cumulative integration costs, excluding write-offs for capitalized items, were $860 million. Integration costs associated with write-offs for capitalized items were $120 million. The following table includes the fair value of the identifiable tangible and intangible assets and liabilities from BBVA: Table 39: Acquisition Consideration June 1, 2021 In millions Fair Value Fair value of acquisition consideration $ 11,480 Assets Cash and due from banks $ 969 Interest-earning deposits with banks 13,313 Loans held for sale 463 Investment securities – available for sale 18,358 Net loans 61,423 Equity investments 723 Mortgage servicing rights 35 Core deposit intangibles and other intangible assets 378 Other 3,527 Total assets $ 99,189 Liabilities Deposits $ 85,562 Borrowed funds 2,449 Accrued expenses and other liabilities 1,275 Total liabilities $ 89,286 Noncontrolling interests 22 Less: Net assets $ 9,881 Goodwill $ 1,599 Goodwill of $1.6 billion recorded in connection with the transaction resulted from the reputation, operating model and expertise of BBVA. The amount of goodwill recorded reflected the increased market share and related synergies that resulted from the acquisition, and represents the excess purchase price over the estimated fair value of the net assets from BBVA. The goodwill was allocated to each of our three business segments and is not deductible for income tax purposes. See Note 6 Goodwill and Mortgage Servicing Rights for additional information on the allocation of goodwill to the segments. Table 40: Fair Value and Unpaid Principal Balance of Loans from the BBVA Acquisition June 1, 2021 In millions Unpaid Principal Balance Fair Value Loans Commercial Commercial and industrial $ 29,864 $ 29,381 Commercial real estate 10,632 10,313 Equipment lease financing 48 48 Total commercial 40,544 39,742 Consumer Residential real estate 12,871 12,961 Home equity 2,430 2,423 Automobile 3,916 3,910 Credit card 820 758 Other consumer 1,688 1,629 Total consumer 21,725 21,681 Total $ 62,269 $ 61,423 Other intangible assets from the BBVA acquisition as of June 1, 2021 consisted of the following: Table 41: Intangible Assets In millions Fair Value Weighted Life Amortization Method Residential mortgage servicing rights $ 35 5.5 (a) Core deposits $ 262 10.0 Accelerated Other 116 9.8 Straight-line Total core deposits and other $ 378 (a) Intangible asset accounted for at fair value. The following is a description of the methods used to determine the fair values of significant assets and liabilities. Cash and Due from Banks and Interest-earning Deposits with Banks The carrying amount of these assets is a reasonable estimate of fair value based on the short-term nature of these assets. Loans Held for Sale Residential mortgage loans are valued based on quoted market prices, where available, prices for other traded mortgage loans with similar characteristics, and purchase commitments and bid information received from market participants. The prices are adjusted as necessary to include the embedded servicing value in the loans and to take into consideration the specific characteristics of certain similar loans. Personal installment loans are pooled based on delinquency status, and fair value of individual loans is calculated based on traded consumer unsecured loans, dealer research and loan level performance characteristics. Available For Sale Securities All investment securities from the BBVA acquisition were classified within the available for sale portfolio at acquisition. Fair value estimates for available for sale securities were determined by third-party pricing vendors. The third-party vendors use a variety of methods when pricing securities that incorporate relevant market data to arrive at an estimate of what a buyer in the marketplace would pay for a security under current market conditions. These methods include the use of quoted prices for the identical or a similar security, an alternative market-based approach or an income approach, such as a discounted cash flow pricing model. Loans Fair value for loans were based on a discounted cash flow methodology that considered credit loss and prepayment expectations, market interest rates and other market factors, such as liquidity, from the perspective of a market participant. Loan cash flows were generated on an individual loan basis. The PD, LGD, exposure at default and prepayment assumptions are the key factors driving credit losses which are embedded into the estimated cash flows. Equity Investments Equity investments primarily include LIHTC investments and preservation fund investments. The fair value of the LIHTC investments was estimated based on LIHTC pricing observed for recent transactions in markets where the properties underlying the LIHTC investments from the BBVA acquisition are located. The fair value of the preservation investments was estimated based on appraisals and valuations of the properties in the investment portfolio using income and market projections. Mortgage Servicing Rights The fair value of mortgage servicing rights from the BBVA acquisition is estimated by using a discounted cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration actual and expected mortgage loan prepayment rates, discount rates, servicing costs and other factors which are determined based on current market conditions. Core Deposit Intangible This intangible asset represents the value of certain client deposit relationships. The fair value was estimated utilizing the cost method. Appropriate consideration was given to deposit costs including servicing costs, client retention and alternative funding source costs at the time of acquisition. The discount rate used was derived taking into account the estimated cost of equity, risk-free return rate and risk premium for the market and specific risk related to the asset’s cash flows. The core deposit intangible is being amortized over 10 years using an accelerated amortization methodology. Deposits The fair values for time deposits were estimated by discounting contractual cash flows using current market rates for instruments with similar maturities. For deposits with no defined maturity, carrying values approximate fair values. Borrowed Funds The fair values of long-term debt instruments were estimated based on quoted market prices. The following table presents financial results of BBVA from the date of acquisition through September 30, 2021. BBVA information was fully integrated into PNC’s processes and systems during system conversion in the fourth quarter of 2021 and as a result standalone BBVA financial results were no longer available. Table 42: BBVA Financial Results In millions Four months ended September 30, 2021 Net interest income $ 768 Noninterest income $ 285 Net income $ 378 The following table presents unaudited pro forma results as if the acquisition of BBVA by PNC had occurred on January 1, 2020 and includes the impact of amortizing and accreting certain estimated purchase accounting adjustments such as intangible assets as well as fair value adjustments to loans, deposits and long-term debt. Merger and integration costs of $798 million that were incurred for the twelve months ended December 31, 2021 are included in the pro forma results. PNC’s financial results include the $4.3 billion divestiture of BlackRock recorded in net income for the year ended December 31, 2020. Additionally, BBVA’s financial results through the twelve months ended December 31, 2020 included a $2.2 billion goodwill impairment charge recorded in noninterest expense. The pro forma information does not necessarily reflect the results that would have occurred had PNC acquired BBVA on January 1, 2020. Table 43: Unaudited Pro Forma Results Year ended December 31 In millions 2021 2020 Net interest income $ 11,662 $ 12,413 Noninterest income $ 8,960 $ 7,866 Net income $ 7,475 $ 4,928 Under CECL, PNC is required to determine whether purchased loans held for investment have experienced more-than-insignificant deterioration in credit quality since origination. PNC considers a variety of factors in connection with the identification of more-than-insignificant deterioration in credit quality, including but not limited to nonperforming status, delinquency, risk ratings, TDR classification, FICO scores and other qualitative factors that indicate deterioration in credit quality since origination. PNC initially measures the amortized cost of a PCD loan by adding the acquisition date estimate of expected credit losses to the loan’s purchase price. The initial ACL for PCD loans of $1.1 billion was established through an adjustment to the BBVA loan balance and related purchase accounting mark. Non-PCD loans and PCD loans had a fair value of $52.1 billion and $9.4 billion at the acquisition date and unpaid principal balance of $52.0 billion and $10.3 billion, respectively. In accordance with U.S. GAAP, there was no carryover of the ACL that had been previously recorded by BBVA. Subsequent to acquisition, PNC recorded an ACL on non-PCD loans of $1.0 billion through an increase to the provision for credit losses. Table 44: PCD Loan Activity June 1, 2021 In millions Principal balance $ 10,253 ACL at acquisition (1,102) Non-credit premium 219 Purchase price $ 9,370 Sale of Equity Investment in Blackrock, Inc. In May 2020, PNC completed the sale of its 31.6 million shares of BlackRock, Inc., common and preferred stock through a registered secondary offering at a price of $420 per share. In addition, BlackRock repurchased 2.65 million shares from PNC at a price of $414.96 per share. The total proceeds from the sale were $14.2 billion in cash, net of $0.2 billion in expenses, and resulted in a gain on sale of $4.3 billion. Additionally, PNC contributed 500,000 BlackRock shares to the PNC Foundation. Following the sale and donation, PNC has divested its entire investment in BlackRock and only holds shares of BlackRock stock in a fiduciary capacity for clients of PNC. The following table summarizes the results from the discontinued operations of BlackRock included in the Consolidated Income Statement: Table 45: Consolidated Income Statement - Discontinued Operations Year ended December 31 In millions 2020 Noninterest income $ 5,777 Total revenue 5,777 Income from discontinued operations before income taxes 5,777 Income taxes 1,222 Net income from discontinued operations $ 4,555 The following table summarizes the cash flows of discontinued operations of BlackRock included in the Consolidated Statement of Cash Flows: Table 46: Consolidated Statement of Cash Flows - Discontinued Operations Year ended December 31 In millions 2020 Cash flows from discontinued operations Net cash provided (used) by operating activities of discontinued operations $ (2,683) Net cash provided by investing activities of discontinued operations $ 14,225 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | I NVESTMENT S ECURITIES Table 47: Investment Securities Summary (a)(b) December 31, 2022 December 31, 2021 In millions Amortized Unrealized Fair Amortized Unrealized Fair Gains Losses Gains Losses Securities Available for Sale U.S. Treasury and government agencies $ 9,196 $ 10 $ (836) $ 8,370 $ 46,210 $ 324 $ (370) $ 46,164 Residential mortgage-backed Agency 32,114 13 (3,304) 28,823 67,326 695 (389) 67,632 Non-agency 697 131 (9) 819 927 231 1,158 Commercial mortgage-backed Agency 1,845 (170) 1,675 1,740 39 (6) 1,773 Non-agency 1,325 (69) 1,256 3,423 31 (18) 3,436 Asset-backed 103 27 (1) 129 6,380 60 (31) 6,409 Other 3,288 44 (245) 3,087 4,792 186 (14) 4,964 Total securities available for sale $ 48,568 $ 225 $ (4,634) $ 44,159 $ 130,798 $ 1,566 $ (828) $ 131,536 Securities Held to Maturity U.S. Treasury and government agencies $ 36,571 $ 6 $ (1,617) $ 34,960 $ 814 $ 76 $ 890 Residential mortgage-backed Agency 45,271 74 (3,095) 42,250 Non-agency 276 (21) 255 Commercial mortgage-backed Agency 848 4 (26) 826 Non-agency 1,667 (40) 1,627 Asset-backed 7,188 6 (140) 7,054 Other 3,354 25 (72) 3,307 612 27 $ (7) 632 Total securities held to maturity (d) $ 95,175 $ 115 $ (5,011) $ 90,279 $ 1,426 $ 103 $ (7) $ 1,522 (a) At December 31, 2022, the accrued interest associated with our held to maturity and available for sale portfolios totaled $282 million and $144 million, respectively. The comparable amounts at December 31, 2021 were $5 million and $322 million, respectively. These amounts are included in Other assets (b) Credit ratings represent a primary credit quality indicator used to monitor and manage credit risk. Of our total securities portfolio, 97% and 96% were rated AAA/AA as of December 31, 2022 and 2021, respectively. (c) Amortized cost is presented net of allowance of $142 million and is primarily related to non-agency commercial mortgage-backed securities for securities available for sale and $7 million for securities held to maturity at December 31, 2022. The comparable amounts at December 31, 2021 were $130 million and $3 million, respectively. (d) Held to maturity securities transferred from available for sale are included in held to maturity at fair value at the time of the transfer. The amortized cost of held to maturity securities included net unrealized losses of $5.1 billion, at December 31, 2022, related to securities transferred, which are offset in AOCI, net of tax. The fair value of investment securities is impacted by interest rates, credit spreads, market volatility and liquidity conditions. Securities available for sale are carried at fair value with net unrealized gains and losses included in Total shareholders’ equity as AOCI, unless credit related. Net unrealized gains and losses are determined by taking the difference between the fair value of a security and its amortized cost, net of any allowance. Securities held to maturity are carried at amortized cost less any allowance. Investment securities at December 31, 2022 included $0.2 billion of net unsettled purchases which represent non-cash investing activity, and accordingly, are not reflected on the Consolidated Statement of Cash Flows. The comparable amount for December 31, 2021 was $0.8 billion. During 2022, we transferred securities with a fair value of $82.7 billion from available for sale to held to maturity. The securities transferred included $34.0 billion of U.S. Treasury and government agency securities, $39.0 billion of agency residential mortgage-backed securities, $6.3 billion of asset-backed securities and $3.4 billion of various other security types. The securities were reclassified at fair value at the time of the transfer and the transfers represented non-cash transactions. AOCI at December 31, 2022 included pretax unrealized losses of $5.1 billion related to the transfers. These unrealized losses will be amortized, consistent with the amortization of the discount on these securities, over the remaining life as an adjustment of yield, resulting in no impact to net interest income or net income. We maintain the allowance for investment securities at levels that we believe to be appropriate as of the balance sheet date to absorb expected credit losses on our portfolio. As of December 31, 2022, the allowance for investment securities was $149 million and primarily related to non-agency commercial mortgage-backed securities in the available for sale portfolio. The comparable amount at December 31, 2021 was $133 million. See Note 1 Accounting Policies for a discussion of the methodologies used to determine the allowance for investment securities. At December 31, 2022, AOCI included pretax losses of $314 million from derivatives that hedged the purchase of investment securities classified as held to maturity. The losses will be accreted to interest income as an adjustment of yield on the securities. Table 48 presents the gross unrealized losses and fair value of securities available for sale that do not have an associated allowance for investment securities at December 31, 2022 and 2021. These securities are segregated between investments that had been in a continuous unrealized loss position for less than twelve months and twelve months or more, based on the point in time that the fair value declined below the amortized cost basis. All securities included in the table have been evaluated to determine if a credit loss exists. As part of that assessment, as of December 31, 2022, we concluded that we do not intend to sell and believe we will not be required to sell these securities prior to recovery of the amortized cost basis. Table 48: Gross Unrealized Loss and Fair Value of Securities Available for Sale Without an Allowance for Credit Losses Unrealized loss position Unrealized loss position Total In millions Unrealized Fair Unrealized Fair Unrealized Fair December 31, 2022 U.S. Treasury and government agencies $ (601) $ 5,868 $ (235) $ 2,208 $ (836) $ 8,076 Residential mortgage-backed Agency (1,744) 19,036 (1,560) 8,971 (3,304) 28,007 Non-agency (6) 112 (2) 17 (8) 129 Commercial mortgage-backed Agency (125) 1,283 (45) 372 (170) 1,655 Non-agency (44) 750 (18) 394 (62) 1,144 Asset-backed (1) 5 (1) 5 Other (96) 1,418 (112) 1,144 (208) 2,562 Total securities available for sale $ (2,616) $ 28,467 $ (1,973) $ 13,111 $ (4,589) $ 41,578 December 31, 2021 U.S. Treasury and government agencies $ (370) $ 32,600 $ (370) $ 32,600 Residential mortgage-backed Agency (369) 41,521 $ (20) $ 1,489 (389) 43,010 Commercial mortgage-backed Agency (5) 451 (1) 60 (6) 511 Non-agency (4) 1,453 (3) 474 (7) 1,927 Asset-backed (29) 3,465 (2) 188 (31) 3,653 Other (13) 1,405 (13) 1,405 Total securities available for sale $ (790) $ 80,895 $ (26) $ 2,211 $ (816) $ 83,106 Information related to gross realized securities gains and losses from the sales of securities is set forth in the following table: Table 49: Gains (Losses) on Sales of Securities Available for Sale Year ended December 31 Gross Gains Gross Losses Net Gains (Losses) Tax Expense (Benefit) 2022 $ 11 $ (18) $ (7) $ (1) 2021 $ 360 $ (296) $ 64 $ 13 2020 $ 307 $ (2) $ 305 $ 64 The following table presents, by remaining contractual maturity, the amortized cost, fair value and weighted-average yield of debt securities at December 31, 2022: Table 50: Contractual Maturity of Debt Securities December 31, 2022 1 Year or After 1 Year After 5 Years After 10 Total Dollars in millions Securities Available for Sale U.S. Treasury and government agencies $ 2,121 $ 2,958 $ 2,101 $ 2,016 $ 9,196 Residential mortgage-backed Agency 2 75 3,304 28,733 32,114 Non-agency 7 690 697 Commercial mortgage-backed Agency 66 410 1,075 294 1,845 Non-agency 120 264 941 1,325 Asset-backed 10 93 103 Other 128 2,309 695 156 3,288 Total securities available for sale at amortized cost $ 2,317 $ 5,872 $ 7,456 $ 32,923 $ 48,568 Fair value $ 2,296 $ 5,505 $ 6,762 $ 29,596 $ 44,159 Weighted-average yield, GAAP basis (a) 2.39 % 1.81 % 2.27 % 2.87 % 2.63 % Securities Held to Maturity U.S. Treasury and government agencies $ 862 $ 27,076 $ 7,831 $ 802 $ 36,571 Residential mortgage-backed Agency 8 283 44,980 45,271 Non-agency 276 276 Commercial mortgage-backed Agency 584 264 848 Non-agency 114 1,553 1,667 Asset-backed 253 2,134 2,117 2,684 7,188 Other 159 1,169 579 1,447 3,354 Total securities held to maturity at amortized cost $ 1,274 $ 30,501 $ 11,394 $ 52,006 $ 95,175 Fair value $ 1,264 $ 29,439 $ 10,799 $ 48,777 $ 90,279 Weighted-average yield, GAAP basis (a) 2.31 % 1.35 % 2.41 % 2.86 % 2.31 % (a) Weighted-average yields are based on amortized cost with effective yields weighted for the contractual maturity of each security. Actual maturities and yields may differ as certain securities may be prepaid. At December 31, 2022, there were no securities of a single issuer, other than FNMA and FHLMC, that exceeded 10% of total shareholders’ equity. The FNMA and FHLMC investments had a total amortized cost of $39.6 billion and $33.0 billion and fair value of $36.4 billion and $30.5 billion, respectively. The following table presents the fair value of securities that have been either pledged to or accepted from others to collateralize outstanding borrowings: Table 51: Fair Value of Securities Pledged and Accepted as Collateral In millions December 31 December 31 Pledged to others $ 24,708 $ 27,349 Accepted from others: Permitted by contract or custom to sell or repledge $ 1,266 $ 707 Permitted amount repledged to others $ 1,266 $ 707 |
Loans and Related Allowance for
Loans and Related Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2022 | |
Asset Quality [Abstract] | |
Loans and Related Allowance for Credit Losses | L OANS A ND R ELATED A LLOWANCE F OR C REDIT L OSSES Loan Portfolio Our loan portfolio consists of two portfolio segments – Commercial and Consumer. Each of these segments comprises multiple loan classes. Classes are characterized by similarities in risk attributes and the manner in which we monitor and assess credit risk. Commercial Consumer • Commercial and industrial • Residential real estate • Commercial real estate • Home equity • Equipment lease financing • Automobile • Credit card • Education • Other consumer See Note 1 Accounting Policies for additional information on our loan related policies. Credit Quality We closely monitor economic conditions and loan performance trends to manage and evaluate our exposure to credit risk within the loan portfolio based on our defined loan classes. In doing so, we use several credit quality indicators, including trends in delinquency rates, nonperforming status, analysis of PD and LGD ratings, updated credit scores and originated and updated LTV ratios. The measurement of delinquency status is based on the contractual terms of each loan. Loans that are 30 days or more past due in terms of payment are considered delinquent. Loan delinquencies include government insured or guaranteed loans, loans accounted for under the fair value option and PCD loans. Table 52 presents the composition and delinquency status of our loan portfolio at December 31, 2022 and 2021. We manage credit risk based on the risk profile of the borrower, repayment sources, underlying collateral and other support given current events, economic conditions and expectations. We refine our practices to meet the changing environment resulting from rising inflation levels, supply chain disruptions, higher rates and secular changes resulting from the COVID-19 pandemic. To mitigate losses and enhance customer support, we have customer assistance, loan modification and collection programs that align with the CARES Act and subsequent interagency guidance. As a result, under the CARES Act credit reporting rules, certain loans modified due to COVID-19 related hardships are not being reported as past due as of December 31, 2022 and 2021 based on the contractual terms of the loan, even where borrowers may not be making payments on their loans during the modification period. Table 52: Analysis of Loan Portfolio (a) (b) Accruing Dollars in millions Current or Less 30-59 60-89 90 Days Total Nonperforming Fair Value Total Loans December 31, 2022 Commercial Commercial and industrial $ 181,223 $ 169 $ 27 $ 137 $ 333 $ 663 $ 182,219 Commercial real estate 36,104 19 4 23 189 36,316 Equipment lease financing 6,484 20 4 24 6 6,514 Total commercial 223,811 208 35 137 380 858 225,049 Consumer Residential real estate 44,306 281 112 199 592 (c) 424 $ 567 45,889 Home equity 25,305 53 20 73 526 79 25,983 Automobile 14,543 106 25 7 138 155 14,836 Credit card 6,906 50 35 70 155 8 7,069 Education 2,058 34 22 59 115 (c) 2,173 Other consumer 4,975 15 12 10 37 14 5,026 Total consumer 98,093 539 226 345 1,110 1,127 646 100,976 Total $ 321,904 $ 747 $ 261 $ 482 $ 1,490 $ 1,985 $ 646 $ 326,025 Percentage of total loans 98.73 % 0.23 % 0.08 % 0.15 % 0.46 % 0.61 % 0.20 % 100.00 % December 31, 2021 Commercial Commercial and industrial $ 151,698 $ 235 $ 72 $ 132 $ 439 $ 796 $ 152,933 Commercial real estate 33,580 46 24 1 71 364 34,015 Equipment lease financing 6,095 25 2 27 8 6,130 Total commercial 191,373 306 98 133 537 1,168 193,078 Consumer Residential real estate 37,706 379 119 328 826 (c) 517 $ 663 39,712 Home equity 23,305 53 18 71 596 89 24,061 Automobile 16,252 146 40 14 200 183 16,635 Credit card 6,475 49 33 62 144 7 6,626 Education 2,400 43 25 65 133 (c) 2,533 Other consumer 5,644 35 22 17 74 9 5,727 Total consumer 91,782 705 257 486 1,448 1,312 752 95,294 Total $ 283,155 $ 1,011 $ 355 $ 619 $ 1,985 $ 2,480 $ 752 $ 288,372 Percentage of total loans 98.19 % 0.35 % 0.12 % 0.21 % 0.69 % 0.86 % 0.26 % 100.00 % (a) Amounts in table represent loans held for investment and do not include any associated ALLL. (b) The accrued interest associated with our loan portfolio totaled $1.2 billion and $0.7 billion at December 31, 2022 and 2021, respectively. These amounts are included in Other assets (c) Past due loan amounts include government insured or guaranteed Residential real estate loans and Education loans totaling $0.3 billion and $0.1 billion at December 31, 2022. Comparable amounts at December 31, 2021 were $0.4 billion and $0.1 billion, respectively. (d) Consumer loans accounted for under the fair value option for which we do not expect to collect substantially all principal and interest are subject to nonaccrual accounting and classification upon meeting any of our nonaccrual policy criteria. Given that these loans are not accounted for at amortized cost, these loans have been excluded from the nonperforming loan population. (e) Includes unearned income, unamortized deferred fees and costs on originated loans and premiums or discounts on purchased loans totaling $0.9 billion and $0.7 billion at December 31, 2022 and 2021, respectively. (f) Collateral dependent loans totaled $1.3 billion and $1.7 billion at December 31, 2022 and 2021, respectively. In the normal course of business, we originate or purchase loan products with contractual characteristics that, when concentrated, may increase our exposure as a holder of those loan products. Possible product features that may create a concentration of credit risk would include a high original or updated LTV ratio, terms that may expose the borrower to future increases in repayments above increases in market interest rates and interest-only loans, among others. We originate interest-only loans to commercial borrowers. Such credit arrangements are usually designed to match borrower cash flow expectations ( e.g. , working capital lines, revolvers). These products are standard in the financial services industry and product features are considered during the underwriting process to mitigate the increased risk that the interest-only feature may result in borrowers not being able to make interest and principal payments when due. We do not believe that these product features create a concentration of credit risk. At December 31, 2022, we pledged $28.1 billion of commercial and other loans to the Federal Reserve Bank and $90.4 billion of residential real estate and other loans to the FHLB as collateral for the ability to borrow, if necessary. The comparable amounts at December 31, 2021 were $25.7 billion and $66.2 billion, respectively. Amounts pledged reflect the unpaid principal balances. Nonperforming Assets Nonperforming assets include nonperforming loans and leases, OREO and foreclosed assets. Nonperforming loans are those loans accounted for at amortized cost whose credit quality has deteriorated to the extent that full collection of contractual principal and interest is not probable and include nonperforming TDRs and PCD loans. Interest income is not recognized on these loans. Loans accounted for under the fair value option are reported as performing loans; however, when nonaccrual criteria is met, interest income is not recognized on these loans. Additionally, certain government insured or guaranteed loans for which we expect to collect substantially all principal and interest are not reported as nonperforming loans and continue to accrue interest. See Note 1 Accounting Policies for additional information on our nonperforming loan and lease policies. The following table presents our nonperforming assets as of December 31, 2022 and 2021, respectively. Table 53: Nonperforming Assets Dollars in millions December 31, 2022 December 31, 2021 Nonperforming loans Commercial $ 858 $ 1,168 Consumer (a) 1,127 1,312 Total nonperforming loans (b) 1,985 2,480 OREO and foreclosed assets 34 26 Total nonperforming assets $ 2,019 $ 2,506 Nonperforming loans to total loans 0.61 % 0.86 % Nonperforming assets to total loans, OREO and foreclosed assets 0.62 % 0.87 % Nonperforming assets to total assets 0.36 % 0.45 % (a) Excludes most unsecured consumer loans and lines of credit, which are charged off after 120 to 180 days past due and are not placed on nonperforming status. (b) Nonperforming loans for which there is no related ALLL totaled $0.7 billion at December 31, 2022 and primarily include loans with a fair value of collateral that exceeds the amortized cost basis. The comparable amount at December 31, 2021 was $1.0 billion. Nonperforming loans include certain loans whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties. In accordance with applicable accounting guidance, these loans are considered TDRs. See Note 1 Accounting Policies and the Troubled Debt Restructurings section of this Note 4 for additional information on TDRs. Total nonperforming loans in Table 53 include TDRs of $0.7 billion and $1.0 billion at December 31, 2022 and 2021, respectively. TDRs that are performing, including consumer credit card TDR loans, are excluded from nonperforming loans and totaled $0.7 billion and $0.6 billion at December 31, 2022 and 2021, respectively. Additional Credit Quality Indicators by Loan Class Commercial and Industrial For commercial and industrial loans, we monitor the performance of the borrower in a disciplined and regular manner based upon the level of credit risk inherent in the loan. To evaluate the level of credit risk, we assign an internal risk rating reflecting the borrower’s PD and LGD. This two-dimensional credit risk rating methodology provides granularity in the risk monitoring process. These ratings are generally reviewed and updated at least once per year. For small balance homogeneous pools of commercial and industrial loans and leases, we apply scoring techniques to assist in determining the PD. The combination of the PD and LGD ratings assigned to commercial and industrial loans, capturing both the combination of expectations of default and loss severity in the event of default, reflects credit quality characteristics as of the reporting date and are used as inputs into our loss forecasting process. Based upon the amount of the lending arrangement and our risk rating assessment, we follow a formal schedule of written periodic reviews. Quarterly, we conduct formal reviews of a market’s or business unit’s loan portfolio, focusing on those loans which we perceive to be of higher risk, based upon PDs and LGDs, or loans for which credit quality is weakening. If circumstances warrant, it is our practice to review any customer obligation and its level of credit risk more frequently. We attempt to proactively manage our loans by using various procedures that are customized to the risk of a given loan, including ongoing outreach, contact, and assessment of obligor financial conditions, collateral inspection and appraisal. Commercial Real Estate We manage credit risk associated with our commercial real estate projects and commercial mortgages similar to commercial and industrial loans by evaluating PD and LGD. Risks associated with commercial real estate projects and commercial mortgage activities tend to be correlated to the loan structure and collateral location, project progress and business environment. As a result, these attributes are also monitored and utilized in assessing credit risk. As with the commercial and industrial loan class, a formal schedule of periodic reviews is also performed to assess market/geographic risk and business unit/industry risk. Often as a result of these reviews, more in-depth reviews and increased scrutiny are placed on areas of higher risk, such as adverse changes in risk ratings, deteriorating operating trends, and/or areas that concern management. These reviews are designed to assess risk and facilitate actions to mitigate such risks. Equipment Lease Financing We manage credit risk associated with our equipment lease financing loan class similar to commercial and industrial loans by analyzing PD and LGD. Based upon the dollar amount of the lease and the level of credit risk, we follow a formal schedule of periodic reviews. Generally, this occurs quarterly, although we have established practices to review such credit risk more frequently if circumstances warrant. Our review process entails analysis of the following factors: equipment value/residual value, exposure levels, jurisdiction risk, industry risk, guarantor requirements and regulatory compliance as applicable. The following table presents credit quality indicators for the commercial loan classes: Table 54: Commercial Credit Quality Indicators (a) Term Loans by Origination Year December 31, 2022 In millions 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and industrial Pass Rated $ 41,685 $ 12,493 $ 8,134 $ 6,261 $ 4,209 $ 13,165 $ 89,384 $ 69 $ 175,400 Criticized 1,259 423 277 299 297 551 3,682 31 6,819 Total commercial and industrial 42,944 12,916 8,411 6,560 4,506 13,716 93,066 100 182,219 Commercial real estate Pass Rated 8,835 4,153 3,266 5,511 3,005 7,454 450 32,674 Criticized 348 37 322 758 807 1,367 3 3,642 Total commercial real estate 9,183 4,190 3,588 6,269 3,812 8,821 453 36,316 Equipment lease financing Pass Rated 1,797 962 942 670 410 1,495 6,276 Criticized 60 55 56 39 17 11 238 Total equipment lease financing 1,857 1,017 998 709 427 1,506 6,514 Total commercial $ 53,984 $ 18,123 $ 12,997 $ 13,538 $ 8,745 $ 24,043 $ 93,519 $ 100 $ 225,049 Term Loans by Origination Year December 31, 2021 In millions 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and industrial Pass Rated $ 27,104 $ 12,053 $ 10,731 $ 6,698 $ 6,355 $ 11,759 $ 71,230 $ 90 $ 146,020 Criticized 283 368 815 649 496 824 3,448 30 6,913 Total commercial and industrial 27,387 12,421 11,546 7,347 6,851 12,583 74,678 120 152,933 Commercial real estate Pass Rated 4,110 4,109 6,355 4,234 2,634 7,562 436 29,440 Criticized 294 298 999 820 566 1,552 46 4,575 Total commercial real estate 4,404 4,407 7,354 5,054 3,200 9,114 482 34,015 Equipment lease financing Pass Rated 1,212 1,190 942 682 507 1,410 5,943 Criticized 37 54 41 29 19 7 187 Total equipment lease financing 1,249 1,244 983 711 526 1,417 6,130 Total commercial $ 33,040 $ 18,072 $ 19,883 $ 13,112 $ 10,577 $ 23,114 $ 75,160 $ 120 $ 193,078 (a) Loans in our commercial portfolio are classified as Pass Rated or Criticized based on the regulatory definitions, which are driven by the PD and LGD ratings that we assign. The Criticized classification includes loans that were rated special mention, substandard or doubtful as of December 31, 2022 and 2021. Residential Real Estate and Home Equity We use several credit quality indicators, including delinquency information, nonperforming loan information, updated credit scores and originated and updated LTV ratios, to monitor and manage credit risk within the residential real estate and home equity loan classes. A summary of credit quality indicators follows: Delinquency/Delinquency Rates : We monitor trending of delinquency/delinquency rates for residential real estate and home equity loans. See Table 55 for additional information. Nonperforming Loans : We monitor trending of nonperforming loans for residential real estate and home equity loans. See Table 55 for additional information. Credit Scores: We use a national third-party provider to update FICO credit scores for residential real estate and home equity loans at least quarterly. The updated scores are incorporated into a series of credit management reports, which are utilized to monitor the risk in the loan classes. LTV (inclusive of CLTV for first and subordinate lien positions): At least quarterly, we update the property values of real estate collateral and calculate an updated LTV ratio. For open-end credit lines secured by real estate in regions experiencing significant declines in property values, more frequent valuations may occur. We examine LTV migration and stratify LTV into categories to monitor the risk in the loan classes. We use a combination of original LTV and updated LTV for internal risk management and reporting purposes ( e.g. , line management, loss mitigation strategies). In addition to the fact that estimated property values by their nature are estimates, given certain data limitations, it is important to note that updated LTVs may be based upon management’s assumptions ( i.e. , if an updated LTV is not provided by the third-party service provider, HPI changes will be incorporated in arriving at management’s estimate of updated LTV). Updated LTV is estimated using modeled property values. The related estimates and inputs are based upon an approach that uses a combination of third-party automated valuation models, broker price opinions, HPI indices, property location, internal and external balance information, origination data and management assumptions. We generally utilize origination lien balances provided by a third-party, where applicable, which do not include an amortization assumption when calculating updated LTV. Accordingly, the results of the calculations do not represent actual appraised loan level collateral or updated LTV based upon lien balances held by others, and as such, are necessarily imprecise and subject to change as we refine our methodology. The following table presents credit quality indicators for the residential real estate and home equity loan classes: Table 55: Credit Quality Indicators for Residential Real Estate and Home Equity Loan Classes Term Loans by Origination Year December 31, 2022 In millions 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total Loans Residential real estate Current estimated LTV ratios Greater than 100% $ 4 $ 52 $ 20 $ 10 $ 4 $ 41 $ 131 Greater than or equal to 80% to 100% 1,185 678 232 84 24 92 2,295 Less than 80% 9,396 15,844 7,074 2,346 822 7,220 42,702 No LTV available 61 3 4 68 Government insured or guaranteed loans 9 15 66 39 28 536 693 Total residential real estate $ 10,594 $ 16,650 $ 7,392 $ 2,482 $ 878 $ 7,893 $ 45,889 Updated FICO scores Greater than or equal to 780 $ 6,825 $ 12,596 $ 5,276 $ 1,623 $ 463 $ 4,027 $ 30,810 720 to 779 3,172 3,024 1,369 476 180 1,457 9,678 660 to 719 514 744 378 189 98 796 2,719 Less than 660 63 108 110 88 71 740 1,180 No FICO score available 11 163 193 67 38 337 809 Government insured or guaranteed loans 9 15 66 39 28 536 693 Total residential real estate $ 10,594 $ 16,650 $ 7,392 $ 2,482 $ 878 $ 7,893 $ 45,889 Home equity Current estimated LTV ratios Greater than 100% $ 4 $ 14 $ 9 $ 2 $ 15 $ 268 $ 137 $ 449 Greater than or equal to 80% to 100% 4 51 27 4 31 854 1,149 2,120 Less than 80% 172 2,078 961 285 2,851 7,780 9,287 23,414 Total home equity $ 180 $ 2,143 $ 997 $ 291 $ 2,897 $ 8,902 $ 10,573 $ 25,983 Updated FICO scores Greater than or equal to 780 $ 110 $ 1,357 $ 554 $ 155 $ 1,791 $ 5,093 $ 5,545 $ 14,605 720 to 779 47 515 248 64 567 2,305 2,843 6,589 660 to 719 19 211 140 42 288 1,146 1,449 3,295 Less than 660 4 57 54 29 242 342 671 1,399 No FICO score available 3 1 1 9 16 65 95 Total home equity $ 180 $ 2,143 $ 997 $ 291 $ 2,897 $ 8,902 $ 10,573 $ 25,983 (Continued from previous page) Term Loans by Origination Year December 31, 2021 In millions 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total Loans Residential real estate Current estimated LTV ratios Greater than 100% $ 10 $ 52 $ 21 $ 12 $ 13 $ 77 $ 185 Greater than or equal to 80% to 100% 1,460 560 221 86 66 190 2,583 Less than 80% 15,213 7,822 2,834 1,004 1,570 7,385 35,828 No LTV available 275 6 1 1 22 305 Government insured or guaranteed loans 3 33 37 30 39 669 811 Total residential real estate $ 16,961 $ 8,473 $ 3,114 $ 1,133 $ 1,688 $ 8,343 $ 39,712 Updated FICO scores Greater than or equal to 780 $ 11,110 $ 5,898 $ 1,996 $ 596 $ 1,029 $ 4,052 $ 24,681 720 to 779 4,921 1,735 643 247 345 1,619 9,510 660 to 719 717 463 255 136 133 796 2,500 Less than 660 83 103 96 75 94 848 1,299 No FICO score available 127 241 87 49 48 359 911 Government insured or guaranteed loans 3 33 37 30 39 669 811 Total residential real estate $ 16,961 $ 8,473 $ 3,114 $ 1,133 $ 1,688 $ 8,343 $ 39,712 Home equity Current estimated LTV ratios Greater than 100% $ 1 $ 16 $ 14 $ 3 $ 2 $ 25 $ 329 $ 90 $ 480 Greater than or equal to 80% to 100% 7 85 62 13 11 66 990 674 1,908 Less than 80% 204 2,487 1,189 370 549 3,200 7,868 5,806 21,673 Total home equity $ 212 $ 2,588 $ 1,265 $ 386 $ 562 $ 3,291 $ 9,187 $ 6,570 $ 24,061 Updated FICO scores Greater than or equal to 780 $ 124 $ 1,619 $ 692 $ 201 $ 364 $ 2,035 $ 5,490 $ 3,320 $ 13,845 720 to 779 61 666 348 96 116 642 2,283 1,679 5,891 660 to 719 23 248 167 56 53 327 1,071 872 2,817 Less than 660 4 53 57 32 28 277 325 615 1,391 No FICO score available 2 1 1 1 10 18 84 117 Total home equity $ 212 $ 2,588 $ 1,265 $ 386 $ 562 $ 3,291 $ 9,187 $ 6,570 $ 24,061 Automobile, Credit Card, Education and Other Consumer We monitor a variety of credit quality information in the management of these consumer loan classes. For all loan types, we generally use a combination of internal loan parameters as well as an updated FICO score. We use FICO scores as a primary credit quality indicator for automobile and credit card loans, as well as non-government guaranteed or non-insured education loans and other secured and unsecured lines and loans. Internal credit metrics, such as delinquency status, are heavily relied upon as credit quality indicators for government guaranteed or insured education loans and consumer loans to high net worth individuals, as internal credit metrics are more relevant than FICO scores for these types of loans. Along with the monitoring of delinquency trends and losses for each class, FICO credit score updates are obtained at least quarterly along with a variety of credit bureau attributes. Loans with high FICO scores tend to have a lower likelihood of loss. Conversely, loans with low FICO scores tend to have a higher likelihood of loss. The following table presents credit quality indicators for the automobile, credit card, education and other consumer loan classes: Table 56: Credit Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loan Classes Term Loans by Origination Year December 31, 2022 In millions 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total Loans Updated FICO Scores Automobile Greater than or equal to 780 $ 2,390 $ 2,162 $ 922 $ 760 $ 241 $ 75 $ 6,550 720 to 779 1,702 1,312 561 538 222 69 4,404 660 to 719 854 660 341 401 187 56 2,499 Less than 660 193 290 230 368 228 74 1,383 Total automobile $ 5,139 $ 4,424 $ 2,054 $ 2,067 $ 878 $ 274 $ 14,836 Credit card Greater than or equal to 780 $ 1,954 $ 2 $ 1,956 720 to 779 1,994 6 2,000 660 to 719 1,957 13 1,970 Less than 660 1,001 35 1,036 No FICO score available or required (a) 104 3 107 Total credit card $ 7,010 $ 59 $ 7,069 Education Greater than or equal to 780 $ 42 $ 53 $ 48 $ 61 $ 51 $ 357 $ 612 720 to 779 39 27 24 30 24 143 287 660 to 719 21 8 8 9 8 59 113 Less than 660 4 1 1 2 2 24 34 No FICO score available or required (a) 20 8 7 3 1 39 Education loans using FICO credit metric 126 97 88 105 85 584 1,085 Other internal credit metrics 1,088 1,088 Total education $ 126 $ 97 $ 88 $ 105 $ 85 $ 1,672 $ 2,173 Other consumer Greater than or equal to 780 $ 224 $ 97 $ 53 $ 46 $ 14 $ 18 $ 47 $ 2 $ 501 720 to 779 302 122 68 62 20 15 89 2 680 660 to 719 229 110 68 66 28 8 95 2 606 Less than 660 32 48 37 40 20 6 44 2 229 Other consumer loans using FICO credit metric 787 377 226 214 82 47 275 8 2,016 Other internal credit metrics 125 43 40 34 7 29 2,720 12 3,010 Total other consumer $ 912 $ 420 $ 266 $ 248 $ 89 $ 76 $ 2,995 $ 20 $ 5,026 (Continued from previous page) Term Loans by Origination Year December 31, 2021 In millions 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total Loans Updated FICO Scores Automobile Greater than or equal to 780 $ 3,247 $ 1,496 $ 1,380 $ 533 $ 226 $ 79 $ 6,961 720 to 779 2,119 983 1,030 499 195 62 4,888 660 to 719 969 609 772 413 155 44 2,962 Less than 660 277 315 583 429 162 58 1,824 Total automobile $ 6,612 $ 3,403 $ 3,765 $ 1,874 $ 738 $ 243 $ 16,635 Credit card Greater than or equal to 780 $ 1,815 $ 2 $ 1,817 720 to 779 1,836 9 1,845 660 to 719 1,856 19 1,875 Less than 660 943 29 972 No FICO score available or required (a) 114 3 117 Total credit card $ 6,564 $ 62 $ 6,626 Education Greater than or equal to 780 $ 37 $ 60 $ 77 $ 62 $ 48 $ 392 $ 676 720 to 779 20 29 37 30 21 160 297 660 to 719 7 9 11 11 7 73 118 Less than 660 1 1 2 2 2 25 33 No FICO score available or required (a) 11 10 7 2 1 31 Education loans using FICO credit metric 76 109 134 107 78 651 1,155 Other internal credit metrics 1,378 1,378 Total education $ 76 $ 109 $ 134 $ 107 $ 78 $ 2,029 $ 2,533 Other consumer Greater than or equal to 780 $ 199 $ 131 $ 123 $ 47 $ 12 $ 32 $ 95 $ 1 $ 640 720 to 779 250 172 167 68 15 19 125 816 660 to 719 190 145 165 82 16 11 122 731 Less than 660 50 62 85 54 10 6 50 1 318 Other consumer loans using FICO credit metric 689 510 540 251 53 68 392 2 2,505 Other internal credit metrics 87 31 35 23 22 48 2,955 21 3,222 Total other consumer $ 776 $ 541 $ 575 $ 274 $ 75 $ 116 $ 3,347 $ 23 $ 5,727 (a) Loans with no FICO score available or required generally refers to new accounts issued to borrowers with limited credit history, accounts for which we cannot obtain an updated FICO score ( e.g. , recent profile changes), cards issued with a business name and/or cards secured by collateral. Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk. Troubled Debt Restructurings A TDR is a loan whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulty. See Note 1 Accounting Policies for additional information related to TDRs. Table 57 quantifies the number of loans that were classified as TDRs as well as the change in the loans’ balance as a result of becoming a TDR during 2022, 2021 and 2020. Additionally, the table provides information about the types of TDR concessions. The Principal Forgiveness TDR category includes principal forgiveness and accrued interest forgiveness. The Rate Reduction TDR category includes reduced interest rate and interest deferral. The Other TDR category primarily includes consumer borrowers that have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to us, as well as postponement/reduction of scheduled amortization and contractual extensions for both consumer and commercial borrowers. In some cases, there have been multiple concessions granted on one loan. This is most common within the commercial loan portfolio. When there have been multiple concessions granted in the commercial loan portfolio, the principal forgiveness concession was prioritized for purposes of determining the inclusion in Table 57. Second in priority would be rate reduction. In the event that multiple concessions are granted on a consumer loan, concessions resulting from discharge from personal liability through Chapter 7 bankruptcy without formal affirmation of the loan obligations to us would be prioritized and included in the Other type of concession in Table 57. After that, consumer loan concessions would follow the previously discussed priority of concessions for the commercial loan portfolio. Table 57: Financial Impact and TDRs by Concession Type (a) Number Pre-TDR Amortized Cost Basis (b) Post-TDR Amortized Cost Basis (c) During the year ended December 31, 2022 Principal Rate Other Total Commercial 57 $ 363 $ 9 $ 58 $ 202 $ 269 Consumer 10,809 162 123 22 145 Total TDRs 10,866 $ 525 $ 9 $ 181 $ 224 $ 414 During the year ended December 31, 2021 Commercial 57 $ 536 $ 6 $ 510 $ 516 Consumer 6,109 108 $ 64 33 97 Total TDRs 6,166 $ 644 $ 6 $ 64 $ 543 $ 613 During the year ended December 31, 2020 Commercial 73 $ 513 $ 39 $ 56 $ 346 $ 441 Consumer 12,270 178 88 73 161 Total TDRs 12,343 $ 691 $ 39 $ 144 $ 419 $ 602 (a) Impact of partial charge-offs at TDR date are included in this table. (b) Represents the amortized cost basis of the loans as of the quarter end prior to TDR designation. (c) Represents the amortized cost basis of the TDRs as of the end of the quarter in which the TDR occurs. After a loan is determined to be a TDR, we continue to track its performance under its most recent restructured terms. We consider a TDR to have subsequently defaulted when it becomes 60 days past due after the most recent date the loan was restructured. Loans that were both (i) classified as TDRs, and (ii) subsequently defaulted during the period totaled $0.1 billion for each of the years ended December 31, 2022, 2021 and 2020, respectively. Allowance for Credit Losses We maintain the ACL related to loans at levels that we believe to be appropriate to absorb expected credit losses in the portfolios as of the balance sheet date. See Note 1 Accounting Policies for a discussion of the methodologies used to determine this allowance. A rollforward of the ACL related to loans follows: Table 58: Rollforward of Allowance for Credit Losses At or for the year ended December 31 2022 2021 2020 In millions Commercial Consumer Total Commercial Consumer Total Commercial Consumer Total Allowance for loan and lease losses Beginning balance $ 3,185 $ 1,683 $ 4,868 $ 3,337 $ 2,024 $ 5,361 $ 1,812 $ 930 $ 2,742 Adoption of ASU 2016-13 (a) (304) 767 463 Beginning balance, adjusted 3,185 1,683 4,868 3,337 2,024 5,361 1,508 1,697 3,205 Acquisition PCD reserves 774 282 1,056 Charge-offs (307) (678) (985) (434) (667) (1,101) (407) (785) (1,192) Recoveries 114 308 422 106 338 444 94 266 360 Net (charge-offs) (193) (370) (563) (328) (329) (657) (313) (519) (832) Provision for (recapture of) credit losses 126 313 439 (594) (293) (887) 2,139 846 2,985 Other (4) 1 (3) (4) (1) (5) 3 3 Ending balance $ 3,114 $ 1,627 $ 4,741 $ 3,185 $ 1,683 $ 4,868 $ 3,337 $ 2,024 $ 5,361 Allowance for unfunded lending related commitments (b) Beginning balance $ 564 $ 98 $ 662 $ 485 $ 99 $ 584 $ 316 $ 2 $ 318 Adoption of ASU 2016-13 (a) 53 126 179 Beginning balance, adjusted 564 98 662 485 99 584 369 128 497 Acquisition PCD reserves 43 3 46 Provision for (recapture of) credit losses 49 (17) 32 36 (4) 32 116 (29) 87 Ending balance $ 613 $ 81 $ 694 $ 564 $ 98 $ 662 $ 485 $ 99 $ 584 Allowance for credit losses at December 31 (c) $ 3,727 $ 1,708 $ 5,435 $ 3,749 $ 1,781 $ 5,530 $ 3,822 $ 2,123 $ 5,945 (a) Represents the impact of adopting ASU 2016-13 - Financial Instruments - Credit Losses on January 1, 2020 and our transition from an incurred loss methodology for our reserves to an expected credit loss methodology. (b) See Note 11 Commitments for additional information about the underlying commitments related to this allowance. (c) Represents the ALLL plus allowance for unfunded lending related commitments and excludes allowances for investment securities and other financial assets, which together totaled $176 million, $171 million and $109 million at December 31, 2022, 2021 and 2020 respectively. |
Loan Sale and Servicing Activit
Loan Sale and Servicing Activities and Variable Interest Entities | 12 Months Ended |
Dec. 31, 2022 | |
Loan Sale and Servicing Activities and Variable Interest Entities [Abstract] | |
Loan Sale and Servicing Activities and Variable Interest Entities | L OAN S ALE AND S ERVICING A CTIVITIES AND V ARIABLE I NTEREST E NTITIES Loan Sale and Servicing Activities We have transferred residential and commercial mortgage loans in securitization or sales transactions in which we have continuing involvement. These transfers have occurred through Agency securitization, Non-agency securitization, and loan sale transactions. Agency securitizations consist of securitization transactions with FNMA, FHLMC and GNMA (collectively, the Agencies). FNMA and FHLMC generally securitize our transferred loans into mortgage-backed securities for sale into the secondary market through SPEs that they sponsor. As an authorized GNMA issuer/servicer, we pool FHA and Department of VA insured loans into mortgage-backed securities for sale into the secondary market. In Non-agency securitizations, we have transferred loans into securitization SPEs. In other instances, third-party investors have also purchased our loans in loan sale transactions and in certain instances have subsequently sold these loans into securitization SPEs. Securitization SPEs utilized in the Agency and Non-agency securitization transactions are VIEs. Our continuing involvement in the FNMA, FHLMC, and GNMA securitizations, Non-agency securitizations, and loan sale transactions generally consists of servicing, repurchasing previously transferred loans under certain conditions and loss share arrangements, and, in limited circumstances, holding of mortgage-backed securities issued by the securitization SPEs. Depending on the transaction, we may act as the master, primary and/or special servicer to the securitization SPEs or third-party investors. Servicing responsibilities typically consist of collecting and remitting monthly borrower principal and interest payments, maintaining escrow deposits, performing loss mitigation and foreclosure activities, and, in certain instances, funding of servicing advances. Servicing advances, which are generally reimbursable, are made for principal and interest and collateral protection and are carried in Other assets at cost. We earn servicing and other ancillary fees for our role as servicer and, depending on the contractual terms of the servicing arrangement, we can be terminated as servicer with or without cause. At the consummation date of each type of loan transfer where we retain the servicing, we recognize a servicing right at fair value. See Note 6 Goodwill and Mortgage Servicing Rights and Note 15 Fair Value for further discussion of our servicing rights. Certain loans transferred to the Agencies contain ROAPs. Under these ROAPs, we hold an option to repurchase at par individual delinquent loans that meet certain criteria. In other limited cases, GNMA has granted us the right to repurchase current loans when we intend to modify the borrower’s interest rate under established guidelines. When we have the unilateral ability to repurchase a loan, effective control over the loan has been regained and we recognize an asset (in either Loans or Loans held for sale) and a corresponding liability (in Other borrowed funds) on the balance sheet regardless of our intent to repurchase the loan. The Agency and Non-agency mortgage-backed securities issued by the securitization SPEs that are purchased and held on our balance sheet are typically purchased in the secondary market. We do not retain any credit risk on our Agency mortgage-backed security positions as FNMA, FHLMC and the U.S. Government (for GNMA) guarantee losses of principal and interest. We also have involvement with certain Agency and Non-agency commercial securitization SPEs where we have not transferred commercial mortgage loans. These SPEs were sponsored by independent third-parties and the loans held by these entities were purchased exclusively from other third-parties. Generally, our involvement with these SPEs is as servicer with servicing activities consistent with those described above. We recognize a liability for our loss exposure associated with contractual obligations to repurchase previously transferred loans due to possible breaches of representations and warranties and also for loss sharing arrangements (recourse obligations) with the Agencies. Other than providing temporary liquidity under servicing advances and our loss exposure associated with our repurchase and recourse obligations, we have not provided nor are we required to provide any type of credit support, guarantees or commitments to the securitization SPEs or third-party investors in these transactions. The following table provides our loan sale and servicing activities: Table 59: Cash Flows Associated with Loan Sale and Servicing Activities In millions Residential Mortgages Commercial Mortgages (a) Cash Flows - Year ended December 31, 2022 Sales of loans and related securitization activity (b) $ 5,124 $ 3,332 Repurchases of previously transferred loans (c) $ 187 $ 27 Servicing fees (d) $ 405 $ 190 Servicing advances recovered/(funded), net $ 11 $ 42 Cash flows on mortgage-backed securities held (e) $ 3,790 $ 84 Cash Flows - Year ended December 31, 2021 Sales of loans and related securitization activity (b) $ 8,426 $ 3,611 Repurchases of previously transferred loans (c) $ 239 $ 207 Servicing fees (d) $ 367 $ 165 Servicing advances recovered/(funded), net $ (33) $ (26) Cash flows on mortgage-backed securities held (e) $ 9,001 $ 76 (a) Represents both commercial mortgage loan transfer and servicing activities. (b) Gains/losses recognized on sales of loans were insignificant for the periods presented. (c) Includes both residential and commercial mortgage government insured or guaranteed loans eligible for repurchase through the exercise of our ROAP option, as well as residential mortgage loans repurchased due to alleged breaches of origination covenants or representations and warranties made to purchasers. (d) Includes contractually specified servicing fees, late charges and ancillary fees. (e) Represents cash flows on securities where we transferred to, and/or service loans for, a securitization SPE and we hold securities issued by that SPE. The carrying values of such securities held were $21.4 billion in residential mortgage-backed securities and $0.7 billion in commercial mortgage-backed securities at December 31, 2022. Comparable amounts at December 31, 2021 were $17.6 billion and $0.6 billion, respectively. Table 60 presents information about the principal balances of transferred loans that we service and are not recorded on our Consolidated Balance Sheet. We would only experience a loss on these transferred loans if we were required to repurchase a loan, where the repurchase price exceeded the loan’s fair value, due to a breach in representations and warranties or a loss sharing arrangement associated with our continuing involvement with these loans. The estimate of losses related to breaches in representations and warranties was insignificant at December 31, 2022 and 2021. Table 60: Principal Balance, Delinquent Loans and Net Charge-offs Related to Serviced Loans For Others In millions Residential Mortgages Commercial Mortgages (a) December 31, 2022 Total principal balance $ 41,031 $ 57,974 Delinquent loans (b) $ 346 December 31, 2021 Total principal balance $ 42,726 $ 39,551 Delinquent loans (b) $ 569 $ 42 Year ended December 31, 2022 Net charge-offs (c) $ 4 $ 74 Year ended December 31, 2021 Net charge-offs (c) $ 4 $ 179 (a) Represents information at the securitization level in which we have sold loans and we are the servicer for the securitization. (b) Serviced delinquent loans are 90 days or more past due or are in process of foreclosure. (c) Net charge-offs for Residential mortgages represent credit losses less recoveries distributed and as reported to investors during the period. Net charge-offs for Commercial mortgages represent credit losses less recoveries distributed and as reported by the trustee for commercial mortgage backed securitizations. Realized losses for Agency securitizations are not reflected as we do not manage the underlying real estate upon foreclosure and, as such, do not have access to loss information. Variable Interest Entities (VIEs) We are involved with various entities in the normal course of business that are deemed to be VIEs. We assess VIEs for consolidation based upon the accounting policies described in Note 1 Accounting Policies. Our consolidated VIEs were insignificant at both December 31, 2022 and 2021. We have not provided additional financial support to these entities which we are not contractually required to provide. The following table provides a summary of non-consolidated VIEs with which we have significant continuing involvement but are not the primary beneficiary. We have excluded certain transactions with non-consolidated VIEs from the balances presented in Table 61 where we have determined that our continuing involvement is insignificant. We do not consider our continuing involvement to be significant when it relates to a VIE where we only invest in securities issued by the VIE and were not involved in the design of the VIE or where no transfers have occurred between us and the VIE. In addition, where we only have lending arrangements in the normal Table 61: Non-Consolidated VIEs In millions PNC Risk of Loss (a) Carrying Value of Assets Carrying Value of Liabilities December 31, 2022 Mortgage-backed securitizations (b) $ 22,666 $ 22,670 (c) $ 1 Tax credit investments and other 4,411 4,240 (d) 2,063 (e) Total $ 27,077 $ 26,910 $ 2,064 December 31, 2021 Mortgage-backed securitizations (b) $ 18,708 $ 18,708 (c) $ 1 Tax credit investments and other 3,865 3,893 (d) 1,798 (e) Total $ 22,573 $ 22,601 $ 1,799 (a) Represents loans, investments and other assets related to non-consolidated VIEs, net of collateral (if applicable). The risk of loss excludes any potential tax recapture associated with tax credit investments. (b) Amounts reflect involvement with securitization SPEs where we transferred to, and/or service loans for, an SPE and we hold securities issued by that SPE. Values disclosed in the PNC Risk of Loss column represent our maximum exposure to loss for those securities’ holdings. (c) Included in Investment securities, Mortgage servicing rights and Other assets on our Consolidated Balance Sheet. (d) Included in Investment securities, Loans, Equity investments and Other assets on our Consolidated Balance Sheet. (e) Included in Deposits and Other liabilities on our Consolidated Balance Sheet. Mortgage-Backed Securitizations In connection with each Agency and Non-agency residential and commercial mortgage-backed securitization discussed above, we evaluate each SPE utilized in these transactions for consolidation. In performing these assessments, we evaluate our level of continuing involvement in these transactions as the nature of our involvement ultimately determines whether or not we hold a variable interest and/or are the primary beneficiary of the SPE. Factors we consider in our consolidation assessment include the significance of (i) our role as servicer, (ii) our holdings of mortgage-backed securities issued by the securitization SPE and (iii) the rights of third-party variable interest holders. The first step in our assessment is to determine whether we hold a variable interest in the securitization SPE. We hold variable interests in Agency and Non-agency securitization SPEs through our holding of residential and commercial mortgage-backed securities issued by the SPEs and/or our recourse obligations. Each SPE in which we hold a variable interest is evaluated to determine whether we are the primary beneficiary of the entity. For Agency securitization transactions, our contractual role as servicer does not give us the power to direct the activities that most significantly affect the economic performance of the SPEs. Thus, we are not the primary beneficiary of these entities. For Non-agency securitization transactions, we would be the primary beneficiary to the extent our servicing activities give us the power to direct the activities that most significantly affect the economic performance of the SPE and we hold a more-than-insignificant variable interest in the entity. Details about the Agency and Non-agency securitization SPEs where we hold a variable interest and are not the primary beneficiary are included in Table 61. Our maximum exposure to loss as a result of our involvement with these SPEs is the carrying value of the mortgage-backed securities, servicing assets, servicing advances and our liabilities associated with our recourse obligations. Creditors of the securitization SPEs have no recourse to our assets or general credit. Tax Credit Investments and Other For tax credit investments in which we do not have the right to make decisions that will most significantly impact the economic performance of the entity, we are not the primary beneficiary and thus do not consolidate the entity. These investments are disclosed in Table 61. The table also reflects our maximum exposure to loss exclusive of any potential tax credit recapture. Our maximum exposure to loss is equal to our legally binding equity commitments adjusted for recorded impairment, partnership results or amortization for qualifying low income housing tax credit investments when applicable. For all legally binding unfunded equity commitments, we increase our recognized investment and recognize a liability. As of December 31, 2022, we had a liability for unfunded commitments of $2.2 billion related to investments in qualified affordable housing projects which is reflected in Other liabilities on our Consolidated Balance Sheet. Table 61 also includes our involvement in lease financing transactions with LLCs engaged in solar power generation that, to a large extent, provided returns in the form of tax credits. The outstanding financings and operating lease assets are reflected as Loans and Other assets, respectively, on our Consolidated Balance Sheet, whereas related liabilities are reported in Deposits and Other liabilities. |
Goodwill and Mortgage Servicing
Goodwill and Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Mortgage Servicing Rights | G OODWILL AND M ORTGAGE S ERVICING R IGHTS Goodwill Allocations of Goodwill by business segment at December 31, 2022, 2021 and 2020 follow: Table 62: Goodwill by Business Segment In millions Retail Banking Corporate & Institutional Banking Asset Management Group Total Balance as of December 31, 2022 $ 6,473 $ 4,325 $ 189 $ 10,987 Other 71 71 Balance as of December 31, 2021 $ 6,473 $ 4,254 $ 189 $ 10,916 BBVA acquisition 678 796 125 1,599 Other 84 84 Balance as of December 31, 2020 $ 5,795 $ 3,374 $ 64 $ 9,233 Goodwill increased during 2021 primarily as a result of the acquisition of BBVA. Goodwill was recorded and allocated to each of our three business segments and is not deductible for income tax purposes. See Note 2 Acquisition and Divestiture Activities for additional information. We review goodwill in each of our reporting units for impairment at least annually, in the fourth quarter, or more frequently if events occur or circumstances have changed significantly from the annual test date. Based on the results of our analysis, there were no impairment charges related to goodwill in 2022, 2021 or 2020. Mortgage Servicing Rights We recognize the right to service mortgage loans for others as an intangible asset when the benefits of servicing are expected to be more than adequate compensation to a servicer for performing the servicing. MSRs are recognized either when purchased or when originated loans are sold with servicing retained. MSRs totaled $3.4 billion at December 31, 2022 and $1.8 billion at December 31, 2021, and consisted of loan servicing contracts for commercial and residential mortgages measured at fair value. Commercial Mortgage Servicing Rights We recognize gains (losses) on changes in the fair value of commercial MSRs. Commercial MSRs are subject to changes in value from actual or expected prepayment of the underlying loans and defaults as well as market driven changes in interest rates. We manage this risk by economically hedging the fair value of commercial MSRs with securities, derivative instruments and resale agreements which are expected to increase (or decrease) in value when the value of commercial MSRs decreases (or increases). The fair value of commercial MSRs is estimated by using a discounted cash flow model incorporating inputs for assumptions as to constant prepayment rates, discount rates and other factors determined based on current market conditions and expectations. Changes in the commercial MSRs follow: Table 63: Commercial Mortgage Servicing Rights In millions 2022 2021 2020 January 1 $ 740 $ 569 $ 649 Additions: From loans sold with servicing retained 62 87 100 Purchases 46 41 44 Changes in fair value due to: Time and payoffs (a) (208) (119) (115) Other (b) 473 162 (109) December 31 $ 1,113 $ 740 $ 569 Related unpaid principal balance at December 31 $ 281,277 $ 272,556 $ 243,960 Servicing advances at December 31 $ 421 $ 463 $ 437 (a) Represents decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments, prepayments and loans paid off during the period. (b) Represents MSR value changes resulting primarily from market-driven changes in interest rates. Residential Mortgage Servicing Rights We recognize gains (losses) on changes in the fair value of residential MSRs. Residential MSRs are subject to changes in value from actual or expected prepayment of the underlying loans and defaults as well as market driven changes in interest rates. We manage this risk by economically hedging the fair value of residential MSRs with securities and derivative instruments that are expected to increase (or decrease) in value when the value of residential MSRs decreases (or increases). The fair value of residential MSRs is estimated by using a discounted cash flow valuation model that calculates the present value of estimated future net servicing cash flows, taking into consideration actual and expected mortgage loan prepayment rates, discount rates, servicing costs, and other factors that are determined based on current market conditions. Changes in the residential MSRs follow: Table 64: Residential Mortgage Servicing Rights In millions 2022 2021 2020 January 1 $ 1,078 $ 673 $ 995 Additions: BBVA Acquisition 35 From loans sold with servicing retained 57 87 45 Purchases 897 411 208 Changes in fair value due to: Time and payoffs (a) (231) (320) (198) Other (b) 509 192 (377) December 31 $ 2,310 $ 1,078 $ 673 Unpaid principal balance of loans serviced for others at December 31 $ 189,831 $ 132,953 $ 120,778 Servicing advances at December 31 $ 165 $ 176 $ 143 (a) Represents decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments, prepayments and loans paid off during the period. (b) Represents MSR value changes resulting from market-driven changes in interest rates. Sensitivity Analysis The fair value of commercial and residential MSRs and significant inputs to the valuation models as of December 31, 2022 and December 31, 2021 are shown in Tables 65 and 66. The expected and actual rates of mortgage loan prepayments are significant factors driving the fair value. Management uses both internal proprietary models and a third-party model to estimate future commercial mortgage loan prepayments and a third-party model to estimate future residential mortgage loan prepayments. These models have been refined based on current market conditions and management judgment. Future interest rates are another important factor in the valuation of MSRs. Management utilizes market implied forward interest rates to estimate the future direction of mortgage and discount rates. The forward rates utilized are derived from the current yield curve for U.S. dollar interest rate swaps and are consistent with pricing of capital markets instruments. Changes in the shape and slope of the forward curve in future periods may result in volatility in the fair value estimate. A sensitivity analysis of the hypothetical effect on the fair value of MSRs to adverse changes in key assumptions is presented in Tables 65 and 66. These sensitivities do not include the impact of the related hedging activities. Changes in fair value generally cannot be extrapolated because the relationship of the change in the assumption to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the MSRs is calculated independently without changing any other assumption. In reality, changes in one factor may result in changes in another ( e.g. , changes in mortgage interest rates, which drive changes in prepayment rate estimates, could result in changes in the interest rate spread), which could either magnify or counteract the sensitivities. The following tables set forth the fair value of commercial and residential MSRs and the sensitivity analysis of the hypothetical effect on the fair value of MSRs to immediate adverse changes of 10% and 20% in those assumptions: Table 65: Commercial Mortgage Servicing Rights – Key Valuation Assumptions Dollars in millions December 31, 2022 December 31, 2021 Fair value $ 1,113 $ 740 Weighted-average life (years) 4.0 4.2 Weighted-average constant prepayment rate 4.28 % 5.49 % Decline in fair value from 10% adverse change $ 8 $ 12 Decline in fair value from 20% adverse change $ 15 $ 21 Effective discount rate 9.77 % 7.75 % Decline in fair value from 10% adverse change $ 34 $ 20 Decline in fair value from 20% adverse change $ 68 $ 40 Table 66: Residential Mortgage Servicing Rights – Key Valuation Assumptions Dollars in millions December 31, 2022 December 31, 2021 Fair value $ 2,310 $ 1,078 Weighted-average life (years) 8.0 5.7 Weighted-average constant prepayment rate 6.72 % 12.63 % Decline in fair value from 10% adverse change $ 55 $ 46 Decline in fair value from 20% adverse change $ 107 $ 89 Weighted-average option adjusted spread 766 bps 857 bps Decline in fair value from 10% adverse change $ 69 $ 31 Decline in fair value from 20% adverse change $ 134 $ 60 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | L EASES PNC enters into both lessor and lessee arrangements. For more information on lease accounting, see Note 1 Accounting Policies and for additional details on our equipment lease financing receivables see Note 4 Loans and Related Allowance for Credit Losses. Lessor Arrangements PNC’s lessor arrangements primarily consist of direct financing, sales-type and operating leases for equipment. Lease agreements may include options to renew and for the lessee to purchase the leased equipment at the end of the lease term. The following table provides details on our income from lessor arrangements: Table 67: Lessor Income Year ended December 31 In millions 2022 2021 2020 Sales-type and direct financing leases (a) $ 243 $ 243 $ 269 Operating leases (b) 63 75 95 Lease income $ 306 $ 318 $ 364 (a) Included in Loans interest income on the Consolidated Income Statement. (b) Included in Lending and deposit services The following table provides the components of our equipment lease financing assets: Table 68: Sales-Type and Direct Financing Leases In millions December 31, 2022 December 31, 2021 Lease receivables $ 5,853 $ 5,829 Unguaranteed residual asset values (a) 1,422 977 Unearned income (761) (677) Equipment lease financing $ 6,514 $ 6,129 (a) In certain cases, PNC obtains third-party residual value insurance to reduce its residual risk. The carrying value of residual assets with third-party residual value insurance for at least a portion of the asset value was $0.4 billion for both 2022 and 2021. Operating lease assets were $0.8 billion and accumulated depreciation was $0.2 billion at December 31, 2022 compared to operating lease assets of $0.9 billion and accumulated depreciation of $0.2 billion at December 31, 2021. We had no lease transactions with related parties or deferred selling profits at December 31, 2022 and 2021. The future minimum lessor receivable arrangements at December 31, 2022 were as follows: Table 69: Future Minimum Lessor Receivable Arrangements In millions Operating Leases Sales-type and Direct Financing Leases 2023 $ 46 $ 1,474 2024 37 1,256 2025 28 890 2026 21 621 2027 11 609 2028 and thereafter 16 1,003 Total future minimum lease receivable arrangements $ 159 $ 5,853 Lessee Arrangements We lease retail branches, datacenters, office space, land and equipment under operating and finance leases. Our leases have remaining lease terms of 1 year to 45 years, some of which may include options to renew the leases for up to 99 years, and some of which may include options to terminate the leases prior to the end date of the lease term. Certain leases also include options to purchase the leased asset. The exercise of lease renewal, termination and purchase options is at our sole discretion. Certain of our lease agreements include rental payments based on a percentage of revenue and others include rental payments if certain bank deposit levels are met. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Subleases to third parties were not material at December 31, 2022 and 2021. Tables 70 and 71 provide details on our operating leases: Table 70: Operating Lease Costs and Cash Flows Year ended December 31 In millions 2022 2021 2020 Operating lease cost (a) $ 395 $ 386 $ 358 Operating cash flows $ 434 $ 400 $ 360 (a) Included in Occupancy, Equipment and Marketing expense on the Consolidated Income Statement. Table 71: Operating Lease Assets and Liabilities In millions December 31, 2022 December 31, 2021 Operating lease assets (a) $ 1,857 $ 1,919 Operating lease liabilities (b) $ 2,160 $ 2,220 (a) Included in Other assets on the Consolidated Balance Sheet. (b) Included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. Finance lease assets and liabilities, income, expense and cash flows at December 31, 2022 and 2021 were not material. Operating lease term and discount rates of our lessee arrangements at December 31, 2022 and 2021 were as follows: Table 72: Operating Lease Term and Discount Rates of Lessee Arrangements December 31, 2022 December 31, 2021 Weighted-average remaining lease term (years) 7 8 Weighted-average discount rate 2.24 % 1.99 % The future lease payments based on maturity for our lessee liability arrangements at December 31, 2022 are as follows: Table 73: Future Lease Payments for Operating Lease Liability Arrangements In millions December 31, 2022 2023 $ 428 2024 385 2025 343 2026 291 2027 247 2028 and thereafter 657 Total future lease payments $ 2,351 Less: Interest 191 Present value of operating lease liability arrangements $ 2,160 |
Leases | L EASES PNC enters into both lessor and lessee arrangements. For more information on lease accounting, see Note 1 Accounting Policies and for additional details on our equipment lease financing receivables see Note 4 Loans and Related Allowance for Credit Losses. Lessor Arrangements PNC’s lessor arrangements primarily consist of direct financing, sales-type and operating leases for equipment. Lease agreements may include options to renew and for the lessee to purchase the leased equipment at the end of the lease term. The following table provides details on our income from lessor arrangements: Table 67: Lessor Income Year ended December 31 In millions 2022 2021 2020 Sales-type and direct financing leases (a) $ 243 $ 243 $ 269 Operating leases (b) 63 75 95 Lease income $ 306 $ 318 $ 364 (a) Included in Loans interest income on the Consolidated Income Statement. (b) Included in Lending and deposit services The following table provides the components of our equipment lease financing assets: Table 68: Sales-Type and Direct Financing Leases In millions December 31, 2022 December 31, 2021 Lease receivables $ 5,853 $ 5,829 Unguaranteed residual asset values (a) 1,422 977 Unearned income (761) (677) Equipment lease financing $ 6,514 $ 6,129 (a) In certain cases, PNC obtains third-party residual value insurance to reduce its residual risk. The carrying value of residual assets with third-party residual value insurance for at least a portion of the asset value was $0.4 billion for both 2022 and 2021. Operating lease assets were $0.8 billion and accumulated depreciation was $0.2 billion at December 31, 2022 compared to operating lease assets of $0.9 billion and accumulated depreciation of $0.2 billion at December 31, 2021. We had no lease transactions with related parties or deferred selling profits at December 31, 2022 and 2021. The future minimum lessor receivable arrangements at December 31, 2022 were as follows: Table 69: Future Minimum Lessor Receivable Arrangements In millions Operating Leases Sales-type and Direct Financing Leases 2023 $ 46 $ 1,474 2024 37 1,256 2025 28 890 2026 21 621 2027 11 609 2028 and thereafter 16 1,003 Total future minimum lease receivable arrangements $ 159 $ 5,853 Lessee Arrangements We lease retail branches, datacenters, office space, land and equipment under operating and finance leases. Our leases have remaining lease terms of 1 year to 45 years, some of which may include options to renew the leases for up to 99 years, and some of which may include options to terminate the leases prior to the end date of the lease term. Certain leases also include options to purchase the leased asset. The exercise of lease renewal, termination and purchase options is at our sole discretion. Certain of our lease agreements include rental payments based on a percentage of revenue and others include rental payments if certain bank deposit levels are met. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Subleases to third parties were not material at December 31, 2022 and 2021. Tables 70 and 71 provide details on our operating leases: Table 70: Operating Lease Costs and Cash Flows Year ended December 31 In millions 2022 2021 2020 Operating lease cost (a) $ 395 $ 386 $ 358 Operating cash flows $ 434 $ 400 $ 360 (a) Included in Occupancy, Equipment and Marketing expense on the Consolidated Income Statement. Table 71: Operating Lease Assets and Liabilities In millions December 31, 2022 December 31, 2021 Operating lease assets (a) $ 1,857 $ 1,919 Operating lease liabilities (b) $ 2,160 $ 2,220 (a) Included in Other assets on the Consolidated Balance Sheet. (b) Included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. Finance lease assets and liabilities, income, expense and cash flows at December 31, 2022 and 2021 were not material. Operating lease term and discount rates of our lessee arrangements at December 31, 2022 and 2021 were as follows: Table 72: Operating Lease Term and Discount Rates of Lessee Arrangements December 31, 2022 December 31, 2021 Weighted-average remaining lease term (years) 7 8 Weighted-average discount rate 2.24 % 1.99 % The future lease payments based on maturity for our lessee liability arrangements at December 31, 2022 are as follows: Table 73: Future Lease Payments for Operating Lease Liability Arrangements In millions December 31, 2022 2023 $ 428 2024 385 2025 343 2026 291 2027 247 2028 and thereafter 657 Total future lease payments $ 2,351 Less: Interest 191 Present value of operating lease liability arrangements $ 2,160 |
Premises, Equipment and Leaseho
Premises, Equipment and Leasehold Improvements | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises, Equipment and Leasehold Improvement | P REMISES , E QUIPMENT AND L EASEHOLD I MPROVEMENTS Table 74: Premises, Equipment and Leasehold Improvements In millions December 31 December 31 Premises, equipment and leasehold improvements $ 17,769 $ 16,651 Accumulated depreciation and amortization (9,015) (8,058) Net book value $ 8,754 $ 8,593 Depreciation expense on premises, equipment and leasehold improvements, as well as amortization expense, excluding intangible assets, primarily for capitalized internally developed software are shown in the following table: Table 75: Depreciation and Amortization Expense Year ended December 31 2022 2021 2020 Depreciation $ 899 $ 844 $ 791 Amortization 130 122 115 Total depreciation and amortization $ 1,029 $ 966 $ 906 |
Time Deposits
Time Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Time Deposits | T IME D The aggregate amount of time deposit accounts (including certificates of deposits) in denominations that met or exceeded the insured limit were $10.4 billion and $7.7 billion at December 31, 2022, and 2021, respectively. Table 76 shows the total amount of time deposits at December 31, 2022 by future contractual maturity range: Table 76: Time Deposits In billions 2023 $ 15.9 2024 $ 1.8 2025 $ 0.2 2026 $ 0.2 2027 $ 0.1 2028 and thereafter $ 0.3 Total $ 18.5 |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | B ORROWED F UNDS Table 77: Borrowed Funds In millions 2023 $ 4,332 2024 $ 20,673 2025 $ 14,931 2026 $ 5,666 2027 $ 1,659 2028 and thereafter $ 11,465 Total $ 58,726 The following table presents the contractual rates and maturity dates of our FHLB borrowings, senior debt and subordinated debt as of December 31, 2022 and the carrying values as of December 31, 2022 and 2021. Table 78: FHLB Borrowings, Senior Debt and Subordinated Debt Stated Rate Maturity Carrying Value Dollars in millions 2022 2022 2022 2021 Parent Company Senior debt 1.15% - 6.04% 2024 - 2033 $ 11,374 $ 10,369 Subordinated debt 3.90% - 4.63% 2024 - 2033 1,524 777 Junior subordinated debt 5.33 % 2028 205 205 Subtotal 13,103 11,351 Bank Federal Home Loan Bank borrowings (a) 4.48% - 4.72% 2023 - 2026 32,075 Senior debt 2.50% - 5.07% 2023 - 2043 5,283 10,292 Subordinated debt 2.70% - 5.90% 2023 - 2029 4,578 6,014 Subtotal 41,936 16,306 Total $ 55,039 $ 27,657 (a) FHLB borrowings are generally collateralized by residential mortgage loans, other mortgage-related loans and investment securities. In Table 78, the carrying values for Parent Company senior and subordinated debt include basis adjustments of $(723) million and $(72) million, respectively, whereas Bank senior and subordinated debt include basis adjustments of $(256) million and $(232) million, respectively, related to fair value accounting hedges as of December 31, 2022. Certain borrowings are reported at fair value, refer to Note 15 Fair Value for more information on those borrowings. Junior Subordinated Debentures PNC Capital Trust C, a wholly-owned finance subsidiary of The PNC Financial Services Group, Inc., owns junior subordinated debentures issued by PNC with a carrying value of $205 million. In June 1998, PNC Capital Trust C issued $200 million of trust preferred securities which bear interest at an annual rate of 3 month LIBOR plus 57 basis points. The trust preferred securities are currently redeemable by PNC Capital Trust C at par. In accordance with GAAP, the financial statements of the Trust are not included in our consolidated financial statements. The obligations of The PNC Financial Services Group, Inc., as the parent of the Trust, when taken collectively, are the equivalent of a full and unconditional guarantee of the obligations of the Trust under the terms of the trust preferred securities. Such guarantee is subordinate in right of payment in the same manner as other junior subordinated debt. There are certain restrictions on our overall ability to obtain funds from our subsidiaries. For additional disclosure on these funding restrictions, see Note 20 Regulatory Matters. We are subject to certain restrictions, including restrictions on dividend payments, in connection with the outstanding junior subordinated debentures. Generally, if (i) there is an event of default under the debentures, (ii) we elect to defer interest on the debentures, (iii) we exercise our right to defer payments on the related trust preferred securities, or (iv) there is a default under our guarantee of such payment obligations, subject to certain limited exceptions, we would be unable during the period of such default or deferral to make payments on our debt securities that rank equal or junior to the debentures as well as to make payments on our equity securities, including dividend payments. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Guarantees [Abstract] | |
Commitments | COMMITMENTS In the normal course of business, we have various commitments outstanding, certain of which are not included on our Consolidated Balance Sheet. The following table presents our outstanding commitments to extend credit along with other commitments as of December 31, 2022 and 2021. Table 79: Commitments to Extend Credit and Other Commitments In millions December 31, 2022 December 31, 2021 Commitments to extend credit Commercial $ 198,542 $ 176,248 Home equity 22,783 19,410 Credit card 33,066 32,499 Other 7,337 9,081 Total commitments to extend credit 261,728 237,238 Net outstanding standby letters of credit (a) 10,575 9,303 Standby bond purchase agreements (b) 1,208 1,268 Other commitments (c) 3,661 3,045 Total commitments to extend credit and other commitments $ 277,172 $ 250,854 (a) Net outstanding standby letters of credit include $3.6 billion and $3.3 billion at December 31, 2022 and 2021, respectively, which support remarketing programs. (b) We enter into standby bond purchase agreements to support municipal bond obligations. (c) Includes $2.2 billion and $2.0 billion related to investments in qualified affordable housing projects at December 31, 2022 and 2021, respectively. Commitments to Extend Credit Commitments to extend credit, or net unfunded loan commitments, represent arrangements to lend funds or provide liquidity subject to specified contractual conditions. These commitments generally have fixed expiration dates, may require payment of a fee and generally contain termination clauses in the event the customer’s credit quality deteriorates. Net Outstanding Standby Letters of Credit We issue standby letters of credit and share in the risk of standby letters of credit issued by other financial institutions, in each case to support obligations of our customers to third parties, such as insurance requirements and the facilitation of transactions involving capital markets product execution. Approximately 98% of our net outstanding standby letters of credit were rated as Pass at December 31, 2022, with the remainder rated as Criticized. An internal credit rating of Pass indicates the expected risk of loss is currently low, while a rating of Criticized indicates a higher degree of risk. If the customer fails to meet its financial or performance obligation to the third party under the terms of the contract or there is a need to support a remarketing program, then upon a draw by a beneficiary, subject to the terms of the letter of credit, we would be obligated to make payment to them. The standby letters of credit outstanding on December 31, 2022 had terms ranging from less than one year to eight years. As of December 31, 2022, assets of $1.3 billion secured certain specifically identified standby letters of credit. In addition, a portion of the remaining standby letters of credit issued on behalf of specific customers is also secured by collateral or guarantees that secure the customers’ other obligations to us. The carrying amount of the liability for our obligations related to standby letters of credit and participations in standby letters of credit was $0.2 billion at December 31, 2022 and is included in Other liabilities on our Consolidated Balance Sheet. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Equity | EQUITY Preferred Stock The following table provides the number of preferred shares issued and outstanding, the liquidation value per share and the number of authorized preferred shares: Table 80: Preferred Stock - Authorized, Issued and Outstanding Preferred Shares December 31 Liquidation 2022 2021 Authorized $1 par value 20,000 20,000 Issued and outstanding Series B $ 40 1 1 Series O $ 100,000 10 10 Series P (a) $ 100,000 15 Series R $ 100,000 5 5 Series S $ 100,000 5 5 Series T $ 100,000 15 15 Series U $ 100,000 10 Series V $ 100,000 12 Total issued and outstanding 58 51 (a) On November 1, 2022, PNC redeemed all 15,000 shares of its Series P Preferred Stock, as well as all 60 million Depositary Shares each representing a fractional interest in such shares. The following table discloses information related to the preferred stock outstanding as of December 31, 2022: Table 81: Terms of Outstanding Preferred Stock Preferred Stock Issue Number of Fractional Interest in a Share of Preferred Stock Represented by Each Depositary Share Dividend Dates (a) Annual Per Share Dividend Rate Optional Series B (c) (c) N/A N/A Quarterly from March 10 th $ 1.80 None Series O (d) July 27, 2011 1 million 1/100 th Semi-annually beginning on February 1, 2012 6.75% until August 1, 2021 3 Mo. LIBOR plus 3.678% per annum beginning on August 1, 2021 August 1, 2021 Series R (d) May 7, 2013 500,000 1/100 th Semi-annually beginning on December 1, 2013 until June 1, 2023 4.85% until June 1, 2023 3 Mo. LIBOR plus 3.04% per annum beginning June 1, 2023 June 1, 2023 Series S (d) November 1, 2016 525,000 1/100 th Semi-annually beginning on May 1, 2017 5.00% until November 1, 2026 3 Mo. LIBOR plus 3.30% per annum beginning November 1, 2026 November 1, 2026 Series T (d) September 13, 2021 1.5 million 1/100 th Quarterly beginning on December 15, 2021 3.40% until September 15, 2026 5 Yr. U.S. Treasury plus 2.595% per annum beginning September 15, 2026 September 15, 2026 Series U (d) April 26, 2022 1 million 1/100 th Quarterly beginning on 6.00% until May 15, 2027 5 Yr. U.S. Treasury plus 3.00% per annum beginning May 15, 2027 May 15, 2027 Series V (d) August 19, 2022 1.25 million 1/100 th Quarterly beginning on 6.20% until September 15, 2027 5 Yr. U.S. Treasury plus 3.238% per annum beginning September 15, 2027 September 15, 2027 (a) Dividends are payable when, as, and if declared by our Board of Directors or an authorized committee of our Board of Directors. (b) Redeemable at our option on or after the date stated. With the exception of the Series B preferred stock, also redeemable at our option within 90 days of a regulatory capital treatment event as defined in the designations. (c) Cumulative preferred stock. Holders of Series B preferred stock are entitled to 8 votes per share, which is equal to the number of full shares of common stock into which the Series B preferred stock is convertible. The Series B preferred stock was issued in connection with the consolidation of Pittsburgh National Corporation and Provident National Corporation in 1983. (d) Non-Cumulative preferred stock. Each outstanding series of preferred stock, other than the Series B, contains restrictions on our ability to pay dividends and make other shareholder payments. Subject to limited exceptions, if dividends are not paid on any such series of preferred stock, we cannot declare dividends on or repurchase shares of our common stock. In addition, if we would like to repurchase shares of preferred stock, such repurchases must be on a pro rata basis with respect to all such series of preferred stock. The following table provides the dividends per share for PNC’s common and preferred stock: Table 82: Dividends Per Share December 31 2022 2021 2020 Common Stock $ 5.75 $ 4.80 $ 4.60 Preferred Stock Series B $ 1.80 $ 1.80 $ 1.80 Series O $ 4,881 $ 7,722 $ 6,750 Series P $ 6,181 $ 6,125 $ 6,125 Series Q $ 4,031 Series R $ 4,850 $ 4,850 $ 4,850 Series S $ 5,000 $ 5,000 $ 5,000 Series T $ 3,400 $ 869 Series U $ 3,317 Series V $ 1,998 On January 4, 2023, the PNC Board of Directors declared a quarterly cash dividend on common stock of $1.50 per share. The dividend, with a payment date of February 5, 2023, was paid on the next business day. Other Shareholders’ Equity Matters At December 31, 2022, we had reserved approximately 79 million common shares to be issued in connection with certain stock plans. Consistent with the SCB framework, which allows for capital return in amounts in excess of the SCB minimum levels, our Board of Directors has authorized a repurchase framework under the repurchase program approved on April 4, 2019 of up to 100 million common shares, of which approximately 49% were still available for repurchase at December 31, 2022. Under this framework, PNC expects quarterly repurchases of up to $500 million with the ability to adjust those levels as conditions warrant. PNC’s SCB for the four-quarter period beginning October 1, 2022 is 2.9%. |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2022 | |
Other Comprehensive Income [Abstract] | |
Other Comprehensive Income | O THER C OMPREHENSIVE I NCOME Table 83: Other Comprehensive Income (Loss) Year ended December 31 2022 2021 2020 In millions Pre-tax Tax effect After-tax Pre-tax Tax effect After-tax Pre-tax Tax effect After-tax Debt securities Net Unrealized gains (losses) on securities $ (10,866) $ 2,561 $ (8,305) $ (2,445) $ 576 $ (1,869) $ 2,113 $ (485) $ 1,628 Less: Net realized gains (losses) reclassified to earnings (a) (723) 171 (552) 6 (2) 4 302 (69) 233 Net change (10,143) 2,390 (7,753) (2,451) 578 (1,873) 1,811 (416) 1,395 Cash flow hedge derivatives Net Unrealized gains (losses) on cash flow hedge derivatives (3,536) 833 (2,703) (632) 149 (483) 918 (211) 707 Less: Net realized gains (losses) reclassified to earnings (a) (260) 61 (199) 494 (117) 377 421 (97) 324 Net change (3,276) 772 (2,504) (1,126) 266 (860) 497 (114) 383 Pension and other postretirement benefit plan Net pension and other postretirement benefit plan activity (363) 85 (278) 486 (114) 372 82 (19) 63 Net change (363) 85 (278) 486 (114) 372 82 (19) 63 Other Net unrealized gains (losses) on other transactions (5) (41) (46) 4 (4) 10 5 15 Net change (5) (41) (46) 4 (4) 10 5 15 Total other comprehensive income (loss) from continuing (13,787) 3,206 (10,581) (3,087) 726 (2,361) 2,400 (544) 1,856 Total other comprehensive income from discontinued 148 (33) 115 Total other comprehensive income (loss) $ (13,787) $ 3,206 $ (10,581) $ (3,087) $ 726 $ (2,361) $ 2,548 $ (577) $ 1,971 (a) Reclassifications for pre-tax debt securities and cash flow hedges are recorded in interest income and noninterest income on the Consolidated Income Statement. (b) Reclassifications include amortization of actuarial losses (gains) and amortization of prior period services costs (credits) which are recorded in noninterest expense on the Consolidated Income Statement. Table 84: Accumulated Other Comprehensive Income (Loss) Components In millions, after-tax Debt securities Cash flow hedge derivatives Pension and other postretirement benefit plan adjustments Other Accumulated other Comprehensive Income from Continuing Operations Accumulated other Comprehensive Income from Discontinued Operations Total Balance at December 31, 2019 $ 1,067 $ 276 $ (408) $ (21) $ 914 $ (115) $ 799 Net Activity 1,395 383 63 15 1,856 115 1,971 Balance at December 31, 2020 $ 2,462 $ 659 $ (345) $ (6) $ 2,770 $ 2,770 Net activity (1,873) (860) 372 (2,361) (2,361) Balance at December 31, 2021 $ 589 $ (201) $ 27 $ (6) $ 409 $ 409 Net activity (7,753) (2,504) (278) (46) (10,581) (10,581) Balance at December 31, 2022 (a) $ (7,164) $ (2,705) $ (251) $ (52) $ (10,172) $ (10,172) (a) At December 31, 2022, AOCI included pretax losses of $314 million from derivatives that hedged the purchase of investment securities classified as held to maturity. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | E ARNINGS P ER S HARE Table 85: Basic and Diluted Earnings Per Common Share In millions, except per share data 2022 2021 2020 Basic Net income from continuing operations $ 6,113 $ 5,725 $ 3,003 Less: Net income attributable to noncontrolling interests 72 51 41 Preferred stock dividends 301 233 229 Preferred stock discount accretion and redemptions 5 5 4 Net income from continuing operations attributable to common shareholders 5,735 5,436 2,729 Less: Dividends and undistributed earnings allocated to nonvested restricted shares 27 27 13 Net income from continuing operations attributable to basic common shareholders $ 5,708 $ 5,409 $ 2,716 Net income from discontinued operations attributable to common shareholders $ 4,555 Less: Undistributed earnings allocated to nonvested restricted shares 22 Net income from discontinued operations attributable to basic common shareholders $ 4,533 Basic weighted-average common shares outstanding 412 426 427 Basic earnings per common share from continuing operations (a) $ 13.86 $ 12.71 $ 6.37 Basic earnings per common share from discontinued operations (a) $ 10.62 Basic earnings per common share $ 13.86 $ 12.71 $ 16.99 Diluted Net income from continuing operations attributable to diluted common shareholders $ 5,708 $ 5,409 $ 2,716 Net income from discontinued operations attributable to basic common shareholders $ 4,533 Less: Impact of earnings per share dilution from discontinued operations 2 Net income from discontinued operations attributable to diluted common shareholders $ 4,531 Basic weighted-average common shares outstanding 412 426 427 Diluted weighted-average common shares outstanding 412 426 427 Diluted earnings per common share from continuing operations (a) $ 13.85 $ 12.70 $ 6.36 Diluted earnings per common share from discontinued operations (a) $ 10.60 Diluted earnings per common share $ 13.85 $ 12.70 $ 16.96 (a) Basic and diluted earnings per share under the two-class method are determined on net income reported on the income statement less earnings allocated to nonvested restricted shares and restricted share units with nonforfeitable dividends and dividend rights (participating securities). |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value [Abstract] | |
Fair Value | F AIR V ALUE Fair Value Measurement We measure certain financial assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or the price that would be paid to transfer a liability on the measurement date and is determined using an exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair value hierarchy established by GAAP requires us to maximize the use of observable inputs when measuring fair value. The three levels of the fair value hierarchy are: • Level 1: Fair value is determined using a quoted price in an active market for identical assets or liabilities. Level 1 assets and liabilities may include debt securities, equity securities and listed derivative contracts that are traded in an active exchange market, and certain U.S. Treasury securities that are actively traded in over-the-counter markets. • Level 2: Fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for assets or liabilities, either directly or indirectly. The majority of Level 2 assets and liabilities include debt securities and listed derivative contracts with quoted prices that are traded in markets that are not active, and certain debt and equity securities and over-the-counter derivative contracts whose fair value is determined using a pricing model without significant unobservable inputs. • Level 3: Fair value is estimated using unobservable inputs that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models and discounted cash flow methodologies, or similar techniques for which the significant valuation inputs are not observable and the determination of fair value requires significant management judgment or estimation. We characterize active markets as those where transaction volumes are sufficient to provide objective pricing information, with reasonably narrow bid/ask spreads, and where dealer quotes received do not vary widely and are based on current information. Inactive markets are typically characterized by low transaction volumes, price quotations that vary substantially among market participants or are not based on current information, wide bid/ask spreads, a significant increase in implied liquidity risk premiums, yields, or performance indicators for observed transactions or quoted prices compared to historical periods, a significant decline or absence of a market for new issuance, or any combination of the above factors. We also consider nonperformance risks, including credit risk, as part of our valuation methodology for all assets and liabilities measured at fair value. Assets and liabilities measured at fair value, by their nature, result in a higher degree of financial statement volatility. Assets and liabilities classified within Level 3 inherently require the use of various assumptions, estimates and judgments when measuring their fair value. As observable market activity is commonly not available to use when estimating the fair value of Level 3 assets and liabilities, we must estimate fair value using various modeling techniques. These techniques include the use of a variety of inputs/assumptions including credit quality, liquidity, interest rates or other relevant inputs across the entire population of our Level 3 assets and liabilities. Changes in the significant underlying factors or assumptions (either an increase or a decrease) in any of these areas underlying our estimates may have resulted in a significant increase/decrease in the Level 3 fair value measurement of a particular asset and/or liability from period to period. Any models used to determine fair values or to validate dealer quotes are subject to review and independent testing as part of our model validation and internal control testing processes. Our Model Risk Management Group reviews significant models on at least an annual basis. In addition, the Valuation Committee approves valuation methodologies and reviews the results of independent valuation reviews and processes for assets and liabilities measured at fair value on a recurring basis. Assets and Liabilities Measured at Fair Value on a Recurring Basis Residential Mortgage Loans Held for Sale We account for certain residential mortgage loans originated for sale at fair value on a recurring basis. The election of the fair value option aligns the accounting for the residential mortgages with the related hedges. Residential mortgage loans are valued based on quoted market prices, where available, prices for other traded mortgage loans with similar characteristics, and purchase commitments and bid information received from market participants. The prices are adjusted as necessary to include the embedded servicing value in the loans and to take into consideration the specific characteristics of certain loans that are priced based on the pricing of similar loans. These adjustments represent unobservable inputs to the valuation but are not considered significant given the relative insensitivity of the value to changes in these inputs to the fair value of the loans. Accordingly, the majority of residential mortgage loans held for sale are classified as Level 2. Commercial Mortgage Loans Held for Sale We account for certain commercial mortgage loans classified as held for sale in whole loan transactions at fair value. We determine the fair value of commercial mortgage loans held for sale based upon discounted cash flows. Fair value is determined using sale valuation assumptions that management believes a market participant would use in pricing the loans. For loans to be sold to agencies with servicing retained, the fair value is adjusted for the estimated servicing cash flows, which is an unobservable input. This adjustment is not considered significant given the relative insensitivity of the value to changes in the input to the fair value of the loans. Accordingly, commercial mortgage loans held for sale to agencies are classified as Level 2. Valuation assumptions may include observable inputs based on the benchmark interest rate swap curve, whole loan sales and agency sales transactions. The significant unobservable input for commercial mortgage loans held for sale, excluding those to be sold to agencies, is management’s assumption of the spread applied to the benchmark rate. The spread over the benchmark curve includes management’s assumptions of the impact of credit and liquidity risk. Significant increases (decreases) in the spread applied to the benchmark would have resulted in a significantly lower (higher) asset value. The wide range of the spread over the benchmark curve is due to the varying risk and underlying property characteristics within our portfolio. Based on the significance of the unobservable input, we classified this portfolio as Level 3. Securities Available for Sale and Trading Securities Securities accounted for at fair value include both the available for sale and trading portfolios. We primarily use prices obtained from pricing services, dealer quotes or recent trades to determine the fair value of securities. The majority of securities were priced by third-party vendors. The third-party vendors use a variety of methods when pricing securities that incorporate relevant market data to arrive at an estimate of what a buyer in the marketplace would pay for a security under current market conditions. We monitor and validate the reliability of vendor pricing on an ongoing basis through pricing methodology reviews, including detailed reviews of the assumptions and inputs used by the vendor to price individual securities, and through price validation testing. Securities not priced by one of our pricing vendors may be valued using a dealer quote, which are also subject to price validation testing. Price validation testing is performed independent of the risk-taking function and involves corroborating the prices received from third-party vendors and dealers with prices from another third party or through other sources, such as internal valuations or sales of similar securities. Security prices are also validated through actual cash settlement upon sale of a security. Securities are classified within the fair value hierarchy after considering the activity level in the market for the security type and the observability of the inputs used to determine the fair value. When a quoted price in an active market exists for the identical security, this price is used to determine fair value and the security is classified within Level 1 of the hierarchy. Level 1 securities include U.S. Treasury securities. When a quoted price in an active market for the identical security is not available, fair value is estimated using either an alternative market approach, such as a recent trade or matrix pricing, or an income approach, such as a discounted cash flow pricing model. If the inputs to the valuation are based primarily on market observable information, then the security is classified within Level 2 of the hierarchy. Level 2 securities include agency debt securities, agency residential mortgage-backed securities, agency and non-agency commercial mortgage-backed securities, certain non-agency residential mortgage-backed securities, asset-backed securities collateralized by non-mortgage-related corporate and consumer loans, and other debt securities. Level 2 securities are predominantly priced by third parties, either by a pricing vendor or dealer. In certain cases where there is limited activity or less transparency around the inputs to the valuation, securities are classified within Level 3 of the hierarchy. Securities classified as Level 3 consist primarily of non-agency residential mortgage-backed and asset-backed securities collateralized by first- and second-lien residential mortgage loans. Fair value for these securities is primarily estimated using pricing obtained from third-party vendors. In some cases, fair value is estimated using a dealer quote, by reference to prices of securities of a similar vintage and collateral type or by reference to recent sales of similar securities. Market activity for these security types is limited with little price transparency. As a result, these securities are generally valued by the third-party vendor using a discounted cash flow approach that incorporates significant unobservable inputs and observable market activity where available. Significant inputs to the valuation include prepayment projections and credit loss assumptions (default rate and loss severity) and discount rates that are deemed representative of current market conditions. Significant increases (decreases) in any of those assumptions in isolation would have resulted in a significantly lower (higher) fair value measurement. Certain infrequently traded debt securities within other debt securities available for sale and trading securities are also classified in Level 3 and are included in the Insignificant Level 3 assets, net of liabilities line item in Table 88. The significant unobservable inputs used to estimate the fair value of these securities include an estimate of expected credit losses and a discount for liquidity risk. These inputs are incorporated into the fair value measurement by either increasing the spread over the benchmark curve or by applying a credit and liquidity discount to the par value of the security. Significant increases (decreases) in credit and/or liquidity risk could have resulted in a significantly lower (higher) fair value estimate. Loans Loans accounted for at fair value consist primarily of residential mortgage loans. These loans are generally valued similarly to residential mortgage loans held for sale and are classified as Level 2. However, similar to residential mortgage loans held for sale, if these loans are repurchased and unsalable, they are classified as Level 3. In addition, repurchased VA loans, where only a portion of the principal will be reimbursed, are classified as Level 3. The fair value is determined using a discounted cash flow calculation based on our historical loss rate. We have elected to account for certain home equity lines of credit at fair value. These loans are classified as Level 3. Significant inputs to the valuation of these loans include credit and liquidity discount, cumulative default rate, loss severity and gross discount rate and are deemed representative of current market conditions. Significant increases (decreases) in any of these assumptions would have resulted in a significantly lower (higher) fair value measurement. Equity Investments Equity investments includes money market mutual funds as well as direct and indirect private equity investments. Money market mutual funds are valued based on quoted prices in active markets for identical securities and classified within Level 1 of the hierarchy. The valuation of direct and indirect private equity investments requires significant management judgment due to the absence of quoted market prices, inherent lack of liquidity and the long-term nature of such investments. Various valuation techniques are used for direct investments, including multiples of adjusted earnings of the entity, independent appraisals, anticipated financing and sale transactions with third parties, or the pricing used to value the entity in a recent financing transaction. A multiple of adjusted earnings calculation is the valuation technique utilized most frequently and is the most significant unobservable input used in such calculation. Significant decreases (increases) in the multiple of earnings could have resulted in a significantly lower (higher) fair value measurement. Direct equity investments are classified as Level 3. Indirect investments are not redeemable; however, we receive distributions over the life of the partnerships from liquidation of the underlying investments by the investee, which we expect to occur over the next 12 years. We value indirect investments in private equity funds using the NAV practical expedient as provided in the financial statements that we receive from fund managers. Due to the time lag in our receipt of the financial information and based on a review of investments and valuation techniques applied, adjustments to the manager-provided value are made when available recent portfolio company information or market information indicates a significant change in value from that provided by the manager of the fund. Indirect investments valued using NAV are not classified in the fair value hierarchy. Mortgage Servicing Rights (MSRs) MSRs are carried at fair value on a recurring basis. Assumptions incorporated into the MSRs valuation model reflect management’s best estimate of factors that a market participant would use in valuing the MSRs. Although sales of MSRs do occur and can offer some market insight, MSRs do not trade in an active, open market with readily observable prices so the precise terms and conditions of sales are not available. Residential MSRs As a benchmark for the reasonableness of our residential MSRs fair value, we obtained opinions of value from independent brokers. These brokers provided a range (+/-10 bps) based upon their own discounted cash flow calculations of our portfolio that reflect conditions in the secondary market and any recently executed servicing transactions. We compare our internally-developed residential MSRs value to the ranges of values received from the brokers. If our residential MSRs fair value falls outside of the brokers’ ranges, management will assess whether a valuation adjustment is warranted. For the periods presented, our residential MSRs value did not fall outside of the brokers’ ranges. Due to the nature of the unobservable valuation inputs, residential MSRs are classified as Level 3. The significant unobservable inputs used in the fair value measurement of residential MSRs are constant prepayment rates and spread over the benchmark curve. Significant increases (decreases) in prepayment rates and spread over the benchmark curve would have resulted in lower (higher) fair market value of residential MSRs. Commercial MSRs The fair value of commercial MSRs is estimated by using a discounted cash flow model incorporating unobservable inputs for assumptions such as constant prepayment rates, discount rates and other factors. Due to the nature of the unobservable valuation inputs and the limited availability of market pricing, commercial MSRs are classified as Level 3. Significant increases (decreases) in constant prepayment rates and discount rates would have resulted in significantly lower (higher) commercial MSR value determined based on current market conditions and expectations. Financial Derivatives Exchange-traded derivatives are valued using quoted market prices and are classified as Level 1. The majority of derivatives that we enter into are executed over-the-counter and are valued using internal models. These derivatives are primarily classified as Level 2, as the readily observable market inputs to these models are validated to external sources, such as industry pricing services, or are corroborated through recent trades, dealer quotes, yield curves, implied volatility or other market-related data. Level 2 financial derivatives are primarily estimated using observable benchmark interest rate swaps to construct projected discounted cash flows. Financial derivatives that are priced using significant management judgment or assumptions are classified as Level 3. Unobservable inputs related to interest rate contracts include probability of funding of residential mortgage loan commitments and estimated servicing cash flows of commercial and residential mortgage loan commitments. Probability of default and loss severity are the significant unobservable inputs used in the valuation of risk participation agreements. The fair values of Level 3 assets and liabilities related to these interest rate contract financial derivatives as of December 31, 2022 and 2021 are included in the Insignificant Level 3 assets, net of liabilities line item in Table 88 of this Note 15. In connection with the sales of portions of our Visa Class B common shares, we entered into swap agreements with the purchasers of the shares to retain any future risk of decreases in the conversion rate of Class B common shares to Class A common shares resulting from increases in the escrow funded by Visa to pay for the costs of resolution of the pending interchange litigation (see Note 21 Legal Proceedings). These swaps also require PNC to make periodic payments based on the market price of the Class A common shares at a fixed rate of interest (in certain cases subject to step-up provisions) until the Visa litigation is resolved. An increase in the estimated length of litigation resolution date, a decrease in the estimated conversion rate, or an increase in the estimated growth rate of the Class A share price would have had a negative impact on the fair value of the swaps and vice versa. The fair values of our derivatives include a credit valuation adjustment to reflect our own and our counterparties’ nonperformance risk. Our credit valuation adjustment is computed using credit default swap spreads, in conjunction with internal historical recovery observations. Other Assets and Liabilities Other assets held at fair value on a recurring basis primarily include assets related to PNC’s deferred compensation and supplemental incentive savings plans. The assets related to PNC’s deferred compensation and supplemental incentive savings plans primarily consist of a prepaid forward contract referencing an amount of shares of PNC stock, equity mutual funds and fixed income funds, and are valued based on the underlying investments. These assets are valued either by reference to the market price of PNC’s stock or by using the quoted market prices for investments other than PNC’s stock and are included in Levels 1 and 2. All Level 3 other assets and liabilities are included in the Insignificant Level 3 assets, net of liabilities line item in Table 88 in this Note 15. Other Borrowed Funds Other borrowed funds primarily consist of U.S. Treasury securities sold short which are classified as Level 1. Other borrowed funds also includes the related liability for certain repurchased loans for which we have elected the fair value option and are classified as either Level 2 or Level 3, consistent with the level classification of the corresponding loans. All Level 3 amounts are included in the Insignificant Level 3 assets, net of liabilities line item in Table 88 in this Note 15. The following table summarizes our assets and liabilities measured at fair value on a recurring basis, including instruments for which we have elected the fair value option: Table 86: Fair Value Measurements – Recurring Basis Summary December 31, 2022 December 31, 2021 In millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Residential mortgage loans held for sale $ 411 $ 243 $ 654 $ 1,221 $ 81 $ 1,302 Commercial mortgage loans held for sale 243 33 276 526 49 575 Securities available for sale U.S. Treasury and government agencies $ 8,108 262 8,370 $ 41,873 4,291 46,164 Residential mortgage-backed Agency 28,823 28,823 67,632 67,632 Non-agency 819 819 61 1,097 1,158 Commercial mortgage-backed Agency 1,675 1,675 1,773 1,773 Non-agency 1,253 3 1,256 3,433 3 3,436 Asset-backed 5 124 129 6,246 163 6,409 Other 3,032 55 3,087 4,895 69 4,964 Total securities available for sale 8,108 35,050 1,001 44,159 41,873 88,331 1,332 131,536 Loans 541 769 1,310 617 884 1,501 Equity investments (a) 1,173 1,778 3,147 1,373 1,680 3,231 Residential mortgage servicing rights 2,310 2,310 1,078 1,078 Commercial mortgage servicing rights 1,113 1,113 740 740 Trading securities (b) 798 1,168 1,966 250 1,601 1,851 Financial derivatives (b) (c) 16 3,747 5 3,768 5 5,109 38 5,152 Other assets 352 80 432 404 114 518 Total assets (d) $ 10,447 $ 41,240 $ 7,252 $ 59,135 $ 43,905 $ 97,519 $ 5,882 $ 147,484 Liabilities Other borrowed funds $ 1,230 $ 232 $ 4 $ 1,466 $ 725 $ 45 $ 3 $ 773 Financial derivatives (c) (e) 4 7,491 123 7,618 3,285 285 3,570 Other liabilities 294 294 175 175 Total liabilities (f) $ 1,234 $ 7,723 $ 421 $ 9,378 $ 725 $ 3,330 $ 463 $ 4,518 (a) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. (b) Included in Other assets (c) Amounts at December 31, 2022 and 2021 are presented gross and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. See Note 16 Financial Derivatives for additional information related to derivative offsetting. (d) Total assets at fair value as a percentage of total consolidated assets was 11% and 26% at December 31, 2022 and 2021, respectively. Level 3 assets as a percentage of total assets at fair value was 12% and 4% as of December 31, 2022 and 2021, respectively. Level 3 assets as a percentage of total consolidated assets was 1% at both December 31, 2022 and 2021. (e) Included in Other liabilities (f) Total liabilities at fair value as a percentage of total consolidated liabilities was 2% and 1% at December 31, 2022 and 2021, respectively. Level 3 liabilities as a percentage of total liabilities at fair value was 4% and 10% as of December 31, 2022 and 2021, respectively. Level 3 liabilities as a percentage of total consolidated liabilities was less than 1% at both December 31, 2022 and 2021. Table 87: Reconciliation of Level 3 Assets and Liabilities Year Ended December 31, 2022 Total realized / unrealized Unrealized Level 3 Instruments Only Fair Included in Included Purchases Sales Issuances Settlements Transfers Transfers Fair Assets Residential mortgage $ 81 $ (5) $ 226 $ (34) $ (13) $ 29 $ (41) (d) $ 243 $ (5) Commercial mortgage 49 (6) (10) 33 (6) Securities available for sale Residential mortgage- 1,097 22 $ (108) (192) 819 Commercial mortgage- 3 3 Asset-backed 163 2 (18) (23) 124 Other 69 6 (20) 55 Total securities 1,332 24 (126) 6 (235) 1,001 Loans 884 23 55 (10) (164) (19) (d) 769 23 Equity investments 1,680 445 291 (772) 134 (e) 1,778 237 Residential mortgage 1,078 509 897 $ 57 (231) 2,310 509 Commercial mortgage 740 473 46 62 (208) 1,113 473 Financial derivatives 38 (6) 8 (35) 5 19 Total assets $ 5,882 $ 1,457 $ (126) $ 1,529 $ (816) $ 119 $ (896) $ 163 $ (60) $ 7,252 $ 1,250 Liabilities Other borrowed funds $ 3 $ 7 $ (6) $ 4 Financial derivatives 285 $ 49 $ 14 (225) 123 $ 62 Other liabilities 175 77 $ 32 876 (866) 294 66 Total liabilities $ 463 $ 126 $ 32 $ 14 $ 883 $ (1,097) $ 421 $ 128 Net gains (losses) $ 1,331 (f) $ 1,122 (g) (Continued from previous page) Year Ended December 31, 2021 Total realized / unrealized Unrealized gains / losses for the period on assets and liabilities held on Consolidated Balance Sheet at Dec. 31, 2021 (a) (c) Level 3 Instruments Only Fair Value Dec. 31, 2020 Included in Earnings Included in Other comprehensive income (b) Purchases Sales Issuances Settlements Transfers into Level 3 Transfers out of Level 3 Impact from BBVA Acquisition Fair Value Dec. 31, 2021 Assets Residential mortgage $ 163 $ (1) $ 47 $ (83) $ (41) $ 18 $ (22) (d) $ 81 $ (1) Commercial mortgage 57 (6) (2) 49 (1) Other consumer loans held for sale (256) $ 256 Securities available for sale Residential mortgage- 1,365 37 $ 6 (311) 1,097 Commercial mortgage- 11 (8) 3 Asset-backed 199 2 9 (47) 163 Other 72 1 6 (10) 69 Total securities 1,647 39 8 6 (368) 1,332 Loans 647 45 124 (15) (194) (14) (d) 291 884 44 Equity investments 1,263 627 573 (783) 1,680 338 Residential mortgage 673 192 411 $ 87 (320) 35 1,078 192 Commercial mortgage 569 162 41 87 (119) 740 162 Financial derivatives 118 83 5 (174) 6 38 113 Total assets $ 5,137 $ 1,147 $ 8 $ 1,207 $ (1,143) $ 174 $ (1,218) $ 18 $ (36) $ 588 $ 5,882 $ 847 Liabilities Other borrowed funds $ 2 $ 5 $ (4) $ 3 Financial derivatives 273 $ 145 $ 6 (146) $ 7 285 $ 158 Other liabilities 43 151 321 (340) 175 111 Total liabilities $ 318 $ 296 $ 6 $ 326 $ (490) $ 7 $ 463 $ 269 Net gains (losses) $ 851 (f) $ 578 (g) (a) Losses for assets are bracketed while losses for liabilities are not. (b) The difference in unrealized gains and losses for the period included in Other comprehensive income and changes in unrealized gains and losses for the period included in Other comprehensive income for securities available for sale held at the end of the reporting period were insignificant. (c) The amount of the total gains or losses for the period included in earnings that is attributable to the change in unrealized gains or losses related to those assets and liabilities held at the end of the reporting period. (d) Residential mortgage loan transfers out of Level 3 are primarily driven by residential mortgage loans transferring to OREO as well as reclassification of mortgage loans held for sale to held for investment. (e) Transfers into Level 3 were due to certain private company investments valued using significant unobservable inputs during the current period. (f) Net gains (losses) realized and unrealized included in earnings related to Level 3 assets and liabilities included amortization and accretion. The amortization and accretion amounts were included in Interest income (g) Net unrealized gains (losses) related to assets and liabilities held at the end of the reporting period were included in Noninterest income An instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Changes from one quarter to the next related to the observability of inputs to a fair value measurement may result in a reclassification (transfer) of assets or liabilities between hierarchy levels. Table 88: Fair Value Measurements – Recurring Quantitative Information December 31, 2022 Level 3 Instruments Only Fair Value Valuation Techniques Unobservable Inputs Range (Weighted-Average) (a) Commercial mortgage loans held for sale $ 33 Discounted cash flow Spread over the benchmark curve (b) 585bps - 2,465bps (959bps) Residential mortgage-backed 819 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate 1.0% - 27.9% (9.9%) Constant default rate 0.0% - 13.0% (4.0%) Loss severity 15.0% - 80.0% (46.1%) Spread over the benchmark curve (b) 289bps weighted-average Asset-backed securities 124 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate 1.0% - 40.0% (7.5%) Constant default rate 0.0% - 7.3% (2.1%) Loss severity 20.0% - 100.0% (49.0%) Spread over the benchmark curve (b) 296bps weighted-average Loans - Residential real estate - Uninsured 570 Consensus pricing (c) Cumulative default rate 3.6% - 100.0% (66.2%) Loss severity 0.0% - 100.0% (6.2%) Discount rate 5.5% - 7.5% (5.9%) Loans - Residential real estate - Government insured 76 Discounted cash flow Loss severity 6.0% weighted-average Discount rate 7.9% weighted-average Loans - Home equity - First-lien 25 Consensus pricing (c) Cumulative default rate 3.6% - 100.0% (72.5%) Loss severity 0.0% - 100.0% (15.3%) Discount rate 5.5% - 7.5% (6.5%) Loans - Home equity - Second-lien 98 Consensus pricing (c) Credit and liquidity discount 0.4% - 100.0% (46.2%) Equity investments 1,778 Multiple of adjusted earnings Multiple of earnings 4.5x - 25.0x (9.1x) Residential mortgage servicing rights 2,310 Discounted cash flow Constant prepayment rate 0.0% - 34.5% (6.7%) Spread over the benchmark curve (b) 254bps - 1,653bps (766bps) Commercial mortgage servicing rights 1,113 Discounted cash flow Constant prepayment rate 3.9% - 9.8% (4.3%) Discount rate 7.8% - 10.1% (9.8%) Financial derivatives - Swaps related to (107) Discounted cash flow Estimated conversion factor of Visa Class B shares into Class A shares 160.6% weighted-average Estimated annual growth rate of Visa Class A share price 16.0% Estimated length of litigation resolution date Q2 2023 Insignificant Level 3 assets, net of (8) Total Level 3 assets, net of liabilities (e) $ 6,831 (Continued from previous page) December 31, 2021 Level 3 Instruments Only Fair Value Valuation Techniques Unobservable Inputs Range (Weighted-Average) (a) Commercial mortgage loans held for sale $ 49 Discounted cash flow Spread over the benchmark curve (b) 555bps - 15,990bps (9,996bps) Residential mortgage-backed 1,097 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate 1.0% - 30.7% (11.3%) Constant default rate 0.0% - 16.9% (4.6%) Loss severity 20.0% - 96.4% (47.6%) Spread over the benchmark curve (b) 163bps weighted-average Asset-backed securities 163 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate 1.0% - 40.0% (11.1%) Constant default rate 1.4% - 20.0% (3.2%) Loss severity 8.0% - 100.0% (57.4%) Spread over the benchmark curve (b) 182bps weighted-average Loans - Residential real estate - Uninsured 622 Consensus pricing (c) Cumulative default rate 3.6% - 100.0% (74.2%) Loss severity 0.0% - 100.0% (6.9%) Discount rate 4.8% - 6.8% (5.2%) Loans - Residential real estate - Government insured 109 Discounted cash flow Loss severity 6.0% weighted-average Discount rate 3.5% weighted-average Loans - Home equity - First-lien 28 Consensus pricing (c) Cumulative default rate 3.6% - 100.0% (75.8%) Loss severity 0.0% - 98.4% (17.7%) Discount rate 4.8% - 6.8% (6.0%) Loans - Home equity - Second-lien 125 Consensus pricing (c) Credit and liquidity discount 0.5% - 100.0% (47.3%) Equity investments 1,680 Multiple of adjusted earnings Multiple of earnings 5.0x - 14.4x (8.8x) Residential mortgage servicing rights 1,078 Discounted cash flow Constant prepayment rate 0.0% - 41.0% (12.6%) Spread over the benchmark curve (b) 249bps - 2,218bps (857bps) Commercial mortgage servicing rights 740 Discounted cash flow Constant prepayment rate 5.0% - 15.5% (5.5%) Discount rate 5.4% - 8.0% (7.8%) Financial derivatives - Swaps related to (277) Discounted cash flow Estimated conversion factor of Visa Class B shares into Class A shares 161.8% weighted-average Estimated annual growth rate of Visa Class A share price 16.0% Estimated length of litigation resolution date Q2 2023 Insignificant Level 3 assets, net of 5 Total Level 3 assets, net of liabilities (e) $ 5,419 (a) Unobservable inputs were weighted by the relative fair value of the instruments. (b) The assum |
Financial Derivatives
Financial Derivatives | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Derivatives | F INANCIAL D ERIVATIVES We use a variety of financial derivatives to both mitigate exposure to market (primarily interest rate) and credit risks inherent in our business activities, as well as to facilitate customer risk management activities. We manage these risks as part of our overall asset and liability management process and through our credit policies and procedures. Derivatives represent contracts between parties that usually require little or no initial net investment and result in one party delivering cash or another type of asset to the other party based on a notional amount and an underlying as specified in the contract. Derivative transactions are often measured in terms of notional amount, but this amount is generally not exchanged and it is not recorded on the balance sheet. The notional amount is the basis to which the underlying is applied to determine required payments under the derivative contract. The underlying is a referenced interest rate, security price, credit spread or other index. Residential and commercial real estate loan commitments associated with loans to be sold also qualify as derivative instruments. The following table presents the notional and gross fair value amounts of all derivative assets and liabilities held by us: Table 93: Total Gross Derivatives (a) December 31, 2022 December 31, 2021 In millions Notional /Contract Amount Asset Fair Liability Fair Notional /Contract Amount Asset Fair Liability Fair Derivatives used for hedging Interest rate contracts (d): Fair value hedges $ 24,231 $ 23,345 Cash flow hedges 40,310 $ 1 48,961 $ 15 $ 14 Foreign exchange contracts: Net investment hedges 1,120 $ 24 1,113 24 Total derivatives designated for hedging $ 65,661 $ 24 $ 1 $ 73,419 $ 15 $ 38 Derivatives not used for hedging Derivatives used for mortgage banking activities (e): Interest rate contracts: Swaps $ 47,908 $ 7 $ 1 $ 35,623 Futures (f) 5,537 4,592 Mortgage-backed commitments 4,516 85 89 9,917 $ 55 $ 31 Other 18,017 90 14 12,225 46 12 Total interest rate contracts 75,978 182 104 62,357 101 43 Derivatives used for customer-related activities: Interest rate contracts: Swaps 354,150 1,597 5,397 297,711 3,335 1,520 Futures (f) 32 907 Mortgage-backed commitments 2,799 10 6 4,147 5 6 Other 29,071 334 321 25,718 125 72 Total interest rate contracts 386,052 1,941 5,724 328,483 3,465 1,598 Commodity contracts: Swaps 5,792 1,003 1,067 8,840 1,150 1,161 Other 4,488 205 202 3,128 213 212 Total commodity contracts 10,280 1,208 1,269 11,968 1,363 1,373 Foreign exchange contracts and other 30,512 366 293 27,563 199 179 Total derivatives for customer-related activities 426,844 3,515 7,286 368,014 5,027 3,150 Derivatives used for other risk management activities: Foreign exchange contracts and other 12,785 47 227 11,512 9 339 Total derivatives not designated for hedging $ 515,607 $ 3,744 $ 7,617 $ 441,883 $ 5,137 $ 3,532 Total gross derivatives $ 581,268 $ 3,768 $ 7,618 $ 515,302 $ 5,152 $ 3,570 Less: Impact of legally enforceable master netting agreements 1,523 1,523 928 928 Less: Cash collateral received/paid 714 1,571 604 1,657 Total derivatives $ 1,531 $ 4,524 $ 3,620 $ 985 (a) Centrally cleared derivatives are settled in cash daily and result in no derivative asset or derivative liability being recognized on our Consolidated Balance Sheet. (b) Included in Other assets on our Consolidated Balance Sheet. (c) Included in Other liabilities on our Consolidated Balance Sheet. (d) Represents primarily swaps. (e) Includes both residential and commercial mortgage banking activities. (f) Futures contracts are settled in cash daily and result in no derivative asset or derivative liability being recognized on our Consolidated Balance Sheet. All derivatives are carried on our Consolidated Balance Sheet at fair value. Derivative balances are presented on the Consolidated Balance Sheet on a net basis taking into consideration the effects of legally enforceable master netting agreements and, when appropriate, any related cash collateral exchanged with counterparties. Further discussion regarding the offsetting rights associated with these legally enforceable master netting agreements is included in the Offsetting and Counterparty Credit Risk section of this Note 16. Any nonperformance risk, including credit risk, is included in the determination of the estimated net fair value of the derivatives. Further discussion on how derivatives are accounted for is included in Note 1 Accounting Policies. Derivatives Designated As Hedging Instruments Certain derivatives used to manage interest rate and foreign exchange risk as part of our asset and liability risk management activities are designated as accounting hedges. Derivatives hedging the risks associated with changes in the fair value of assets or liabilities are considered fair value hedges, derivatives hedging the variability of expected future cash flows are considered cash flow hedges, and derivatives hedging a net investment in a foreign subsidiary are considered net investment hedges. Designating derivatives as accounting hedges allows for gains and losses on those derivatives to be recognized in the same period and in the same income statement line item as the earnings impact of the hedged items. Fair Value Hedges We enter into receive-fixed, pay-variable interest rate swaps to hedge changes in the fair value of outstanding fixed-rate debt caused by fluctuations in market interest rates. We also enter into pay-fixed, receive-variable interest rate swaps and zero-coupon swaps to hedge changes in the fair value of fixed rate and zero-coupon investment securities caused by fluctuations in market interest rates. Gains and losses on the interest rate swaps designated in these hedge relationships, along with the offsetting gains and losses on the hedged items attributable to the hedged risk, are recognized in current earnings within the same income statement line item. Cash Flow Hedges We enter into receive-fixed, pay-variable interest rate swaps and interest rate caps and floors to modify the interest rate characteristics of designated commercial loans from variable to fixed in order to reduce the impact of changes in future cash flows due to market interest rate changes. We also periodically enter into forward purchase and sale contracts to hedge the variability of the consideration that will be paid or received related to the purchase or sale of investment securities. The forecasted purchase or sale is consummated upon gross settlement of the forward contract itself. For these cash flow hedges, gains and losses on the hedging instruments are recorded in AOCI and are then reclassified into earnings in the same period the hedged cash flows affect earnings and within the same income statement line as the hedged cash flows. Further detail regarding gains (losses) related to our fair value and cash flow hedge derivatives is presented in the following table: Table 94: Gains (Losses) Recognized on Fair Value and Cash Flow Hedges in the Consolidated Income Statement (a) (b) Location and Amount of Gains (Losses) Recognized in Income Interest Income Interest Expense Noninterest Income In millions Loans Investment Securities Borrowed Funds Other Year ended December 31, 2022 Total amounts on the Consolidated Income Statement $ 11,795 $ 2,726 $ 1,155 $ 952 Gains (losses) on fair value hedges recognized on: Hedged items (c) $ (136) $ 1,945 Derivatives $ 143 $ (1,976) Amounts related to interest settlements on derivatives $ (2) $ 120 Gains (losses) on cash flow hedges (d): Amount of derivative gains (losses) reclassified from accumulated $ (259) $ (1) Year ended December 31, 2021 Total amounts on the Consolidated Income Statement $ 9,007 $ 1,834 $ 361 $ 1,199 Gains (losses) on fair value hedges recognized on: Hedged items (c) $ (5) $ 937 Derivatives $ 9 $ (993) Amounts related to interest settlements on derivatives $ (4) $ 521 Gains (losses) on cash flow hedges (d): Amount of derivative gains (losses) reclassified from accumulated $ 376 $ 57 $ 61 Year ended December 31, 2020 Total amounts on the Consolidated Income Statement $ 8,927 $ 2,041 $ 718 $ 608 Gains (losses) on fair value hedges recognized on: Hedged items (c) $ 208 $ (1,059) Derivatives $ (202) $ 959 Amounts related to interest settlements on derivatives $ (9) $ 480 Gains (losses) on cash flow hedges (d): Amount of derivative gains (losses) reclassified from accumulated $ 375 $ 40 $ 6 (a) For all periods presented, there were no components of derivative gains or losses excluded from the assessment of hedge effectiveness for any of the fair value or cash flow hedge strategies. (b) All cash flow and fair value hedge derivatives were interest rate contracts for the periods presented. (c) Includes an insignificant amount of fair value hedge adjustments related to discontinued hedge relationships. (d) For all periods presented, there were no gains or losses from cash flow hedge derivatives reclassified to income because it became probable that the original forecasted transaction would not occur. Detail regarding the impact of fair value hedge accounting on the carrying value of the hedged items is presented in the following table: Table 95: Hedged Items - Fair Value Hedges December 31, 2022 December 31, 2021 In millions Carrying Value of the Hedged Items Cumulative Fair Value Hedge Adjustment included in the Carrying Value of Hedged Items (a) Carrying Value of the Hedged Items Cumulative Fair Value Hedge Adjustment included in the Carrying Value of Hedged Items (a) Investment securities - available for sale (b) $ 2,376 $ (121) $ 2,655 $ 23 Borrowed funds $ 21,781 $ (1,283) $ 24,259 $ 663 (a) Includes less than $(0.1) billion and $(0.1) billion of fair value hedge adjustments primarily related to discontinued borrowed funds hedge relationships at December 31, 2022 and 2021, respectively. (b) Carrying value shown represents amortized cost. Net Investment Hedges We enter into foreign currency forward contracts to hedge non-U.S. dollar net investments in foreign subsidiaries against adverse changes in foreign exchange rates. We assess whether the hedging relationship is highly effective in achieving offsetting changes in the value of the hedge and hedged item by qualitatively verifying that the critical terms of the hedge and hedged item match at the inception of the hedging relationship and on an ongoing basis. Net investment hedge derivatives are classified as foreign exchange contracts. There were no components of derivative gains or losses excluded from the assessment of the hedge effectiveness for the periods presented. Net gains on net investment hedge derivatives recognized in OCI were $119 million in 2022 and insignificant in both 2021 and 2020. Derivatives Not Designated As Hedging Instruments Residential mortgage loans that will be sold in the secondary market, and the related loan commitments, which are considered derivatives, are accounted for at fair value. Changes in the fair value of the loans and commitments due to interest rate risk are hedged with forward contracts to sell mortgage-backed securities, as well as U.S. Treasury and Eurodollar futures and options. Gains and losses on the loans and commitments held for sale and the derivatives used to economically hedge them are included in Residential and commercial mortgage noninterest income on the Consolidated Income Statement. Residential mortgage servicing rights are accounted for at fair value with changes in fair value influenced primarily by changes in interest rates. Derivatives used to hedge the fair value of residential mortgage servicing rights include interest rate futures, swaps, options, and forward contracts to purchase mortgage-backed securities. Gains and losses on residential mortgage servicing rights and the related derivatives used for hedging are included in Residential and commercial mortgage noninterest income. Commercial mortgage loans held for sale and the related loan commitments, which are considered derivatives, are accounted for at fair value. Derivatives used to economically hedge these loans and commitments from changes in fair value due to interest rate risk include forward loan sale contracts and interest rate swaps. Gains and losses on the commitments, loans and derivatives are included in Residential and commercial mortgage noninterest income. Derivatives used to economically hedge the change in value of commercial mortgage servicing rights include interest rate futures, swaps and options. Gains or losses on these derivatives are included in Residential and commercial mortgage noninterest income. The residential and commercial mortgage loan commitments associated with loans to be sold which are accounted for as derivatives are valued based on the estimated fair value of the underlying loan and the probability that the loan will fund within the terms of the commitment. The fair value also takes into account the fair value of the embedded servicing right. We offer derivatives to our customers in connection with their risk management needs. These derivatives primarily consist of interest rate swaps, interest rate caps and floors, swaptions and foreign exchange contracts. We primarily manage our market risk exposure from customer transactions by entering into a variety of hedging transactions with third-party dealers. Gains and losses on customer-related derivatives are included in Other noninterest income. Included in the customer, mortgage banking risk management, and other risk management portfolios are written interest-rate caps and floors entered into with customers and for risk management purposes. We receive an upfront premium from the counterparty and are obligated to make payments to the counterparty if the underlying market interest rate rises above or falls below a certain level designated in the contract. Our ultimate obligation under written options is based on future market conditions. We have entered into risk participation agreements to share some of the credit exposure with other counterparties related to interest rate derivative contracts or to take on credit exposure to generate revenue. The following table presents the notional amount of risk participation agreements sold and maximum potential exposures at December 31, 2022 and 2021. Table 96: Risk Participation Agreements Year ended December 31 In billions 2022 2021 Risk participation agreements: Sold - notional amount $ 8.0 $ 8.0 Maximum potential amount of exposure (a) $ 0.1 $ 0.3 (a) Based on the fair value of the underlying swaps assuming all underlying third party customers referenced in the swap contracts defaulted. Further detail regarding the gains (losses) on derivatives not designated in hedging relationships is presented in the following table: Table 97: Gains (Losses) on Derivatives Not Designated for Hedging Year ended December 31 In millions 2022 2021 2020 Derivatives used for mortgage banking activities: Interest rate contracts (a) $ (671) $ (78) $ 792 Derivatives used for customer-related activities: Interest rate contracts 220 149 210 Foreign exchange contracts and other 111 135 156 Gains from customer-related activities (b) 331 284 366 Derivatives used for other risk management activities: Foreign exchange contracts and other (b) 255 (30) (338) Total gains (losses) from derivatives not designated as hedging instruments $ (85) $ 176 $ 820 (a) Included in Residential and commercial mortgage noninterest income on our Consolidated Income Statement. (b) Included in Capital markets and advisory and Other noninterest income on our Consolidated Income Statement. Offsetting and Counterparty Credit Risk We generally utilize a net presentation on the Consolidated Balance Sheet for those derivative financial instruments entered into with counterparties under legally enforceable master netting agreements. The master netting agreements reduce credit risk by permitting the closeout netting of all outstanding derivative instruments under the master netting agreement with the same counterparty upon the occurrence of an event of default. The master netting agreement also may require the exchange of cash or marketable securities to collateralize either party’s net position. Collateral is typically exchanged daily on unsettled positions based on the net fair value of the positions with the counterparty as of the preceding day. Collateral representing initial margin, which is based on potential future exposure, may also be required to be exchanged. In certain cases, minimum thresholds must be exceeded before any collateral is exchanged. Any cash collateral exchanged with counterparties under these master netting agreements is also netted, when appropriate, against the applicable derivative fair values on the Consolidated Balance Sheet. However, the fair value of any securities held or pledged is not included in the net presentation on the balance sheet. In order for derivative instruments under a master netting agreement to be eligible for closeout netting under GAAP, we must conduct sufficient legal review to conclude with a well-founded basis that the offsetting rights included in the master netting agreement would be legally enforceable upon an event of default, including upon an event of bankruptcy, insolvency, or a similar proceeding of the counterparty. Enforceability is evidenced by a legal opinion that supports, with sufficient confidence, the enforceability of the master netting agreement in such circumstances. Table 98 shows the impact legally enforceable master netting agreements had on our derivative assets and derivative liabilities at December 31, 2022 and 2021. The table includes cash collateral held or pledged under legally enforceable master netting agreements. The table also includes the fair value of any securities collateral held or pledged under legally enforceable master netting agreements. Cash and securities collateral amounts are included in the table only to the extent of the related net derivative fair values. Table 98: Derivative Assets and Liabilities Offsetting In millions Gross Fair Value Amounts Offset on the Consolidated Balance Sheet Net Fair Value Securities Collateral Held /Pledged Under Master Netting Agreements Net Amounts Fair Value Offset Amount Cash Collateral December 31, 2022 Derivative assets Interest rate contracts: Over-the-counter cleared $ 23 $ 23 $ 23 Over-the-counter 2,100 $ 974 $ 630 496 $ 34 462 Commodity contracts 1,208 335 2 871 871 Foreign exchange and other contracts 437 214 82 141 141 Total derivative assets $ 3,768 $ 1,523 $ 714 $ 1,531 (a) $ 34 $ 1,497 Derivative liabilities Interest rate contracts: Over-the-counter cleared $ 28 $ 28 $ 28 Over-the-counter 5,801 $ 625 $ 1,041 4,135 $ 78 4,057 Commodity contracts 1,269 679 520 70 4 66 Foreign exchange and other contracts 520 219 10 291 291 Total derivative liabilities $ 7,618 $ 1,523 $ 1,571 $ 4,524 (b) $ 82 $ 4,442 December 31, 2021 Derivative assets Interest rate contracts: Over-the-counter cleared $ 20 $ 20 $ 20 Over-the-counter 3,561 $ 533 $ 593 2,435 $ 300 2,135 Commodity contracts 1,363 299 1 1,063 1,063 Foreign exchange and other contracts 208 96 10 102 102 Total derivative assets $ 5,152 $ 928 $ 604 $ 3,620 (a) $ 300 $ 3,320 Derivative liabilities Interest rate contracts: Over-the-counter cleared $ 12 $ 12 $ 12 Over-the-counter 1,643 $ 569 $ 776 298 298 Commodity contracts 1,373 291 784 298 298 Foreign exchange and other contracts 542 68 97 377 377 Total derivative liabilities $ 3,570 $ 928 $ 1,657 $ 985 (b) $ 985 (a) Represents the net amount of derivative assets included in Other assets on our Consolidated Balance Sheet. (b) Represents the net amount of derivative liabilities included in Other liabilities on our Consolidated Balance Sheet. In addition to using master netting agreements and other collateral agreements to reduce credit risk associated with derivative instruments, we also seek to manage credit risk by evaluating credit ratings of counterparties and by using internal credit analysis, limits, and monitoring procedures. At December 31, 2022, cash and debt securities (primarily agency mortgage-backed securities) totaling $1.5 billion were pledged to us under master netting agreements and other collateral agreements to collateralize net derivative assets due from counterparties and to meet initial margin requirements, and we pledged cash and debt securities (primarily agency mortgage-backed securities) totaling $2.5 billion under these agreements to collateralize net derivative liabilities owed to counterparties and to meet initial margin requirements. These totals may differ from the amounts presented in the preceding offsetting table because these totals may include collateral exchanged under an agreement that does not qualify as a master netting agreement or because the total amount of collateral pledged exceeds the net derivative fair values with the counterparty as of the balance sheet date due to timing or other factors, such as initial margin. To the extent not netted against the derivative fair values under a master netting agreement, the receivable for cash pledged is included in Other assets and the obligation for cash held is included in Other liabilities on our Consolidated Balance Sheet. Securities pledged to us by counterparties are not recognized on our balance sheet. Likewise, securities we have pledged to counterparties remain on our balance sheet. Credit-Risk Contingent Features Certain derivative agreements contain various credit-risk-related contingent provisions, such as those that require our debt to maintain a specified credit rating from one or more of the major credit rating agencies. If our debt ratings were to fall below such specified ratings, the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing full collateralization on derivative instruments in net liability positions. The following table presents the aggregate fair value of derivative Table 99: Credit-Risk Contingent Features Year ended December 31 In billions 2022 2021 Net derivative liabilities with credit-risk contingent features $ 5.8 $ 2.4 Collateral posted 1.7 1.8 Maximum additional amount of collateral exposure $ 4.1 $ 0.6 |
Employees Benefit Plans
Employees Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | E MPLOYEE B ENEFIT P LANS Pension and Postretirement Plans We have a noncontributory, qualified defined benefit pension plan covering eligible employees. Benefits are determined using a cash balance formula where earnings credits are a percentage of eligible compensation. Earnings credit percentages for those employees who were plan participants on December 31, 2009 are frozen at the level earned to that point. Earnings credits for all employees who became participants on or after January 1, 2010 are a flat 3% of eligible compensation. All participants as of December 31, 2009 earn a minimum rate on their cash balances; new participants on or after January 1, 2010 earn interest credits on their cash balances based on 30-year Treasury securities. New participants on or after January 1, 2010 are not subject to the minimum rate. The plan provides for a minimum annual earnings credit amount of $2,000, subject to eligibility criteria. Pension contributions to the plan are typically based on an actuarially determined amount necessary to fund total benefits payable to plan participants. Assets of the qualified pension plan are held in a separate Trust. We also maintain nonqualified supplemental retirement plans for certain employees and provide certain health care and life insurance benefits for qualifying retired employees (postretirement benefits) through various plans. PNC reserves the right to terminate or make changes to these plans at any time. The nonqualified pension plan is unfunded. Contributions from PNC, and participant contributions in the case of the postretirement benefit plans, cover all benefits paid under the nonqualified pension plan and postretirement benefit plans. The postretirement plan provides benefits to certain retirees that are at least actuarially equivalent to those provided by Medicare Part D and accordingly, we receive a federal subsidy. PNC has established a VEBA to partially fund postretirement medical and life insurance benefit obligations. We use a measurement date of December 31 for plan assets and benefit obligations. Table 100: Reconciliation of Changes in Projected Benefit Obligation and Change in Plan Assets Qualified Nonqualified Postretirement In millions 2022 2021 2022 2021 2022 2021 Accumulated benefit obligation at December 31 $ 4,517 $ 5,370 $ 219 $ 272 Projected benefit obligation at January 1 $ 5,423 $ 5,174 $ 280 $ 263 $ 326 $ 337 Service cost 142 133 3 4 4 4 Interest cost 156 139 7 6 9 8 Amendments (4) Actuarial (gains)/losses and changes in assumptions (a) (833) (88) (44) (4) (57) (11) Participant contributions 2 3 Federal Medicare subsidy on benefits paid 1 1 Benefits paid (345) (320) (24) (21) (25) (25) Projected benefit obligation from BBVA acquisition 389 32 9 Projected benefit obligation at December 31 $ 4,543 $ 5,423 $ 222 $ 280 $ 260 $ 326 Fair value of plan assets at January 1 $ 6,788 $ 6,073 $ 263 $ 262 Actual return on plan assets (1,043) 670 (21) 2 Employer contribution $ 24 $ 21 22 20 Participant contributions 2 3 Federal Medicare subsidy on benefits paid 1 1 Benefits paid (345) (320) (24) (21) (25) (25) Fair value of plan assets from BBVA acquisition 365 Fair value of plan assets at December 31 $ 5,400 $ 6,788 $ 242 $ 263 Funded status $ 857 $ 1,365 $ (222) $ (280) $ (18) $ (63) Amounts recognized on the consolidated balance sheet Noncurrent asset $ 857 $ 1,365 $ 10 Current liability $ (24) $ (25) (3) $ (2) Noncurrent liability (198) (255) (25) (61) Net amount recognized on the consolidated balance sheet $ 857 $ 1,365 $ (222) $ (280) $ (18) $ (63) Amounts recognized in AOCI consist of: Prior service cost (credit) $ 14 $ 17 $ 1 $ 1 Net actuarial loss (gain) 322 (186) $ 31 $ 80 (32) (2) Amount of loss (gain) recognized in AOCI $ 336 $ (169) $ 31 $ 80 $ (31) $ (1) (a) The actuarial (gains)/losses and changes in assumptions in 2022 and 2021 were primarily related to a change in the discount rate used to measure the projected benefit obligation. PNC Pension Plan Assets The long-term investment strategy for pension plan assets in our qualified pension plan (the Plan) is to: • Meet present and future benefit obligations to all participants and beneficiaries; • Cover reasonable expenses incurred to provide such benefits, including expenses incurred in the administration of the Trust and the Plan; • Provide sufficient liquidity to meet benefit and expense payment requirements on a timely basis; and • Provide a total return that, over the long term, maximizes the ratio of trust assets to liabilities by maximizing investment return, at an appropriate level of risk. The Plan’s named investment fiduciary has the ability to make short to intermediate term asset allocation shifts under the dynamic asset allocation strategy based on factors such as the Plan’s funded status, the named investment fiduciary’s view of return on equities relative to long term expectations, the named investment fiduciary’s view on the direction of interest rates and credit spreads, and other relevant financial or economic factors which would be expected to impact the ability of the Trust to meet its obligation to participants and beneficiaries. Accordingly, the allowable asset allocation ranges have been updated to incorporate the flexibility required by the dynamic allocation policy. The asset strategy allocations for the Plan at the end of 2022 and 2021, and the target allocation range at the end of 2022, by asset category, are as follows. Table 101: Asset Strategy Allocations Target Allocation Range Percentage of Plan Assets by Strategy at December 31 2022 2021 Asset Category Domestic Equity 15 – 40% 21 % 20 % International Equity 10 – 25% 17 % 17 % Private Equity 0 – 15% 11 % 12 % Total Equity 30 – 70% 49 % 49 % Domestic Fixed Income 10 – 40% 30 % 28 % High Yield Fixed Income 0 – 25% 9 % 7 % Total Fixed Income 10 – 65% 39 % 35 % Real estate 0 – 10% 6 % 5 % Other 0 – 20% 6 % 11 % Total 100% 100 % 100 % The asset category represents the allocation of Plan assets in accordance with the investment objective of each of the Plan’s investment managers. Certain domestic equity investment managers utilize derivatives and fixed income securities as described in their Investment Management Agreements to achieve their investment objective under the Investment Policy Statement. Other investment managers may invest in eligible securities outside of their assigned asset category to meet their investment objectives. The actual percentage of the fair value of total Plan assets held as of December 31, 2022 for equity securities, fixed income securities, real estate and all other assets are 63%, 24%, 6% and 7%, respectively. We believe that, over the long term, asset allocation is the single greatest determinant of risk. Asset allocation will deviate from the target percentages due to market movement, cash flows, investment manager performance and implementation of shifts under the dynamic asset allocation policy. Material deviations from the asset allocation targets can alter the expected return and risk of the Trust. However, frequent rebalancing of the asset allocation targets may result in significant transaction costs, which can impair the Trust’s ability to meet its investment objective. Accordingly, the Trust portfolio is periodically rebalanced to maintain asset allocation within the target ranges described above. In addition to being diversified across asset classes, the Trust is diversified within each asset class. Secondary diversification provides a reasonable basis for the expectation that no single security or class of securities will have a disproportionate impact on the total risk and return of the Trust. Where investment strategies permit the use of derivatives and/or currency management, language is incorporated in the managers’ guidelines to define allowable and prohibited transactions and/or strategies. Derivatives are typically employed by investment managers to modify risk/return characteristics of their portfolio(s), implement asset allocation changes in a cost effective manner, or reduce transaction costs. Under the managers’ investment guidelines, derivatives may not be used solely for speculation or leverage. Derivatives are to be used only in circumstances where they offer the most efficient economic means of improving the risk/reward profile of the portfolio. Fair Value Measurements As further described in Note 15 Fair Value, GAAP establishes the framework for measuring fair value, including a hierarchy used to classify the inputs used in measuring fair value. A description of the valuation methodologies used for assets measured at fair value at both December 31, 2022 and 2021 follows: Table 102: Pension Plan Valuation Methodologies Asset Valuation Methodology Money market funds • Valued at the NAV of the shares held by the pension plan at year end. U.S. government and agency securities Corporate debt Common stock • Valued at the closing price reported on the active market on which the individual securities are traded. • If quoted market prices are not available for the specific security, then fair values are estimated by using pricing models or quoted prices of securities with similar characteristics. Such securities are generally classified within Level 2 of the valuation hierarchy but may be a Level 3 depending on the level of liquidity and activity in the market for the security. Mutual funds • Valued based on third-party pricing of the fund that is not actively traded. Other investments Derivative financial instruments Group annuity contracts Preferred stock • Derivative financial instruments - recorded at estimated fair value as determined by third-party appraisals and pricing models. • Group annuity contracts - measured at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations considering the creditworthiness of the issuer. • Preferred stock - valued at the closing price reported on an active market on which the securities are traded. Investments measured at NAV Collective trust fund investments Limited partnerships • Collective trust fund investments - valued based upon the units of such collective trust fund held by the Plan at year end multiplied by the respective unit value. The unit value of the collective trust fund is based upon significant observable inputs, although it is not based upon quoted prices in an active market. The underlying investments of the collective trust funds consist primarily of equity securities, debt obligations, short-term investments, and other marketable securities. Due to the nature of these securities, there are no unfunded commitments or redemption restrictions. • Limited partnerships - valued by investment managers based on recent financial information used to estimate fair value. The unit value of limited partnerships is based upon significant observable inputs, although it is not based upon quoted marked prices in an active market. These methods may result in fair value calculations that may not be indicative of net realizable values or future fair values. Furthermore, while the pension plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table sets forth by level, within the fair value hierarchy, the Plan’s assets at fair value as of December 31, 2022 and 2021. Table 103: Pension Plan Assets - Fair Value Hierarchy December 31, 2022 December 31, 2021 In millions Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Interest bearing cash $ 51 $ 51 $ 11 $ 11 Money market funds 333 333 $ 725 725 U.S. government and agency securities 454 $ 136 590 583 124 707 Corporate debt 699 $ 2 701 962 $ 4 966 Common stock 605 605 739 1 740 Mutual funds 150 150 278 278 Other 1 1 2 148 148 Investments measured at NAV (a) 2,968 3,213 Total $ 1,444 $ 986 $ 2 $ 5,400 $ 2,047 $ 1,523 $ 5 $ 6,788 (a) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The following table provides information regarding our estimated future cash flows related to our various plans. Table 104: Estimated Cash Flows Pension Plans Postretirement Benefits In millions Qualified Pension Nonqualified Pension Estimated 2023 employer contributions $ 25 $ 23 Estimated future benefit payments 2023 $ 326 $ 25 $ 23 2024 $ 336 $ 24 $ 24 2025 $ 353 $ 24 $ 23 2026 $ 356 $ 23 $ 23 2027 $ 337 $ 22 $ 23 2028-2032 $ 1,691 $ 96 $ 106 The components of net periodic benefit cost/(income) and other amounts recognized in OCI were as follows: Table 105: Components of Net Periodic Benefit Cost (a) Qualified Pension Plan Nonqualified Pension Plan Postretirement Benefits Year ended December 31 – in millions 2022 2021 2020 2022 2021 2020 2022 2021 2020 Net periodic cost consists of: Service cost $ 142 $ 133 $ 122 $ 3 $ 4 $ 3 $ 4 $ 4 $ 4 Interest cost 156 139 160 7 6 8 9 8 11 Expected return on plan assets (298) (273) (302) (6) (6) (6) Amortization of prior service cost/(credit) 3 4 4 Amortization of actuarial (gain)/loss 5 6 5 Net periodic cost (benefit) $ 3 $ 3 $ (16) $ 15 $ 16 $ 16 $ 7 $ 6 $ 9 Other changes in plan assets and benefit obligations recognized in OCI: Current year prior service cost/(credit) (4) Amortization of prior service (cost)/credit (3) (4) (4) Current year actuarial loss/(gain) 508 (485) (112) (44) (4) 17 (30) (7) 3 Amortization of actuarial gain/(loss) (5) (6) (5) Total recognized in OCI $ 505 $ (493) $ (116) $ (49) $ (10) $ 12 $ (30) $ (7) $ 3 Total amounts recognized in net periodic cost and OCI $ 508 $ (490) $ (132) $ (34) $ 6 $ 28 $ (23) $ (1) $ 12 (a) The service cost component is included in Personnel expense on the Consolidated Income Statement. All other components are included in Other noninterest expense on the Consolidated Income Statement. The weighted-average assumptions used (as of the beginning of each year) to determine the net periodic costs shown in Table 105 were as follows: Table 106: Net Periodic Costs - Assumptions Net Periodic Cost Determination As of January 1 2022 2021 2020 Discount rate (a) Qualified pension 2.90 % 2.60 % 3.30 % Nonqualified pension 2.65 % 2.15 % 3.05 % Postretirement benefits 2.80 % 2.40 % 3.20 % Rate of compensation increase (average) (b) 4.25 % 4.25 % 4.25 % Interest crediting rate (average) Qualified Pension 3.70 % 3.70 % 3.85 % Nonqualified pension 4.00 % 4.00 % 4.15 % Postretirement benefits 1.65 % 1.30 % 2.05 % Assumed health care cost trend rate (c) Initial trend 6.00 % 6.00 % 6.25 % Ultimate trend 4.50 % 5.00 % 5.00 % Year ultimate trend reached 2028 2025 2025 Expected long-term return on plan assets (b) (d) 4.50 % 4.40 % 5.50 % (a) The 2021 discount rate for each plan is a blended rate that is inclusive of the BBVA plans acquired during the year. (b) Rate disclosed is for the qualified pension plan. (c) Rate is applicable only to the postretirement benefit plans. (d) The 2021 rate is a blended rate that is inclusive of the BBVA plan assets acquired during the year. The weighted-average assumptions used (as of the end of each year) to determine year end obligations for pension and postretirement benefits were as follows: Table 107: Other Pension Assumptions Year ended December 31 2022 2021 Discount rate Qualified pension 5.55 % 2.90 % Nonqualified pension 5.45 % 2.65 % Postretirement benefits 5.50 % 2.80 % Rate of compensation increase (average) (a) 4.25 % 4.25 % Interest crediting rate (average) Qualified pension 4.65 % 3.70 % Nonqualified pension 4.80 % 4.00 % Postretirement benefits 4.30 % 1.65 % Assumed health care cost trend rate (b) Initial trend 6.00 % 6.00 % Ultimate trend 4.50 % 4.50 % Year ultimate trend reached 2029 2025 (a) Rate disclosed is for the qualified pension plan. (b) Rate is applicable only to the postretirement benefit plans. The discount rates are determined independently for each plan by comparing the expected future benefits that will be paid under each plan with yields available on high quality corporate bonds of similar duration. For this analysis, 10% of bonds with the highest yields and 40% with the lowest yields were removed from the bond universe. With all other assumptions held constant, a 0.50% decline in the discount rate would have resulted in an immaterial change in net periodic benefit cost in 2022 and to be recognized in 2023 for each of the qualified pension, nonqualified pension and postretirement benefit plans. The expected return on plan assets is a long-term assumption established by considering historical and anticipated returns of the asset classes invested in by the pension plan and the allocation strategy currently in place among those classes. For purposes of setting and reviewing this assumption, “long-term” refers to the period over which the plan’s projected benefit obligations will be disbursed. We review this assumption at each measurement date and adjust it if warranted. Our selection process references certain historical data and the current environment, but primarily utilizes qualitative judgment regarding future return expectations. We also examine the assumption used by other companies with similar pension investment strategies. Taking into account all of these factors, the expected long-term return on plan assets for determining net periodic pension cost for 2022 was 4.50%. We are increasing our expected long-term return on assets to 6.20% for determining pension cost for 2023. This decision was made after considering the views of both internal and external capital market advisors, particularly with regard to the effects of the recent economic environment on long-term prospective equity and fixed income returns. Defined Contribution Plans The ISP is a qualified defined contribution plan that covers all of our eligible employees. Newly-hired full time employees and part-time employees who are eligible to participate in the ISP are automatically enrolled in the ISP with a deferral rate equal to 4% of eligible compensation in the absence of an affirmative election otherwise. Employee benefits expense related to the ISP was $175 million in 2022, $168 million in 2021 and $147 million in 2020, representing cash contributed to the ISP by PNC. The ISP is a 401(k) Plan and includes an employee stock ownership feature. Employee contributions are invested in a number of investment options, including pre-mixed portfolios and individual core funds, available under the ISP at the direction of the employee. |
Stock Based Compensation Plans
Stock Based Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stock Based Compensation Plans | S TOCK B ASED C OMPENSATION P LANS We have long-term incentive award plans (Incentive Plans) that provide for the granting of incentive stock options, nonqualified stock options, stock appreciation rights, performance share units, restricted share units, other share-based awards and dollar-denominated awards to executives and, other than incentive stock options, to non-employee directors. Certain Incentive Plan awards may be paid in stock, cash or a combination of stock and cash. We typically grant a substantial portion of our stock-based compensation awards during the first quarter of each year. Performance Share Unit Awards and Restricted Share Unit Awards PNC grants share unit awards that are based on performance, service and certain metrics tied to market conditions. The fair value of nonvested performance share unit awards and restricted share unit awards is initially determined based on prices not less than the market value of our common stock on the date of grant with a reduction for estimated forfeitures. Fair value is determined based on a Monte Carlo model, with subsequent remeasurement based on the achievement of one or more performance goals. Additionally, certain performance share unit awards could require subsequent adjustment due to certain discretionary risk review triggers. The weighted-average grant date fair value of performance share unit awards and restricted share unit awards granted in 2022, 2021 and 2020 was $198.28, $161.04 and $150.23 per share, respectively. The total intrinsic value of performance share unit awards and restricted share unit awards vested during 2022, 2021 and 2020 was approximately $322 million, $207 million and $213 million, respectively. We recognize compensation expense for such awards ratably over the corresponding vesting and/or performance periods for each type of program. A rollforward of the nonvested performance share unit and restricted share unit awards follows: Table 108: Nonvested Performance Share Unit Awards and Restricted Share Unit Awards - Rollforward Shares in thousands Nonvested Performance Share Units Weighted-Average Grant Date Fair Value Nonvested Restricted Share Units Weighted-Average Grant Date Fair Value December 31, 2021 599 $ 133.59 3,582 $ 142.94 Granted (a) (b) 332 $ 173.25 1,214 $ 205.11 Vested/Released (a) (246) $ 110.14 (1,328) $ 122.88 Forfeitures (120) $ 172.63 December 31, 2022 685 $ 161.20 3,348 $ 172.40 (a) Includes adjustments for achieving specific performance goals for performance share unit awards granted in prior periods. (b) Includes 170 performance share units with market conditions. In Table 108, the units and related weighted-average grant date fair value of the performance unit share awards exclude the effect of dividends on the underlying shares, as those dividends will be paid in cash if and when the underlying shares are issued to the participants. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | I NCOME T AXES Table 109: Components of Income Tax Expense Year ended December 31 2022 2021 2020 Current Federal $ 782 $ 894 $ 669 State 227 191 158 Total current $ 1,009 $ 1,085 $ 827 Deferred Federal 307 123 (373) State 44 55 (28) Total deferred $ 351 $ 178 $ (401) Total $ 1,360 $ 1,263 $ 426 Significant components of deferred tax assets and liabilities are as follows: Table 110: Deferred Tax Assets and Liabilities December 31 – in millions 2022 2021 Deferred tax assets Net unrealized losses on securities and financial instruments $ 3,107 Allowance for loan and lease losses 1,152 $ 1,170 Lease obligations 548 563 Compensation and benefits 369 290 Allowance for unfunded lending related commitments 170 161 Loss and credit carryforward 98 140 Accrued expenses 78 151 Other 252 311 Total gross deferred tax assets 5,774 2,786 Valuation allowance (27) (33) Total deferred tax assets 5,747 2,753 Deferred tax liabilities Leasing 1,034 1,023 Fixed assets 589 704 Right of Use Assets 472 488 Mortgage servicing rights 325 89 Goodwill and intangibles 270 278 Net unrealized gains on securities and financial instruments 120 Other 405 254 Total deferred tax liabilities 3,095 2,956 Net deferred tax asset (liability) $ 2,652 $ (203) A reconciliation between the statutory and effective tax rates from continuing operations follows: Table 111: Reconciliation of Statutory and Effective Tax Rates Year ended December 31 2022 2021 2020 Statutory tax rate 21.0 % 21.0 % 21.0 % Increases (decreases) resulting from: State taxes net of federal benefit 2.7 2.6 2.0 Tax-exempt interest (1.2) (0.9) (1.7) Life insurance (0.8) (0.8) (1.6) Tax credits (3.2) (4.4) (6.0) Unrecognized tax benefits 0.1 0.3 (1.6) Subsidiary liquidation (1.2) Other (0.4) 0.3 1.5 Effective tax rate 18.2 % 18.1 % 12.4 % The net operating loss carryforwards at December 31, 2022 and 2021 follow: Table 112: Net Operating Loss Carryforwards Dollars in millions December 31, 2022 December 31, 2021 Expiration Net Operating Loss Carryforwards: Federal $ 45 $ 166 2030-2032 State $ 698 $ 872 2023-2039 The majority of the tax credit carryforwards expire in 2023-2040 and were $45 million at December 31, 2022 and $51 million at December 31, 2021. Some federal and state net operating loss and credit carryforwards are from acquired entities and utilization is subject to various statutory limitations. We anticipate that we will be able to fully utilize our carryforwards for federal tax purposes. However, we have recorded an insignificant valuation allowance against our carryforwards for state tax purposes as of December 31, 2022. Retained earnings included $0.1 billion at both December 31, 2022 and 2021 in allocations for bad debt deductions of former thrift subsidiaries for which no income tax has been provided. Under current law, if certain subsidiaries use these bad debt reserves for purposes other than to absorb bad debt losses, they will be subject to Federal income tax at the current corporate tax rate. A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows: Table 113: Change in Unrecognized Tax Benefits In millions 2022 2021 2020 Balance of gross unrecognized tax benefits at January 1 $ 275 $ 265 $ 130 Increases: Positions taken during a current period 265 Acquired unrecognized tax benefits 8 Positions taken during a prior period 46 7 Decreases: Positions taken during a prior period (2) Settlements with taxing authorities (3) (3) (130) Balance of gross unrecognized tax benefits at December 31 $ 318 $ 275 $ 265 Favorable impact if recognized $ 258 $ 217 $ 209 We do not expect that the balance of unrecognized tax benefits will significantly increase or decrease in the next twelve months. We are subject to U.S. federal income tax as well as income tax in most states and some foreign jurisdictions. Table 114 summarizes the status of significant IRS examinations. Table 114: IRS Tax Examination Status Year(s) Status at December 31, 2022 PNC Financial Services Group, Inc. BBVA USA Bancshares, Inc. Federal 2020-2021 2018 Under Exam In addition, we are under continuous examinations by various state taxing authorities. With few exceptions, we are no longer subject to state and local and foreign income tax examinations by taxing authorities for periods before 2014. For all open audits, any potential adjustments have been considered in establishing our unrecognized tax benefits as of December 31, 2022. Our policy is to classify interest and penalties associated with income taxes as income tax expense. For 2022 and 2021, the amount of gross interest and penalties was insignificant. At December 31, 2022 and 2021, the related amounts of accrued interest and penalties were also insignificant. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Matters | R EGULATORY M ATTERS We are subject to the regulations of certain federal, state and foreign agencies and undergo examinations by such regulatory authorities. The ability to undertake new business initiatives (including acquisitions), the access to and cost of funding for new business initiatives, the ability to pay dividends, the ability to repurchase shares or other capital instruments, the level of deposit insurance costs, and the level and nature of regulatory oversight depend, in large part, on a financial institution’s capital strength. As of January 1, 2020, the 2019 Tailoring Rules became effective for PNC. The most significant changes involve the election to exclude specific AOCI items from CET1 capital and higher thresholds used to calculate CET1 capital deductions. On March 27, 2020, the regulatory agencies issued an interim final rule permitting banking organizations to delay the estimated impact on regulatory capital stemming from implementing the CECL standard. PNC elected to delay the estimated impact of CECL on CET1 capital through December 31, 2021, followed by a three-year transition period. CECL’s estimated impact on CET1 capital is defined as the change in retained earnings at adoption plus or minus 25% of the change in CECL ACL at the balance sheet date, excluding the allowance for PCD loans, compared to CECL ACL at adoption. Effective for the first quarter of 2022, PNC is now in the three-year transition period, and the full impact of the CECL standard is being phased-in to regulatory capital through December 31, 2024. At December 31, 2022 and 2021, PNC and PNC Bank, our domestic banking subsidiary, were both considered “well capitalized,” based on applicable U.S. regulatory capital ratio requirements. The following table sets forth the Basel III regulatory capital ratios at December 31, 2022 and 2021, for PNC and PNC Bank: Table 115: Basel Regulatory Capital (a) Amount Ratios December 31 2022 2021 2022 2021 “Well Capitalized” Requirements Risk-based capital Common equity Tier 1 PNC $ 39,685 $ 40,066 9.1 % 10.3 % N/A PNC Bank $ 43,658 $ 42,024 10.2 % 11.1 % 6.5 % Tier 1 PNC $ 45,431 $ 45,075 10.4 % 11.6 % 6.0 % PNC Bank $ 43,658 $ 42,024 10.2 % 11.1 % 8.0 % Total PNC $ 53,440 $ 52,451 12.3 % 13.5 % 10.0 % PNC Bank $ 50,666 $ 49,083 11.8 % 12.9 % 10.0 % Leverage PNC $ 45,431 $ 45,075 8.2 % 8.2 % N/A PNC Bank $ 43,658 $ 42,024 8.0 % 7.8 % 5.0 % (a) Calculated using the regulatory capital methodology applicable to us during both 2022 and 2021. The principal source of parent company cash flow is the dividends it receives from PNC Bank, which may be impacted by the following: • Capital needs, • Laws and regulations, • Corporate policies, • Contractual restrictions, and • Other factors. Also, there are statutory and regulatory limitations on the ability of national banks to pay dividends or make other capital distributions. The amount available for dividend payments to the parent company by PNC Bank without prior regulatory approval was approximately $3.5 billion at December 31, 2022. Under federal law, a bank subsidiary generally may not extend credit to, or engage in other types of covered transactions (including the purchase of assets) with, the parent company or its non-bank subsidiaries on terms and under circumstances that are not substantially the same as comparable transactions with nonaffiliates. A bank subsidiary may not extend credit to, or engage in a covered transaction with, the parent company or a non-bank subsidiary if the aggregate amount of the bank’s extensions of credit and other covered transactions with the parent company or non-bank subsidiary exceeds 10% of the capital stock and surplus of such bank subsidiary or the aggregate amount of the bank’s extensions of credit and other covered transactions with the parent company and all non-bank subsidiaries exceeds 20% of the capital stock and surplus of such bank subsidiary. Such extensions of credit, with limited exceptions, must be at least fully collateralized in accordance with specified collateralization thresholds, with the thresholds varying based on the type of assets serving as collateral. In certain circumstances, federal regulatory authorities may impose more restrictive limitations. The Federal Reserve is authorized to establish reserve requirements for certain types of deposits and other liabilities of depository institutions. Effective March 26, 2020, the reserve requirement ratios were reduced to zero. At December 31, 2022, the balance outstanding at the Federal Reserve Bank was $26.9 billion. This amount is included in Interest-earning deposits with banks on our Consolidated Balance Sheet. |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Dec. 31, 2022 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | L EGAL P ROCEEDINGS new information is obtained, we may change our estimates. Due to the inherent subjectivity of the assessments and unpredictability of outcomes of legal proceedings, any amounts accrued or included in this aggregate amount may not represent the ultimate loss to us from the legal proceedings in question. Thus, our exposure and ultimate losses may be higher, and possibly significantly so, than the amounts accrued or this aggregate amount. In our experience, legal proceedings are inherently unpredictable. One or more of the following factors frequently contribute to this inherent unpredictability: the proceeding is in its early stages; the damages sought are unspecified, unsupported or uncertain; it is unclear whether a case brought as a class action will be allowed to proceed on that basis or, if permitted to proceed as a class action, how the class will be defined; the other party is seeking relief other than or in addition to compensatory damages (including, in the case of regulatory and governmental investigations and inquiries, the possibility of fines and penalties); the matter presents meaningful legal uncertainties, including novel issues of law; we have not engaged in meaningful settlement discussions; discovery has not started or is not complete; there are significant facts in dispute; the possible outcomes may not be amenable to the use of statistical or quantitative analytical tools; predicting possible outcomes depends on making assumptions about future decisions of courts or regulatory bodies or the behavior of other parties; and there are a large number of parties named as defendants (including where it is uncertain how damages or liability, if any, will be shared among multiple defendants). Generally, the less progress that has been made in the proceedings or the broader the range of potential results, the harder it is for us to estimate losses or ranges of losses that it is reasonably possible we could incur. As a result of these types of factors, we are unable, at this time, to estimate the losses that are reasonably possible to be incurred or ranges of such losses with respect to some of the matters disclosed, and the aggregate estimated amount provided above does not include an estimate for every Disclosed Matter. Therefore, as the estimated aggregate amount disclosed above does not include all of the Disclosed Matters, the amount disclosed above does not represent our maximum reasonably possible loss exposure for all of the Disclosed Matters. The estimated aggregate amount also does not reflect any of our exposure to matters not so disclosed, as discussed below under “Other.” We include in some of the descriptions of individual Disclosed Matters certain quantitative information related to the plaintiff’s claim against us as alleged in the plaintiff’s pleadings or other public filings or otherwise publicly available information. While information of this type may provide insight into the potential magnitude of a matter, it does not necessarily represent our estimate of reasonably possible loss or our judgment as to any currently appropriate accrual. Some of our exposure in Disclosed Matters may be offset by applicable insurance coverage. We do not consider the possible availability of insurance coverage in determining the amounts of any accruals (although we record the amount of related insurance recoveries that are deemed probable up to the amount of the accrual) or in determining any estimates of possible losses or ranges of possible losses. Interchange Litigation Beginning in June 2005, a series of antitrust lawsuits were filed against Visa ® , Mastercard ® , and several major financial institutions, including cases naming National City (since merged into The PNC Financial Services Group, Inc.) and its subsidiary, National City Bank of Kentucky (since merged into National City Bank, which, in turn, was merged into PNC Bank). The plaintiffs in these cases are merchants operating commercial businesses throughout the U.S., as well as trade associations. Some of these cases (including those naming National City entities) were brought as class actions on behalf of all persons or business entities that have accepted Visa or Mastercard. The cases have been consolidated for pre-trial proceedings in the U.S. District Court for the Eastern District of New York under the caption In re Payment Card Interchange Fee and Merchant-Discount Antitrust Litigation (Master File No. 1:05-md-1720- MKB-JO). In July 2012, the parties entered into a memorandum of understanding with the class plaintiffs and an agreement in principle with certain individual plaintiffs with respect to a settlement of these cases, under which the defendants agreed to pay approximately $6.6 billion collectively to the class and individual settling plaintiffs and agreed to changes in the terms applicable to their respective card networks (including an eight-month reduction in default credit interchange rates). The parties entered into a definitive agreement with respect to this settlement in October 2012. The court granted final approval of the settlement in December 2013. Several objectors appealed the order of approval to the U.S. Court of Appeals for the Second Circuit, which issued an order in June 2016, reversing approval of the settlement and remanding for further proceedings. In November 2016, the plaintiffs filed a petition for a writ of certiorari with the U.S. Supreme Court to challenge the court of appeal’s decision. The Supreme Court denied the petition in March 2017. As a result of the reversal of the approval of the settlement, the class actions have resumed in the district court. In November 2016, the district court appointed separate interim class counsel for a proposed class seeking damages and a proposed class seeking equitable (injunctive) relief. In February 2017, each of these counsel filed a proposed amended and supplemental complaint on behalf of its respective proposed class. These complaints make similar allegations, including that the defendants conspired to monopolize and to fix the prices for general purpose card network services, that the restructuring of Visa and Mastercard, each of which included an initial public offering, violated the antitrust laws, and that the defendants otherwise imposed unreasonable restraints on trade, resulting in the payment of inflated interchange fees and other fees, which also violated the antitrust laws. In their complaints, collectively the plaintiffs seek, among other things, injunctive relief, unspecified damages (trebled under the antitrust laws) and attorneys’ fees. PNC is named as a defendant in the complaint seeking damages but is not named as a defendant in the complaint that seeks equitable relief. In September 2017, the magistrate judge at the district court granted in part and denied in part the plaintiffs’ motions to file their proposed amended complaints. The dispute over amendment arose in part from the decision in United States v. American Express, Co., 838 F.3d 179 (2d Cir. 2016), in which the court held that the relevant market in a similar complaint against American Express is “two-sided,” i.e ., requires consideration of effects on consumers as well as merchants. In June 2018, the U.S. Supreme Court affirmed (under the caption Ohio v. American Express Co. ) the court of appeals decision . Previously, the plaintiffs in this litigation had alleged a one-sided market, and, as a result of the court’s decision in American Express , they sought leave to add claims based on a two-sided market. The order allowed the complaint to be amended to include allegations pertaining to a two-sided market only to the extent those claims are not time-barred, but held that the two-sided market allegations do not relate back to the time of the original complaint and are not subject to tolling. In October 2017, the plaintiffs appealed this order to the presiding district court judge. In August 2018, the judge overruled this decision, finding that the two-sided market allegations do relate back. In September 2018, the relevant parties entered an amended definitive agreement to resolve the claims of the class seeking damages. In this amended settlement agreement, the parties agreed, among other things, to the following terms: • An additional settlement payment from all defendants of $900 million, with Visa’s share of the additional settlement payment being $600 million. The additional settlement payment will be added to the approximately $5.3 billion previously paid by the defendants pursuant to the original 2012 settlement agreement. • Up to $700 million may be returned to the defendants (with up to $467 million to Visa) if more than 15% of class members (by payment volume) opt out of the class. As more than 15% of class members opted out of the class, $700 million has been returned to the defendants ($467 million to Visa). This amended settlement agreement is subject to court approval. Following preliminary approval in January 2019, and after class notice, the submission of opt-outs, and the filing of objections, the district court granted final approval of the settlement in December 2019. Several objectors have appealed the district court’s order granting final approval to the U.S. Court of Appeals for the Second Circuit. Oral argument of this appeal was held on March 16, 2022. Some merchants that opted out from the settlement have brought lawsuits against Visa and Mastercard and one or more of the issuing banks. Resolution by Visa of claims by merchants that opted out of the settlement, including those that file lawsuits, have been or will be paid from the Visa litigation escrow account. National City and National City Bank entered into judgment and loss sharing agreements with Visa and certain other banks with respect to all of the above referenced litigation. We were not originally named as defendants in any of the Visa or Mastercard related antitrust litigation nor were we initially parties to the judgment or loss sharing agreements. However, we became responsible for National City’s and National City Bank’s position in the litigation and responsibilities under the agreements through our acquisition of National City. In addition, following Visa’s reorganization in 2007 in contemplation of its initial public offering, U.S. Visa members received shares of Class B Visa common stock, convertible upon resolution of specified litigation, including the remaining litigation described above, into shares of Class A Visa common stock, with the conversion rate adjusted to reflect amounts paid or escrowed to resolve the specified litigation, and also remained responsible for indemnifying Visa against the specified litigation. Our Class B Visa common stock is all subject to this conversion adjustment provision, and we are now responsible for the indemnification obligations of our predecessors as well as ourselves. We have also entered into a Mastercard Settlement and Judgment Sharing Agreement with Mastercard and other financial institution defendants and an Omnibus Agreement Regarding Interchange Litigation Sharing and Settlement Sharing with Visa, Mastercard and other financial institution defendants. The Omnibus Agreement, in substance, apportions resolution of the claims in this litigation into a Visa portion and a Mastercard portion, with the Visa portion being two-thirds and the Mastercard portion being one-third. This apportionment only applies in the case of either a global settlement involving all defendants or an adverse judgment against the defendants, to the extent that damages either are related to the merchants’ inter-network conspiracy claims or are otherwise not attributed to specific Mastercard or Visa conduct or damages. The Mastercard portion (or any Mastercard-related liability not subject to the Omnibus Agreement) will then be apportioned under the Mastercard Settlement and Judgment Sharing Agreement among Mastercard and PNC and the other financial institution defendants that are parties to this agreement. The responsibility for the Visa portion (or any Visa-related liability not subject to the Omnibus Agreement) will be apportioned under the pre-existing indemnification responsibilities and judgment and loss sharing agreements. USAA Patent Infringement Litigation In September 2020, a lawsuit ( United Services Automobile Association v. PNC Bank N.A. (Case No. 2:20-cv-319)) was filed in the United States District Court for the Eastern District of Texas against PNC Bank for patent infringement (“the first Texas case”). The plaintiff amended its complaint in December 2020. As amended, the complaint alleges that PNC’s mobile remote deposit capture systems infringe on four patents owned by the plaintiff. The plaintiff seeks, among other things, a judgment that PNC is infringing each of the patents, damages for willful infringement, and attorneys’ fees. In December 2020, we filed a motion to dismiss the amended complaint, and in January 2021, we filed a motion to transfer the lawsuit to the United States District Court for the Western District of Pennsylvania. In February 2021, we answered the amended complaint and asserted counterclaims alleging that the plaintiff infringed four patents owned by PNC Bank, as well as for a declaratory judgment that PNC Bank does not infringe certain patents asserted by the plaintiff. In March 2021, the plaintiff filed a motion to dismiss two of the patent infringement counterclaims, as well as to sever the patent infringement counterclaims for trial. In June 2021, the plaintiff filed an answer to PNC’s counterclaims and asserted a counterclaim in reply seeking a declaratory judgment that two of the asserted PNC patents are unenforceable due to inequitable conduct and unclean hands in prosecution of the patents. In September 2021, the court denied our motion to dismiss and our motion to transfer the case. In November 2021, the court denied the plaintiff’s motion to dismiss two of the patent infringement counterclaims. Also in November 2021, the court issued a memorandum opinion and order construing certain claim terms of the patents in suit. In February 2022, the magistrate judge granted the plaintiff’s motion to sever the patent infringement counterclaims for trial. In March 2022, the court overruled PNC’s objections to and adopted the magistrate judge’s ruling on the motion to sever. In December 2020, we filed a lawsuit ( PNC Bank, N.A. v. United Services Automobile Association (Case No. 2:20-cv-1886)) in the United States District Court for the Western District of Pennsylvania against USAA seeking declaratory judgment of non-infringement as to two of the patents at issue in the first Texas case and awarding PNC its fees and costs. In January 2021, USAA filed a motion to dismiss or transfer PNC Bank’s declaratory judgment complaint. In June 2021, the court stayed this case pending a decision on the motion to transfer filed by PNC Bank in the first Texas case. The United States District Court for the Eastern District of Texas denied PNC Bank’s motion to transfer in the first Texas case in September 2021. This case presently remains stayed and administratively closed. In March 2021, USAA filed a second lawsuit ( United Services Automobile Association v. PNC Bank N.A . (Case No. 2:21-cv-110)) in the United States District Court for the Eastern District of Texas against PNC Bank for patent infringement. The complaint alleges that PNC’s mobile remote deposit capture systems infringe two patents owned by the plaintiff. The plaintiff seeks, among other things, a judgment that PNC is infringing each of the patents, damages for willful infringement, and attorneys’ fees. In April 2021, we moved to consolidate this action with the first Texas case, and we filed motions to dismiss and transfer this action. In July 2021, this action was consolidated with the first Texas case (together, “the first consolidated cases”). In September 2021, the court denied our motion to dismiss and our motion to transfer for the same reasons set forth in its September 2021 orders in the first Texas case. In November 2021, the court issued a memorandum opinion and order construing certain claim terms of the patents in suit. In May 2022, following a jury trial in the first consolidated cases, a jury found against PNC for willful infringement of at least one of the plaintiff’s asserted patent claims and awarded approximately $218 million. In July 2022, the parties submitted briefs on PNC’s remaining equitable defenses. In August 2022, the court denied our request for relief, entered final judgment, declined to award enhanced damages for willfulness, and awarded USAA pre-judgment and applicable post-judgment interest. In September 2022, PNC filed its post-trial motions for judgment as a matter of law and for a new trial. In July 2021, USAA filed a third lawsuit ( United Services Automobile Association v. PN C Bank N.A . (Case No. 2:21-cv-246)) in the United States District Court for the Eastern District of Texas against PNC Bank for patent infringement (“the third Texas case”). The complaint alleges that PNC’s mobile remote deposit capture systems, including its new versions, infringe three additional patents owned by the plaintiff. The plaintiff seeks, among other things, a judgment that PNC is infringing each of the patents, damages for willful infringement, and attorneys’ fees. In July 2021, we filed motions to dismiss and transfer this action; the court denied these motions in January 2022. In March 2022, the court issued a memorandum opinion and order construing certain claim terms of the patents in suit. In June 2022, the court opened a new case for PNC’s patent infringement counterclaims (originally asserted in the first Texas case) (“the fourth Texas case”) and consolidated the fourth Texas case into the third Texas case (together, “the second consolidated cases”). In September 2022, following a jury trial in the second consolidated cases, a jury found against PNC for infringement of at least one of the two asserted patents and awarded $4.3 million, and determined that PNC did not willfully infringe the patents. The jury further found that USAA did not infringe any of PNC’s asserted patents. On January 23, 2023, USAA filed a motion for a new trial regarding damages in the second consolidated cases. In August 2021, USAA filed a lawsuit ( United Services Automobile Association v. BBVA USA (Case No. 2:21-cv-311)) in the United States District Court for the Eastern District of Texas against BBVA USA for patent infringement (“the BBVA USA Texas case”). The complaint alleges that BBVA USA’s remote deposit capture systems infringe the same six USAA patents at issue in the first consolidated cases. The plaintiff seeks, among other things, a judgment that BBVA USA is infringing each of the patents, damages for willful infringement, and attorneys’ fees. In October 2021, BBVA USA was merged into PNC Bank. Also in October 2021, we answered the complaint and asserted counterclaims for a declaratory judgment that the asserted patents are invalid and not infringed. In March 2022, the court entered the parties’ stipulation to, among other things, proceed under the constructions set forth in the first consolidated cases. In June 2022, the court entered a stipulation proposed by the parties, stayed all deadlines, and administratively closed the matter. In January 2022, the Patent Trial and Appeal Board granted institution of inter partes review (“IPR”) with respect to petitions filed by PNC for three of the six patents then at issue in the first consolidated cases and in the BBVA USA Texas case. The Patent Trial and Appeal Board denied institution of an IPR with respect to PNC’s petitions for three of the six patents then at issue in the first consolidated cases and in the BBVA USA Texas case. Oral argument for the IPR proceedings at the Patent Trial and Appeal Board occurred on October 25 and 26, 2022. Because of USAA’s case narrowing in the first consolidated cases, only one of these three patents being reviewed was presented to the jury in the first consolidated cases. On January 19, 2023, with respect to two of the three patents in which an IPR was instituted, the Patent Trial and Appeal Board entered its Final Written Decision. It found each of the challenged claims in these two patents to be unpatentable. One of these patents was presented to the jury in the first consolidated cases. On January 20, 2023, with respect to the third patent in which an IPR was instituted, the Patent Trial and Appeal Board entered its Final Written Decision. It found that all the challenged claims in this third patent were unpatentable. On January 27, 2023, based on the Patent Trial and Appeal Board’s finding that the asserted claims of one of the patents presented to the jury in the first consolidated cases were unpatentable, PNC filed a motion seeking leave to file a supplemental brief in support of a motion for a new trial as well as its brief in support for a new trial in the first consolidated cases. On February 1, 2023, the court granted PNC’s motion for leave to file a supplemental brief in support for a new trial and accepted PNC’s brief for a new trial. In May and June 2022, the Patent Trial and Appeal Board granted institution of IPR with respect to petitions filed by PNC for two of the three patents then at issue in the third Texas case. The Patent Trial and Appeal Board denied institution of an IPR with respect to PNC’s petitions for one of the three patents then at issue in the third Texas case. Oral argument for the first of the two IPR proceedings at the Patent Trial and Appeal Board occurred on February 9 and oral argument for the second is presently scheduled for March 13, 2023. Because of USAA’s case narrowing in the third Texas case, only one of these two patents being reviewed was presented to the jury in the third Texas case. Regulatory and Governmental Inquiries We are the subject of investigations, audits, examinations and other forms of regulatory and governmental inquiry covering a broad range of issues in our consumer, mortgage, brokerage, securities and other financial services businesses, as well as other aspects of our operations. In some cases, these inquiries are part of reviews of specified activities at multiple industry participants; in others, they are directed at PNC individually. From time to time, these inquiries have involved and may in the future involve or lead to regulatory enforcement actions and other administrative proceedings. These inquiries have also led to and may in the future lead to civil or criminal judicial proceedings. Some of these inquiries result in remedies including fines, penalties, restitution, or alterations in our business practices, and in additional expenses and collateral costs and other consequences. Such remedies and other consequences typically have not been material to us from a financial standpoint, but could be in the future. Even if not financially material, they may result in significant reputational harm or other adverse consequences. Our practice is to cooperate fully with regulatory and governmental investigations, audits and other inquiries. Other In addition to the proceedings or other matters described above, PNC and persons to whom we may have indemnification obligations, in the normal course of business, are subject to various other pending and threatened legal proceedings in which claims for monetary damages and other relief are asserted. We do not anticipate, at the present time, that the ultimate aggregate liability, if any, arising out of such other legal proceedings will have a material adverse effect on our financial position. However, we cannot now determine whether or not any claims asserted against us or others to whom we may have indemnification obligations, whether in the proceedings or other matters described above or otherwise, will have a material adverse effect on our results of operations in any future reporting period, which will depend on, among other things, the amount of the loss resulting from the claim and the amount of income otherwise reported for the reporting period. |
Parent Company
Parent Company | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company | P ARENT C OMPANY Summarized financial information of the parent company is as follows: Table 116: Parent Company - Income Statement Year ended December 31 2022 2021 2020 Operating Revenue Dividends from continuing operations: Bank subsidiaries and bank holding company $ 3,925 $ 3,980 $ 13,701 Non-bank subsidiaries 280 424 345 Interest income 104 15 38 Noninterest income (loss) (37) 41 37 Total operating revenue 4,272 4,460 14,121 Operating Expense Interest expense 326 129 179 Other expense 136 245 91 Total operating expense 462 374 270 Income before income taxes and equity in undistributed net income of subsidiaries 3,810 4,086 13,851 Equity in undistributed net income of subsidiaries from continuing operations: Bank subsidiaries and bank holding company 1,848 1,085 (12,009) Non-bank subsidiaries 455 543 (86) Income from continuing operations before taxes 6,113 5,714 1,756 Income tax expense (benefit) from continuing operations 72 41 (1,206) Net income from continuing operations 6,041 5,673 2,962 Dividends from discontinued operations: Bank subsidiaries and bank holding company 126 Equity in undistributed net income of subsidiaries from discontinued operations: Bank subsidiaries and bank holding company 5,651 Income from discontinued operations before taxes 5,777 Income taxes from discontinued operations 1,222 Net income from discontinued operations 4,555 Net income $ 6,041 $ 5,673 $ 7,517 Other comprehensive income, net of tax: Net pension and other postretirement benefit plan activity arising during the period 1 11 1 Other comprehensive income 1 11 1 Comprehensive income $ 6,042 $ 5,684 $ 7,518 Table 117: Parent Company - Balance Sheet December 31 – in millions 2022 2021 Assets Cash held at banking subsidiary $ 4,654 $ 5,367 Restricted deposits with banking subsidiary 175 175 Investments in: Bank subsidiaries and bank holding company 48,867 56,596 Non-bank subsidiaries 3,170 2,693 Loans with affiliates 1,484 1,179 Other assets 2,057 1,999 Total assets $ 60,407 $ 68,009 Liabilities Subordinated debt (a) $ 1,728 $ 982 Senior debt (a) 11,379 10,362 Other borrowed funds from affiliates 343 Accrued expenses and other liabilities 1,526 627 Total liabilities 14,633 12,314 Equity Shareholders’ equity 45,774 55,695 Total liabilities and equity $ 60,407 $ 68,009 (a) See Note 10 Borrowed Funds for additional information on contractual rates and maturity dates of senior debt and subordinated debt for parent company. In connection with certain affiliates’ commercial and residential mortgage servicing operations, the parent company has committed to maintain such affiliates’ net worth above minimum requirements. Table 118: Parent Company - Interest Paid and Income Tax Refunds (Payments) Year ended December 31 – in millions Interest Paid Income Tax Refunds/ (Payments) 2022 $ 314 $ (255) 2021 $ 307 $ 386 2020 $ 335 $ 29 Table 119: Parent Company - Statement of Cash Flows Year ended December 31 – in millions 2022 2021 2020 Operating Activities Net income $ 6,041 $ 5,673 $ 7,517 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net earnings of subsidiaries (2,303) (1,628) Return on investment in subsidiaries 6,444 Other 95 (248) 237 Net cash provided (used) by operating activities $ 3,833 $ 3,797 $ 14,198 Investing Activities Proceeds from available for sale securities $ 300 Net change in loans and securities from affiliates $ (531) (1,188) $ (2,808) Net change in nonrestricted interest-earning deposits 7,024 Net cash paid for acquisition (11,358) Other (84) (5) Net cash provided (used) by investing activities $ (615) $ (12,251) $ 4,216 Financing Activities Net change in other borrowed funds from affiliates $ (1,138) $ (435) $ 473 Proceeds from long-term borrowings 4,335 1,692 1,986 Repayments of long-term borrowings (1,500) (500) (1,750) Preferred stock issuances 2,225 1,484 Preferred stock redemptions (1,500) (480) Common and treasury stock issuances 68 66 65 Acquisition of treasury stock (3,731) (1,079) (1,624) Preferred stock cash dividends paid (301) (233) (229) Common stock cash dividends paid (2,389) (2,056) (1,979) Net cash provided (used) by financing activities $ (3,931) $ (1,061) $ (3,538) Net Increase (Decrease) In Cash And Due From Banks $ (713) $ (9,515) $ 14,876 Net Cash Provided By Discontinued Operations 11,542 Net Cash Activity From Continuing Operations (713) (9,515) 3,334 Cash and restricted deposits held at banking subsidiary at beginning of year 5,542 15,057 181 Cash and restricted deposits held at banking subsidiary at end of year $ 4,829 $ 5,542 $ 15,057 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | S EGMENT R EPORTING We have three reportable business segments: • Retail Banking • Corporate & Institutional Banking • Asset Management Group Results of individual businesses are presented based on our internal management reporting practices. There is no comprehensive, authoritative body of guidance for management accounting equivalent to GAAP; therefore, the financial results of our individual businesses are not necessarily comparable with similar information for any other company. We periodically refine our internal methodologies as management reporting practices are enhanced. To the extent significant and practicable, retrospective application of new methodologies is made to prior period reportable business segment results and disclosures to create comparability with the current period. During the second quarter of 2020, we divested our entire 22.4% investment in BlackRock, which had previously been reported as a separate business segment. See Note 2 Acquisition and Divestiture Activity for additional information on the sale and details on our results and cash flow for 2020. Total business segment financial results differ from total consolidated net income. These differences are reflected in the “Other” category in Table 120. “Other” includes residual activities that do not meet the criteria for disclosure as a separate reportable business, such as asset and liability management activities, including net securities gains or losses, ACL for investment securities, certain trading activities, certain runoff consumer loan portfolios, private equity investments, intercompany eliminations, certain corporate overhead, tax adjustments that are not allocated to business segments, exited businesses and differences between business segment performance reporting and financial statement reporting (GAAP). Assets, revenue and earnings attributable to foreign activities were not material in the periods presented for comparison. Financial results are presented, to the extent practicable, as if each business operated on a standalone basis. Additionally, we have aggregated the results for corporate support functions within “Other” for financial reporting purposes. Net interest income in business segment results reflects our internal funds transfer pricing methodology. Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product repricing characteristics, tenor and other factors. We have allocated the ALLL and the allowance for unfunded lending related commitments based on the loan exposures within each business segment’s portfolio. Key reserve assumptions and estimation processes react to and are influenced by observed changes in loan portfolio performance experience, the financial strength of the borrower and economic conditions. Key reserve assumptions are periodically updated. Table 120: Results of Businesses Year ended December 31 Retail Corporate & Asset Other Consolidated (a) 2022 Income Statement Net interest income $ 7,540 $ 5,179 $ 608 $ (313) $ 13,014 Noninterest income 2,967 3,621 936 582 8,106 Total revenue 10,507 8,800 1,544 269 21,120 Provision for (recapture of) credit losses 259 198 28 (8) 477 Depreciation and amortization 310 213 29 587 1,139 Other noninterest expense 7,288 3,438 1,057 248 12,031 Income (loss) from continuing operations before income taxes (benefit) 2,650 4,951 430 (558) 7,473 Income taxes (benefit) from continuing operations 621 1,064 100 (425) 1,360 Net income (loss) from continuing operations 2,029 3,887 330 (133) 6,113 Less: Net income attributable to noncontrolling interests 55 17 72 Net income (loss) from continuing operations excluding noncontrolling $ 1,974 $ 3,870 $ 330 $ (133) $ 6,041 Average Assets $ 113,829 $ 219,941 $ 14,505 $ 202,377 $ 550,652 2021 Income Statement Net interest income $ 6,206 $ 4,526 $ 476 $ (561) $ 10,647 Noninterest income 2,796 3,783 987 998 8,564 Total revenue 9,002 8,309 1,463 437 19,211 Provision for (recapture of) credit losses (101) (646) (7) (25) (779) Depreciation and amortization 293 208 23 542 1,066 Other noninterest expense 6,623 3,271 918 1,124 11,936 Income (loss) from continuing operations before income taxes (benefit) 2,187 5,476 529 (1,204) 6,988 Income taxes (benefit) from continuing operations 508 1,138 123 (506) 1,263 Net income (loss) from continuing operations 1,679 4,338 406 (698) 5,725 Less: Net income attributable to noncontrolling interests 31 14 6 51 Net income (loss) from continuing operations excluding noncontrolling $ 1,648 $ 4,324 $ 406 $ (704) $ 5,674 Average Assets $ 106,331 $ 188,470 $ 11,677 $ 216,688 $ 523,166 2020 Income Statement Net interest income $ 5,609 $ 3,999 $ 357 $ (19) $ 9,946 Noninterest income 2,519 3,062 854 520 6,955 Total revenue 8,128 7,061 1,211 501 16,901 Provision for (recapture of) credit losses 968 2,088 21 98 3,175 Depreciation and amortization 251 197 45 490 983 Other noninterest expense 5,768 2,659 813 74 9,314 Income (loss) from continuing operations before income taxes (benefit) 1,141 2,117 332 (161) 3,429 Income taxes (benefit) from continuing operations 266 433 77 (350) 426 Net income from continuing operations 875 1,684 255 189 3,003 Less: Net income attributable to noncontrolling interests 31 10 41 Net income from continuing operations excluding noncontrolling $ 844 $ 1,674 $ 255 $ 189 $ 2,962 Average Assets $ 97,643 $ 183,189 $ 8,186 $ 160,277 $ 449,295 (a) There were no material intersegment revenues for 2022, 2021 and 2020. Business Segment Products and Services Retail Banking provides deposit, lending, brokerage, insurance services, investment management and cash management products and services to consumer and small business customers. Our customers are serviced through our branch network, ATMs, call centers, online banking and mobile channels. As a result of the BBVA acquisition, we have become a coast-to-coast retail bank. Our national expansion strategy is designed to grow customers with digitally-led banking and a thin branch network as we expand into new markets. Deposit products include checking, savings and money market accounts and certificates of deposit. Lending products include residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans and personal and small business loans and lines of credit. The residential mortgage loans are directly originated within our branch network and nationwide, and are typically underwritten to agency and/or third-party standards, and either sold, servicing retained or held on our balance sheet. Brokerage, investment management and cash management products and services include managed, education, retirement and trust accounts. Corporate & Institutional Banking provides lending, treasury management, capital markets and advisory products and services to mid-sized and large corporations and government and not-for-profit entities. Lending products include secured and unsecured loans, letters of credit and equipment leases. The Treasury Management business provides corporations with cash and investment management services, receivables and disbursement management services, funds transfer services, international payment services and access to online/mobile information management and reporting services. Capital markets and advisory includes services and activities primarily related to merger and acquisition advisory, equity capital markets advisory, asset-backed financing, loan syndication, securities underwriting and customer-related trading. We also provide commercial loan servicing and technology solutions for the commercial real estate finance industry. Products and services are provided nationally. Asset Management Group provides private banking for high net worth and ultra high net worth clients and institutional asset management. The Asset Management group is composed of two operating units: • PNC Private Bank provides products and services to emerging affluent, high net worth and ultra high net worth individuals and their families including investment and retirement planning, customized investment management, credit and cash management solutions, trust management and administration. In addition, multi-generational family planning services are also provided to ultra high net worth individuals and their families which include estate, financial, tax, fiduciary and customized performance reporting through PNC Private Bank Hawthorn. • Institutional Asset Management provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, retirement plan fiduciary investment services to institutional clients including corporations, healthcare systems, insurance companies, unions, municipalities and non-profits. |
Fee-based Revenue from Contract
Fee-based Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Fee-based Revenue from Contracts with Customers | F EE-BASED R EVENUE FROM C ONTRACTS WITH C USTOMERS A subset of our noninterest income relates to certain fee-based revenue within the scope of ASC Topic 606 - Revenue from Contracts with Customers (Topic 606). The objective of the standard is to clarify the principles for recognizing revenue from contracts with customers across all industries and to develop a common revenue standard under GAAP. The standard requires the application of a five-step recognition model to contracts, allocating the amount of consideration we expect to be entitled to across distinct promises in the contract, called performance obligations, and recognizing revenue when or as those services are transferred to the customer. Fee-based revenue within the scope of Topic 606 is recognized within our three reportable business segments: Retail Banking, Corporate & Institutional Banking and Asset Management Group. Interest income, income from lease contracts, fair value gains from financial instruments (including derivatives), income from mortgage servicing rights and guarantee products, letter of credit fees, non-refundable fees associated with acquiring or originating a loan and gains from the sale of financial assets are outside of the scope of Topic 606. Effective for the first quarter of 2022, PNC updated the presentation of its noninterest income categorization to be based on product and service type, and accordingly, has changed the basis of presentation of its noninterest income revenue streams to: (i) Asset management and brokerage, (ii) Capital markets related, (iii) Card and cash management, (iv) Lending and deposit services, (v) Residential and commercial mortgage and (vi) Other noninterest income. Additionally, in the fourth quarter of 2022, PNC updated the name of the noninterest income line item “Capital markets related” to “Capital markets and advisory.” This update did not impact the components of the category. All periods presented herein reflect these changes. For a description of each updated noninterest income revenue stream, see Note 1 Accounting Policies. Table 121 presents the noninterest income recognized within the scope of Topic 606 for each of our three reportable business segments’ principal products and services, along with the relationship to the noninterest income revenue streams shown on our Consolidated Income Statement. A description of the fee-based revenue and how it is recognized for each segment’s principal products and services follows this Table 121. Table 121: Noninterest Income by Business Segment and Reconciliation to Consolidated Noninterest Income Year ended December 31 Retail Banking Corporate & Asset 2022 Asset management and brokerage Asset management fees $ 908 Brokerage fees $ 528 8 Total asset management and brokerage 528 916 Card and cash management Treasury management fees 40 $ 1,284 Debit card fees 684 Net credit card fees (a) 237 Merchant services 186 66 Other 97 Total card and cash management 1,244 1,350 Lending and deposit services Deposit account fees 583 Other 67 33 Total lending and deposit services 650 33 Residential and commercial mortgage (b) 140 Capital markets and advisory 790 Other 59 Total in-scope noninterest income 2,422 2,372 916 Out-of-scope noninterest income (c) 545 1,249 20 Noninterest income by business segment $ 2,967 $ 3,621 $ 936 Reconciliation to consolidated noninterest income For the year ended December 31, 2022 Total in-scope business segment noninterest income $ 5,710 Out-of-scope business segment noninterest income (c) 1,814 Noninterest income from other segments 582 Noninterest income as shown on the Consolidated Income Statement $ 8,106 (Continued from previous page) Year ended December 31 Retail Banking Corporate & Asset 2021 Asset management and brokerage Asset management fees $ 964 Brokerage fees $ 464 9 Total asset management and brokerage 464 973 Card and cash management Treasury management fees 46 $ 1,097 Debit card fees 665 Net credit card fees (a) 221 Merchant services 174 62 Other 115 Total card and cash management 1,221 1,159 Lending and deposit services Deposit account fees 542 Other 58 40 Total lending and deposit services 600 40 Residential and commercial mortgage (b) 141 Capital markets and advisory 1,110 Other 50 Total in-scope noninterest income 2,285 2,500 973 Out-of-scope noninterest income (c) 511 1,283 14 Noninterest income by business segment $ 2,796 $ 3,783 $ 987 Reconciliation to consolidated noninterest income For the year ended December 31, 2021 Total in-scope business segment noninterest income $ 5,758 Out-of-scope business segment noninterest income (c) 1,808 Noninterest income from other segments 998 Noninterest income as shown on the Consolidated Income Statement $ 8,564 (Continued from previous page) Year ended December 31 Retail Banking Corporate & Asset 2020 Asset management and brokerage Asset management fees $ 836 Brokerage fees $ 367 Total asset management and brokerage 367 836 Card and cash management Treasury management fees 33 $ 863 Debit card fees 522 Net credit card fees (a) 179 Merchant services 154 34 Other 105 Total card and cash management 993 897 Lending and deposit services Deposit account fees 497 Other 53 42 Total lending and deposit services 550 42 Residential and commercial mortgage (b) 111 Capital markets and advisory 759 Other 41 Total in-scope noninterest income 1,910 1,850 836 Out-of-scope noninterest income (c) 609 1,212 18 Noninterest income by business segment $ 2,519 $ 3,062 $ 854 Reconciliation to consolidated noninterest income For the year ended December 31, 2020 Total in-scope business segment noninterest income $ 4,596 Out-of-scope business segment noninterest income (c) 1,839 Noninterest income from other segments 520 Noninterest income as shown on the Consolidated Income Statement $ 6,955 (a) Net credit card fees consists of interchange fees of $662 million, $582 million and $469 million and credit card reward costs of $425 million, $361 million and $290 million for the years ended December 31, 2022, 2021 and 2020, respectively. (b) Residential mortgage noninterest income falls under the scope of other accounting and disclosure requirements outside of Topic 606 and is included within the out-of-scope noninterest income line for the Retail Banking segment. (c) Out-of-scope noninterest income includes revenue streams that fall under the scope of other accounting and disclosure requirements outside of Topic 606. Retail Banking Brokerage Fees Retail Banking earns fee revenue by providing its customers a wide range of investment options through its brokerage services including mutual funds, annuities, stocks, bonds, long-term care and insurance products and managed accounts. We earn fee revenue for transaction-based brokerage services, such as the execution of market trades once the transaction has been completed as of the trade date. In other cases, such as investment management services, we earn fee revenue over the term of the customer contract. Treasury Management Fees Retail Banking earns fee revenue by providing customers with receivables and payables management services, funds transfer services, and access to online/mobile information management and reporting services. Treasury management fees are primarily recognized over time as we perform these services. Debit Card and Net Credit Card Fees As an issuing bank, Retail Banking earns interchange fee revenue from debit and credit card transactions. By offering card products, we maintain and administer card-related services, such as credit card reward programs, account data and statement information, card activation, card renewals, and card suspension and blockage. Interchange fees are earned when cardholders make purchases and are presented in Table 121 net of credit card reward costs, which are earned by customers when they make purchases. Merchant Services Retail Banking earns fee revenue for debit and credit card processing services and products. We provide these services to merchant businesses including point-of-sale payment acceptance capabilities and customized payment processing built around the merchant’s specific requirements. We earn fee revenue as the merchant’s customers make purchases. Deposit Account Fees Retail Banking provides demand deposit, money market and savings account products for consumer and small business customers. Services include online and branch banking, overdraft and wire transfer services, imaging services and cash alternative services, such as money orders and cashier’s checks. We recognize fee income at the time these services are performed for the customer. Other Other noninterest income primarily includes ATM fees earned from our customers and non-PNC customers. These fees are recognized as transactions occur. Corporate & Institutional Banking Treasury Management Fees Corporate & Institutional Banking provides corporations with cash and investment management services, receivables and disbursement management services, funds transfer services, international payment services and access to online/mobile information management and reporting services. Treasury management fees are primarily recognized over time as we perform these services. Merchant Services Corporate & Institutional Banking earns fee revenue for debit and credit card processing services and products. We provide these services to merchant businesses including point-of-sale payment acceptance capabilities and customized payment processing built around the merchant’s specific requirements. We earn fee revenue as the merchant’s customers make purchases. Commercial Mortgage Commercial mortgage banking activities include servicing responsibilities where we do not own the servicing rights. Servicing responsibilities typically consist of collecting and remitting monthly borrower principal and interest payments, maintaining escrow deposits, performing loss mitigation and foreclosure activities, and, in certain instances, funding of servicing advances. We recognize servicing fees over time as we perform these activities. Capital Markets and Advisory Capital markets and advisory fees include securities underwriting fees, merger and acquisition advisory fees and other advisory-related fees. We generally recognize these fees when the related transaction closes. Other Other noninterest income within Corporate & Institutional Banking is primarily comprised of fees from collateral management and asset management services. We earn these fees over time as we perform these services. Asset Management Group Asset Management Fees Asset Management Group provides both personal wealth and institutional asset management services including investment management, custody services, retirement planning, family planning, trust management and retirement plan fiduciary investment services. Asset management fees are recognized over the term of the customer contract based on the value of assets under management at a point in time. Brokerage Fees Asset Management Group provides a wide range of investment options through its brokerage services including mutual funds, annuities, stocks, bonds, insurance products, and managed accounts. Brokerage fees are recognized over the term of the customer contract either based on the value of brokerage assets at a point in time or based on transactions executed on behalf of the customer. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | S UBSEQUENT E VENTS |
Accounting Policies - (Policies
Accounting Policies - (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Business and Basis of Financial Statement Presentation | B USINESS PNC is one of the largest diversified financial services companies in the U.S. and is headquartered in Pittsburgh, Pennsylvania. We have businesses engaged in retail banking, including residential mortgage, corporate and institutional banking and asset management, providing many of our products and services nationally. Our retail branch network is located coast-to-coast. We also have strategic international offices in four countries outside the U.S. Basis of Financial Statement Presentation Our consolidated financial statements include the accounts of the parent company and its subsidiaries, most of which are wholly-owned, certain partnership interests and VIEs. On June 1, 2021, we acquired BBVA, a U.S. financial holding company conducting its business operations primarily through its U.S. banking subsidiary, BBVA USA. Our results of operations and balance sheets for all periods presented in this Report reflect the benefit of BBVA’s acquired businesses for the period since the acquisition closed on June 1, 2021. See Note 2 Acquisition and Divestiture Activity for additional information related to this acquisition. We prepared these consolidated financial statements in accordance with GAAP. We have eliminated intercompany accounts and transactions. We have also reclassified certain prior-year amounts to conform to the current period presentation, which did not have a material impact on our consolidated financial condition or results of operations. We have also considered the impact of subsequent events on these consolidated financial statements. |
Noninterest Income Presentation & Revenue Recognition | Noninterest Income Presentation Effective for the first quarter of 2022, PNC updated the presentation of its noninterest income categorization to be based on product and service type, and accordingly, has changed the basis of presentation of its noninterest income revenue streams to: (i) Asset management and brokerage, (ii) Capital markets related, (iii) Card and cash management, (iv) Lending and deposit services, (v) Residential and commercial mortgage and (vi) Other noninterest income. Additionally, in the fourth quarter of 2022, PNC updated the name of the noninterest income line item “Capital markets related” to “Capital markets and advisory.” This update did not impact the components of the category. A description of each revenue stream follows: Asset management and brokerage includes revenue from our asset management and retail brokerage businesses. Asset management services include investment management, custody, retirement planning, family planning, trust management and retirement administration. Brokerage services offer retail customers a wide range of investment options, including mutual funds, annuities, stock, bonds and managed accounts. Capital markets and advisory includes revenue from services and activities primarily related to merger and acquisition advisory, equity capital markets advisory, asset-backed financing, loan syndication, securities underwriting, credit valuation adjustments related to the derivatives portfolio and customer-related trading. Card and cash management includes revenue primarily from debit and credit card activities, inclusive of credit card points and rewards, treasury management services and ATM fees. Debit and credit card activities include interchange revenue and merchant service fees. Treasury management services include cash and investment management, receivables and disbursement management, funds transfer, international payment and access to online/mobile information management and reporting. Lending and deposit services includes revenue primarily related to service charges on deposits, loan commitment and usage fees, the issuance of standby letters of credit, operating lease income and long-term care and insurance products. Residential and commercial mortgage includes the gain and loss on sale of mortgages, revenue related to our mortgage servicing responsibilities, mortgage servicing rights valuation adjustments and net gains on originations and sales of loans held for sale. Other noninterest income is primarily composed of private equity revenue, net securities gains and losses, activity related to our equity investment in Visa and gains and losses on asset sales. Revenue Recognition We earn interest and noninterest income from various sources, including: • Lending, • Securities portfolio, • Asset management, • Loan sales, loan securitizations, and servicing, • Brokerage services, • Sale of loans and securities, • Certain private equity activities, and • Securities, derivatives and foreign exchange activities. In addition, we earn fees and commissions from: • Issuing loan commitments, standby letters of credit and financial guarantees, • Deposit account services, • Merchant services, • Selling various insurance products, • Providing treasury management services including money transfer services, • Providing merger and acquisition advisory and related services, • Debit and credit card transactions, and • Facilitating and participating in certain capital markets transactions. Service charges on deposit accounts are recognized when earned. Brokerage fees and gains and losses on the sale of securities and certain derivatives are recognized on a trade-date basis. We record private equity income or loss based on changes in the valuation of the underlying investments or when we dispose of our interest. We recognize gain/(loss) on changes in the fair value of certain financial instruments where we have elected the fair value option. These financial instruments include certain commercial and residential mortgage loans originated for sale, certain residential mortgage portfolio loans and resale agreements. We also recognize gain/(loss) on changes in the fair value of residential and commercial MSRs. We recognize revenue from servicing residential and commercial mortgages for others as earned based on the specific contractual terms. These revenues are reported on the Consolidated Income Statement in the line item Residential and commercial mortgage. We recognize revenue from securities, derivatives and foreign exchange customer-related trading, as well as securities underwriting activities, as these transactions occur or as services are provided. We generally recognize gains from the sale of loans upon meeting the derecognition criteria for transfers of financial assets. Mortgage revenue recognized is reported net of mortgage repurchase reserves. For the fee-based revenue within the scope of ASC 606 - Revenue from Contracts with Customers , revenue is recognized when or as those services are transferred to the customer. See Note 24 Fee-Based Revenue from Contracts with Customers for additional information related to revenue within the scope of ASC 606. |
Use of Estimates | Use of Estimates We prepared these consolidated financial statements using financial information available at the time of preparation, which requires us to make estimates and assumptions that affect the amounts reported. Our most significant estimates pertain to the ACL and our fair value measurements, including for the BBVA acquisition. Actual results may differ from the estimates and the differences may be material to the consolidated financial statements. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and due from banks are considered cash and cash equivalents for financial reporting purposes because they represent a primary source of liquidity. Certain cash balances within Cash and due from banks on our Consolidated Balance Sheet are restricted as to withdrawal or usage by legally binding contractual agreements or regulatory requirements. |
Investments | Investments We hold interests in various types of investments. The accounting for these investments is dependent on a number of factors including, but not limited to, items such as: • Ownership interest, • Our plans for the investment, and • The nature of the investment. Debt Securities Debt securities are recorded on a trade-date basis. We classify debt securities as either trading, held to maturity, or available for sale. Debt securities that we purchase for certain risk management activities or customer-related trading activities are classified as trading securities, are reported in the Other assets line item on our Consolidated Balance Sheet and are carried at fair value. Realized and unrealized gains and losses on trading securities are included in Other noninterest income. We classify debt securities as held to maturity when we have the positive intent and ability to hold the securities to maturity, and carry them at amortized cost, less any allowance. Debt securities not classified as held to maturity or trading are classified as securities available for sale and are carried at fair value. Unrealized gains and losses on available for sale securities are included in AOCI net of income taxes. We include all interest on debt securities, including amortization of premiums and accretion of discounts on investment securities, in net interest income using the constant effective yield method generally calculated over the contractual lives of the securities. Effective yields reflect either the effective interest rate implicit in the security at the date of acquisition or, for debt securities where an OTTI was recorded, the effective interest rate determined based on improved cash flows subsequent to an impairment. We compute gains and losses realized on the sale of available for sale debt securities on a specific security basis. These securities gains and losses are included in Other noninterest income on the Consolidated Income Statement. The CECL standard requires expected credit losses on both held to maturity and available for sale securities to be recognized through a valuation allowance, ACL, instead of as a direct write-down to the amortized cost basis of the security. An available for sale security is considered impaired if the fair value is less than its amortized cost basis. If any portion of the decline in fair value is related to credit, the amount of allowance is determined as the portion related to credit, limited to the difference between the amortized cost basis and the fair value of the security. If we have the intent to sell or believe it is more likely than not we will be required to sell an impaired available for sale security before recovery of the amortized cost basis, the credit loss is recorded as a direct write-down of the amortized cost basis. Credit losses on investment securities are recognized through the Provision for credit losses on our Consolidated Income Statement. Declines in the fair value of available for sale securities that are not considered credit related are recognized in AOCI on our Consolidated Balance Sheet. We consider a security to be past due in terms of payment based on its contractual terms. A security may be placed on nonaccrual, with interest no longer recognized until received, when collectability of principal or interest is doubtful. As of December 31, 2022, nonaccrual or past due held-to-maturity and available-for-sale securities were immaterial. A security may be partially or fully charged off against the allowance if it is determined to be uncollectible, including, for an available for sale security, if we have the intent to sell or believe it is more likely than not we will be required to sell the security before recovery of the amortized cost basis. Recoveries of previously charged-off available for sale securities are recognized when received, while recoveries on held to maturity securities are recognized when expected. See the Allowance for Credit Losses section of this Note 1 for further discussion regarding the methodologies used to determine the allowance for investment securities. See Note 3 Investment Securities for additional information about the investment securities portfolio and the related ACL. Equity Securities and Partnership Interests We account for equity securities, equity investments, private equity investments, and investments in limited partnerships, limited liability companies and other investments that are not required to be consolidated under one of the following methods: • We use the equity method for general and limited partner ownership interests and limited liability companies in which we are considered to have significant influence over the operations of the investee. Under the equity method, we record our equity ownership share of net income or loss of the investee in Noninterest income and any dividends received on equity method investments are recorded as a reduction to the investment balance. When an equity investment experiences an other-than-temporary decline in value, we may be required to record a loss on the investment. • We measure equity securities that have a readily determinable fair value at fair value through Net income. Both realized and unrealized gains and losses are included in Noninterest income. Dividend income on these equity securities is included in Other interest income on our Consolidated Income Statement. • We generally use the practicability exception to fair value measurement for all other investments without a readily determinable fair value. When we elect this alternative measurement method, the investment is recorded at cost and the carrying value is adjusted for impairment, if any, plus or minus changes in value resulting from observable price changes in orderly transactions for identical or similar instruments of the same issuer. Adjustments to fair value based on changes in observable price are recorded in Other noninterest income. These investments are written down to fair value if a qualitative assessment indicates impairment and the fair value is less than the carrying value. The amount of the write-down is accounted for as a loss included in Other noninterest income. Distributions received on these investments are included in Noninterest income. Investments described above are included in Equity investments on our Consolidated Balance Sheet. Private Equity Investments We report private equity investments, which include direct investments in companies, affiliated partnership interests and indirect investments in private equity funds, at estimated fair value. These estimates are based on available information and may not necessarily represent amounts that we will ultimately realize through distribution, sale or liquidation of the investments. Fair values of publicly-traded direct investments are determined using quoted market prices and are subject to various discount factors arising from security level restrictions, when appropriate. The valuation procedures applied to direct investments and indirect investments are detailed in Note 15 Fair Value. We include all private equity investments within Equity investments on our Consolidated Balance Sheet. Changes in fair value of private equity investments are recognized in Other noninterest income. We consolidate affiliated partnerships when we have determined that we have control of the partnership or are the primary beneficiary if the entity is a VIE. The portion we do not own is reflected in Noncontrolling interests on our Consolidated Balance Sheet. |
Loans | Loans Loans are classified as held for investment when management has both the intent and ability to hold the loan for the foreseeable future, or until maturity or payoff. Management’s intent and view of the foreseeable future may change based on changes in business strategies, the economic environment, market conditions and the availability of government programs. Measurement of delinquency status is based on the contractual terms of each loan. Loans that are 30 days or more past due in terms of payment are considered delinquent. See Note 4 Loans and Related Allowance for Credit Losses for additional information on how COVID-19 hardship related loan modifications are reported from a delinquency perspective as of December 31, 2022 and 2021. Loans held for investment, excluding PCD loans, are recorded at amortized cost basis unless we elect to measure these under the fair value option. Amortized cost basis represents principal amounts outstanding, net of unearned income, unamortized deferred fees and costs on originated loans, premiums or discounts on purchased loans and charge-offs. Amortized cost basis does not include accrued interest, as we include accrued interest in Other assets on our Consolidated Balance Sheet. Interest on performing loans is accrued based on the principal amount outstanding and recorded in Interest income as earned using the constant effective yield method over the contractual life. Loan origination fees, direct loan origination costs, and loan premiums and discounts are deferred and accreted or amortized into Net interest income using the constant effective yield method, over the contractual life of the loan. The processing fee received for loans originated through PPP lending under the CARES Act is deferred and accreted into Net interest income using the effective yield method, over the contractual life of the loan. Loans under the fair value option are reported at their fair value, with any changes to fair value reported as Noninterest income on the Consolidated Income Statement, and are excluded from measurement of ALLL. In addition to originating loans, we also acquire loans through the secondary loan market, portfolio purchases or acquisitions of other financial services companies. Certain acquired loans that have experienced a more-than-insignificant deterioration of credit quality since origination ( i.e. , PCD) are recognized at an amortized cost basis equal to their purchase price plus an ALLL measured at the acquisition date. PNC considers a variety of factors in connection with the identification of more-than-insignificant deterioration in credit quality, including but not limited to nonperforming status, delinquency, risk ratings, TDR classification and other qualitative factors that indicate deterioration in credit quality since origination. Subsequent decreases in expected cash flows that are attributable, at least in part, to credit quality are recognized through a charge to the provision for credit losses resulting in an increase in the ALLL. Subsequent increases in expected cash flows are recognized as a provision recapture of previously recorded ALLL . We consider a loan to be collateral dependent when we determine that substantially all of the expected cash flows will be generated from the operation or sale of the collateral underlying the loan, or when the borrower is experiencing financial difficulty and we have elected to measure the loan at the estimated fair value of collateral (less costs to sell if sale or foreclosure of the property is expected). Additionally, we consider a loan to be collateral dependent when foreclosure or liquidation of the underlying collateral is probable. A TDR is a loan whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulty. A concession has been granted when we do not expect to collect all amounts due, including original interest accrued at the original contract rate, as a result of the restructuring, or there is a delay in payment that is more-than-insignificant. TDRs result from our loss mitigation activities, and include rate reductions, principal forgiveness, postponement/reduction of scheduled amortization, and extensions, which are intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Additionally, TDRs also result from borrowers that have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to us. In those situations where principal is forgiven, the amount of such principal forgiveness is immediately charged off. Potential incremental losses or recoveries on TDRs have been factored into the ALLL estimates for each loan class under the methodologies described in this Note. Once a loan becomes a TDR, it will continue to be reported as a TDR until it is ultimately repaid in full, the collateral is foreclosed upon or it is fully charged off. PNC excludes loans held for sale, loans accounted for under the fair value option and certain government insured or guaranteed loans from our TDR population. PCD loans do not require additional considerations and thus are evaluated for inclusion in our TDR population. Prior to the expiration of TDR relief on January 1, 2022, PNC elected not to apply a TDR designation to loans that were restructured due to a COVID-19 hardship pursuant to specific criteria under the CARES Act. Since loans restructured due to a COVID-19 related hardship were not identified as TDRs, they were not placed on nonaccrual at the time of modification unless payment in full of principal or interest was not expected. These loans continued to be subject to our existing nonaccrual policy. See the following for additional information related to loans, including further discussion regarding our policies, the methodologies and significant inputs used to determine the ALLL and additional details on the composition of our loan portfolio: • Nonperforming Loans and Leases section of this Note 1, • Allowance for Credit Losses section of this Note 1, and • Note 4 Loans and Related Allowance for Credit Losses. Nonperforming Loans and Leases The matrix that follows summarizes our policies for classifying certain loans as nonperforming loans and/or discontinuing the accrual of loan interest income. Commercial Loans classified as nonperforming and accounted for as nonaccrual • Loans accounted for at amortized cost where: – The loan is 90 days or more past due. – The loan is rated substandard or worse due to the determination that full collection of principal and interest is not probable as demonstrated by the following conditions: • The collection of principal or interest is 90 days or more past due, • Reasonable doubt exists as to the certainty of the borrower’s future debt service ability, according to the terms of the credit arrangement, regardless of whether 90 days have passed or not, • The borrower has filed or will likely file for bankruptcy, • The bank advances additional funds to cover principal or interest, • We are in the process of liquidating a commercial borrower or • We are pursuing remedies under a guarantee. Loans excluded from nonperforming classification but accounted for as nonaccrual • Loans accounted for under the fair value option and full collection of principal and interest is not probable. • Loans accounted for at the lower of cost or market less costs to sell (held for sale) and full collection of principal and interest is not probable. Loans excluded from nonperforming classification and nonaccrual accounting • Loans that are well secured and in the process of collection. • Certain government insured loans where substantially all principal and interest is insured. • Commercial purchasing card assets which do not accrue interest. Consumer Loans classified as nonperforming and accounted for as nonaccrual • Loans accounted for at amortized cost where full collection of contractual principal and interest is not deemed probable as demonstrated in the policies below: – The loan is 90 days past due for home equity and installment loans, and 180 days past due for well secured residential real estate loans, – The loan has been modified and classified as a TDR, – The loan has been modified to defer prior payments in forbearance to the end of the loan term, – Notification of bankruptcy has been received, – The bank holds a subordinate lien position in the loan and the first lien mortgage loan is seriously stressed ( i.e. , 90 days or more past due), – Other loans within the same borrower relationship have been placed on nonaccrual or charge-offs have been taken on them, – The bank has ordered the repossession of non-real estate collateral securing the loan or – The bank has charged-off the loan to the value of the collateral. Loans excluded from nonperforming classification but accounted for as nonaccrual • Loans accounted for under the fair value option and full collection of principal and interest is not probable. • Loans accounted for at the lower of cost or market less costs to sell (held for sale) and full collection of principal and interest is not probable. Loans excluded from nonperforming classification and nonaccrual accounting • Certain government insured loans where substantially all principal and interest is insured. • Residential real estate loans that are well secured and in the process of collection. • Consumer loans and lines of credit, not secured by residential real estate or automobiles, as permitted by regulatory guidance. Commercial We generally charge-off commercial (commercial and industrial, commercial real estate and equipment lease financing) nonperforming loans when we determine that a specific loan, or portion thereof, is uncollectible. This determination is based on the specific facts and circumstances of the individual loans. In making this determination, we consider the viability of the business or project as a going concern, the past due status when the asset is not well-secured, the expected cash flows to repay the loan, the value of the collateral and the ability and willingness of any guarantors to perform. For commercial loans and leases less than a defined dollar threshold, balances are charged-off in full after pre-determined days past due. Consumer We generally charge-off secured consumer (home equity, residential real estate and automobile) nonperforming loans to the fair value of collateral less costs to sell, if lower than the amortized cost basis of the loan outstanding, when delinquency of the loan, combined with other risk factors ( e.g. , bankruptcy, lien position or troubled debt restructuring), indicates that the loan, or some portion thereof, is uncollectible as per our historical experience, or the collateral has been repossessed. We charge-off secured consumer loans no later than 180 days past due. Most consumer loans and lines of credit, not secured by automobiles or residential real estate, are charged-off once they have reached 120-180 days past due. For secured collateral dependent loans, collateral values are updated at least annually and subsequent declines in collateral values are charged-off resulting in incremental provision for credit loss. Subsequent increases in collateral values may be reflected as an adjustment to the ALLL to reflect the expectation of recoveries in an amount greater than previously expected, limited to amounts previously charged-off. Accounting for Nonperforming Assets and Leases and Other Nonaccrual Loans For nonaccrual loans, interest income accrual and deferred fee/cost recognition is discontinued. Additionally, depending on whether the accrued interest has been incorporated into the ACL estimates, as discussed in the Accrued Interest section of this Note 1, the accrued and uncollected interest is either reversed through Net interest income (if a CECL reserve is not maintained for accrued interest) or charged-off against the allowance (if a CECL reserve is maintained for accrued interest), except for credit cards, where we reverse any accrued interest through Net interest income at the time of charge-off, as per industry standard practice. Nonaccrual loans that are also collateral dependent may be charged-off to reduce the basis to the fair value of collateral less costs to sell. If payment is received on a nonaccrual loan, generally the payment is first applied to the remaining principal balance; payments are then applied to recover any charged-off amounts related to the loan. Finally, if both principal balance and any charge-offs have been recovered, then the payment will be recorded as fee and interest income. For certain consumer loans, the receipt of interest payments is recognized as interest income on a cash basis. Cash basis income recognition is applied if a loan’s amortized cost basis is deemed fully collectible and the loan has performed for at least six months. For TDRs, payments are applied based upon their contractual terms unless the related loan is deemed non-performing. TDRs are generally included in nonperforming and nonaccrual loans. However, after a reasonable period of time, generally six months, in which the loan performs under restructured terms and meets other performance indicators, it is returned to performing/accruing status. This return to performing/accruing status demonstrates that the bank expects to collect all of the loan’s remaining contractual principal and interest. TDRs resulting from (i) borrowers that have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to us, and (ii) borrowers that are not currently obligated to make both principal and interest payments under the restructured terms are not returned to accrual status. Other nonaccrual loans are generally not returned to accrual status until the borrower has performed in accordance with the contractual terms and other performance indicators for at least six months, the period of time which was determined to demonstrate the expected collection of the loan’s remaining contractual principal and interest. Nonaccrual loans with partially charged-off principal are not returned to accrual. When a nonperforming loan is returned to accrual status, it is then considered a performing loan. Foreclosed assets consist of any asset seized or property acquired through a foreclosure proceeding or acceptance of a deed-in-lieu of foreclosure. OREO comprises principally commercial and residential real estate properties obtained in partial or total satisfaction of loan obligations. After obtaining a foreclosure judgment, or in some jurisdictions the initiation of proceedings under a power of sale in the loan instruments, the property will be sold. When we are awarded title or completion of deed-in-lieu of foreclosure, we transfer the loan to foreclosed assets included in Other assets on our Consolidated Balance Sheet. Property obtained in satisfaction of a loan is initially recorded at estimated fair value less cost to sell. Based upon the estimated fair value less cost to sell, the amortized cost basis of the loan is adjusted and a charge-off/recovery is recognized to the ALLL. We estimate fair values primarily based on appraisals, or sales agreements with third parties. Subsequently, foreclosed assets are valued at the lower of the amount recorded at acquisition date or estimated fair value less cost to sell. Valuation adjustments on these assets and gains or losses realized from disposition of such property are reflected in Other noninterest expense. For certain mortgage loans that have a government guarantee, we establish a separate other receivable upon foreclosure. The receivable is measured based on the loan balance (inclusive of principal and interest) that is expected to be recovered from the guarantor. See Note 4 Loans and Related Allowance for Credit Losses for additional information on nonperforming assets, TDRs and credit quality indicators related to our loan portfolio. |
Allowance for Credit Losses | Allowance for Credit Losses Our ACL, in accordance with the CECL standard adopted on January 1, 2020, is based on historical loss experience, current borrower risk characteristics, current economic conditions, reasonable and supportable forecasts of future conditions and other relevant factors. We maintain the ACL at an appropriate level for expected losses on our existing investment securities, loans, equipment finance leases, other financial assets and unfunded lending related commitments, for the estimated contractual term of the assets or exposures as of the balance sheet date. The remaining contractual term of assets in scope of CECL is estimated considering contractual maturity dates, prepayment expectations, utilization or draw expectations and any embedded extension options that do not allow us to unilaterally cancel the extension options. For products without a fixed contractual maturity date ( e.g ., credit cards), we rely on historical payment behavior to determine the length of the paydown or default time period. We estimate expected losses on a pooled basis using a combination of (i) the expected losses over a reasonable and supportable forecast period, (ii) a period of reversion to long-run average expected losses where applicable and (iii) the long run average expected losses for the remaining estimated contractual term. For all assets and unfunded lending related commitments in the scope of CECL, the ACL also includes individually assessed reserves and qualitative reserves, as applicable. We use forward-looking information in estimating expected credit losses for our reasonable and supportable forecast period. For this purpose, we use forecasted scenarios produced by PNC’s Economics Team, which are designed to reflect business cycles and their related estimated probabilities. The forecast length that we have determined to be reasonable and supportable is three years. As noted in the methodology discussions that follow, forward-looking information is incorporated into the expected credit loss estimates. Such forward looking information includes forecasted relevant macroeconomic variables, which are estimated using quantitative macroeconomic models, analysis from PNC economists and management judgment. The reversion period is used to bridge our three year reasonable and supportable forecast period and the long run average expected credit losses. We consider a number of factors in determining the duration of the reversion period, such as contractual maturity of the asset, observed historical patterns and the estimated credit loss rates at the end of the forecast period relative to the beginning of the long run average period. The reversion period is typically 1-3 years, if not immediate. The long-run average expected credit losses are derived from long run historical credit loss information adjusted for the credit quality of the current portfolio, and therefore do not consider current and forecasted economic conditions. See the following sections related to investment securities, loans, trade receivables, other financial assets and unfunded lending related commitments for details about specific methodologies. Allowance for Investment Securities A significant portion of our investment securities are issued or guaranteed by either the U.S. government (U.S. Treasury or GNMA) or a government-sponsored agency (FNMA or FHLMC). Taking into consideration historical information and current and forecasted conditions, we do not expect to incur any credit losses on these securities. Investment securities that are not issued or guaranteed by the U.S. government or a government-sponsored agency consist of both securitized products, such as non-agency mortgage and asset-backed securities, as well as non-securitized products, such as corporate and municipal debt securities. A discounted cash flow approach is primarily used to determine the amount of the allowance required. The estimates of expected cash flows are determined using macroeconomic sensitive models taking into consideration the reasonable and supportable forecast period and scenarios discussed above. Additional factors unique to a specific security may also be taken into consideration when estimating expected cash flows. The cash flows expected to be collected, after considering expected prepayments, are discounted at the effective interest rate. For an available-for-sale security, the amount of the allowance is limited to the difference between the amortized cost basis of the security and its estimated fair value. See Note 3 Investment Securities for additional information about the investment securities portfolio. Purchased Credit Deteriorated Loans or Securities The allowance for PCD loans or securities is determined at the time of acquisition (including January 1, 2020 when certain purchased impaired loans were exempted and transitioned to PCD upon adoption of CECL), as the estimated expected credit loss of the outstanding balance or par value, based on the methodologies described previously for loans and securities. In accordance with CECL, the allowance recognized at acquisition is added to the acquisition date purchase price to determine the asset’s amortized cost basis. Allowance for Unfunded Lending Related Commitments We maintain the allowance for unfunded lending related commitments on off-balance sheet credit exposures that are not unconditionally cancelable ( e.g. , unfunded loan commitments, letters of credit and certain financial guarantees), at a level we believe is appropriate as of the balance sheet date to absorb expected credit losses on these exposures. Other than the estimation of the probability of funding, this reserve is estimated in a manner similar to the methodology used for determining reserves for loans and leases. See the Allowance for Loan and Lease Losses section of this Note 1 for the key credit risk characteristics for unfunded lending related commitments. The allowance for unfunded lending related commitments is recorded as a liability on the Consolidated Balance Sheet. Net adjustments to this reserve are included in the provision for credit losses. See Note 4 Loans and Related Allowance for Credit Losses for additional information about this allowance. Allowance for Other Financial Assets We determine the allowance for other financial assets ( e.g. , trade receivables, servicing advances on PNC-owned loans, balances with banks) considering historical loss information and other available indicators. In certain cases where there are no historical, current or forecast indicators of an expected credit loss, we may estimate the reserve to be close to zero. As of December 31, 2022, the allowance for other financial assets was immaterial. |
Allowance for Credit Losses and Loan and Lease Losses | Allowance for Loan and Lease Losses Our pooled expected loss methodology is based upon the quantification of risk parameters, such as PD, LGD and EAD for a loan, loan segment or lease. We also consider the impact of prepayments and amortization on contractual maturity in our expected loss estimates. We use historical credit loss information, current borrower risk characteristics and forecasted economic variables for the reasonable and supportable forecast period, coupled with analytical methods, to estimate these risk parameters by loan, loan segment or lease. PD, LGD and EAD parameters are calculated for each forecasted scenario and the long run average period, and combined to generate expected loss estimates by scenario. The following matrix provides key credit risk characteristics that we use to estimate these risk parameters. Loan Class Probability of Default Loss Given Default Exposure at Default Commercial Commercial and industrial / Equipment lease financing • For wholesale obligors: internal risk ratings based on borrower characteristics and industry • For retail small balance obligors: credit score, delinquency status, and product type • Collateral type, collateral value, industry, size and outstanding exposure for secured loans • Capital structure, industry and size for unsecured loans • For retail small balance obligors, product type and credit scores • Outstanding balances, commitment, contractual maturities and historical prepayment experience for loans • Current utilization and historical pre-default draw experience for lines Commercial real estate • Property performance metrics, property type, market and risk pool for the forecast period • For the long run average period, internal risk ratings based on borrower characteristics • Property values and anticipated liquidation costs • Outstanding balances, commitment, contractual maturities and historical prepayment experience for loans Consumer Home equity / Residential real estate • Borrower credit scores, delinquency status, origination vintage, LTV and contractual maturity • Collateral characteristics, LTV and costs to sell • Outstanding balances, contractual maturities and historical prepayment experience for loans • Current utilization and historical pre-default draw experience for lines Automobile • Borrower credit scores, delinquency status, borrower income, LTV and contractual maturity • New vs. used, LTV and borrower credit scores • Outstanding balances, contractual maturities and historical prepayment experience Credit card • Borrower credit scores, delinquency status, utilization, payment behavior and months on book • Borrower credit scores and credit line amount • Pay-down curves are developed using a pro-rata method and estimated using borrower behavior segments, payment ratios and borrower credit scores Education / Other consumer • Net charge-off and pay-down rates by vintage are used to estimate expected losses in lieu of discrete risk parameters The following matrix describes the key economic variables that are consumed during our forecast period by loan class, as well as other assumptions that are used for our reversion and long run average approaches. Loan Class Forecast Period - Key Economic Variables Reversion Method Long Run Average Commercial Commercial and industrial / Equipment lease financing • GDP and Gross Domestic Investment measures, employment related variables and personal income and consumption measures • Immediate reversion • Average parameters determined based on internal and external historical data • Modeled parameters using long run economic conditions for retail small balance obligors Commercial real estate • CRE Price Index, unemployment rates, GDP, corporate bond yield and interest rates • Immediate reversion • Average parameters determined based on internal and external historical data Consumer Home equity / Residential real estate • Unemployment rates, HPI and interest rates • Straight-line over 3 years • Modeled parameters using long run economic conditions Automobile • Unemployment rates, HPI, personal consumption expenditure and Manheim used car index • Straight-line over 1 year • Average parameters determined based on internal and external historical data Credit card • Unemployment rates, personal consumption expenditure and HPI • Straight-line over 2 years • Modeled parameters using long run economic conditions Education / Other consumer • Net charge-off and pay-down rates by vintage are used to estimate expected losses in lieu of discrete risk parameters After the forecast period, we revert to the long run average over the reversion period noted above, which is the period between the end of the forecast period and when losses are estimated to have completely reverted to the long run average. Once we have developed a combined estimate of credit losses ( i.e. , for the forecast period, reversion period and long run average) under each of the forecasted scenarios, we produce a probability-weighted credit loss estimate by loan class. We then add or deduct any qualitative components and other adjustments, such as individually assessed loans, to produce the ALLL. See the Individually Assessed Component and Qualitative Component discussions that follow in this Note 1 for additional information about those adjustments. Discounted Cash Flow In addition to TDRs, we also use a discounted cash flow methodology for our home equity and residential real estate loan classes. We determine effective interest rates considering contractual cash flows adjusted for estimated prepayments. Changes in the ALLL due to the impact of the passage of time under the discounted cash flow estimate are recognized through the provision for credit losses. Individually Assessed Component Loans and leases that do not share similar risk characteristics with a pool of loans are individually assessed as follows: • For commercial nonperforming loans greater than or equal to a defined dollar threshold, reserves are based on an analysis of the present value of the loan’s expected future cash flows or the fair value of the collateral, if appropriate under our policy for collateral dependent loans. Nonperforming commercial loans below the defined threshold, and accruing TDRs are reserved for under a pooled basis. • For consumer nonperforming loans classified as collateral dependent, charge-off and ALLL related to recovery of amounts previously charged-off are evaluated through an analysis of the fair value of the collateral less costs to sell. Qualitative Component While our reserve methodologies strive to reflect all relevant credit risk factors, there continues to be uncertainty associated with, but not limited to, potential imprecision in the estimation process due to the inherent time lag of obtaining information and normal variations between expected and actual outcomes. We may hold additional reserves that are designed to provide coverage for losses attributable to such risks. The ACL also takes into account factors that may not be directly measured in the determination of individually assessed or pooled reserves. Such qualitative factors may include, but are not limited to: • Industry concentrations and conditions, • Changes in market conditions, including regulatory and legal requirements, • Changes in the nature and volume of our portfolio, • Recent credit quality trends, • Recent loss experience in particular portfolios, including specific and unique events, • Recent macroeconomic factors that may not be reflected in the forecast information, • Limitations of available input data, including historical loss information and recent data such as collateral values, • Model imprecision and limitations, • Changes in lending policies and procedures, including changes in loss recognition and mitigation policies and procedures, • Timing of available information. See Note 4 Loans and Related Allowance for Credit Losses for additional information about our loan portfolio and the related allowance. |
Accrued Interest | Accrued Interest When accrued interest is reversed or charged-off in a timely manner, the CECL standard provides a practical expedient to exclude accrued interest from ACL measurement. We consider our nonaccrual and charge-off policies to be timely for all of our investment securities, loans and leases, with the exception of consumer credit cards, education loans and certain unsecured consumer lines of credit. We consider the length of time before nonaccrual/charge-off and the use of appropriate other triggering events for nonaccrual and charge-offs in making this determination. Pursuant to these policy elections, we calculate reserves for accrued interest on credit cards, education loans and certain unsecured consumer lines of credit, which are then included within the ALLL. See the Debt Securities and Nonperforming Loans and Leases sections of this Note 1 for additional information on our nonaccrual and charge-off policies. Additionally, pursuant to our use of a discounted cash flow methodology in estimating credit losses for our home equity and residential real estate loan classes, applicable reserves for accrued interest are also included within the ALLL for these loan classes . |
Loans Held For Sale | Loans Held for Sale We designate loans as held for sale when we have the intent and ability to sell them. At the time of designation to held for sale, any ACL is reversed, and a valuation allowance for the shortfall between the amortized cost basis and the net realizable value is recognized, excluding the amounts already charged off. Similarly, when loans are no longer considered held for sale, the valuation allowance (net of writedowns) is reversed, and an allowance for credit losses is established, excluding the amounts already charged-off. Write-downs on these loans (if required) are recorded as charge-offs through the valuation allowance. Adjustments to the valuation allowance on held for sale loans are recognized in Other noninterest income. We have elected to account for certain commercial and residential mortgage loans held for sale at fair value. The changes in the fair value of commercial and residential mortgage loans are measured and recorded within Residential and Commercial mortgage within Noninterest Income each period. See Note 15 Fair Value for additional information. Interest income with respect to loans held for sale is accrued based on the principal amount outstanding and the loan’s contractual interest rate. In certain circumstances, loans designated as held for sale may be transferred to held for investment based on a change in strategy. We transfer these loans at the lower of cost or estimated fair value; however, any loans originated or purchased for the held for sale portfolio and for which the fair value option has been elected remain at fair value for the life of the loan. |
Loan Sales, Loan Securitizations And Retained Interests | Loan Sales, Loan Securitizations and Retained Interests We recognize the sale of loans or other financial assets when the transferred assets are legally isolated from our creditors and the appropriate accounting criteria are met. We have sold mortgage and other loans through securitization transactions. In a securitization, financial assets are transferred into trusts or to SPEs in transactions to effectively legally isolate the assets from us. In a securitization, the trust or SPE issues beneficial interests in the form of senior and subordinated securities backed or collateralized by the assets sold to the trust. The senior classes of the asset-backed securities typically receive investment grade credit ratings at the time of issuance. These ratings are generally achieved through the creation of lower-rated subordinated classes of asset-backed securities, as well as subordinated or residual interests. In certain cases, we may retain a portion or all of the securities issued, interest-only strips, one or more subordinated tranches, servicing rights and, in some cases, cash reserve accounts. Securitized loans are removed from the balance sheet and a net gain or loss is recognized in Noninterest income at the time of initial sale. Gains or losses recognized on the sale of the loans depend on the fair value of the loans sold and the retained interests at the date of sale. We generally estimate the fair value of the retained interests based on the present value of future expected cash flows using assumptions as to discount rates, interest rates, prepayment speeds, credit losses and servicing costs, if applicable. With the exception of loan sales to certain U.S. government-chartered entities, our loan sales and securitizations are generally structured without recourse to us except for representations and warranties and with no restrictions on the retained interests. We originate, sell and service commercial mortgage loans under the FNMA DUS program. Under the provisions of the DUS program, we participate in a loss-sharing arrangement with FNMA. When we are obligated for loss-sharing or recourse, our policy is to record such liabilities initially at fair value and subsequently reserve for estimated losses in accordance with guidance contained in applicable GAAP. |
Variable Interest Entities | Variable Interest Entities A VIE is a corporation, partnership, limited liability company, or any other legal structure used to conduct activities or hold assets generally that either: • Does not have equity investors with voting rights that can directly or indirectly make decisions about the entity’s most significant economic activities through those voting rights or similar rights, or • Has equity investors that do not provide sufficient equity for the entity to finance its activities without additional subordinated financial support. A VIE often holds financial assets, including loans or receivables, real estate or other property. VIEs are assessed for consolidation under ASC 810 – Consolidation when we hold a variable interest in these entities. We consolidate a VIE if we are its primary beneficiary. The primary beneficiary of a VIE is determined to be the party that meets both of the following criteria: (i) has the power to make decisions that most significantly affect the economic performance of the VIE; and (ii) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Upon consolidation of a VIE, we recognize all of the VIE’s assets, liabilities and noncontrolling interests on our Consolidated Balance Sheet. On a quarterly basis, we determine whether any changes occurred requiring a reassessment of whether we are the primary beneficiary of an entity. See Note 5 Loan Sale and Servicing Activities and Variable Interest Entities for information about VIEs that we consolidate as well as those that we do not consolidate but in which we hold a significant variable interest. |
Mortgage Servicing Rights | Mortgage Servicing Rights We provide servicing under various loan servicing contracts for commercial and residential loans. These contracts are either purchased in the open market or retained as part of a loan securitization or loan sale. All acquired or originated servicing rights are measured at fair value. Fair value is based on the present value of the expected future net cash flows, including assumptions as to: • Deposit balances and interest rates for escrow and commercial reserve earnings, • Discount rates, • Estimated prepayment speeds, and • Estimated servicing costs. |
Goodwill | Goodwill Goodwill arising from business acquisitions represents the value attributable to unidentifiable intangible elements in the business acquired. At least annually, in the fourth quarter, or more frequently if events occur or circumstances have changed significantly from the annual test date, management performs the goodwill impairment test at a reporting unit level. |
Lessor Arrangements | Lessor ArrangementsWe provide financing for various types of equipment, including aircraft, energy and power systems and vehicles through a variety of lease arrangements. Finance leases are carried at the aggregate of lease payments plus estimated residual value of the leased equipment, less unearned income. Leveraged leases, a form of financing leases, are carried net of nonrecourse debt. We recognize income over the term of the lease using the constant effective yield method. Lease residual values are reviewed for impairment at least annually. Gains or losses on the sale of leased assets are included in Other noninterest income. Valuation adjustments on operating lease residuals are included in Other noninterest expense while valuation adjustments on the net investment of a direct financing or sales-type lease are included in Provision for credit losses. |
Lessee Arrangements | Lessee Arrangements We lease retail branches, datacenters, office space, land and equipment under operating and finance leases. Under ASC 842, we elected the practical expedient to account for the lease and nonlease components of real estate leases and leases of advertising assets, such as signage, as a single lease component. For other leased asset classes, lease and nonlease components of new lease agreements are accounted for separately. In addition, we elected the practical expedient to not apply the recognition requirements under the standard to short-term leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet, as we recognize lease expense for these leases on a straight-line basis over the lease term. Generally, we have elected to use the Overnight Indexed Swap rate corresponding to the term of the lease at the lease measurement date as our incremental borrowing rate to measure the right-of-use-asset and lease liability. |
Depreciation and Amortization | Depreciation and Amortization For financial reporting purposes, we depreciate premises and equipment, net of salvage value, principally using the straight-line method over their estimated useful lives. We use estimated useful lives for furniture and equipment ranging from one We purchase, as well as internally develop and customize, certain software to enhance or perform internal business functions. Software development costs incurred in the planning and post-development project stages are charged to Noninterest expense. Costs associated with designing software configuration and interfaces, installation, coding programs and testing systems are capitalized and amortized using the straight-line method over periods ranging from one |
Other Comprehensive Income | Other Comprehensive Income Other comprehensive income, on an after-tax basis, primarily consists of unrealized gains or losses on available for sale debt securities, unrealized gains or losses on derivatives designated as cash flow hedges, and changes in plan assets and benefit obligations of pension and other postretirement benefit plans. Details of each component are included in Note 13 Other Comprehensive Income. |
Treasury Stock | Treasury Stock We record common stock purchased for treasury at cost. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on the first-in, first-out basis. |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share is calculated using the two-class method to determine income attributable to common shareholders. Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are considered participating securities under the two-class method. Distributed dividends and dividend equivalents related to participating securities and an allocation of undistributed net income to participating securities reduce the amount of income attributable to common shareholders. In a period with a loss, no allocation will be made to the participating securities, as they do not have a contractual obligation to absorb losses. Income attributable to common shareholders is then divided by the weighted-average common shares outstanding for the period. Diluted earnings per common share is calculated under the more dilutive of either the treasury method or the two-class method. For the diluted calculation, we increase the weighted-average number of shares of common stock outstanding by the assumed conversion of outstanding convertible preferred stock from the beginning of the year or date of issuance, if later, and the number of shares of common stock that would be issued assuming the exercise of stock options and warrants and the issuance of incentive shares using the treasury stock method. These adjustments to the weighted-average number of shares of common stock outstanding are made only when such adjustments will dilute earnings per common share. For periods in which there is a loss from continuing operations, any potential dilutive shares will be anti-dilutive. In this scenario, no potential dilutive shares will be included in the continuing operations, discontinued operations or total earnings per common share calculations, even if overall net income is reported. See Note 14 Earnings Per Share for additional information. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of financial instruments and the methods and assumptions used in estimating fair value amounts and financial assets and liabilities for which fair value was elected are detailed in Note 15 Fair Value. |
Derivatives Instruments and Hedging Activities | Derivative Instruments and Hedging Activities We use a variety of financial derivatives to both mitigate exposure to market (primarily interest rate) and credit risks inherent in our business activities, as well as to facilitate customer risk management activities. We manage these risks as part of our asset and liability management process and through credit policies and procedures. We recognize all derivative instruments at fair value as either Other assets or Other liabilities on the Consolidated Balance Sheet and the related cash flows in the Operating Activities section of the Consolidated Statement of Cash Flows. Adjustments for counterparty credit risk are included in the determination of fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a cash flow or net investment hedging relationship. For all other derivatives, changes in fair value are recognized in earnings. We utilize a net presentation for derivative instruments on the Consolidated Balance Sheet taking into consideration the effects of legally enforceable master netting agreements. Cash collateral exchanged with counterparties is also netted against the applicable derivative exposures by offsetting obligations to return, or general rights to reclaim, cash collateral against the fair values of the net derivatives being collateralized. For those derivative instruments that are designated and qualify as accounting hedges, we designate the hedging instrument, based on the exposure being hedged, as a fair value hedge, a cash flow hedge or a hedge of the net investment in a foreign operation. We formally document the relationship between the hedging instruments and hedged items, as well as the risk management objective and strategy, before undertaking an accounting hedge. To qualify for hedge accounting, the derivatives and related hedged items must be designated as a hedge at inception of the hedge relationship. In addition, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. For accounting hedge relationships, we formally assess, both at the inception of the hedge and on an ongoing basis, if the derivatives are highly effective in offsetting designated changes in the fair value or cash flows of the hedged item. If it is determined that the derivative instrument is not highly effective, hedge accounting is discontinued. We assess effectiveness using statistical regression analysis. Where the critical terms of the derivative and hedged item match, effectiveness may be assessed qualitatively. For derivatives that are designated as fair value hedges ( i.e ., hedging the exposure to changes in the fair value of an asset or a liability attributable to a particular risk, such as changes in benchmark interest rates), changes in the fair value of the hedging instrument are recognized in earnings and offset by also recognizing in earnings the changes in the fair value of the hedged item attributable to the hedged risk. To the extent the change in fair value of the derivative does not offset the change in fair value of the hedged item, the difference is reflected in the Consolidated Income Statement in the same income statement line as the hedged item. For derivatives designated as cash flow hedges ( i.e ., hedging the exposure to variability in expected future cash flows), the gain or loss on derivatives is reported as a component of AOCI and subsequently reclassified to income in the same period or periods during which the hedged cash flows affect earnings and recorded in the same income statement line item as the hedged cash flows. For derivatives designated as a hedge of net investment in a foreign operation, the gain or loss on the derivatives is reported as a component of AOCI. We discontinue hedge accounting when it is determined that the derivative no longer qualifies as an effective hedge; the derivative expires or is sold, terminated or exercised; or the derivative is de-designated as a fair value or cash flow hedge or, for a cash flow hedge, it is no longer probable that the forecasted transaction will occur by the end of the originally specified time period. We purchase or originate financial instruments that contain an embedded derivative. For financial instruments not measured at fair value with changes in fair value reported in earnings, we assess, at inception of the transaction, if the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the host contract, and whether a separate instrument with the same terms as the embedded derivative would be a derivative. If the embedded derivative is not clearly and closely related to the host contract and meets the definition of a derivative, the embedded derivative is recorded separately from the host contract with changes in fair value recorded in earnings, unless we elect to account for the hybrid instrument at fair value. We enter into commitments to originate residential and commercial mortgage loans for sale. We also enter into commitments to purchase or sell commercial and residential real estate loans. These commitments are accounted for as free-standing derivatives which are recorded at fair value in Other assets or Other liabilities on the Consolidated Balance Sheet. Any gain or loss from the change in fair value after the inception of the commitment is recognized in Noninterest income. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that we expect will apply at the time when we believe the differences will reverse. Changes in tax rates and tax law are accounted for in the period of enactment. Thus, at the enactment date, deferred taxes are remeasured and the change is recognized in Income Tax expense. The recognition of deferred tax assets requires an assessment to determine the realization of such assets. Realization refers to the incremental benefit achieved through the reduction in future taxes payable or refunds receivable from the deferred tax assets, assuming that the underlying deductible differences and carryforwards are the last items to enter into the determination of future taxable income. We establish a valuation allowance for tax assets when it is more likely than not that they will not be realized, based upon all available positive and negative evidence. We use the proportional amortization method for LIHTC investments, whereby the associated investment tax credits are recognized as a reduction to tax expense. We use the deferral method of accounting for all other tax credit investments. Under this method, the investment tax credits are recognized as a reduction to the related asset. |
Discontinued Operations | Discontinued Operations A disposal of an asset or business that meets the criteria for held for sale classification is reported as discontinued operations when the disposal represents a strategic shift that has had, or will have a major effect on our operating results. We report an asset as held for sale when management has approved or received approval to sell the asset and is committed to a formal plan, the asset is available for immediate sale, the asset is being actively marketed, the sale is anticipated to occur during the ensuing year and certain other specified criteria are met. An asset classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the asset exceeds its estimated fair value, the asset is written down to its fair value upon the held for sale designation. When presenting discontinued operations, assets classified as held for sale are segregated in the Consolidated Balance Sheet commencing in the period in which the asset meets all of the held for sale criteria described above and prior periods are recast. The results of discontinued operations are reported in discontinued operations in the Consolidated Income Statement for current and prior periods commencing in the period in which the asset or business is either disposed of or is classified as held for sale, including any gain or loss recognized on the sale or adjustment of the carrying amount to fair value less cost to sell. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Accounting Standards Update Description Financial Statement Impact Reference Rate Reform - ASU 2020-04 Issued March 2020 Reference Rate Reform Scope - ASU 2021-01 Issued January 2021 Reference Rate Reform Deferral of Sunset Date – ASU 2022-06 Issued December 2022 • Provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform (codified in ASC 848). • Includes optional expedients related to contract modifications that allow an entity to account for modifications (if certain criteria are met) as if the modifications were only minor (assets within the scope of ASC 310, Receivables ), were not substantial (assets within the scope of ASC 470, Debt ) and/or did not result in remeasurements or reclassifications (assets within the scope of ASC 842, Leases , and other Topics) of the existing contract. • Includes optional expedients related to hedging relationships within the scope of ASC 815, Derivatives & Hedging , whereby changes to the critical terms of a hedging relationship do not require dedesignation if certain criteria are met. In addition, potential sources of ineffectiveness as a result of reference rate reform may be disregarded when performing some effectiveness assessments. • Includes optional expedients and exceptions for contract modifications and hedge accounting that apply to derivative instruments impacted by the market-wide discounting transition. • Guidance in these ASUs are effective as of March 12, 2020 through December 31, 2024. • ASU 2020-04 was adopted March 12, 2020. ASU 2021-01 was retrospectively adopted October 1, 2020. ASU 2022-06 was adopted upon issuance. • During the fourth quarter of 2020, we elected to apply certain optional expedients for contract modifications and hedging relationships to derivative instruments impacted by the market-wide discounting transition. These optional expedients remove the requirement to remeasure contract modifications or dedesignate hedging relationships due to reference rate reform. The elections made in the fourth quarter of 2020 apply only to derivative instruments impacted by the market-wide discounting transition, not all derivative instruments. • During the first quarter of 2021, we elected to apply certain optional expedients to derivative instruments that were modified in the first quarter due to the adoption of fallback language recommended by the ISDA to address the anticipated cessation of LIBOR. These optional expedients remove the requirement to remeasure contract modifications or dedesignate hedging relationships due to reference rate reform. • During the fourth quarter of 2021, we elected to apply certain optional expedients for contract modifications to receivables modified in the fourth quarter due to the cessation of 1-week and 2-month USD LIBOR tenors and non-USD Interbank Offered Rates. These optional expedients remove the requirement to assess whether the contract modification was more-than-minor in accordance with ASC 310. We also elected to apply certain optional expedients related to assessing hedge effectiveness to our cash flow hedge relationships affected by reference rate reform. • We did not make any additional elections for 2022. We expect to continue to elect various optional expedients for contract modifications and hedge relationships affected by reference rate reform through the effective date of this guidance. Accounting Standards Update Description Financial Statement Impact Portfolio Layer Hedging - ASU 2022-01 Issued March 2022 • Required effective date of January 1, 2023; early adoption is permitted. • Permits entities to expand their use of the portfolio layer method (previously the last-of-layer method) for fair value hedges of interest rate risk. • Expands the scope to allow nonprepayable financial assets to be included in a closed portfolio hedge using the portfolio layer method. • Allows multiple hedged layers to be designated for a single closed portfolio of financial assets or one or more beneficial interests secured by a portfolio of financial instruments. • Provides additional guidance on accounting for fair value hedge basis adjustments associated with portfolio layer hedges, generally requiring these adjustments to be maintained at the closed portfolio level and clarifying how these amounts should be disclosed. • Requires a prospective transition approach for designation of multiple hedged layers of a single closed portfolio, a modified retrospective transition approach for hedge basis adjustments under the portfolio layer method, and the option of a prospective or retrospective transition approach for disclosures. • Allows for an election to transfer debt securities classified as held to maturity to available for sale if the portfolio layer hedging method is applied to those securities; the election must be made within 30 days of adoption. Subsequent event • We adopted ASU 2022-01 on January 1, 2023. The adoption of this guidance had no impact on our consolidated results of operations or our consolidated financial position, as we had no existing hedge relationships impacted by the ASU as of the adoption date. The guidance will be applied prospectively to any new portfolio layer method hedging relationships entered into subsequent to January 1, 2023. Accounting Standards Update Description Financial Statement Impact Troubled Debt Restructurings and Vintage Disclosures - ASU 2022-02 Issued March 2022 • Required effective date of January 1, 2023; early adoption is permitted. • Eliminates the accounting guidance for TDRs and requires an entity to apply the loan refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan. • Eliminates the requirement to use a discounted cash flow approach to measure the allowance for credit losses for TDRs. • Enhances disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. • Requires disclosure of current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of CECL. • Requires a prospective transition approach to all amendments except those related to the recognition and measurement of TDRs (which allow a modified retrospective transition approach through a cumulative-effect adjustment to retained earnings in the period of adoption). Subsequent event • We adopted ASU 2022-02 on January 1, 2023 using a modified retrospective transition approach for the amendments related to the recognition and measurement of TDRs. • This standard will not materially impact our consolidated results of operations or our consolidated financial position. The amendments require changes to disclosures on information related to loan modifications to borrowers experiencing financial difficulty and current-period gross charge-offs. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Accounting Standards Update Description Financial Statement Impact Reference Rate Reform - ASU 2020-04 Issued March 2020 Reference Rate Reform Scope - ASU 2021-01 Issued January 2021 Reference Rate Reform Deferral of Sunset Date – ASU 2022-06 Issued December 2022 • Provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform (codified in ASC 848). • Includes optional expedients related to contract modifications that allow an entity to account for modifications (if certain criteria are met) as if the modifications were only minor (assets within the scope of ASC 310, Receivables ), were not substantial (assets within the scope of ASC 470, Debt ) and/or did not result in remeasurements or reclassifications (assets within the scope of ASC 842, Leases , and other Topics) of the existing contract. • Includes optional expedients related to hedging relationships within the scope of ASC 815, Derivatives & Hedging , whereby changes to the critical terms of a hedging relationship do not require dedesignation if certain criteria are met. In addition, potential sources of ineffectiveness as a result of reference rate reform may be disregarded when performing some effectiveness assessments. • Includes optional expedients and exceptions for contract modifications and hedge accounting that apply to derivative instruments impacted by the market-wide discounting transition. • Guidance in these ASUs are effective as of March 12, 2020 through December 31, 2024. • ASU 2020-04 was adopted March 12, 2020. ASU 2021-01 was retrospectively adopted October 1, 2020. ASU 2022-06 was adopted upon issuance. • During the fourth quarter of 2020, we elected to apply certain optional expedients for contract modifications and hedging relationships to derivative instruments impacted by the market-wide discounting transition. These optional expedients remove the requirement to remeasure contract modifications or dedesignate hedging relationships due to reference rate reform. The elections made in the fourth quarter of 2020 apply only to derivative instruments impacted by the market-wide discounting transition, not all derivative instruments. • During the first quarter of 2021, we elected to apply certain optional expedients to derivative instruments that were modified in the first quarter due to the adoption of fallback language recommended by the ISDA to address the anticipated cessation of LIBOR. These optional expedients remove the requirement to remeasure contract modifications or dedesignate hedging relationships due to reference rate reform. • During the fourth quarter of 2021, we elected to apply certain optional expedients for contract modifications to receivables modified in the fourth quarter due to the cessation of 1-week and 2-month USD LIBOR tenors and non-USD Interbank Offered Rates. These optional expedients remove the requirement to assess whether the contract modification was more-than-minor in accordance with ASC 310. We also elected to apply certain optional expedients related to assessing hedge effectiveness to our cash flow hedge relationships affected by reference rate reform. • We did not make any additional elections for 2022. We expect to continue to elect various optional expedients for contract modifications and hedge relationships affected by reference rate reform through the effective date of this guidance. Accounting Standards Update Description Financial Statement Impact Portfolio Layer Hedging - ASU 2022-01 Issued March 2022 • Required effective date of January 1, 2023; early adoption is permitted. • Permits entities to expand their use of the portfolio layer method (previously the last-of-layer method) for fair value hedges of interest rate risk. • Expands the scope to allow nonprepayable financial assets to be included in a closed portfolio hedge using the portfolio layer method. • Allows multiple hedged layers to be designated for a single closed portfolio of financial assets or one or more beneficial interests secured by a portfolio of financial instruments. • Provides additional guidance on accounting for fair value hedge basis adjustments associated with portfolio layer hedges, generally requiring these adjustments to be maintained at the closed portfolio level and clarifying how these amounts should be disclosed. • Requires a prospective transition approach for designation of multiple hedged layers of a single closed portfolio, a modified retrospective transition approach for hedge basis adjustments under the portfolio layer method, and the option of a prospective or retrospective transition approach for disclosures. • Allows for an election to transfer debt securities classified as held to maturity to available for sale if the portfolio layer hedging method is applied to those securities; the election must be made within 30 days of adoption. Subsequent event • We adopted ASU 2022-01 on January 1, 2023. The adoption of this guidance had no impact on our consolidated results of operations or our consolidated financial position, as we had no existing hedge relationships impacted by the ASU as of the adoption date. The guidance will be applied prospectively to any new portfolio layer method hedging relationships entered into subsequent to January 1, 2023. Accounting Standards Update Description Financial Statement Impact Troubled Debt Restructurings and Vintage Disclosures - ASU 2022-02 Issued March 2022 • Required effective date of January 1, 2023; early adoption is permitted. • Eliminates the accounting guidance for TDRs and requires an entity to apply the loan refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan. • Eliminates the requirement to use a discounted cash flow approach to measure the allowance for credit losses for TDRs. • Enhances disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. • Requires disclosure of current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of CECL. • Requires a prospective transition approach to all amendments except those related to the recognition and measurement of TDRs (which allow a modified retrospective transition approach through a cumulative-effect adjustment to retained earnings in the period of adoption). Subsequent event • We adopted ASU 2022-02 on January 1, 2023 using a modified retrospective transition approach for the amendments related to the recognition and measurement of TDRs. • This standard will not materially impact our consolidated results of operations or our consolidated financial position. The amendments require changes to disclosures on information related to loan modifications to borrowers experiencing financial difficulty and current-period gross charge-offs. |
Acquisition and Divestiture A_2
Acquisition and Divestiture Activity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisition Consideration | Table 39: Acquisition Consideration June 1, 2021 In millions Fair Value Fair value of acquisition consideration $ 11,480 Assets Cash and due from banks $ 969 Interest-earning deposits with banks 13,313 Loans held for sale 463 Investment securities – available for sale 18,358 Net loans 61,423 Equity investments 723 Mortgage servicing rights 35 Core deposit intangibles and other intangible assets 378 Other 3,527 Total assets $ 99,189 Liabilities Deposits $ 85,562 Borrowed funds 2,449 Accrued expenses and other liabilities 1,275 Total liabilities $ 89,286 Noncontrolling interests 22 Less: Net assets $ 9,881 Goodwill $ 1,599 |
Fair Value and Unpaid Principal Balance of Loans Acquired | The following table includes the fair value and unpaid principal balance of the loans from the BBVA acquisition: Table 40: Fair Value and Unpaid Principal Balance of Loans from the BBVA Acquisition June 1, 2021 In millions Unpaid Principal Balance Fair Value Loans Commercial Commercial and industrial $ 29,864 $ 29,381 Commercial real estate 10,632 10,313 Equipment lease financing 48 48 Total commercial 40,544 39,742 Consumer Residential real estate 12,871 12,961 Home equity 2,430 2,423 Automobile 3,916 3,910 Credit card 820 758 Other consumer 1,688 1,629 Total consumer 21,725 21,681 Total $ 62,269 $ 61,423 |
Intangible Assets | Other intangible assets from the BBVA acquisition as of June 1, 2021 consisted of the following: Table 41: Intangible Assets In millions Fair Value Weighted Life Amortization Method Residential mortgage servicing rights $ 35 5.5 (a) Core deposits $ 262 10.0 Accelerated Other 116 9.8 Straight-line Total core deposits and other $ 378 (a) Intangible asset accounted for at fair value. |
BBVA Financial Results | The following table presents financial results of BBVA from the date of acquisition through September 30, 2021. BBVA information was fully integrated into PNC’s processes and systems during system conversion in the fourth quarter of 2021 and as a result standalone BBVA financial results were no longer available. Table 42: BBVA Financial Results In millions Four months ended September 30, 2021 Net interest income $ 768 Noninterest income $ 285 Net income $ 378 |
Unaudited Pro Forma Results | Table 43: Unaudited Pro Forma Results Year ended December 31 In millions 2021 2020 Net interest income $ 11,662 $ 12,413 Noninterest income $ 8,960 $ 7,866 Net income $ 7,475 $ 4,928 |
PCD Loan Activity | Table 44: PCD Loan Activity June 1, 2021 In millions Principal balance $ 10,253 ACL at acquisition (1,102) Non-credit premium 219 Purchase price $ 9,370 |
Consolidated Income Statement - Discontinued Operations | The following table summarizes the results from the discontinued operations of BlackRock included in the Consolidated Income Statement: Table 45: Consolidated Income Statement - Discontinued Operations Year ended December 31 In millions 2020 Noninterest income $ 5,777 Total revenue 5,777 Income from discontinued operations before income taxes 5,777 Income taxes 1,222 Net income from discontinued operations $ 4,555 |
Consolidated Statement of Cash Flows - Discontinued Operations | The following table summarizes the cash flows of discontinued operations of BlackRock included in the Consolidated Statement of Cash Flows: Table 46: Consolidated Statement of Cash Flows - Discontinued Operations Year ended December 31 In millions 2020 Cash flows from discontinued operations Net cash provided (used) by operating activities of discontinued operations $ (2,683) Net cash provided by investing activities of discontinued operations $ 14,225 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities Summary | The following table summarizes our available for sale and held to maturity portfolios by major security type: Table 47: Investment Securities Summary (a)(b) December 31, 2022 December 31, 2021 In millions Amortized Unrealized Fair Amortized Unrealized Fair Gains Losses Gains Losses Securities Available for Sale U.S. Treasury and government agencies $ 9,196 $ 10 $ (836) $ 8,370 $ 46,210 $ 324 $ (370) $ 46,164 Residential mortgage-backed Agency 32,114 13 (3,304) 28,823 67,326 695 (389) 67,632 Non-agency 697 131 (9) 819 927 231 1,158 Commercial mortgage-backed Agency 1,845 (170) 1,675 1,740 39 (6) 1,773 Non-agency 1,325 (69) 1,256 3,423 31 (18) 3,436 Asset-backed 103 27 (1) 129 6,380 60 (31) 6,409 Other 3,288 44 (245) 3,087 4,792 186 (14) 4,964 Total securities available for sale $ 48,568 $ 225 $ (4,634) $ 44,159 $ 130,798 $ 1,566 $ (828) $ 131,536 Securities Held to Maturity U.S. Treasury and government agencies $ 36,571 $ 6 $ (1,617) $ 34,960 $ 814 $ 76 $ 890 Residential mortgage-backed Agency 45,271 74 (3,095) 42,250 Non-agency 276 (21) 255 Commercial mortgage-backed Agency 848 4 (26) 826 Non-agency 1,667 (40) 1,627 Asset-backed 7,188 6 (140) 7,054 Other 3,354 25 (72) 3,307 612 27 $ (7) 632 Total securities held to maturity (d) $ 95,175 $ 115 $ (5,011) $ 90,279 $ 1,426 $ 103 $ (7) $ 1,522 (a) At December 31, 2022, the accrued interest associated with our held to maturity and available for sale portfolios totaled $282 million and $144 million, respectively. The comparable amounts at December 31, 2021 were $5 million and $322 million, respectively. These amounts are included in Other assets (b) Credit ratings represent a primary credit quality indicator used to monitor and manage credit risk. Of our total securities portfolio, 97% and 96% were rated AAA/AA as of December 31, 2022 and 2021, respectively. (c) Amortized cost is presented net of allowance of $142 million and is primarily related to non-agency commercial mortgage-backed securities for securities available for sale and $7 million for securities held to maturity at December 31, 2022. The comparable amounts at December 31, 2021 were $130 million and $3 million, respectively. |
Gross Unrealized Loss and Fair Value of Securities Available for Sale Without an Allowance for Credit Losses | Table 48: Gross Unrealized Loss and Fair Value of Securities Available for Sale Without an Allowance for Credit Losses Unrealized loss position Unrealized loss position Total In millions Unrealized Fair Unrealized Fair Unrealized Fair December 31, 2022 U.S. Treasury and government agencies $ (601) $ 5,868 $ (235) $ 2,208 $ (836) $ 8,076 Residential mortgage-backed Agency (1,744) 19,036 (1,560) 8,971 (3,304) 28,007 Non-agency (6) 112 (2) 17 (8) 129 Commercial mortgage-backed Agency (125) 1,283 (45) 372 (170) 1,655 Non-agency (44) 750 (18) 394 (62) 1,144 Asset-backed (1) 5 (1) 5 Other (96) 1,418 (112) 1,144 (208) 2,562 Total securities available for sale $ (2,616) $ 28,467 $ (1,973) $ 13,111 $ (4,589) $ 41,578 December 31, 2021 U.S. Treasury and government agencies $ (370) $ 32,600 $ (370) $ 32,600 Residential mortgage-backed Agency (369) 41,521 $ (20) $ 1,489 (389) 43,010 Commercial mortgage-backed Agency (5) 451 (1) 60 (6) 511 Non-agency (4) 1,453 (3) 474 (7) 1,927 Asset-backed (29) 3,465 (2) 188 (31) 3,653 Other (13) 1,405 (13) 1,405 Total securities available for sale $ (790) $ 80,895 $ (26) $ 2,211 $ (816) $ 83,106 |
Gains (losses) on Sales Of Securities Available for Sale | Information related to gross realized securities gains and losses from the sales of securities is set forth in the following table: Table 49: Gains (Losses) on Sales of Securities Available for Sale Year ended December 31 Gross Gains Gross Losses Net Gains (Losses) Tax Expense (Benefit) 2022 $ 11 $ (18) $ (7) $ (1) 2021 $ 360 $ (296) $ 64 $ 13 2020 $ 307 $ (2) $ 305 $ 64 |
Contractual Maturity of Securities | The following table presents, by remaining contractual maturity, the amortized cost, fair value and weighted-average yield of debt securities at December 31, 2022: Table 50: Contractual Maturity of Debt Securities December 31, 2022 1 Year or After 1 Year After 5 Years After 10 Total Dollars in millions Securities Available for Sale U.S. Treasury and government agencies $ 2,121 $ 2,958 $ 2,101 $ 2,016 $ 9,196 Residential mortgage-backed Agency 2 75 3,304 28,733 32,114 Non-agency 7 690 697 Commercial mortgage-backed Agency 66 410 1,075 294 1,845 Non-agency 120 264 941 1,325 Asset-backed 10 93 103 Other 128 2,309 695 156 3,288 Total securities available for sale at amortized cost $ 2,317 $ 5,872 $ 7,456 $ 32,923 $ 48,568 Fair value $ 2,296 $ 5,505 $ 6,762 $ 29,596 $ 44,159 Weighted-average yield, GAAP basis (a) 2.39 % 1.81 % 2.27 % 2.87 % 2.63 % Securities Held to Maturity U.S. Treasury and government agencies $ 862 $ 27,076 $ 7,831 $ 802 $ 36,571 Residential mortgage-backed Agency 8 283 44,980 45,271 Non-agency 276 276 Commercial mortgage-backed Agency 584 264 848 Non-agency 114 1,553 1,667 Asset-backed 253 2,134 2,117 2,684 7,188 Other 159 1,169 579 1,447 3,354 Total securities held to maturity at amortized cost $ 1,274 $ 30,501 $ 11,394 $ 52,006 $ 95,175 Fair value $ 1,264 $ 29,439 $ 10,799 $ 48,777 $ 90,279 Weighted-average yield, GAAP basis (a) 2.31 % 1.35 % 2.41 % 2.86 % 2.31 % (a) Weighted-average yields are based on amortized cost with effective yields weighted for the contractual maturity of each security. Actual maturities and yields may differ as certain securities may be prepaid. |
Fair Value of Securities Pledged and Accepted as Collateral | The following table presents the fair value of securities that have been either pledged to or accepted from others to collateralize outstanding borrowings: Table 51: Fair Value of Securities Pledged and Accepted as Collateral In millions December 31 December 31 Pledged to others $ 24,708 $ 27,349 Accepted from others: Permitted by contract or custom to sell or repledge $ 1,266 $ 707 Permitted amount repledged to others $ 1,266 $ 707 |
Loans and Related Allowance f_2
Loans and Related Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Asset Quality [Abstract] | |
Summary Of The Classification Of Portfolio Segments | Commercial Consumer • Commercial and industrial • Residential real estate • Commercial real estate • Home equity • Equipment lease financing • Automobile • Credit card • Education • Other consumer |
Analysis of Loan Portfolio | Table 52: Analysis of Loan Portfolio (a) (b) Accruing Dollars in millions Current or Less 30-59 60-89 90 Days Total Nonperforming Fair Value Total Loans December 31, 2022 Commercial Commercial and industrial $ 181,223 $ 169 $ 27 $ 137 $ 333 $ 663 $ 182,219 Commercial real estate 36,104 19 4 23 189 36,316 Equipment lease financing 6,484 20 4 24 6 6,514 Total commercial 223,811 208 35 137 380 858 225,049 Consumer Residential real estate 44,306 281 112 199 592 (c) 424 $ 567 45,889 Home equity 25,305 53 20 73 526 79 25,983 Automobile 14,543 106 25 7 138 155 14,836 Credit card 6,906 50 35 70 155 8 7,069 Education 2,058 34 22 59 115 (c) 2,173 Other consumer 4,975 15 12 10 37 14 5,026 Total consumer 98,093 539 226 345 1,110 1,127 646 100,976 Total $ 321,904 $ 747 $ 261 $ 482 $ 1,490 $ 1,985 $ 646 $ 326,025 Percentage of total loans 98.73 % 0.23 % 0.08 % 0.15 % 0.46 % 0.61 % 0.20 % 100.00 % December 31, 2021 Commercial Commercial and industrial $ 151,698 $ 235 $ 72 $ 132 $ 439 $ 796 $ 152,933 Commercial real estate 33,580 46 24 1 71 364 34,015 Equipment lease financing 6,095 25 2 27 8 6,130 Total commercial 191,373 306 98 133 537 1,168 193,078 Consumer Residential real estate 37,706 379 119 328 826 (c) 517 $ 663 39,712 Home equity 23,305 53 18 71 596 89 24,061 Automobile 16,252 146 40 14 200 183 16,635 Credit card 6,475 49 33 62 144 7 6,626 Education 2,400 43 25 65 133 (c) 2,533 Other consumer 5,644 35 22 17 74 9 5,727 Total consumer 91,782 705 257 486 1,448 1,312 752 95,294 Total $ 283,155 $ 1,011 $ 355 $ 619 $ 1,985 $ 2,480 $ 752 $ 288,372 Percentage of total loans 98.19 % 0.35 % 0.12 % 0.21 % 0.69 % 0.86 % 0.26 % 100.00 % (a) Amounts in table represent loans held for investment and do not include any associated ALLL. (b) The accrued interest associated with our loan portfolio totaled $1.2 billion and $0.7 billion at December 31, 2022 and 2021, respectively. These amounts are included in Other assets (c) Past due loan amounts include government insured or guaranteed Residential real estate loans and Education loans totaling $0.3 billion and $0.1 billion at December 31, 2022. Comparable amounts at December 31, 2021 were $0.4 billion and $0.1 billion, respectively. (d) Consumer loans accounted for under the fair value option for which we do not expect to collect substantially all principal and interest are subject to nonaccrual accounting and classification upon meeting any of our nonaccrual policy criteria. Given that these loans are not accounted for at amortized cost, these loans have been excluded from the nonperforming loan population. (e) Includes unearned income, unamortized deferred fees and costs on originated loans and premiums or discounts on purchased loans totaling $0.9 billion and $0.7 billion at December 31, 2022 and 2021, respectively. |
Nonperforming Assets | The following table presents our nonperforming assets as of December 31, 2022 and 2021, respectively. Table 53: Nonperforming Assets Dollars in millions December 31, 2022 December 31, 2021 Nonperforming loans Commercial $ 858 $ 1,168 Consumer (a) 1,127 1,312 Total nonperforming loans (b) 1,985 2,480 OREO and foreclosed assets 34 26 Total nonperforming assets $ 2,019 $ 2,506 Nonperforming loans to total loans 0.61 % 0.86 % Nonperforming assets to total loans, OREO and foreclosed assets 0.62 % 0.87 % Nonperforming assets to total assets 0.36 % 0.45 % (a) Excludes most unsecured consumer loans and lines of credit, which are charged off after 120 to 180 days past due and are not placed on nonperforming status. (b) Nonperforming loans for which there is no related ALLL totaled $0.7 billion at December 31, 2022 and primarily include loans with a fair value of collateral that exceeds the amortized cost basis. The comparable amount at December 31, 2021 was $1.0 billion. |
Credit Quality Indicators By Loan Class | The following table presents credit quality indicators for the commercial loan classes: Table 54: Commercial Credit Quality Indicators (a) Term Loans by Origination Year December 31, 2022 In millions 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and industrial Pass Rated $ 41,685 $ 12,493 $ 8,134 $ 6,261 $ 4,209 $ 13,165 $ 89,384 $ 69 $ 175,400 Criticized 1,259 423 277 299 297 551 3,682 31 6,819 Total commercial and industrial 42,944 12,916 8,411 6,560 4,506 13,716 93,066 100 182,219 Commercial real estate Pass Rated 8,835 4,153 3,266 5,511 3,005 7,454 450 32,674 Criticized 348 37 322 758 807 1,367 3 3,642 Total commercial real estate 9,183 4,190 3,588 6,269 3,812 8,821 453 36,316 Equipment lease financing Pass Rated 1,797 962 942 670 410 1,495 6,276 Criticized 60 55 56 39 17 11 238 Total equipment lease financing 1,857 1,017 998 709 427 1,506 6,514 Total commercial $ 53,984 $ 18,123 $ 12,997 $ 13,538 $ 8,745 $ 24,043 $ 93,519 $ 100 $ 225,049 Term Loans by Origination Year December 31, 2021 In millions 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and industrial Pass Rated $ 27,104 $ 12,053 $ 10,731 $ 6,698 $ 6,355 $ 11,759 $ 71,230 $ 90 $ 146,020 Criticized 283 368 815 649 496 824 3,448 30 6,913 Total commercial and industrial 27,387 12,421 11,546 7,347 6,851 12,583 74,678 120 152,933 Commercial real estate Pass Rated 4,110 4,109 6,355 4,234 2,634 7,562 436 29,440 Criticized 294 298 999 820 566 1,552 46 4,575 Total commercial real estate 4,404 4,407 7,354 5,054 3,200 9,114 482 34,015 Equipment lease financing Pass Rated 1,212 1,190 942 682 507 1,410 5,943 Criticized 37 54 41 29 19 7 187 Total equipment lease financing 1,249 1,244 983 711 526 1,417 6,130 Total commercial $ 33,040 $ 18,072 $ 19,883 $ 13,112 $ 10,577 $ 23,114 $ 75,160 $ 120 $ 193,078 (a) Loans in our commercial portfolio are classified as Pass Rated or Criticized based on the regulatory definitions, which are driven by the PD and LGD ratings that we assign. The Criticized classification includes loans that were rated special mention, substandard or doubtful as of December 31, 2022 and 2021. The following table presents credit quality indicators for the residential real estate and home equity loan classes: Table 55: Credit Quality Indicators for Residential Real Estate and Home Equity Loan Classes Term Loans by Origination Year December 31, 2022 In millions 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total Loans Residential real estate Current estimated LTV ratios Greater than 100% $ 4 $ 52 $ 20 $ 10 $ 4 $ 41 $ 131 Greater than or equal to 80% to 100% 1,185 678 232 84 24 92 2,295 Less than 80% 9,396 15,844 7,074 2,346 822 7,220 42,702 No LTV available 61 3 4 68 Government insured or guaranteed loans 9 15 66 39 28 536 693 Total residential real estate $ 10,594 $ 16,650 $ 7,392 $ 2,482 $ 878 $ 7,893 $ 45,889 Updated FICO scores Greater than or equal to 780 $ 6,825 $ 12,596 $ 5,276 $ 1,623 $ 463 $ 4,027 $ 30,810 720 to 779 3,172 3,024 1,369 476 180 1,457 9,678 660 to 719 514 744 378 189 98 796 2,719 Less than 660 63 108 110 88 71 740 1,180 No FICO score available 11 163 193 67 38 337 809 Government insured or guaranteed loans 9 15 66 39 28 536 693 Total residential real estate $ 10,594 $ 16,650 $ 7,392 $ 2,482 $ 878 $ 7,893 $ 45,889 Home equity Current estimated LTV ratios Greater than 100% $ 4 $ 14 $ 9 $ 2 $ 15 $ 268 $ 137 $ 449 Greater than or equal to 80% to 100% 4 51 27 4 31 854 1,149 2,120 Less than 80% 172 2,078 961 285 2,851 7,780 9,287 23,414 Total home equity $ 180 $ 2,143 $ 997 $ 291 $ 2,897 $ 8,902 $ 10,573 $ 25,983 Updated FICO scores Greater than or equal to 780 $ 110 $ 1,357 $ 554 $ 155 $ 1,791 $ 5,093 $ 5,545 $ 14,605 720 to 779 47 515 248 64 567 2,305 2,843 6,589 660 to 719 19 211 140 42 288 1,146 1,449 3,295 Less than 660 4 57 54 29 242 342 671 1,399 No FICO score available 3 1 1 9 16 65 95 Total home equity $ 180 $ 2,143 $ 997 $ 291 $ 2,897 $ 8,902 $ 10,573 $ 25,983 (Continued from previous page) Term Loans by Origination Year December 31, 2021 In millions 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total Loans Residential real estate Current estimated LTV ratios Greater than 100% $ 10 $ 52 $ 21 $ 12 $ 13 $ 77 $ 185 Greater than or equal to 80% to 100% 1,460 560 221 86 66 190 2,583 Less than 80% 15,213 7,822 2,834 1,004 1,570 7,385 35,828 No LTV available 275 6 1 1 22 305 Government insured or guaranteed loans 3 33 37 30 39 669 811 Total residential real estate $ 16,961 $ 8,473 $ 3,114 $ 1,133 $ 1,688 $ 8,343 $ 39,712 Updated FICO scores Greater than or equal to 780 $ 11,110 $ 5,898 $ 1,996 $ 596 $ 1,029 $ 4,052 $ 24,681 720 to 779 4,921 1,735 643 247 345 1,619 9,510 660 to 719 717 463 255 136 133 796 2,500 Less than 660 83 103 96 75 94 848 1,299 No FICO score available 127 241 87 49 48 359 911 Government insured or guaranteed loans 3 33 37 30 39 669 811 Total residential real estate $ 16,961 $ 8,473 $ 3,114 $ 1,133 $ 1,688 $ 8,343 $ 39,712 Home equity Current estimated LTV ratios Greater than 100% $ 1 $ 16 $ 14 $ 3 $ 2 $ 25 $ 329 $ 90 $ 480 Greater than or equal to 80% to 100% 7 85 62 13 11 66 990 674 1,908 Less than 80% 204 2,487 1,189 370 549 3,200 7,868 5,806 21,673 Total home equity $ 212 $ 2,588 $ 1,265 $ 386 $ 562 $ 3,291 $ 9,187 $ 6,570 $ 24,061 Updated FICO scores Greater than or equal to 780 $ 124 $ 1,619 $ 692 $ 201 $ 364 $ 2,035 $ 5,490 $ 3,320 $ 13,845 720 to 779 61 666 348 96 116 642 2,283 1,679 5,891 660 to 719 23 248 167 56 53 327 1,071 872 2,817 Less than 660 4 53 57 32 28 277 325 615 1,391 No FICO score available 2 1 1 1 10 18 84 117 Total home equity $ 212 $ 2,588 $ 1,265 $ 386 $ 562 $ 3,291 $ 9,187 $ 6,570 $ 24,061 The following table presents credit quality indicators for the automobile, credit card, education and other consumer loan classes: Table 56: Credit Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loan Classes Term Loans by Origination Year December 31, 2022 In millions 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total Loans Updated FICO Scores Automobile Greater than or equal to 780 $ 2,390 $ 2,162 $ 922 $ 760 $ 241 $ 75 $ 6,550 720 to 779 1,702 1,312 561 538 222 69 4,404 660 to 719 854 660 341 401 187 56 2,499 Less than 660 193 290 230 368 228 74 1,383 Total automobile $ 5,139 $ 4,424 $ 2,054 $ 2,067 $ 878 $ 274 $ 14,836 Credit card Greater than or equal to 780 $ 1,954 $ 2 $ 1,956 720 to 779 1,994 6 2,000 660 to 719 1,957 13 1,970 Less than 660 1,001 35 1,036 No FICO score available or required (a) 104 3 107 Total credit card $ 7,010 $ 59 $ 7,069 Education Greater than or equal to 780 $ 42 $ 53 $ 48 $ 61 $ 51 $ 357 $ 612 720 to 779 39 27 24 30 24 143 287 660 to 719 21 8 8 9 8 59 113 Less than 660 4 1 1 2 2 24 34 No FICO score available or required (a) 20 8 7 3 1 39 Education loans using FICO credit metric 126 97 88 105 85 584 1,085 Other internal credit metrics 1,088 1,088 Total education $ 126 $ 97 $ 88 $ 105 $ 85 $ 1,672 $ 2,173 Other consumer Greater than or equal to 780 $ 224 $ 97 $ 53 $ 46 $ 14 $ 18 $ 47 $ 2 $ 501 720 to 779 302 122 68 62 20 15 89 2 680 660 to 719 229 110 68 66 28 8 95 2 606 Less than 660 32 48 37 40 20 6 44 2 229 Other consumer loans using FICO credit metric 787 377 226 214 82 47 275 8 2,016 Other internal credit metrics 125 43 40 34 7 29 2,720 12 3,010 Total other consumer $ 912 $ 420 $ 266 $ 248 $ 89 $ 76 $ 2,995 $ 20 $ 5,026 (Continued from previous page) Term Loans by Origination Year December 31, 2021 In millions 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total Loans Updated FICO Scores Automobile Greater than or equal to 780 $ 3,247 $ 1,496 $ 1,380 $ 533 $ 226 $ 79 $ 6,961 720 to 779 2,119 983 1,030 499 195 62 4,888 660 to 719 969 609 772 413 155 44 2,962 Less than 660 277 315 583 429 162 58 1,824 Total automobile $ 6,612 $ 3,403 $ 3,765 $ 1,874 $ 738 $ 243 $ 16,635 Credit card Greater than or equal to 780 $ 1,815 $ 2 $ 1,817 720 to 779 1,836 9 1,845 660 to 719 1,856 19 1,875 Less than 660 943 29 972 No FICO score available or required (a) 114 3 117 Total credit card $ 6,564 $ 62 $ 6,626 Education Greater than or equal to 780 $ 37 $ 60 $ 77 $ 62 $ 48 $ 392 $ 676 720 to 779 20 29 37 30 21 160 297 660 to 719 7 9 11 11 7 73 118 Less than 660 1 1 2 2 2 25 33 No FICO score available or required (a) 11 10 7 2 1 31 Education loans using FICO credit metric 76 109 134 107 78 651 1,155 Other internal credit metrics 1,378 1,378 Total education $ 76 $ 109 $ 134 $ 107 $ 78 $ 2,029 $ 2,533 Other consumer Greater than or equal to 780 $ 199 $ 131 $ 123 $ 47 $ 12 $ 32 $ 95 $ 1 $ 640 720 to 779 250 172 167 68 15 19 125 816 660 to 719 190 145 165 82 16 11 122 731 Less than 660 50 62 85 54 10 6 50 1 318 Other consumer loans using FICO credit metric 689 510 540 251 53 68 392 2 2,505 Other internal credit metrics 87 31 35 23 22 48 2,955 21 3,222 Total other consumer $ 776 $ 541 $ 575 $ 274 $ 75 $ 116 $ 3,347 $ 23 $ 5,727 (a) Loans with no FICO score available or required generally refers to new accounts issued to borrowers with limited credit history, accounts for which we cannot obtain an updated FICO score ( e.g. , recent profile changes), cards issued with a business name and/or cards secured by collateral. Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk. |
Financial Impact and TDRs by Concession Type | Table 57: Financial Impact and TDRs by Concession Type (a) Number Pre-TDR Amortized Cost Basis (b) Post-TDR Amortized Cost Basis (c) During the year ended December 31, 2022 Principal Rate Other Total Commercial 57 $ 363 $ 9 $ 58 $ 202 $ 269 Consumer 10,809 162 123 22 145 Total TDRs 10,866 $ 525 $ 9 $ 181 $ 224 $ 414 During the year ended December 31, 2021 Commercial 57 $ 536 $ 6 $ 510 $ 516 Consumer 6,109 108 $ 64 33 97 Total TDRs 6,166 $ 644 $ 6 $ 64 $ 543 $ 613 During the year ended December 31, 2020 Commercial 73 $ 513 $ 39 $ 56 $ 346 $ 441 Consumer 12,270 178 88 73 161 Total TDRs 12,343 $ 691 $ 39 $ 144 $ 419 $ 602 (a) Impact of partial charge-offs at TDR date are included in this table. (b) Represents the amortized cost basis of the loans as of the quarter end prior to TDR designation. (c) Represents the amortized cost basis of the TDRs as of the end of the quarter in which the TDR occurs. |
Rollforward of Allowance for Credit Losses | Table 58: Rollforward of Allowance for Credit Losses At or for the year ended December 31 2022 2021 2020 In millions Commercial Consumer Total Commercial Consumer Total Commercial Consumer Total Allowance for loan and lease losses Beginning balance $ 3,185 $ 1,683 $ 4,868 $ 3,337 $ 2,024 $ 5,361 $ 1,812 $ 930 $ 2,742 Adoption of ASU 2016-13 (a) (304) 767 463 Beginning balance, adjusted 3,185 1,683 4,868 3,337 2,024 5,361 1,508 1,697 3,205 Acquisition PCD reserves 774 282 1,056 Charge-offs (307) (678) (985) (434) (667) (1,101) (407) (785) (1,192) Recoveries 114 308 422 106 338 444 94 266 360 Net (charge-offs) (193) (370) (563) (328) (329) (657) (313) (519) (832) Provision for (recapture of) credit losses 126 313 439 (594) (293) (887) 2,139 846 2,985 Other (4) 1 (3) (4) (1) (5) 3 3 Ending balance $ 3,114 $ 1,627 $ 4,741 $ 3,185 $ 1,683 $ 4,868 $ 3,337 $ 2,024 $ 5,361 Allowance for unfunded lending related commitments (b) Beginning balance $ 564 $ 98 $ 662 $ 485 $ 99 $ 584 $ 316 $ 2 $ 318 Adoption of ASU 2016-13 (a) 53 126 179 Beginning balance, adjusted 564 98 662 485 99 584 369 128 497 Acquisition PCD reserves 43 3 46 Provision for (recapture of) credit losses 49 (17) 32 36 (4) 32 116 (29) 87 Ending balance $ 613 $ 81 $ 694 $ 564 $ 98 $ 662 $ 485 $ 99 $ 584 Allowance for credit losses at December 31 (c) $ 3,727 $ 1,708 $ 5,435 $ 3,749 $ 1,781 $ 5,530 $ 3,822 $ 2,123 $ 5,945 (a) Represents the impact of adopting ASU 2016-13 - Financial Instruments - Credit Losses on January 1, 2020 and our transition from an incurred loss methodology for our reserves to an expected credit loss methodology. (b) See Note 11 Commitments for additional information about the underlying commitments related to this allowance. (c) Represents the ALLL plus allowance for unfunded lending related commitments and excludes allowances for investment securities and other financial assets, which together totaled $176 million, $171 million and $109 million at December 31, 2022, 2021 and 2020 respectively. |
Loan Sale and Servicing Activ_2
Loan Sale and Servicing Activities and Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Loan Sale and Servicing Activities and Variable Interest Entities [Abstract] | |
Cash Flows Associated with Loan Sale and Servicing Activities | The following table provides our loan sale and servicing activities: Table 59: Cash Flows Associated with Loan Sale and Servicing Activities In millions Residential Mortgages Commercial Mortgages (a) Cash Flows - Year ended December 31, 2022 Sales of loans and related securitization activity (b) $ 5,124 $ 3,332 Repurchases of previously transferred loans (c) $ 187 $ 27 Servicing fees (d) $ 405 $ 190 Servicing advances recovered/(funded), net $ 11 $ 42 Cash flows on mortgage-backed securities held (e) $ 3,790 $ 84 Cash Flows - Year ended December 31, 2021 Sales of loans and related securitization activity (b) $ 8,426 $ 3,611 Repurchases of previously transferred loans (c) $ 239 $ 207 Servicing fees (d) $ 367 $ 165 Servicing advances recovered/(funded), net $ (33) $ (26) Cash flows on mortgage-backed securities held (e) $ 9,001 $ 76 (a) Represents both commercial mortgage loan transfer and servicing activities. (b) Gains/losses recognized on sales of loans were insignificant for the periods presented. (c) Includes both residential and commercial mortgage government insured or guaranteed loans eligible for repurchase through the exercise of our ROAP option, as well as residential mortgage loans repurchased due to alleged breaches of origination covenants or representations and warranties made to purchasers. (d) Includes contractually specified servicing fees, late charges and ancillary fees. |
Principal Balance, Delinquent Loans (Loans 90 Days or More Past Due), and Net Charge-Offs Related to Serviced Loans | Table 60: Principal Balance, Delinquent Loans and Net Charge-offs Related to Serviced Loans For Others In millions Residential Mortgages Commercial Mortgages (a) December 31, 2022 Total principal balance $ 41,031 $ 57,974 Delinquent loans (b) $ 346 December 31, 2021 Total principal balance $ 42,726 $ 39,551 Delinquent loans (b) $ 569 $ 42 Year ended December 31, 2022 Net charge-offs (c) $ 4 $ 74 Year ended December 31, 2021 Net charge-offs (c) $ 4 $ 179 (a) Represents information at the securitization level in which we have sold loans and we are the servicer for the securitization. (b) Serviced delinquent loans are 90 days or more past due or are in process of foreclosure. (c) Net charge-offs for Residential mortgages represent credit losses less recoveries distributed and as reported to investors during the period. Net charge-offs for Commercial mortgages represent credit losses less recoveries distributed and as reported by the trustee for commercial mortgage backed securitizations. Realized losses for Agency securitizations are not reflected as we do not manage the underlying real estate upon foreclosure and, as such, do not have access to loss information. |
Non-Consolidated VIEs | Table 61: Non-Consolidated VIEs In millions PNC Risk of Loss (a) Carrying Value of Assets Carrying Value of Liabilities December 31, 2022 Mortgage-backed securitizations (b) $ 22,666 $ 22,670 (c) $ 1 Tax credit investments and other 4,411 4,240 (d) 2,063 (e) Total $ 27,077 $ 26,910 $ 2,064 December 31, 2021 Mortgage-backed securitizations (b) $ 18,708 $ 18,708 (c) $ 1 Tax credit investments and other 3,865 3,893 (d) 1,798 (e) Total $ 22,573 $ 22,601 $ 1,799 (a) Represents loans, investments and other assets related to non-consolidated VIEs, net of collateral (if applicable). The risk of loss excludes any potential tax recapture associated with tax credit investments. (b) Amounts reflect involvement with securitization SPEs where we transferred to, and/or service loans for, an SPE and we hold securities issued by that SPE. Values disclosed in the PNC Risk of Loss column represent our maximum exposure to loss for those securities’ holdings. (c) Included in Investment securities, Mortgage servicing rights and Other assets on our Consolidated Balance Sheet. (d) Included in Investment securities, Loans, Equity investments and Other assets on our Consolidated Balance Sheet. (e) Included in Deposits and Other liabilities on our Consolidated Balance Sheet. |
Goodwill and Mortgage Servici_2
Goodwill and Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Business Segment | Allocations of Goodwill by business segment at December 31, 2022, 2021 and 2020 follow: Table 62: Goodwill by Business Segment In millions Retail Banking Corporate & Institutional Banking Asset Management Group Total Balance as of December 31, 2022 $ 6,473 $ 4,325 $ 189 $ 10,987 Other 71 71 Balance as of December 31, 2021 $ 6,473 $ 4,254 $ 189 $ 10,916 BBVA acquisition 678 796 125 1,599 Other 84 84 Balance as of December 31, 2020 $ 5,795 $ 3,374 $ 64 $ 9,233 |
Commercial Mortgage Servicing Rights | Changes in the commercial MSRs follow: Table 63: Commercial Mortgage Servicing Rights In millions 2022 2021 2020 January 1 $ 740 $ 569 $ 649 Additions: From loans sold with servicing retained 62 87 100 Purchases 46 41 44 Changes in fair value due to: Time and payoffs (a) (208) (119) (115) Other (b) 473 162 (109) December 31 $ 1,113 $ 740 $ 569 Related unpaid principal balance at December 31 $ 281,277 $ 272,556 $ 243,960 Servicing advances at December 31 $ 421 $ 463 $ 437 (a) Represents decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments, prepayments and loans paid off during the period. (b) Represents MSR value changes resulting primarily from market-driven changes in interest rates. |
Mortgage Servicing Rights | Changes in the residential MSRs follow: Table 64: Residential Mortgage Servicing Rights In millions 2022 2021 2020 January 1 $ 1,078 $ 673 $ 995 Additions: BBVA Acquisition 35 From loans sold with servicing retained 57 87 45 Purchases 897 411 208 Changes in fair value due to: Time and payoffs (a) (231) (320) (198) Other (b) 509 192 (377) December 31 $ 2,310 $ 1,078 $ 673 Unpaid principal balance of loans serviced for others at December 31 $ 189,831 $ 132,953 $ 120,778 Servicing advances at December 31 $ 165 $ 176 $ 143 (a) Represents decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments, prepayments and loans paid off during the period. (b) Represents MSR value changes resulting from market-driven changes in interest rates. |
Commercial Mortgage Loan Servicing Assets - Key Valuation Assumptions | The following tables set forth the fair value of commercial and residential MSRs and the sensitivity analysis of the hypothetical effect on the fair value of MSRs to immediate adverse changes of 10% and 20% in those assumptions: Table 65: Commercial Mortgage Servicing Rights – Key Valuation Assumptions Dollars in millions December 31, 2022 December 31, 2021 Fair value $ 1,113 $ 740 Weighted-average life (years) 4.0 4.2 Weighted-average constant prepayment rate 4.28 % 5.49 % Decline in fair value from 10% adverse change $ 8 $ 12 Decline in fair value from 20% adverse change $ 15 $ 21 Effective discount rate 9.77 % 7.75 % Decline in fair value from 10% adverse change $ 34 $ 20 Decline in fair value from 20% adverse change $ 68 $ 40 |
Residential Mortgage Loan Servicing Assets - Key Valuation Assumptions | Table 66: Residential Mortgage Servicing Rights – Key Valuation Assumptions Dollars in millions December 31, 2022 December 31, 2021 Fair value $ 2,310 $ 1,078 Weighted-average life (years) 8.0 5.7 Weighted-average constant prepayment rate 6.72 % 12.63 % Decline in fair value from 10% adverse change $ 55 $ 46 Decline in fair value from 20% adverse change $ 107 $ 89 Weighted-average option adjusted spread 766 bps 857 bps Decline in fair value from 10% adverse change $ 69 $ 31 Decline in fair value from 20% adverse change $ 134 $ 60 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lease Income | The following table provides details on our income from lessor arrangements: Table 67: Lessor Income Year ended December 31 In millions 2022 2021 2020 Sales-type and direct financing leases (a) $ 243 $ 243 $ 269 Operating leases (b) 63 75 95 Lease income $ 306 $ 318 $ 364 (a) Included in Loans interest income on the Consolidated Income Statement. (b) Included in Lending and deposit services |
Sales-Type and Direct Financing Leases | The following table provides the components of our equipment lease financing assets: Table 68: Sales-Type and Direct Financing Leases In millions December 31, 2022 December 31, 2021 Lease receivables $ 5,853 $ 5,829 Unguaranteed residual asset values (a) 1,422 977 Unearned income (761) (677) Equipment lease financing $ 6,514 $ 6,129 |
Future Minimum Lessor Receivable Arrangements | The future minimum lessor receivable arrangements at December 31, 2022 were as follows: Table 69: Future Minimum Lessor Receivable Arrangements In millions Operating Leases Sales-type and Direct Financing Leases 2023 $ 46 $ 1,474 2024 37 1,256 2025 28 890 2026 21 621 2027 11 609 2028 and thereafter 16 1,003 Total future minimum lease receivable arrangements $ 159 $ 5,853 |
Future Minimum Lease Payments of Lessor Arrangements | The future minimum lessor receivable arrangements at December 31, 2022 were as follows: Table 69: Future Minimum Lessor Receivable Arrangements In millions Operating Leases Sales-type and Direct Financing Leases 2023 $ 46 $ 1,474 2024 37 1,256 2025 28 890 2026 21 621 2027 11 609 2028 and thereafter 16 1,003 Total future minimum lease receivable arrangements $ 159 $ 5,853 |
Operating Lease Costs and Cash Flows | Tables 70 and 71 provide details on our operating leases: Table 70: Operating Lease Costs and Cash Flows Year ended December 31 In millions 2022 2021 2020 Operating lease cost (a) $ 395 $ 386 $ 358 Operating cash flows $ 434 $ 400 $ 360 (a) Included in Occupancy, Equipment and Marketing expense on the Consolidated Income Statement. |
Operating Lease Assets and Liabilities | Table 71: Operating Lease Assets and Liabilities In millions December 31, 2022 December 31, 2021 Operating lease assets (a) $ 1,857 $ 1,919 Operating lease liabilities (b) $ 2,160 $ 2,220 (a) Included in Other assets on the Consolidated Balance Sheet. (b) Included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. |
Operating Lease Term and Discount Rates of Lessee Arrangements | Operating lease term and discount rates of our lessee arrangements at December 31, 2022 and 2021 were as follows: Table 72: Operating Lease Term and Discount Rates of Lessee Arrangements December 31, 2022 December 31, 2021 Weighted-average remaining lease term (years) 7 8 Weighted-average discount rate 2.24 % 1.99 % |
Future Lease Payments for Operating Lease Liability Arrangements | The future lease payments based on maturity for our lessee liability arrangements at December 31, 2022 are as follows: Table 73: Future Lease Payments for Operating Lease Liability Arrangements In millions December 31, 2022 2023 $ 428 2024 385 2025 343 2026 291 2027 247 2028 and thereafter 657 Total future lease payments $ 2,351 Less: Interest 191 Present value of operating lease liability arrangements $ 2,160 |
Premises, Equipment and Lease_2
Premises, Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises, Equipment and Leasehold Improvements | Premises, equipment and leasehold improvements, stated at cost less accumulated depreciation and amortization, were as follows: Table 74: Premises, Equipment and Leasehold Improvements In millions December 31 December 31 Premises, equipment and leasehold improvements $ 17,769 $ 16,651 Accumulated depreciation and amortization (9,015) (8,058) Net book value $ 8,754 $ 8,593 |
Depreciation And Amortization Expense | Table 75: Depreciation and Amortization Expense Year ended December 31 2022 2021 2020 Depreciation $ 899 $ 844 $ 791 Amortization 130 122 115 Total depreciation and amortization $ 1,029 $ 966 $ 906 |
Time Deposits (Tables)
Time Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Schedule of Time Deposit Maturities | Table 76 shows the total amount of time deposits at December 31, 2022 by future contractual maturity range: Table 76: Time Deposits In billions 2023 $ 15.9 2024 $ 1.8 2025 $ 0.2 2026 $ 0.2 2027 $ 0.1 2028 and thereafter $ 0.3 Total $ 18.5 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Total Borrowed Funds | The following table shows the carrying value of total borrowed funds at December 31, 2022 (including adjustments related to accounting hedges, purchase accounting and unamortized original issuance discounts) by remaining contractual maturity: Table 77: Borrowed Funds In millions 2023 $ 4,332 2024 $ 20,673 2025 $ 14,931 2026 $ 5,666 2027 $ 1,659 2028 and thereafter $ 11,465 Total $ 58,726 |
Contractual Rates and Maturity Dates of Borrowings | The following table presents the contractual rates and maturity dates of our FHLB borrowings, senior debt and subordinated debt as of December 31, 2022 and the carrying values as of December 31, 2022 and 2021. Table 78: FHLB Borrowings, Senior Debt and Subordinated Debt Stated Rate Maturity Carrying Value Dollars in millions 2022 2022 2022 2021 Parent Company Senior debt 1.15% - 6.04% 2024 - 2033 $ 11,374 $ 10,369 Subordinated debt 3.90% - 4.63% 2024 - 2033 1,524 777 Junior subordinated debt 5.33 % 2028 205 205 Subtotal 13,103 11,351 Bank Federal Home Loan Bank borrowings (a) 4.48% - 4.72% 2023 - 2026 32,075 Senior debt 2.50% - 5.07% 2023 - 2043 5,283 10,292 Subordinated debt 2.70% - 5.90% 2023 - 2029 4,578 6,014 Subtotal 41,936 16,306 Total $ 55,039 $ 27,657 (a) FHLB borrowings are generally collateralized by residential mortgage loans, other mortgage-related loans and investment securities. |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Guarantees [Abstract] | |
Commitments to Extend Credit and Other Commitments | The following table presents our outstanding commitments to extend credit along with other commitments as of December 31, 2022 and 2021. Table 79: Commitments to Extend Credit and Other Commitments In millions December 31, 2022 December 31, 2021 Commitments to extend credit Commercial $ 198,542 $ 176,248 Home equity 22,783 19,410 Credit card 33,066 32,499 Other 7,337 9,081 Total commitments to extend credit 261,728 237,238 Net outstanding standby letters of credit (a) 10,575 9,303 Standby bond purchase agreements (b) 1,208 1,268 Other commitments (c) 3,661 3,045 Total commitments to extend credit and other commitments $ 277,172 $ 250,854 (a) Net outstanding standby letters of credit include $3.6 billion and $3.3 billion at December 31, 2022 and 2021, respectively, which support remarketing programs. (b) We enter into standby bond purchase agreements to support municipal bond obligations. (c) Includes $2.2 billion and $2.0 billion related to investments in qualified affordable housing projects at December 31, 2022 and 2021, respectively. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Preferred Stock - Authorized, Issued and Outstanding | The following table provides the number of preferred shares issued and outstanding, the liquidation value per share and the number of authorized preferred shares: Table 80: Preferred Stock - Authorized, Issued and Outstanding Preferred Shares December 31 Liquidation 2022 2021 Authorized $1 par value 20,000 20,000 Issued and outstanding Series B $ 40 1 1 Series O $ 100,000 10 10 Series P (a) $ 100,000 15 Series R $ 100,000 5 5 Series S $ 100,000 5 5 Series T $ 100,000 15 15 Series U $ 100,000 10 Series V $ 100,000 12 Total issued and outstanding 58 51 (a) On November 1, 2022, PNC redeemed all 15,000 shares of its Series P Preferred Stock, as well as all 60 million Depositary Shares each representing a fractional interest in such shares. |
Terms Of Outstanding Preferred Stock | The following table discloses information related to the preferred stock outstanding as of December 31, 2022: Table 81: Terms of Outstanding Preferred Stock Preferred Stock Issue Number of Fractional Interest in a Share of Preferred Stock Represented by Each Depositary Share Dividend Dates (a) Annual Per Share Dividend Rate Optional Series B (c) (c) N/A N/A Quarterly from March 10 th $ 1.80 None Series O (d) July 27, 2011 1 million 1/100 th Semi-annually beginning on February 1, 2012 6.75% until August 1, 2021 3 Mo. LIBOR plus 3.678% per annum beginning on August 1, 2021 August 1, 2021 Series R (d) May 7, 2013 500,000 1/100 th Semi-annually beginning on December 1, 2013 until June 1, 2023 4.85% until June 1, 2023 3 Mo. LIBOR plus 3.04% per annum beginning June 1, 2023 June 1, 2023 Series S (d) November 1, 2016 525,000 1/100 th Semi-annually beginning on May 1, 2017 5.00% until November 1, 2026 3 Mo. LIBOR plus 3.30% per annum beginning November 1, 2026 November 1, 2026 Series T (d) September 13, 2021 1.5 million 1/100 th Quarterly beginning on December 15, 2021 3.40% until September 15, 2026 5 Yr. U.S. Treasury plus 2.595% per annum beginning September 15, 2026 September 15, 2026 Series U (d) April 26, 2022 1 million 1/100 th Quarterly beginning on 6.00% until May 15, 2027 5 Yr. U.S. Treasury plus 3.00% per annum beginning May 15, 2027 May 15, 2027 Series V (d) August 19, 2022 1.25 million 1/100 th Quarterly beginning on 6.20% until September 15, 2027 5 Yr. U.S. Treasury plus 3.238% per annum beginning September 15, 2027 September 15, 2027 (a) Dividends are payable when, as, and if declared by our Board of Directors or an authorized committee of our Board of Directors. (b) Redeemable at our option on or after the date stated. With the exception of the Series B preferred stock, also redeemable at our option within 90 days of a regulatory capital treatment event as defined in the designations. (c) Cumulative preferred stock. Holders of Series B preferred stock are entitled to 8 votes per share, which is equal to the number of full shares of common stock into which the Series B preferred stock is convertible. The Series B preferred stock was issued in connection with the consolidation of Pittsburgh National Corporation and Provident National Corporation in 1983. (d) Non-Cumulative preferred stock. |
Dividends Per Share | The following table provides the dividends per share for PNC’s common and preferred stock: Table 82: Dividends Per Share December 31 2022 2021 2020 Common Stock $ 5.75 $ 4.80 $ 4.60 Preferred Stock Series B $ 1.80 $ 1.80 $ 1.80 Series O $ 4,881 $ 7,722 $ 6,750 Series P $ 6,181 $ 6,125 $ 6,125 Series Q $ 4,031 Series R $ 4,850 $ 4,850 $ 4,850 Series S $ 5,000 $ 5,000 $ 5,000 Series T $ 3,400 $ 869 Series U $ 3,317 Series V $ 1,998 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Comprehensive Income [Abstract] | |
Other Comprehensive Income | Details of other comprehensive income (loss) are as follows: Table 83: Other Comprehensive Income (Loss) Year ended December 31 2022 2021 2020 In millions Pre-tax Tax effect After-tax Pre-tax Tax effect After-tax Pre-tax Tax effect After-tax Debt securities Net Unrealized gains (losses) on securities $ (10,866) $ 2,561 $ (8,305) $ (2,445) $ 576 $ (1,869) $ 2,113 $ (485) $ 1,628 Less: Net realized gains (losses) reclassified to earnings (a) (723) 171 (552) 6 (2) 4 302 (69) 233 Net change (10,143) 2,390 (7,753) (2,451) 578 (1,873) 1,811 (416) 1,395 Cash flow hedge derivatives Net Unrealized gains (losses) on cash flow hedge derivatives (3,536) 833 (2,703) (632) 149 (483) 918 (211) 707 Less: Net realized gains (losses) reclassified to earnings (a) (260) 61 (199) 494 (117) 377 421 (97) 324 Net change (3,276) 772 (2,504) (1,126) 266 (860) 497 (114) 383 Pension and other postretirement benefit plan Net pension and other postretirement benefit plan activity (363) 85 (278) 486 (114) 372 82 (19) 63 Net change (363) 85 (278) 486 (114) 372 82 (19) 63 Other Net unrealized gains (losses) on other transactions (5) (41) (46) 4 (4) 10 5 15 Net change (5) (41) (46) 4 (4) 10 5 15 Total other comprehensive income (loss) from continuing (13,787) 3,206 (10,581) (3,087) 726 (2,361) 2,400 (544) 1,856 Total other comprehensive income from discontinued 148 (33) 115 Total other comprehensive income (loss) $ (13,787) $ 3,206 $ (10,581) $ (3,087) $ 726 $ (2,361) $ 2,548 $ (577) $ 1,971 (a) Reclassifications for pre-tax debt securities and cash flow hedges are recorded in interest income and noninterest income on the Consolidated Income Statement. (b) Reclassifications include amortization of actuarial losses (gains) and amortization of prior period services costs (credits) which are recorded in noninterest expense on the Consolidated Income Statement. |
Accumulated Other Comprehensive Income (Loss) Components | Table 84: Accumulated Other Comprehensive Income (Loss) Components In millions, after-tax Debt securities Cash flow hedge derivatives Pension and other postretirement benefit plan adjustments Other Accumulated other Comprehensive Income from Continuing Operations Accumulated other Comprehensive Income from Discontinued Operations Total Balance at December 31, 2019 $ 1,067 $ 276 $ (408) $ (21) $ 914 $ (115) $ 799 Net Activity 1,395 383 63 15 1,856 115 1,971 Balance at December 31, 2020 $ 2,462 $ 659 $ (345) $ (6) $ 2,770 $ 2,770 Net activity (1,873) (860) 372 (2,361) (2,361) Balance at December 31, 2021 $ 589 $ (201) $ 27 $ (6) $ 409 $ 409 Net activity (7,753) (2,504) (278) (46) (10,581) (10,581) Balance at December 31, 2022 (a) $ (7,164) $ (2,705) $ (251) $ (52) $ (10,172) $ (10,172) (a) At December 31, 2022, AOCI included pretax losses of $314 million from derivatives that hedged the purchase of investment securities classified as held to maturity. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings per Common Share | Table 85: Basic and Diluted Earnings Per Common Share In millions, except per share data 2022 2021 2020 Basic Net income from continuing operations $ 6,113 $ 5,725 $ 3,003 Less: Net income attributable to noncontrolling interests 72 51 41 Preferred stock dividends 301 233 229 Preferred stock discount accretion and redemptions 5 5 4 Net income from continuing operations attributable to common shareholders 5,735 5,436 2,729 Less: Dividends and undistributed earnings allocated to nonvested restricted shares 27 27 13 Net income from continuing operations attributable to basic common shareholders $ 5,708 $ 5,409 $ 2,716 Net income from discontinued operations attributable to common shareholders $ 4,555 Less: Undistributed earnings allocated to nonvested restricted shares 22 Net income from discontinued operations attributable to basic common shareholders $ 4,533 Basic weighted-average common shares outstanding 412 426 427 Basic earnings per common share from continuing operations (a) $ 13.86 $ 12.71 $ 6.37 Basic earnings per common share from discontinued operations (a) $ 10.62 Basic earnings per common share $ 13.86 $ 12.71 $ 16.99 Diluted Net income from continuing operations attributable to diluted common shareholders $ 5,708 $ 5,409 $ 2,716 Net income from discontinued operations attributable to basic common shareholders $ 4,533 Less: Impact of earnings per share dilution from discontinued operations 2 Net income from discontinued operations attributable to diluted common shareholders $ 4,531 Basic weighted-average common shares outstanding 412 426 427 Diluted weighted-average common shares outstanding 412 426 427 Diluted earnings per common share from continuing operations (a) $ 13.85 $ 12.70 $ 6.36 Diluted earnings per common share from discontinued operations (a) $ 10.60 Diluted earnings per common share $ 13.85 $ 12.70 $ 16.96 (a) Basic and diluted earnings per share under the two-class method are determined on net income reported on the income statement less earnings allocated to nonvested restricted shares and restricted share units with nonforfeitable dividends and dividend rights (participating securities). |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value [Abstract] | |
Fair Value Measurements - Recurring Basis Summary | The following table summarizes our assets and liabilities measured at fair value on a recurring basis, including instruments for which we have elected the fair value option: Table 86: Fair Value Measurements – Recurring Basis Summary December 31, 2022 December 31, 2021 In millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Residential mortgage loans held for sale $ 411 $ 243 $ 654 $ 1,221 $ 81 $ 1,302 Commercial mortgage loans held for sale 243 33 276 526 49 575 Securities available for sale U.S. Treasury and government agencies $ 8,108 262 8,370 $ 41,873 4,291 46,164 Residential mortgage-backed Agency 28,823 28,823 67,632 67,632 Non-agency 819 819 61 1,097 1,158 Commercial mortgage-backed Agency 1,675 1,675 1,773 1,773 Non-agency 1,253 3 1,256 3,433 3 3,436 Asset-backed 5 124 129 6,246 163 6,409 Other 3,032 55 3,087 4,895 69 4,964 Total securities available for sale 8,108 35,050 1,001 44,159 41,873 88,331 1,332 131,536 Loans 541 769 1,310 617 884 1,501 Equity investments (a) 1,173 1,778 3,147 1,373 1,680 3,231 Residential mortgage servicing rights 2,310 2,310 1,078 1,078 Commercial mortgage servicing rights 1,113 1,113 740 740 Trading securities (b) 798 1,168 1,966 250 1,601 1,851 Financial derivatives (b) (c) 16 3,747 5 3,768 5 5,109 38 5,152 Other assets 352 80 432 404 114 518 Total assets (d) $ 10,447 $ 41,240 $ 7,252 $ 59,135 $ 43,905 $ 97,519 $ 5,882 $ 147,484 Liabilities Other borrowed funds $ 1,230 $ 232 $ 4 $ 1,466 $ 725 $ 45 $ 3 $ 773 Financial derivatives (c) (e) 4 7,491 123 7,618 3,285 285 3,570 Other liabilities 294 294 175 175 Total liabilities (f) $ 1,234 $ 7,723 $ 421 $ 9,378 $ 725 $ 3,330 $ 463 $ 4,518 (a) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. (b) Included in Other assets (c) Amounts at December 31, 2022 and 2021 are presented gross and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. See Note 16 Financial Derivatives for additional information related to derivative offsetting. (d) Total assets at fair value as a percentage of total consolidated assets was 11% and 26% at December 31, 2022 and 2021, respectively. Level 3 assets as a percentage of total assets at fair value was 12% and 4% as of December 31, 2022 and 2021, respectively. Level 3 assets as a percentage of total consolidated assets was 1% at both December 31, 2022 and 2021. (e) Included in Other liabilities (f) Total liabilities at fair value as a percentage of total consolidated liabilities was 2% and 1% at December 31, 2022 and 2021, respectively. Level 3 liabilities as a percentage of total liabilities at fair value was 4% and 10% as of December 31, 2022 and 2021, respectively. Level 3 liabilities as a percentage of total consolidated liabilities was less than 1% at both December 31, 2022 and 2021. |
Reconciliation of Level 3 Assets and Liabilities | Reconciliations of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for 2022 and 2021 are as follows Table 87: Reconciliation of Level 3 Assets and Liabilities Year Ended December 31, 2022 Total realized / unrealized Unrealized Level 3 Instruments Only Fair Included in Included Purchases Sales Issuances Settlements Transfers Transfers Fair Assets Residential mortgage $ 81 $ (5) $ 226 $ (34) $ (13) $ 29 $ (41) (d) $ 243 $ (5) Commercial mortgage 49 (6) (10) 33 (6) Securities available for sale Residential mortgage- 1,097 22 $ (108) (192) 819 Commercial mortgage- 3 3 Asset-backed 163 2 (18) (23) 124 Other 69 6 (20) 55 Total securities 1,332 24 (126) 6 (235) 1,001 Loans 884 23 55 (10) (164) (19) (d) 769 23 Equity investments 1,680 445 291 (772) 134 (e) 1,778 237 Residential mortgage 1,078 509 897 $ 57 (231) 2,310 509 Commercial mortgage 740 473 46 62 (208) 1,113 473 Financial derivatives 38 (6) 8 (35) 5 19 Total assets $ 5,882 $ 1,457 $ (126) $ 1,529 $ (816) $ 119 $ (896) $ 163 $ (60) $ 7,252 $ 1,250 Liabilities Other borrowed funds $ 3 $ 7 $ (6) $ 4 Financial derivatives 285 $ 49 $ 14 (225) 123 $ 62 Other liabilities 175 77 $ 32 876 (866) 294 66 Total liabilities $ 463 $ 126 $ 32 $ 14 $ 883 $ (1,097) $ 421 $ 128 Net gains (losses) $ 1,331 (f) $ 1,122 (g) (Continued from previous page) Year Ended December 31, 2021 Total realized / unrealized Unrealized gains / losses for the period on assets and liabilities held on Consolidated Balance Sheet at Dec. 31, 2021 (a) (c) Level 3 Instruments Only Fair Value Dec. 31, 2020 Included in Earnings Included in Other comprehensive income (b) Purchases Sales Issuances Settlements Transfers into Level 3 Transfers out of Level 3 Impact from BBVA Acquisition Fair Value Dec. 31, 2021 Assets Residential mortgage $ 163 $ (1) $ 47 $ (83) $ (41) $ 18 $ (22) (d) $ 81 $ (1) Commercial mortgage 57 (6) (2) 49 (1) Other consumer loans held for sale (256) $ 256 Securities available for sale Residential mortgage- 1,365 37 $ 6 (311) 1,097 Commercial mortgage- 11 (8) 3 Asset-backed 199 2 9 (47) 163 Other 72 1 6 (10) 69 Total securities 1,647 39 8 6 (368) 1,332 Loans 647 45 124 (15) (194) (14) (d) 291 884 44 Equity investments 1,263 627 573 (783) 1,680 338 Residential mortgage 673 192 411 $ 87 (320) 35 1,078 192 Commercial mortgage 569 162 41 87 (119) 740 162 Financial derivatives 118 83 5 (174) 6 38 113 Total assets $ 5,137 $ 1,147 $ 8 $ 1,207 $ (1,143) $ 174 $ (1,218) $ 18 $ (36) $ 588 $ 5,882 $ 847 Liabilities Other borrowed funds $ 2 $ 5 $ (4) $ 3 Financial derivatives 273 $ 145 $ 6 (146) $ 7 285 $ 158 Other liabilities 43 151 321 (340) 175 111 Total liabilities $ 318 $ 296 $ 6 $ 326 $ (490) $ 7 $ 463 $ 269 Net gains (losses) $ 851 (f) $ 578 (g) (a) Losses for assets are bracketed while losses for liabilities are not. (b) The difference in unrealized gains and losses for the period included in Other comprehensive income and changes in unrealized gains and losses for the period included in Other comprehensive income for securities available for sale held at the end of the reporting period were insignificant. (c) The amount of the total gains or losses for the period included in earnings that is attributable to the change in unrealized gains or losses related to those assets and liabilities held at the end of the reporting period. (d) Residential mortgage loan transfers out of Level 3 are primarily driven by residential mortgage loans transferring to OREO as well as reclassification of mortgage loans held for sale to held for investment. (e) Transfers into Level 3 were due to certain private company investments valued using significant unobservable inputs during the current period. (f) Net gains (losses) realized and unrealized included in earnings related to Level 3 assets and liabilities included amortization and accretion. The amortization and accretion amounts were included in Interest income (g) Net unrealized gains (losses) related to assets and liabilities held at the end of the reporting period were included in Noninterest income |
Fair Value Measurements - Recurring Quantitative Information | Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is as follows: Table 88: Fair Value Measurements – Recurring Quantitative Information December 31, 2022 Level 3 Instruments Only Fair Value Valuation Techniques Unobservable Inputs Range (Weighted-Average) (a) Commercial mortgage loans held for sale $ 33 Discounted cash flow Spread over the benchmark curve (b) 585bps - 2,465bps (959bps) Residential mortgage-backed 819 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate 1.0% - 27.9% (9.9%) Constant default rate 0.0% - 13.0% (4.0%) Loss severity 15.0% - 80.0% (46.1%) Spread over the benchmark curve (b) 289bps weighted-average Asset-backed securities 124 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate 1.0% - 40.0% (7.5%) Constant default rate 0.0% - 7.3% (2.1%) Loss severity 20.0% - 100.0% (49.0%) Spread over the benchmark curve (b) 296bps weighted-average Loans - Residential real estate - Uninsured 570 Consensus pricing (c) Cumulative default rate 3.6% - 100.0% (66.2%) Loss severity 0.0% - 100.0% (6.2%) Discount rate 5.5% - 7.5% (5.9%) Loans - Residential real estate - Government insured 76 Discounted cash flow Loss severity 6.0% weighted-average Discount rate 7.9% weighted-average Loans - Home equity - First-lien 25 Consensus pricing (c) Cumulative default rate 3.6% - 100.0% (72.5%) Loss severity 0.0% - 100.0% (15.3%) Discount rate 5.5% - 7.5% (6.5%) Loans - Home equity - Second-lien 98 Consensus pricing (c) Credit and liquidity discount 0.4% - 100.0% (46.2%) Equity investments 1,778 Multiple of adjusted earnings Multiple of earnings 4.5x - 25.0x (9.1x) Residential mortgage servicing rights 2,310 Discounted cash flow Constant prepayment rate 0.0% - 34.5% (6.7%) Spread over the benchmark curve (b) 254bps - 1,653bps (766bps) Commercial mortgage servicing rights 1,113 Discounted cash flow Constant prepayment rate 3.9% - 9.8% (4.3%) Discount rate 7.8% - 10.1% (9.8%) Financial derivatives - Swaps related to (107) Discounted cash flow Estimated conversion factor of Visa Class B shares into Class A shares 160.6% weighted-average Estimated annual growth rate of Visa Class A share price 16.0% Estimated length of litigation resolution date Q2 2023 Insignificant Level 3 assets, net of (8) Total Level 3 assets, net of liabilities (e) $ 6,831 (Continued from previous page) December 31, 2021 Level 3 Instruments Only Fair Value Valuation Techniques Unobservable Inputs Range (Weighted-Average) (a) Commercial mortgage loans held for sale $ 49 Discounted cash flow Spread over the benchmark curve (b) 555bps - 15,990bps (9,996bps) Residential mortgage-backed 1,097 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate 1.0% - 30.7% (11.3%) Constant default rate 0.0% - 16.9% (4.6%) Loss severity 20.0% - 96.4% (47.6%) Spread over the benchmark curve (b) 163bps weighted-average Asset-backed securities 163 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate 1.0% - 40.0% (11.1%) Constant default rate 1.4% - 20.0% (3.2%) Loss severity 8.0% - 100.0% (57.4%) Spread over the benchmark curve (b) 182bps weighted-average Loans - Residential real estate - Uninsured 622 Consensus pricing (c) Cumulative default rate 3.6% - 100.0% (74.2%) Loss severity 0.0% - 100.0% (6.9%) Discount rate 4.8% - 6.8% (5.2%) Loans - Residential real estate - Government insured 109 Discounted cash flow Loss severity 6.0% weighted-average Discount rate 3.5% weighted-average Loans - Home equity - First-lien 28 Consensus pricing (c) Cumulative default rate 3.6% - 100.0% (75.8%) Loss severity 0.0% - 98.4% (17.7%) Discount rate 4.8% - 6.8% (6.0%) Loans - Home equity - Second-lien 125 Consensus pricing (c) Credit and liquidity discount 0.5% - 100.0% (47.3%) Equity investments 1,680 Multiple of adjusted earnings Multiple of earnings 5.0x - 14.4x (8.8x) Residential mortgage servicing rights 1,078 Discounted cash flow Constant prepayment rate 0.0% - 41.0% (12.6%) Spread over the benchmark curve (b) 249bps - 2,218bps (857bps) Commercial mortgage servicing rights 740 Discounted cash flow Constant prepayment rate 5.0% - 15.5% (5.5%) Discount rate 5.4% - 8.0% (7.8%) Financial derivatives - Swaps related to (277) Discounted cash flow Estimated conversion factor of Visa Class B shares into Class A shares 161.8% weighted-average Estimated annual growth rate of Visa Class A share price 16.0% Estimated length of litigation resolution date Q2 2023 Insignificant Level 3 assets, net of 5 Total Level 3 assets, net of liabilities (e) $ 5,419 (a) Unobservable inputs were weighted by the relative fair value of the instruments. (b) The assumed yield spread over the benchmark curve for each instrument is generally intended to incorporate non-interest rate risks, such as credit and liquidity risks. (c) Consensus pricing refers to fair value estimates that are generally internally developed using information such as dealer quotes or other third-party provided valuations or comparable asset prices. (d) Represents the aggregate amount of Level 3 assets and liabilities measured at fair value on a recurring basis that are individually and in the aggregate insignificant. The amount includes certain financial derivative assets and liabilities, trading securities, other securities, residential mortgage loans held for sale, other assets, other borrowed funds and other liabilities. (e) Consisted of total Level 3 assets of $7.3 billion and total Level 3 liabilities of $0.4 billion as of December 31, 2022 and $5.9 billion and $0.5 billion as of December 31, 2021, respectively. |
Fair Value Measurements - Nonrecurring | Assets measured at fair value on a nonrecurring basis are as follows: Table 89: Fair Value Measurements – Nonrecurring (a) (b) (c) Year ended December 31 Fair Value Gains (Losses) 2022 2021 2022 2021 2020 Assets Nonaccrual loans $ 280 $ 348 $ (287) $ (4) $ (111) Equity investments 135 (1) OREO and foreclosed assets 10 6 (2) Long-lived assets 23 103 (15) (45) (27) Total assets $ 448 $ 457 $ (303) $ (49) $ (140) (a) All Level 3 for the periods presented, except for $42 million included in Equity investments which was categorized as Level 1 as of December 31, 2022. (b) Valuation techniques applied were fair value of property or collateral. (c) Unobservable inputs used were appraised value/sales price, broker opinions or projected income/required improvement costs. Additional quantitative information was not meaningful for the periods presented. |
Fair Value Option - Fair Value and Principal Balances | Table 90: Fair Value Option – Fair Value and Principal Balances December 31, 2022 December 31, 2021 In millions Fair Value Aggregate Unpaid Principal Balance Difference Fair Value Aggregate Unpaid Principal Balance Difference Assets Residential mortgage loans held for sale Accruing loans less than 90 days past due $ 609 $ 633 $ (24) $ 1,249 $ 1,219 $ 30 Accruing loans 90 days or more past due 5 5 6 6 Nonaccrual loans 40 49 (9) 47 57 (10) Total $ 654 $ 687 $ (33) $ 1,302 $ 1,282 $ 20 Commercial mortgage loans held for sale (a) Accruing loans less than 90 days past due $ 261 $ 256 $ 5 $ 575 $ 580 $ (5) Nonaccrual loans 15 44 (29) Total $ 276 $ 300 $ (24) $ 575 $ 580 $ (5) Loans Accruing loans less than 90 days past due $ 509 $ 521 $ (12) $ 487 $ 498 $ (11) Accruing loans 90 days or more past due 155 167 (12) 262 278 (16) Nonaccrual loans 646 880 (234) 752 1,028 (276) Total $ 1,310 $ 1,568 $ (258) $ 1,501 $ 1,804 $ (303) Other assets $ 80 $ 80 $ 105 $ 107 $ (2) Liabilities Other borrowed funds $ 31 $ 32 $ (1) $ 30 $ 30 Other liabilities $ 196 $ 196 (a) There were no accruing loans 90 days or more past due within this category at December 31, 2022 or December 31, 2021. |
Fair Value Option - Changes in Fair Value | The changes in fair value for items for which we elected the fair value option are as follows:Table 91: Fair Value Option – Changes in Fair Value (a) Year ended December 31 Gains (Losses) 2022 2021 2020 Assets Residential mortgage loans held for sale $ (80) $ 152 $ 198 Commercial mortgage loans held for sale $ 52 $ 115 $ 128 Loans $ 42 $ 80 $ 44 Other assets $ (16) $ 28 $ (3) Liabilities Other liabilities $ (67) (a) The impact on earnings of offsetting hedged items or hedging instruments is not reflected in these amounts. |
Additional Fair Value Information Related to Other Financial Instruments | Table 92: Additional Fair Value Information Related to Other Financial Instruments In millions Carrying Fair Value Total Level 1 Level 2 Level 3 December 31, 2022 Assets Cash and due from banks $ 7,043 $ 7,043 $ 7,043 Interest-earning deposits with banks 27,320 27,320 $ 27,320 Securities held to maturity 95,183 90,279 30,748 59,377 $ 154 Net loans (excludes leases) 313,460 310,864 310,864 Other assets 6,022 6,022 6,020 2 Total assets $ 449,028 $ 441,528 $ 37,791 $ 92,717 $ 311,020 Liabilities Time deposits $ 18,470 $ 18,298 $ 18,298 Borrowed funds 57,182 57,557 55,922 $ 1,635 Unfunded lending related commitments 694 694 694 Other liabilities 660 660 660 Total liabilities $ 77,006 $ 77,209 $ 74,880 $ 2,329 December 31, 2021 Assets Cash and due from banks $ 8,004 $ 8,004 $ 8,004 Interest-earning deposits with banks 74,250 74,250 $ 74,250 Securities held to maturity 1,429 1,522 890 456 $ 176 Net loans (excludes leases) 275,874 280,498 280,498 Other assets 4,205 4,204 4,141 63 Total assets $ 363,762 $ 368,478 $ 8,894 $ 78,847 $ 280,737 Liabilities Time deposits $ 17,366 $ 17,180 $ 17,180 Borrowed funds 30,011 30,616 28,936 $ 1,680 Unfunded lending related commitments 662 662 662 Other liabilities 449 449 449 Total liabilities $ 48,488 $ 48,907 $ 46,565 $ 2,342 |
Financial Derivatives (Tables)
Financial Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Total Gross Derivatives | The following table presents the notional and gross fair value amounts of all derivative assets and liabilities held by us: Table 93: Total Gross Derivatives (a) December 31, 2022 December 31, 2021 In millions Notional /Contract Amount Asset Fair Liability Fair Notional /Contract Amount Asset Fair Liability Fair Derivatives used for hedging Interest rate contracts (d): Fair value hedges $ 24,231 $ 23,345 Cash flow hedges 40,310 $ 1 48,961 $ 15 $ 14 Foreign exchange contracts: Net investment hedges 1,120 $ 24 1,113 24 Total derivatives designated for hedging $ 65,661 $ 24 $ 1 $ 73,419 $ 15 $ 38 Derivatives not used for hedging Derivatives used for mortgage banking activities (e): Interest rate contracts: Swaps $ 47,908 $ 7 $ 1 $ 35,623 Futures (f) 5,537 4,592 Mortgage-backed commitments 4,516 85 89 9,917 $ 55 $ 31 Other 18,017 90 14 12,225 46 12 Total interest rate contracts 75,978 182 104 62,357 101 43 Derivatives used for customer-related activities: Interest rate contracts: Swaps 354,150 1,597 5,397 297,711 3,335 1,520 Futures (f) 32 907 Mortgage-backed commitments 2,799 10 6 4,147 5 6 Other 29,071 334 321 25,718 125 72 Total interest rate contracts 386,052 1,941 5,724 328,483 3,465 1,598 Commodity contracts: Swaps 5,792 1,003 1,067 8,840 1,150 1,161 Other 4,488 205 202 3,128 213 212 Total commodity contracts 10,280 1,208 1,269 11,968 1,363 1,373 Foreign exchange contracts and other 30,512 366 293 27,563 199 179 Total derivatives for customer-related activities 426,844 3,515 7,286 368,014 5,027 3,150 Derivatives used for other risk management activities: Foreign exchange contracts and other 12,785 47 227 11,512 9 339 Total derivatives not designated for hedging $ 515,607 $ 3,744 $ 7,617 $ 441,883 $ 5,137 $ 3,532 Total gross derivatives $ 581,268 $ 3,768 $ 7,618 $ 515,302 $ 5,152 $ 3,570 Less: Impact of legally enforceable master netting agreements 1,523 1,523 928 928 Less: Cash collateral received/paid 714 1,571 604 1,657 Total derivatives $ 1,531 $ 4,524 $ 3,620 $ 985 (a) Centrally cleared derivatives are settled in cash daily and result in no derivative asset or derivative liability being recognized on our Consolidated Balance Sheet. (b) Included in Other assets on our Consolidated Balance Sheet. (c) Included in Other liabilities on our Consolidated Balance Sheet. (d) Represents primarily swaps. (e) Includes both residential and commercial mortgage banking activities. (f) Futures contracts are settled in cash daily and result in no derivative asset or derivative liability being recognized on our Consolidated Balance Sheet. |
Schedule of Gains (losses) Recognized on Fair Value and Cash Flow Hedges in Consolidated Income Statement | Further detail regarding gains (losses) related to our fair value and cash flow hedge derivatives is presented in the following table: Table 94: Gains (Losses) Recognized on Fair Value and Cash Flow Hedges in the Consolidated Income Statement (a) (b) Location and Amount of Gains (Losses) Recognized in Income Interest Income Interest Expense Noninterest Income In millions Loans Investment Securities Borrowed Funds Other Year ended December 31, 2022 Total amounts on the Consolidated Income Statement $ 11,795 $ 2,726 $ 1,155 $ 952 Gains (losses) on fair value hedges recognized on: Hedged items (c) $ (136) $ 1,945 Derivatives $ 143 $ (1,976) Amounts related to interest settlements on derivatives $ (2) $ 120 Gains (losses) on cash flow hedges (d): Amount of derivative gains (losses) reclassified from accumulated $ (259) $ (1) Year ended December 31, 2021 Total amounts on the Consolidated Income Statement $ 9,007 $ 1,834 $ 361 $ 1,199 Gains (losses) on fair value hedges recognized on: Hedged items (c) $ (5) $ 937 Derivatives $ 9 $ (993) Amounts related to interest settlements on derivatives $ (4) $ 521 Gains (losses) on cash flow hedges (d): Amount of derivative gains (losses) reclassified from accumulated $ 376 $ 57 $ 61 Year ended December 31, 2020 Total amounts on the Consolidated Income Statement $ 8,927 $ 2,041 $ 718 $ 608 Gains (losses) on fair value hedges recognized on: Hedged items (c) $ 208 $ (1,059) Derivatives $ (202) $ 959 Amounts related to interest settlements on derivatives $ (9) $ 480 Gains (losses) on cash flow hedges (d): Amount of derivative gains (losses) reclassified from accumulated $ 375 $ 40 $ 6 (a) For all periods presented, there were no components of derivative gains or losses excluded from the assessment of hedge effectiveness for any of the fair value or cash flow hedge strategies. (b) All cash flow and fair value hedge derivatives were interest rate contracts for the periods presented. (c) Includes an insignificant amount of fair value hedge adjustments related to discontinued hedge relationships. (d) For all periods presented, there were no gains or losses from cash flow hedge derivatives reclassified to income because it became probable that the original forecasted transaction would not occur. |
Schedule of Hedged Items - Fair Value Hedges | Detail regarding the impact of fair value hedge accounting on the carrying value of the hedged items is presented in the following table: Table 95: Hedged Items - Fair Value Hedges December 31, 2022 December 31, 2021 In millions Carrying Value of the Hedged Items Cumulative Fair Value Hedge Adjustment included in the Carrying Value of Hedged Items (a) Carrying Value of the Hedged Items Cumulative Fair Value Hedge Adjustment included in the Carrying Value of Hedged Items (a) Investment securities - available for sale (b) $ 2,376 $ (121) $ 2,655 $ 23 Borrowed funds $ 21,781 $ (1,283) $ 24,259 $ 663 (a) Includes less than $(0.1) billion and $(0.1) billion of fair value hedge adjustments primarily related to discontinued borrowed funds hedge relationships at December 31, 2022 and 2021, respectively. (b) Carrying value shown represents amortized cost. |
Risk Participation Agreements | Table 96: Risk Participation Agreements Year ended December 31 In billions 2022 2021 Risk participation agreements: Sold - notional amount $ 8.0 $ 8.0 Maximum potential amount of exposure (a) $ 0.1 $ 0.3 (a) Based on the fair value of the underlying swaps assuming all underlying third party customers referenced in the swap contracts defaulted. |
Gains (Losses) on Derivatives Not Designated as Hedging Instruments under GAAP | Further detail regarding the gains (losses) on derivatives not designated in hedging relationships is presented in the following table: Table 97: Gains (Losses) on Derivatives Not Designated for Hedging Year ended December 31 In millions 2022 2021 2020 Derivatives used for mortgage banking activities: Interest rate contracts (a) $ (671) $ (78) $ 792 Derivatives used for customer-related activities: Interest rate contracts 220 149 210 Foreign exchange contracts and other 111 135 156 Gains from customer-related activities (b) 331 284 366 Derivatives used for other risk management activities: Foreign exchange contracts and other (b) 255 (30) (338) Total gains (losses) from derivatives not designated as hedging instruments $ (85) $ 176 $ 820 (a) Included in Residential and commercial mortgage noninterest income on our Consolidated Income Statement. (b) Included in Capital markets and advisory and Other noninterest income on our Consolidated Income Statement. |
Derivative Assets And Liabilities Offsetting | Table 98: Derivative Assets and Liabilities Offsetting In millions Gross Fair Value Amounts Offset on the Consolidated Balance Sheet Net Fair Value Securities Collateral Held /Pledged Under Master Netting Agreements Net Amounts Fair Value Offset Amount Cash Collateral December 31, 2022 Derivative assets Interest rate contracts: Over-the-counter cleared $ 23 $ 23 $ 23 Over-the-counter 2,100 $ 974 $ 630 496 $ 34 462 Commodity contracts 1,208 335 2 871 871 Foreign exchange and other contracts 437 214 82 141 141 Total derivative assets $ 3,768 $ 1,523 $ 714 $ 1,531 (a) $ 34 $ 1,497 Derivative liabilities Interest rate contracts: Over-the-counter cleared $ 28 $ 28 $ 28 Over-the-counter 5,801 $ 625 $ 1,041 4,135 $ 78 4,057 Commodity contracts 1,269 679 520 70 4 66 Foreign exchange and other contracts 520 219 10 291 291 Total derivative liabilities $ 7,618 $ 1,523 $ 1,571 $ 4,524 (b) $ 82 $ 4,442 December 31, 2021 Derivative assets Interest rate contracts: Over-the-counter cleared $ 20 $ 20 $ 20 Over-the-counter 3,561 $ 533 $ 593 2,435 $ 300 2,135 Commodity contracts 1,363 299 1 1,063 1,063 Foreign exchange and other contracts 208 96 10 102 102 Total derivative assets $ 5,152 $ 928 $ 604 $ 3,620 (a) $ 300 $ 3,320 Derivative liabilities Interest rate contracts: Over-the-counter cleared $ 12 $ 12 $ 12 Over-the-counter 1,643 $ 569 $ 776 298 298 Commodity contracts 1,373 291 784 298 298 Foreign exchange and other contracts 542 68 97 377 377 Total derivative liabilities $ 3,570 $ 928 $ 1,657 $ 985 (b) $ 985 (a) Represents the net amount of derivative assets included in Other assets on our Consolidated Balance Sheet. (b) Represents the net amount of derivative liabilities included in Other liabilities on our Consolidated Balance Sheet. |
Credit-Risk Contingent Features | Table 99: Credit-Risk Contingent Features Year ended December 31 In billions 2022 2021 Net derivative liabilities with credit-risk contingent features $ 5.8 $ 2.4 Collateral posted 1.7 1.8 Maximum additional amount of collateral exposure $ 4.1 $ 0.6 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefit Plans [Abstract] | |
Reconciliation of Changes in Projected Benefit Obligation and Change in Plan Assets | A reconciliation of the changes in the projected benefit obligation for qualified pension, nonqualified pension and postretirement benefit plans as well as the change in plan assets for the qualified pension and postretirement benefit plans follows: Table 100: Reconciliation of Changes in Projected Benefit Obligation and Change in Plan Assets Qualified Nonqualified Postretirement In millions 2022 2021 2022 2021 2022 2021 Accumulated benefit obligation at December 31 $ 4,517 $ 5,370 $ 219 $ 272 Projected benefit obligation at January 1 $ 5,423 $ 5,174 $ 280 $ 263 $ 326 $ 337 Service cost 142 133 3 4 4 4 Interest cost 156 139 7 6 9 8 Amendments (4) Actuarial (gains)/losses and changes in assumptions (a) (833) (88) (44) (4) (57) (11) Participant contributions 2 3 Federal Medicare subsidy on benefits paid 1 1 Benefits paid (345) (320) (24) (21) (25) (25) Projected benefit obligation from BBVA acquisition 389 32 9 Projected benefit obligation at December 31 $ 4,543 $ 5,423 $ 222 $ 280 $ 260 $ 326 Fair value of plan assets at January 1 $ 6,788 $ 6,073 $ 263 $ 262 Actual return on plan assets (1,043) 670 (21) 2 Employer contribution $ 24 $ 21 22 20 Participant contributions 2 3 Federal Medicare subsidy on benefits paid 1 1 Benefits paid (345) (320) (24) (21) (25) (25) Fair value of plan assets from BBVA acquisition 365 Fair value of plan assets at December 31 $ 5,400 $ 6,788 $ 242 $ 263 Funded status $ 857 $ 1,365 $ (222) $ (280) $ (18) $ (63) Amounts recognized on the consolidated balance sheet Noncurrent asset $ 857 $ 1,365 $ 10 Current liability $ (24) $ (25) (3) $ (2) Noncurrent liability (198) (255) (25) (61) Net amount recognized on the consolidated balance sheet $ 857 $ 1,365 $ (222) $ (280) $ (18) $ (63) Amounts recognized in AOCI consist of: Prior service cost (credit) $ 14 $ 17 $ 1 $ 1 Net actuarial loss (gain) 322 (186) $ 31 $ 80 (32) (2) Amount of loss (gain) recognized in AOCI $ 336 $ (169) $ 31 $ 80 $ (31) $ (1) (a) The actuarial (gains)/losses and changes in assumptions in 2022 and 2021 were primarily related to a change in the discount rate used to measure the projected benefit obligation. |
Asset Strategy Allocations | The asset strategy allocations for the Plan at the end of 2022 and 2021, and the target allocation range at the end of 2022, by asset category, are as follows. Table 101: Asset Strategy Allocations Target Allocation Range Percentage of Plan Assets by Strategy at December 31 2022 2021 Asset Category Domestic Equity 15 – 40% 21 % 20 % International Equity 10 – 25% 17 % 17 % Private Equity 0 – 15% 11 % 12 % Total Equity 30 – 70% 49 % 49 % Domestic Fixed Income 10 – 40% 30 % 28 % High Yield Fixed Income 0 – 25% 9 % 7 % Total Fixed Income 10 – 65% 39 % 35 % Real estate 0 – 10% 6 % 5 % Other 0 – 20% 6 % 11 % Total 100% 100 % 100 % |
Description Of The Valuation Methodologies Used For Pension Plan | A description of the valuation methodologies used for assets measured at fair value at both December 31, 2022 and 2021 follows: Table 102: Pension Plan Valuation Methodologies Asset Valuation Methodology Money market funds • Valued at the NAV of the shares held by the pension plan at year end. U.S. government and agency securities Corporate debt Common stock • Valued at the closing price reported on the active market on which the individual securities are traded. • If quoted market prices are not available for the specific security, then fair values are estimated by using pricing models or quoted prices of securities with similar characteristics. Such securities are generally classified within Level 2 of the valuation hierarchy but may be a Level 3 depending on the level of liquidity and activity in the market for the security. Mutual funds • Valued based on third-party pricing of the fund that is not actively traded. Other investments Derivative financial instruments Group annuity contracts Preferred stock • Derivative financial instruments - recorded at estimated fair value as determined by third-party appraisals and pricing models. • Group annuity contracts - measured at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations considering the creditworthiness of the issuer. • Preferred stock - valued at the closing price reported on an active market on which the securities are traded. Investments measured at NAV Collective trust fund investments Limited partnerships • Collective trust fund investments - valued based upon the units of such collective trust fund held by the Plan at year end multiplied by the respective unit value. The unit value of the collective trust fund is based upon significant observable inputs, although it is not based upon quoted prices in an active market. The underlying investments of the collective trust funds consist primarily of equity securities, debt obligations, short-term investments, and other marketable securities. Due to the nature of these securities, there are no unfunded commitments or redemption restrictions. • Limited partnerships - valued by investment managers based on recent financial information used to estimate fair value. The unit value of limited partnerships is based upon significant observable inputs, although it is not based upon quoted marked prices in an active market. |
Pension Plan Assets - Fair Value Hierarchy | The following table sets forth by level, within the fair value hierarchy, the Plan’s assets at fair value as of December 31, 2022 and 2021. Table 103: Pension Plan Assets - Fair Value Hierarchy December 31, 2022 December 31, 2021 In millions Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Interest bearing cash $ 51 $ 51 $ 11 $ 11 Money market funds 333 333 $ 725 725 U.S. government and agency securities 454 $ 136 590 583 124 707 Corporate debt 699 $ 2 701 962 $ 4 966 Common stock 605 605 739 1 740 Mutual funds 150 150 278 278 Other 1 1 2 148 148 Investments measured at NAV (a) 2,968 3,213 Total $ 1,444 $ 986 $ 2 $ 5,400 $ 2,047 $ 1,523 $ 5 $ 6,788 (a) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Estimated Cash Flows | The following table provides information regarding our estimated future cash flows related to our various plans. Table 104: Estimated Cash Flows Pension Plans Postretirement Benefits In millions Qualified Pension Nonqualified Pension Estimated 2023 employer contributions $ 25 $ 23 Estimated future benefit payments 2023 $ 326 $ 25 $ 23 2024 $ 336 $ 24 $ 24 2025 $ 353 $ 24 $ 23 2026 $ 356 $ 23 $ 23 2027 $ 337 $ 22 $ 23 2028-2032 $ 1,691 $ 96 $ 106 |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost/(income) and other amounts recognized in OCI were as follows: Table 105: Components of Net Periodic Benefit Cost (a) Qualified Pension Plan Nonqualified Pension Plan Postretirement Benefits Year ended December 31 – in millions 2022 2021 2020 2022 2021 2020 2022 2021 2020 Net periodic cost consists of: Service cost $ 142 $ 133 $ 122 $ 3 $ 4 $ 3 $ 4 $ 4 $ 4 Interest cost 156 139 160 7 6 8 9 8 11 Expected return on plan assets (298) (273) (302) (6) (6) (6) Amortization of prior service cost/(credit) 3 4 4 Amortization of actuarial (gain)/loss 5 6 5 Net periodic cost (benefit) $ 3 $ 3 $ (16) $ 15 $ 16 $ 16 $ 7 $ 6 $ 9 Other changes in plan assets and benefit obligations recognized in OCI: Current year prior service cost/(credit) (4) Amortization of prior service (cost)/credit (3) (4) (4) Current year actuarial loss/(gain) 508 (485) (112) (44) (4) 17 (30) (7) 3 Amortization of actuarial gain/(loss) (5) (6) (5) Total recognized in OCI $ 505 $ (493) $ (116) $ (49) $ (10) $ 12 $ (30) $ (7) $ 3 Total amounts recognized in net periodic cost and OCI $ 508 $ (490) $ (132) $ (34) $ 6 $ 28 $ (23) $ (1) $ 12 (a) The service cost component is included in Personnel expense on the Consolidated Income Statement. All other components are included in Other noninterest expense on the Consolidated Income Statement. |
Net Periodic Costs - Assumptions | The weighted-average assumptions used (as of the beginning of each year) to determine the net periodic costs shown in Table 105 were as follows: Table 106: Net Periodic Costs - Assumptions Net Periodic Cost Determination As of January 1 2022 2021 2020 Discount rate (a) Qualified pension 2.90 % 2.60 % 3.30 % Nonqualified pension 2.65 % 2.15 % 3.05 % Postretirement benefits 2.80 % 2.40 % 3.20 % Rate of compensation increase (average) (b) 4.25 % 4.25 % 4.25 % Interest crediting rate (average) Qualified Pension 3.70 % 3.70 % 3.85 % Nonqualified pension 4.00 % 4.00 % 4.15 % Postretirement benefits 1.65 % 1.30 % 2.05 % Assumed health care cost trend rate (c) Initial trend 6.00 % 6.00 % 6.25 % Ultimate trend 4.50 % 5.00 % 5.00 % Year ultimate trend reached 2028 2025 2025 Expected long-term return on plan assets (b) (d) 4.50 % 4.40 % 5.50 % (a) The 2021 discount rate for each plan is a blended rate that is inclusive of the BBVA plans acquired during the year. (b) Rate disclosed is for the qualified pension plan. (c) Rate is applicable only to the postretirement benefit plans. (d) The 2021 rate is a blended rate that is inclusive of the BBVA plan assets acquired during the year. |
Other Pension Assumptions | The weighted-average assumptions used (as of the end of each year) to determine year end obligations for pension and postretirement benefits were as follows: Table 107: Other Pension Assumptions Year ended December 31 2022 2021 Discount rate Qualified pension 5.55 % 2.90 % Nonqualified pension 5.45 % 2.65 % Postretirement benefits 5.50 % 2.80 % Rate of compensation increase (average) (a) 4.25 % 4.25 % Interest crediting rate (average) Qualified pension 4.65 % 3.70 % Nonqualified pension 4.80 % 4.00 % Postretirement benefits 4.30 % 1.65 % Assumed health care cost trend rate (b) Initial trend 6.00 % 6.00 % Ultimate trend 4.50 % 4.50 % Year ultimate trend reached 2029 2025 (a) Rate disclosed is for the qualified pension plan. (b) Rate is applicable only to the postretirement benefit plans. |
Stock Based Compensation Plans
Stock Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Nonvested Performance Share Unit Awards and Restricted Share Unit Awards - Rollforward | A rollforward of the nonvested performance share unit and restricted share unit awards follows: Table 108: Nonvested Performance Share Unit Awards and Restricted Share Unit Awards - Rollforward Shares in thousands Nonvested Performance Share Units Weighted-Average Grant Date Fair Value Nonvested Restricted Share Units Weighted-Average Grant Date Fair Value December 31, 2021 599 $ 133.59 3,582 $ 142.94 Granted (a) (b) 332 $ 173.25 1,214 $ 205.11 Vested/Released (a) (246) $ 110.14 (1,328) $ 122.88 Forfeitures (120) $ 172.63 December 31, 2022 685 $ 161.20 3,348 $ 172.40 (a) Includes adjustments for achieving specific performance goals for performance share unit awards granted in prior periods. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense from continuing operations are as follows: Table 109: Components of Income Tax Expense Year ended December 31 2022 2021 2020 Current Federal $ 782 $ 894 $ 669 State 227 191 158 Total current $ 1,009 $ 1,085 $ 827 Deferred Federal 307 123 (373) State 44 55 (28) Total deferred $ 351 $ 178 $ (401) Total $ 1,360 $ 1,263 $ 426 |
Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities are as follows: Table 110: Deferred Tax Assets and Liabilities December 31 – in millions 2022 2021 Deferred tax assets Net unrealized losses on securities and financial instruments $ 3,107 Allowance for loan and lease losses 1,152 $ 1,170 Lease obligations 548 563 Compensation and benefits 369 290 Allowance for unfunded lending related commitments 170 161 Loss and credit carryforward 98 140 Accrued expenses 78 151 Other 252 311 Total gross deferred tax assets 5,774 2,786 Valuation allowance (27) (33) Total deferred tax assets 5,747 2,753 Deferred tax liabilities Leasing 1,034 1,023 Fixed assets 589 704 Right of Use Assets 472 488 Mortgage servicing rights 325 89 Goodwill and intangibles 270 278 Net unrealized gains on securities and financial instruments 120 Other 405 254 Total deferred tax liabilities 3,095 2,956 Net deferred tax asset (liability) $ 2,652 $ (203) |
Reconciliation of Statutory and Effective Tax Rates | A reconciliation between the statutory and effective tax rates from continuing operations follows: Table 111: Reconciliation of Statutory and Effective Tax Rates Year ended December 31 2022 2021 2020 Statutory tax rate 21.0 % 21.0 % 21.0 % Increases (decreases) resulting from: State taxes net of federal benefit 2.7 2.6 2.0 Tax-exempt interest (1.2) (0.9) (1.7) Life insurance (0.8) (0.8) (1.6) Tax credits (3.2) (4.4) (6.0) Unrecognized tax benefits 0.1 0.3 (1.6) Subsidiary liquidation (1.2) Other (0.4) 0.3 1.5 Effective tax rate 18.2 % 18.1 % 12.4 % |
Net Operating Loss Carryforwards | The net operating loss carryforwards at December 31, 2022 and 2021 follow Table 112: Net Operating Loss Carryforwards Dollars in millions December 31, 2022 December 31, 2021 Expiration Net Operating Loss Carryforwards: Federal $ 45 $ 166 2030-2032 State $ 698 $ 872 2023-2039 |
Change in Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows: Table 113: Change in Unrecognized Tax Benefits In millions 2022 2021 2020 Balance of gross unrecognized tax benefits at January 1 $ 275 $ 265 $ 130 Increases: Positions taken during a current period 265 Acquired unrecognized tax benefits 8 Positions taken during a prior period 46 7 Decreases: Positions taken during a prior period (2) Settlements with taxing authorities (3) (3) (130) Balance of gross unrecognized tax benefits at December 31 $ 318 $ 275 $ 265 Favorable impact if recognized $ 258 $ 217 $ 209 |
IRS Tax Examination Status | Table 114: IRS Tax Examination Status Year(s) Status at December 31, 2022 PNC Financial Services Group, Inc. BBVA USA Bancshares, Inc. Federal 2020-2021 2018 Under Exam |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Basel Regulatory Capital | The following table sets forth the Basel III regulatory capital ratios at December 31, 2022 and 2021, for PNC and PNC Bank: Table 115: Basel Regulatory Capital (a) Amount Ratios December 31 2022 2021 2022 2021 “Well Capitalized” Requirements Risk-based capital Common equity Tier 1 PNC $ 39,685 $ 40,066 9.1 % 10.3 % N/A PNC Bank $ 43,658 $ 42,024 10.2 % 11.1 % 6.5 % Tier 1 PNC $ 45,431 $ 45,075 10.4 % 11.6 % 6.0 % PNC Bank $ 43,658 $ 42,024 10.2 % 11.1 % 8.0 % Total PNC $ 53,440 $ 52,451 12.3 % 13.5 % 10.0 % PNC Bank $ 50,666 $ 49,083 11.8 % 12.9 % 10.0 % Leverage PNC $ 45,431 $ 45,075 8.2 % 8.2 % N/A PNC Bank $ 43,658 $ 42,024 8.0 % 7.8 % 5.0 % (a) Calculated using the regulatory capital methodology applicable to us during both 2022 and 2021. |
Parent Company (Tables)
Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Income Statement - Parent Company | Summarized financial information of the parent company is as follows: Table 116: Parent Company - Income Statement Year ended December 31 2022 2021 2020 Operating Revenue Dividends from continuing operations: Bank subsidiaries and bank holding company $ 3,925 $ 3,980 $ 13,701 Non-bank subsidiaries 280 424 345 Interest income 104 15 38 Noninterest income (loss) (37) 41 37 Total operating revenue 4,272 4,460 14,121 Operating Expense Interest expense 326 129 179 Other expense 136 245 91 Total operating expense 462 374 270 Income before income taxes and equity in undistributed net income of subsidiaries 3,810 4,086 13,851 Equity in undistributed net income of subsidiaries from continuing operations: Bank subsidiaries and bank holding company 1,848 1,085 (12,009) Non-bank subsidiaries 455 543 (86) Income from continuing operations before taxes 6,113 5,714 1,756 Income tax expense (benefit) from continuing operations 72 41 (1,206) Net income from continuing operations 6,041 5,673 2,962 Dividends from discontinued operations: Bank subsidiaries and bank holding company 126 Equity in undistributed net income of subsidiaries from discontinued operations: Bank subsidiaries and bank holding company 5,651 Income from discontinued operations before taxes 5,777 Income taxes from discontinued operations 1,222 Net income from discontinued operations 4,555 Net income $ 6,041 $ 5,673 $ 7,517 Other comprehensive income, net of tax: Net pension and other postretirement benefit plan activity arising during the period 1 11 1 Other comprehensive income 1 11 1 Comprehensive income $ 6,042 $ 5,684 $ 7,518 |
Balance Sheet - Parent company | Table 117: Parent Company - Balance Sheet December 31 – in millions 2022 2021 Assets Cash held at banking subsidiary $ 4,654 $ 5,367 Restricted deposits with banking subsidiary 175 175 Investments in: Bank subsidiaries and bank holding company 48,867 56,596 Non-bank subsidiaries 3,170 2,693 Loans with affiliates 1,484 1,179 Other assets 2,057 1,999 Total assets $ 60,407 $ 68,009 Liabilities Subordinated debt (a) $ 1,728 $ 982 Senior debt (a) 11,379 10,362 Other borrowed funds from affiliates 343 Accrued expenses and other liabilities 1,526 627 Total liabilities 14,633 12,314 Equity Shareholders’ equity 45,774 55,695 Total liabilities and equity $ 60,407 $ 68,009 (a) See Note 10 Borrowed Funds for additional information on contractual rates and maturity dates of senior debt and subordinated debt for parent company. |
Interest Paid and Income Tax Refunds (Payments) - Parent company | Table 118: Parent Company - Interest Paid and Income Tax Refunds (Payments) Year ended December 31 – in millions Interest Paid Income Tax Refunds/ (Payments) 2022 $ 314 $ (255) 2021 $ 307 $ 386 2020 $ 335 $ 29 |
Statement of Cash Flows - Parent company | Table 119: Parent Company - Statement of Cash Flows Year ended December 31 – in millions 2022 2021 2020 Operating Activities Net income $ 6,041 $ 5,673 $ 7,517 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net earnings of subsidiaries (2,303) (1,628) Return on investment in subsidiaries 6,444 Other 95 (248) 237 Net cash provided (used) by operating activities $ 3,833 $ 3,797 $ 14,198 Investing Activities Proceeds from available for sale securities $ 300 Net change in loans and securities from affiliates $ (531) (1,188) $ (2,808) Net change in nonrestricted interest-earning deposits 7,024 Net cash paid for acquisition (11,358) Other (84) (5) Net cash provided (used) by investing activities $ (615) $ (12,251) $ 4,216 Financing Activities Net change in other borrowed funds from affiliates $ (1,138) $ (435) $ 473 Proceeds from long-term borrowings 4,335 1,692 1,986 Repayments of long-term borrowings (1,500) (500) (1,750) Preferred stock issuances 2,225 1,484 Preferred stock redemptions (1,500) (480) Common and treasury stock issuances 68 66 65 Acquisition of treasury stock (3,731) (1,079) (1,624) Preferred stock cash dividends paid (301) (233) (229) Common stock cash dividends paid (2,389) (2,056) (1,979) Net cash provided (used) by financing activities $ (3,931) $ (1,061) $ (3,538) Net Increase (Decrease) In Cash And Due From Banks $ (713) $ (9,515) $ 14,876 Net Cash Provided By Discontinued Operations 11,542 Net Cash Activity From Continuing Operations (713) (9,515) 3,334 Cash and restricted deposits held at banking subsidiary at beginning of year 5,542 15,057 181 Cash and restricted deposits held at banking subsidiary at end of year $ 4,829 $ 5,542 $ 15,057 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Results of Businesses | Table 120: Results of Businesses Year ended December 31 Retail Corporate & Asset Other Consolidated (a) 2022 Income Statement Net interest income $ 7,540 $ 5,179 $ 608 $ (313) $ 13,014 Noninterest income 2,967 3,621 936 582 8,106 Total revenue 10,507 8,800 1,544 269 21,120 Provision for (recapture of) credit losses 259 198 28 (8) 477 Depreciation and amortization 310 213 29 587 1,139 Other noninterest expense 7,288 3,438 1,057 248 12,031 Income (loss) from continuing operations before income taxes (benefit) 2,650 4,951 430 (558) 7,473 Income taxes (benefit) from continuing operations 621 1,064 100 (425) 1,360 Net income (loss) from continuing operations 2,029 3,887 330 (133) 6,113 Less: Net income attributable to noncontrolling interests 55 17 72 Net income (loss) from continuing operations excluding noncontrolling $ 1,974 $ 3,870 $ 330 $ (133) $ 6,041 Average Assets $ 113,829 $ 219,941 $ 14,505 $ 202,377 $ 550,652 2021 Income Statement Net interest income $ 6,206 $ 4,526 $ 476 $ (561) $ 10,647 Noninterest income 2,796 3,783 987 998 8,564 Total revenue 9,002 8,309 1,463 437 19,211 Provision for (recapture of) credit losses (101) (646) (7) (25) (779) Depreciation and amortization 293 208 23 542 1,066 Other noninterest expense 6,623 3,271 918 1,124 11,936 Income (loss) from continuing operations before income taxes (benefit) 2,187 5,476 529 (1,204) 6,988 Income taxes (benefit) from continuing operations 508 1,138 123 (506) 1,263 Net income (loss) from continuing operations 1,679 4,338 406 (698) 5,725 Less: Net income attributable to noncontrolling interests 31 14 6 51 Net income (loss) from continuing operations excluding noncontrolling $ 1,648 $ 4,324 $ 406 $ (704) $ 5,674 Average Assets $ 106,331 $ 188,470 $ 11,677 $ 216,688 $ 523,166 2020 Income Statement Net interest income $ 5,609 $ 3,999 $ 357 $ (19) $ 9,946 Noninterest income 2,519 3,062 854 520 6,955 Total revenue 8,128 7,061 1,211 501 16,901 Provision for (recapture of) credit losses 968 2,088 21 98 3,175 Depreciation and amortization 251 197 45 490 983 Other noninterest expense 5,768 2,659 813 74 9,314 Income (loss) from continuing operations before income taxes (benefit) 1,141 2,117 332 (161) 3,429 Income taxes (benefit) from continuing operations 266 433 77 (350) 426 Net income from continuing operations 875 1,684 255 189 3,003 Less: Net income attributable to noncontrolling interests 31 10 41 Net income from continuing operations excluding noncontrolling $ 844 $ 1,674 $ 255 $ 189 $ 2,962 Average Assets $ 97,643 $ 183,189 $ 8,186 $ 160,277 $ 449,295 (a) There were no material intersegment revenues for 2022, 2021 and 2020. |
Fee-based Revenue from Contra_2
Fee-based Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Noninterest Income Disaggregation | Table 121: Noninterest Income by Business Segment and Reconciliation to Consolidated Noninterest Income Year ended December 31 Retail Banking Corporate & Asset 2022 Asset management and brokerage Asset management fees $ 908 Brokerage fees $ 528 8 Total asset management and brokerage 528 916 Card and cash management Treasury management fees 40 $ 1,284 Debit card fees 684 Net credit card fees (a) 237 Merchant services 186 66 Other 97 Total card and cash management 1,244 1,350 Lending and deposit services Deposit account fees 583 Other 67 33 Total lending and deposit services 650 33 Residential and commercial mortgage (b) 140 Capital markets and advisory 790 Other 59 Total in-scope noninterest income 2,422 2,372 916 Out-of-scope noninterest income (c) 545 1,249 20 Noninterest income by business segment $ 2,967 $ 3,621 $ 936 Reconciliation to consolidated noninterest income For the year ended December 31, 2022 Total in-scope business segment noninterest income $ 5,710 Out-of-scope business segment noninterest income (c) 1,814 Noninterest income from other segments 582 Noninterest income as shown on the Consolidated Income Statement $ 8,106 (Continued from previous page) Year ended December 31 Retail Banking Corporate & Asset 2021 Asset management and brokerage Asset management fees $ 964 Brokerage fees $ 464 9 Total asset management and brokerage 464 973 Card and cash management Treasury management fees 46 $ 1,097 Debit card fees 665 Net credit card fees (a) 221 Merchant services 174 62 Other 115 Total card and cash management 1,221 1,159 Lending and deposit services Deposit account fees 542 Other 58 40 Total lending and deposit services 600 40 Residential and commercial mortgage (b) 141 Capital markets and advisory 1,110 Other 50 Total in-scope noninterest income 2,285 2,500 973 Out-of-scope noninterest income (c) 511 1,283 14 Noninterest income by business segment $ 2,796 $ 3,783 $ 987 Reconciliation to consolidated noninterest income For the year ended December 31, 2021 Total in-scope business segment noninterest income $ 5,758 Out-of-scope business segment noninterest income (c) 1,808 Noninterest income from other segments 998 Noninterest income as shown on the Consolidated Income Statement $ 8,564 (Continued from previous page) Year ended December 31 Retail Banking Corporate & Asset 2020 Asset management and brokerage Asset management fees $ 836 Brokerage fees $ 367 Total asset management and brokerage 367 836 Card and cash management Treasury management fees 33 $ 863 Debit card fees 522 Net credit card fees (a) 179 Merchant services 154 34 Other 105 Total card and cash management 993 897 Lending and deposit services Deposit account fees 497 Other 53 42 Total lending and deposit services 550 42 Residential and commercial mortgage (b) 111 Capital markets and advisory 759 Other 41 Total in-scope noninterest income 1,910 1,850 836 Out-of-scope noninterest income (c) 609 1,212 18 Noninterest income by business segment $ 2,519 $ 3,062 $ 854 Reconciliation to consolidated noninterest income For the year ended December 31, 2020 Total in-scope business segment noninterest income $ 4,596 Out-of-scope business segment noninterest income (c) 1,839 Noninterest income from other segments 520 Noninterest income as shown on the Consolidated Income Statement $ 6,955 (a) Net credit card fees consists of interchange fees of $662 million, $582 million and $469 million and credit card reward costs of $425 million, $361 million and $290 million for the years ended December 31, 2022, 2021 and 2020, respectively. (b) Residential mortgage noninterest income falls under the scope of other accounting and disclosure requirements outside of Topic 606 and is included within the out-of-scope noninterest income line for the Retail Banking segment. |
Accounting Policies (Details)
Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2022 office | |
Number of international offices | 4 |
Total consumer lending | Charge off threshold - consumer loan | |
Threshold period of financing receivable past due, writeoff | 180 days |
Minimum | |
Threshold period of financing receivable past due, writeoff | 120 days |
Minimum | Furniture and Equipment | |
Estimated useful life of property and equipment | 1 year |
Minimum | Software and Software Development Costs | |
Estimated useful life of property and equipment | 1 year |
Minimum | Total consumer lending | Charge off threshold - consumer loan | |
Threshold period of financing receivable past due, writeoff | 120 days |
Maximum | |
Threshold period of financing receivable past due, writeoff | 180 days |
Maximum | Furniture and Equipment | |
Estimated useful life of property and equipment | 10 years |
Maximum | Buildings | |
Estimated useful life of property and equipment | 40 years |
Maximum | Leasehold Improvements | |
Estimated useful life of property and equipment | 15 years |
Maximum | Software and Software Development Costs | |
Estimated useful life of property and equipment | 10 years |
Maximum | Total consumer lending | Charge off threshold - consumer loan | |
Threshold period of financing receivable past due, writeoff | 180 days |
Acquisition and Divestiture A_3
Acquisition and Divestiture Activity (Narrative) (Details) $ / shares in Units, customer in Millions | 1 Months Ended | 12 Months Ended | ||||
Jun. 01, 2021 USD ($) | May 31, 2020 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Oct. 12, 2021 branch employee state customer | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of customers converted | customer | 2.6 | |||||
Number of employees converted | employee | 9,000 | |||||
Number of branches converted | branch | 600 | |||||
Number of states converted | state | 7 | |||||
Goodwill | $ 1,600,000,000 | $ 10,987,000,000 | $ 10,916,000,000 | $ 9,233,000,000 | ||
Number of reportable segments | segment | 3 | |||||
Gain on disposition of business | 5,740,000,000 | |||||
Impairment charges related to goodwill | 0 | 0 | $ 0 | |||
BBVA USA Bancshares, Inc. | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Integration cost, exluding write-offs | 860,000,000 | |||||
Cumulative nonrecurring merger and integration costs | $ 120,000,000 | |||||
Impairment charges related to goodwill | 2,200,000,000 | |||||
Non-PCD Loans | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total allowance | 1,000,000,000 | |||||
Discontinued Operations, Disposed of by Sale | BlackRock, Inc. | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on disposition of business | $ 4,300,000,000 | |||||
Discontinued operations, number of shares contributed | shares | 500,000 | |||||
Core deposits | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Finite-lived intangible asset, useful life | 10 years | |||||
Registered Secondary Offering | Discontinued Operations, Disposed of by Sale | BlackRock, Inc. | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on disposition of business | $ 4,300,000,000 | |||||
Sale of stock, number of shares issued in transaction (in shares) | shares | 31,600,000 | |||||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 420 | |||||
Sale of stock, consideration received on transaction | $ 14,200,000,000 | |||||
Payments of stock issuance costs | $ 200,000,000 | |||||
BlackRock, Inc. | Discontinued Operations, Disposed of by Sale | BlackRock, Inc. | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Sale of stock, number of shares issued in transaction (in shares) | shares | 2,650,000 | |||||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 414.96 | |||||
BBVA USA Bancshares, Inc. | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Business combination, consideration transferred | 11,500,000,000 | |||||
Acquisition costs | $ 55,000,000 | $ 798,000,000 | ||||
Goodwill | 1,599,000,000 | |||||
ACL at acquisition | 1,102,000,000 | |||||
Total loans and leases | 61,423,000,000 | |||||
BBVA USA Bancshares, Inc. | Fair Value | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total loans and leases | 61,423,000,000 | |||||
BBVA USA Bancshares, Inc. | Carrying Amount | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total loans and leases | 62,269,000,000 | |||||
BBVA USA Bancshares, Inc. | Non-PCD Loans | Fair Value | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total loans and leases | 52,100,000,000 | |||||
BBVA USA Bancshares, Inc. | Non-PCD Loans | Carrying Amount | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total loans and leases | 52,000,000,000 | |||||
BBVA USA Bancshares, Inc. | Financial Asset Acquired with Credit Deterioration | Fair Value | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total loans and leases | 9,400,000,000 | |||||
BBVA USA Bancshares, Inc. | Financial Asset Acquired with Credit Deterioration | Carrying Amount | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total loans and leases | $ 10,300,000,000 |
Acquisition and Divestiture A_4
Acquisition and Divestiture Activity (Acquisition Consideration) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 01, 2021 | Dec. 31, 2020 |
Liabilities | ||||
Goodwill | $ 10,987 | $ 10,916 | $ 1,600 | $ 9,233 |
BBVA USA Bancshares, Inc. | ||||
Business Acquisition [Line Items] | ||||
Fair value of acquisition consideration | 11,480 | |||
Assets | ||||
Cash and due from banks | 969 | |||
Interest-earning deposits with banks | 13,313 | |||
Loans held for sale | 463 | |||
Investment securities – available for sale | 18,358 | |||
Net loans | 61,423 | |||
Equity investments | 723 | |||
Mortgage servicing rights | 35 | |||
Core deposit intangibles and other intangible assets | 378 | |||
Other | 3,527 | |||
Total assets | 99,189 | |||
Liabilities | ||||
Deposits | 85,562 | |||
Borrowed funds | 2,449 | |||
Accrued expenses and other liabilities | 1,275 | |||
Total liabilities | 89,286 | |||
Noncontrolling interests | 22 | |||
Less: Net assets | 9,881 | |||
Goodwill | $ 1,599 |
Acquisition and Divestiture A_5
Acquisition and Divestiture Activity (Fair Value and Unpaid Principal Balance of Loans from BBVA Acqusition) (Details) - BBVA USA Bancshares, Inc. $ in Millions | Jun. 01, 2021 USD ($) |
Business Acquisition [Line Items] | |
Net loans | $ 61,423 |
Carrying Amount | |
Business Acquisition [Line Items] | |
Net loans | 62,269 |
Fair Value | |
Business Acquisition [Line Items] | |
Net loans | 61,423 |
Total commercial lending | Carrying Amount | |
Business Acquisition [Line Items] | |
Net loans | 40,544 |
Total commercial lending | Fair Value | |
Business Acquisition [Line Items] | |
Net loans | 39,742 |
Total commercial lending | Commercial and industrial | Carrying Amount | |
Business Acquisition [Line Items] | |
Net loans | 29,864 |
Total commercial lending | Commercial and industrial | Fair Value | |
Business Acquisition [Line Items] | |
Net loans | 29,381 |
Total commercial lending | Commercial real estate | Carrying Amount | |
Business Acquisition [Line Items] | |
Net loans | 10,632 |
Total commercial lending | Commercial real estate | Fair Value | |
Business Acquisition [Line Items] | |
Net loans | 10,313 |
Total commercial lending | Equipment lease financing | Carrying Amount | |
Business Acquisition [Line Items] | |
Net loans | 48 |
Total commercial lending | Equipment lease financing | Fair Value | |
Business Acquisition [Line Items] | |
Net loans | 48 |
Total consumer lending | Carrying Amount | |
Business Acquisition [Line Items] | |
Net loans | 21,725 |
Total consumer lending | Fair Value | |
Business Acquisition [Line Items] | |
Net loans | 21,681 |
Total consumer lending | Residential real estate | Carrying Amount | |
Business Acquisition [Line Items] | |
Net loans | 12,871 |
Total consumer lending | Residential real estate | Fair Value | |
Business Acquisition [Line Items] | |
Net loans | 12,961 |
Total consumer lending | Home equity | Carrying Amount | |
Business Acquisition [Line Items] | |
Net loans | 2,430 |
Total consumer lending | Home equity | Fair Value | |
Business Acquisition [Line Items] | |
Net loans | 2,423 |
Total consumer lending | Automobile | Carrying Amount | |
Business Acquisition [Line Items] | |
Net loans | 3,916 |
Total consumer lending | Automobile | Fair Value | |
Business Acquisition [Line Items] | |
Net loans | 3,910 |
Total consumer lending | Credit card | Carrying Amount | |
Business Acquisition [Line Items] | |
Net loans | 820 |
Total consumer lending | Credit card | Fair Value | |
Business Acquisition [Line Items] | |
Net loans | 758 |
Total consumer lending | Other consumer | Carrying Amount | |
Business Acquisition [Line Items] | |
Net loans | 1,688 |
Total consumer lending | Other consumer | Fair Value | |
Business Acquisition [Line Items] | |
Net loans | $ 1,629 |
Acquisition and Divestiture A_6
Acquisition and Divestiture Activity (Intangible Assets) (Details) $ in Millions | Jun. 01, 2021 USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 378 |
Mortgage Servicing Rights | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 35 |
Weighted Life (years) | 5 years 6 months |
Core deposits | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 262 |
Weighted Life (years) | 10 years |
Other | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 116 |
Weighted Life (years) | 9 years 9 months 18 days |
Acquisition and Divestiture A_7
Acquisition and Divestiture Activity (BBVA Financial Results) (Details) - BBVA USA Bancshares, Inc. $ in Millions | 4 Months Ended |
Sep. 30, 2021 USD ($) | |
Business Acquisition [Line Items] | |
Net interest income | $ 768 |
Noninterest income | 285 |
Net income | $ 378 |
Acquisition and Divestiture A_8
Acquisition and Divestiture Activity ( Unaudited Pro Forma Results) (Details) - BBVA USA Bancshares, Inc. - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Net interest income | $ 11,662 | $ 12,413 |
Noninterest income | 8,960 | 7,866 |
Net income | $ 7,475 | $ 4,928 |
Acquisition and Divestiture A_9
Acquisition and Divestiture Activity (PCD Loan Activity) (Details) - BBVA USA Bancshares, Inc. $ in Millions | Jun. 01, 2021 USD ($) |
Business Acquisition [Line Items] | |
Principal Balance | $ 10,253 |
ACL at acquisition | (1,102) |
Non-credit premium | 219 |
Purchase price | $ 9,370 |
Acquisition and Divestiture _10
Acquisition and Divestiture Activity (Consolidated Income Statement - Discontinued Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income from discontinued operations before income taxes and noncontrolling interests | $ 5,777 | ||
Income taxes | 1,222 | ||
Net income from discontinued operations | 4,555 | ||
BlackRock, Inc. | Discontinued Operations, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Noninterest income | 5,777 | ||
Total revenue | 5,777 | ||
Income from discontinued operations before income taxes and noncontrolling interests | 5,777 | ||
Income taxes | 1,222 | ||
Net income from discontinued operations | $ 4,555 |
Acquisition and Divestiture _11
Acquisition and Divestiture Activity (Consolidated Statement of Cash Flows - Discontinued Operations) (Details) - BlackRock, Inc. - Discontinued Operations, Disposed of by Sale $ in Millions | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net cash provided (used) by operating activities of discontinued operations | $ (2,683) |
Net cash provided by investing activities of discontinued operations | $ 14,225 |
Investment Securities (Summary)
Investment Securities (Summary) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Available-for-sale Securities, Amortized Cost | $ 48,568 | $ 130,798 |
Securities available for sale debt securities, unrealized gains | 225 | 1,566 |
Securities available for sale debt securities, unrealized losses | (4,634) | (828) |
Securities available for sale debt securities, fair value | 44,159 | 131,536 |
Held-to-maturity, Amortized costs | 95,175 | 1,426 |
Held-to-maturity securities, unrealized gains | 115 | 103 |
Held-to-maturity securities, unrealized losses | (5,011) | (7) |
Held-to-maturity securities, fair value | 90,279 | 1,522 |
Accrued Interest, held-to-maturity | 282 | 5 |
Accrued interest, available-for-sale | $ 144 | $ 322 |
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Other | Other |
Debt Securities, Held-to-Maturity, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Other | Other |
Debt securities, available-for-sale, allowance for credit loss | $ 142 | $ 130 |
Debt securities, held-to-maturity, allowance for credit loss | 7 | $ 3 |
Unrealized losses related to transfers | $ 5,100 | |
Fitch, AAA OR AA Rating | Credit Concentration Risk | Held-to-maturity Securities | ||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Concentration risk, percentage | 97% | 96% |
U.S. Treasury and government agencies | ||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Available-for-sale Securities, Amortized Cost | $ 9,196 | $ 46,210 |
Securities available for sale debt securities, unrealized gains | 10 | 324 |
Securities available for sale debt securities, unrealized losses | (836) | (370) |
Securities available for sale debt securities, fair value | 8,370 | 46,164 |
Held-to-maturity, Amortized costs | 36,571 | 814 |
Held-to-maturity securities, unrealized gains | 6 | 76 |
Held-to-maturity securities, unrealized losses | (1,617) | |
Held-to-maturity securities, fair value | 34,960 | 890 |
Residential mortgage-backed Securities | Mortgage-backed Securities Agency | ||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Available-for-sale Securities, Amortized Cost | 32,114 | 67,326 |
Securities available for sale debt securities, unrealized gains | 13 | 695 |
Securities available for sale debt securities, unrealized losses | (3,304) | (389) |
Securities available for sale debt securities, fair value | 28,823 | 67,632 |
Held-to-maturity, Amortized costs | 45,271 | |
Held-to-maturity securities, unrealized gains | 74 | |
Held-to-maturity securities, unrealized losses | (3,095) | |
Held-to-maturity securities, fair value | 42,250 | |
Residential mortgage-backed Securities | Mortgage-backed Securities Non-agency | ||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Available-for-sale Securities, Amortized Cost | 697 | 927 |
Securities available for sale debt securities, unrealized gains | 131 | 231 |
Securities available for sale debt securities, unrealized losses | (9) | |
Securities available for sale debt securities, fair value | 819 | 1,158 |
Held-to-maturity, Amortized costs | 276 | |
Held-to-maturity securities, unrealized gains | ||
Held-to-maturity securities, unrealized losses | (21) | |
Held-to-maturity securities, fair value | 255 | |
Commercial Mortgage Backed Securities | Mortgage-backed Securities Agency | ||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Available-for-sale Securities, Amortized Cost | 1,845 | 1,740 |
Securities available for sale debt securities, unrealized gains | 39 | |
Securities available for sale debt securities, unrealized losses | (170) | (6) |
Securities available for sale debt securities, fair value | 1,675 | 1,773 |
Held-to-maturity, Amortized costs | 848 | |
Held-to-maturity securities, unrealized gains | 4 | |
Held-to-maturity securities, unrealized losses | (26) | |
Held-to-maturity securities, fair value | 826 | |
Commercial Mortgage Backed Securities | Mortgage-backed Securities Non-agency | ||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Available-for-sale Securities, Amortized Cost | 1,325 | 3,423 |
Securities available for sale debt securities, unrealized gains | 31 | |
Securities available for sale debt securities, unrealized losses | (69) | (18) |
Securities available for sale debt securities, fair value | 1,256 | 3,436 |
Held-to-maturity, Amortized costs | 1,667 | |
Held-to-maturity securities, unrealized gains | ||
Held-to-maturity securities, unrealized losses | (40) | |
Held-to-maturity securities, fair value | 1,627 | |
Asset-backed Securities | ||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Available-for-sale Securities, Amortized Cost | 103 | 6,380 |
Securities available for sale debt securities, unrealized gains | 27 | 60 |
Securities available for sale debt securities, unrealized losses | (1) | (31) |
Securities available for sale debt securities, fair value | 129 | 6,409 |
Held-to-maturity, Amortized costs | 7,188 | |
Held-to-maturity securities, unrealized gains | 6 | |
Held-to-maturity securities, unrealized losses | (140) | |
Held-to-maturity securities, fair value | 7,054 | |
Other debt | ||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Available-for-sale Securities, Amortized Cost | 3,288 | 4,792 |
Securities available for sale debt securities, unrealized gains | 44 | 186 |
Securities available for sale debt securities, unrealized losses | (245) | (14) |
Securities available for sale debt securities, fair value | 3,087 | 4,964 |
Held-to-maturity, Amortized costs | 3,354 | 612 |
Held-to-maturity securities, unrealized gains | 25 | 27 |
Held-to-maturity securities, unrealized losses | (72) | (7) |
Held-to-maturity securities, fair value | $ 3,307 | $ 632 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Investments [Line Items] | |||
Net unsettled investment purchases | $ 200 | $ 200 | $ 800 |
Transferred securities at fair value from available for sale to held to maturity | 82,700 | 82,700 | |
Unrealized losses related to transfers | 5,100 | 5,100 | |
Investment securities, allowance for credit loss | 149 | 149 | $ 133 |
Pretax loss from derivatives | 314 | 314 | |
US Treasury and Government [Member] | |||
Schedule of Investments [Line Items] | |||
Transferred securities at fair value from available for sale to held to maturity | 34,000 | ||
Residential mortgage-backed Securities | Mortgage-backed Securities Agency | |||
Schedule of Investments [Line Items] | |||
Transferred securities at fair value from available for sale to held to maturity | 39,000 | ||
Asset-backed Securities | |||
Schedule of Investments [Line Items] | |||
Transferred securities at fair value from available for sale to held to maturity | 6,300 | ||
Other debt | |||
Schedule of Investments [Line Items] | |||
Transferred securities at fair value from available for sale to held to maturity | 3,400 | ||
Federal National Mortgage Association Certificates and Obligations (FNMA) | |||
Schedule of Investments [Line Items] | |||
Amortized cost of debt securities of a single issuer that exceeds 10 percent of shareholders equity | 39,600 | 39,600 | |
Fair value of debt securities of a single issuer that exceeds 10 percent of shareholders equity | 36,400 | 36,400 | |
Federal Home Loan Mortgage Corp (FHLMC) | |||
Schedule of Investments [Line Items] | |||
Amortized cost of debt securities of a single issuer that exceeds 10 percent of shareholders equity | 33,000 | 33,000 | |
Fair value of debt securities of a single issuer that exceeds 10 percent of shareholders equity | $ 30,500 | $ 30,500 |
Investment Securities (Gross Un
Investment Securities (Gross Unrealized Loss and Fair Value of Securities Available for Sale Without an Allowance for Credit Losses) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss | $ (2,616) | $ (790) |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months - fair value | 28,467 | 80,895 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss | (1,973) | (26) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer - fair value | 13,111 | 2,211 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (4,589) | (816) |
Debt securities, available-for-sale, unrealized loss position - fair value | 41,578 | 83,106 |
U.S. Treasury and government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss | (601) | (370) |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months - fair value | 5,868 | 32,600 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss | (235) | |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer - fair value | 2,208 | |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (836) | (370) |
Debt securities, available-for-sale, unrealized loss position - fair value | 8,076 | 32,600 |
Residential mortgage-backed Securities | Mortgage-backed Securities Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss | (1,744) | (369) |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months - fair value | 19,036 | 41,521 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss | (1,560) | (20) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer - fair value | 8,971 | 1,489 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (3,304) | (389) |
Debt securities, available-for-sale, unrealized loss position - fair value | 28,007 | 43,010 |
Residential mortgage-backed Securities | Mortgage-backed Securities Non-agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss | (6) | |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months - fair value | 112 | |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss | (2) | |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer - fair value | 17 | |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (8) | |
Debt securities, available-for-sale, unrealized loss position - fair value | 129 | |
Commercial Mortgage Backed Securities | Mortgage-backed Securities Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss | (125) | (5) |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months - fair value | 1,283 | 451 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss | (45) | (1) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer - fair value | 372 | 60 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (170) | (6) |
Debt securities, available-for-sale, unrealized loss position - fair value | 1,655 | 511 |
Commercial Mortgage Backed Securities | Mortgage-backed Securities Non-agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss | (44) | (4) |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months - fair value | 750 | 1,453 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss | (18) | (3) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer - fair value | 394 | 474 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (62) | (7) |
Debt securities, available-for-sale, unrealized loss position - fair value | 1,144 | 1,927 |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss | (29) | |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months - fair value | 3,465 | |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss | (1) | (2) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer - fair value | 5 | 188 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (1) | (31) |
Debt securities, available-for-sale, unrealized loss position - fair value | 5 | 3,653 |
Other debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss | (96) | (13) |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months - fair value | 1,418 | 1,405 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss | (112) | |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer - fair value | 1,144 | |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (208) | (13) |
Debt securities, available-for-sale, unrealized loss position - fair value | $ 2,562 | $ 1,405 |
Investment Securities (Gains (L
Investment Securities (Gains (Losses) on Sales of Securities Available for Sale) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross Gains | $ 11 | $ 360 | $ 307 |
Gross Losses | (18) | (296) | (2) |
Net Gains (Losses) | (7) | 64 | 305 |
Tax Expense (Benefit) | $ (1) | $ 13 | $ 64 |
Investment Securities (Contract
Investment Securities (Contractual Maturity of Debt Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Available for Sale Securities, Amortized Cost, 1 year or less | $ 2,317 | |
Available for Sale Securities, Amortized Cost, After 1 year through 5 years | 5,872 | |
Available for Sale Securities, Amortized Cost, After 5 years through 10 years | 7,456 | |
Available for Sale Securities, Amortized Cost, After 10 years | 32,923 | |
Available-for-sale Securities, Amortized Cost | 48,568 | $ 130,798 |
Available-for-sale Securities, Fair value, 1 year or less | 2,296 | |
Available-for-sale Securities, Fair value, After 1 year through 5 years | 5,505 | |
Available-for-sale Securities, Fair value, After 5 years through 10 years | 6,762 | |
Available-for-sale Securities, Fair Value, After 10 years | 29,596 | |
Available-for-sale Securities, Fair Value | $ 44,159 | 131,536 |
Weighted-average yield, GAAP basis, available for sale securities | 2.63% | |
Held-to-maturity Securitites, Amortized Cost, 1 year or less | $ 1,274 | |
Held-to-maturity Securitites, Amortized Cost, After 1 year through 5 years | 30,501 | |
Held-to-maturity Securitites, Amortized Cost, After 5 years through 10 years | 11,394 | |
Held-to-maturity Securitites, Amortized Cost, After 10 years | 52,006 | |
Held-to-maturity, Amortized costs | 95,175 | 1,426 |
Held-to-maturity Securities, Fair Value, 1 year or less | 1,264 | |
Held-to-maturity Securities, Fair Value, After 1 year through 5 years | 29,439 | |
Held-to-maturity, Securities, Fair Value, After 5 through 10 years | 10,799 | |
Held-to-maturity, Securities, Fair Value, After 10 years | 48,777 | |
Debt Securities, Held-to-maturity, Fair Value | $ 90,279 | $ 1,522 |
Weighted-average yield, GAAP basis, held to maturity securities | 2.31% | |
One Year or Less | ||
Debt Securities, Available-for-sale [Line Items] | ||
Weighted-average yield, GAAP basis, available for sale securities | 2.39% | |
Weighted-average yield, GAAP basis, held to maturity securities | 2.31% | |
After One Year Through Five Years | ||
Debt Securities, Available-for-sale [Line Items] | ||
Weighted-average yield, GAAP basis, available for sale securities | 1.81% | |
Weighted-average yield, GAAP basis, held to maturity securities | 1.35% | |
After Five Years Through Ten Years | ||
Debt Securities, Available-for-sale [Line Items] | ||
Weighted-average yield, GAAP basis, available for sale securities | 2.27% | |
Weighted-average yield, GAAP basis, held to maturity securities | 2.41% | |
After Ten Years | ||
Debt Securities, Available-for-sale [Line Items] | ||
Weighted-average yield, GAAP basis, available for sale securities | 2.87% | |
Weighted-average yield, GAAP basis, held to maturity securities | 2.86% | |
U.S. Treasury and government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for Sale Securities, Amortized Cost, 1 year or less | $ 2,121 | |
Available for Sale Securities, Amortized Cost, After 1 year through 5 years | 2,958 | |
Available for Sale Securities, Amortized Cost, After 5 years through 10 years | 2,101 | |
Available for Sale Securities, Amortized Cost, After 10 years | 2,016 | |
Available-for-sale Securities, Amortized Cost | 9,196 | |
Held-to-maturity Securitites, Amortized Cost, 1 year or less | 862 | |
Held-to-maturity Securitites, Amortized Cost, After 1 year through 5 years | 27,076 | |
Held-to-maturity Securitites, Amortized Cost, After 5 years through 10 years | 7,831 | |
Held-to-maturity Securitites, Amortized Cost, After 10 years | 802 | |
Held-to-maturity, Amortized costs | 36,571 | |
Residential mortgage-backed Securities | Mortgage-backed Securities Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for Sale Securities, Amortized Cost, 1 year or less | 2 | |
Available for Sale Securities, Amortized Cost, After 1 year through 5 years | 75 | |
Available for Sale Securities, Amortized Cost, After 5 years through 10 years | 3,304 | |
Available for Sale Securities, Amortized Cost, After 10 years | 28,733 | |
Available-for-sale Securities, Amortized Cost | 32,114 | |
Held-to-maturity Securitites, Amortized Cost, 1 year or less | ||
Held-to-maturity Securitites, Amortized Cost, After 1 year through 5 years | 8 | |
Held-to-maturity Securitites, Amortized Cost, After 5 years through 10 years | 283 | |
Held-to-maturity Securitites, Amortized Cost, After 10 years | 44,980 | |
Held-to-maturity, Amortized costs | 45,271 | |
Residential mortgage-backed Securities | Mortgage-backed Securities Non-agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for Sale Securities, Amortized Cost, 1 year or less | ||
Available for Sale Securities, Amortized Cost, After 1 year through 5 years | ||
Available for Sale Securities, Amortized Cost, After 5 years through 10 years | 7 | |
Available for Sale Securities, Amortized Cost, After 10 years | 690 | |
Available-for-sale Securities, Amortized Cost | 697 | |
Held-to-maturity Securitites, Amortized Cost, 1 year or less | ||
Held-to-maturity Securitites, Amortized Cost, After 1 year through 5 years | ||
Held-to-maturity Securitites, Amortized Cost, After 5 years through 10 years | ||
Held-to-maturity Securitites, Amortized Cost, After 10 years | 276 | |
Held-to-maturity, Amortized costs | 276 | |
Commercial Mortgage Backed Securities | Mortgage-backed Securities Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for Sale Securities, Amortized Cost, 1 year or less | 66 | |
Available for Sale Securities, Amortized Cost, After 1 year through 5 years | 410 | |
Available for Sale Securities, Amortized Cost, After 5 years through 10 years | 1,075 | |
Available for Sale Securities, Amortized Cost, After 10 years | 294 | |
Available-for-sale Securities, Amortized Cost | 1,845 | |
Held-to-maturity Securitites, Amortized Cost, 1 year or less | ||
Held-to-maturity Securitites, Amortized Cost, After 1 year through 5 years | ||
Held-to-maturity Securitites, Amortized Cost, After 5 years through 10 years | 584 | |
Held-to-maturity Securitites, Amortized Cost, After 10 years | 264 | |
Held-to-maturity, Amortized costs | 848 | |
Commercial Mortgage Backed Securities | Mortgage-backed Securities Non-agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for Sale Securities, Amortized Cost, 1 year or less | ||
Available for Sale Securities, Amortized Cost, After 1 year through 5 years | 120 | |
Available for Sale Securities, Amortized Cost, After 5 years through 10 years | 264 | |
Available for Sale Securities, Amortized Cost, After 10 years | 941 | |
Available-for-sale Securities, Amortized Cost | 1,325 | |
Held-to-maturity Securitites, Amortized Cost, 1 year or less | ||
Held-to-maturity Securitites, Amortized Cost, After 1 year through 5 years | 114 | |
Held-to-maturity Securitites, Amortized Cost, After 5 years through 10 years | ||
Held-to-maturity Securitites, Amortized Cost, After 10 years | 1,553 | |
Held-to-maturity, Amortized costs | 1,667 | |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for Sale Securities, Amortized Cost, 1 year or less | ||
Available for Sale Securities, Amortized Cost, After 1 year through 5 years | ||
Available for Sale Securities, Amortized Cost, After 5 years through 10 years | 10 | |
Available for Sale Securities, Amortized Cost, After 10 years | 93 | |
Available-for-sale Securities, Amortized Cost | 103 | |
Held-to-maturity Securitites, Amortized Cost, 1 year or less | 253 | |
Held-to-maturity Securitites, Amortized Cost, After 1 year through 5 years | 2,134 | |
Held-to-maturity Securitites, Amortized Cost, After 5 years through 10 years | 2,117 | |
Held-to-maturity Securitites, Amortized Cost, After 10 years | 2,684 | |
Held-to-maturity, Amortized costs | 7,188 | |
Other debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for Sale Securities, Amortized Cost, 1 year or less | 128 | |
Available for Sale Securities, Amortized Cost, After 1 year through 5 years | 2,309 | |
Available for Sale Securities, Amortized Cost, After 5 years through 10 years | 695 | |
Available for Sale Securities, Amortized Cost, After 10 years | 156 | |
Available-for-sale Securities, Amortized Cost | 3,288 | |
Held-to-maturity Securitites, Amortized Cost, 1 year or less | 159 | |
Held-to-maturity Securitites, Amortized Cost, After 1 year through 5 years | 1,169 | |
Held-to-maturity Securitites, Amortized Cost, After 5 years through 10 years | 579 | |
Held-to-maturity Securitites, Amortized Cost, After 10 years | 1,447 | |
Held-to-maturity, Amortized costs | $ 3,354 |
Investment Securities (Fair Val
Investment Securities (Fair Value of Securities Pledged and Accepted as Collateral) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Summary of Investment Holdings [Line Items] | ||
Permitted by contract or custom to sell or repledge | $ 1,266 | $ 707 |
Permitted amount repledged to others | 1,266 | 707 |
Asset Pledged as Collateral | ||
Summary of Investment Holdings [Line Items] | ||
Pledged to others | $ 24,708 | $ 27,349 |
Loans and Related Allowance f_3
Loans and Related Allowance for Credit Losses (Analysis of Loan Portfolio) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | [1] | $ 326,025 | $ 288,372 |
Percentage of total loans, past due | 100% | 100% | |
Accrued interest on loan portfolio | $ 1,200 | $ 700 | |
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Other | Other | |
Unearned income, unamortized deferred fees and costs on originated loans, and premiums or discounts on purchased loans | $ 900 | $ 700 | |
Collateral Pledged | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 1,300 | 1,700 | |
Total Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | $ 1,490 | $ 1,985 | |
Percentage of total loans, past due | 0.46% | 0.69% | |
Current or Less Than 30 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | $ 321,904 | $ 283,155 | |
Percentage of total loans, past due | 98.73% | 98.19% | |
30-59 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | $ 747 | $ 1,011 | |
Percentage of total loans, past due | 0.23% | 0.35% | |
60-89 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | $ 261 | $ 355 | |
Percentage of total loans, past due | 0.08% | 0.12% | |
90 Days Or More Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | $ 482 | $ 619 | |
Percentage of total loans, past due | 0.15% | 0.21% | |
Nonperforming Loans | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | $ 1,985 | $ 2,480 | |
Percentage of total loans, past due | 0.61% | 0.86% | |
Fair Value Option Nonaccrual Loans | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | $ 646 | $ 752 | |
Percentage of total loans, nonaccrual, past due | 0.20% | 0.26% | |
Residential real estate | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | $ 45,889 | $ 39,712 | |
Residential real estate | Government insured or guaranteed loans | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 693 | 811 | |
Home equity | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 25,983 | 24,061 | |
Education | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 2,173 | 2,533 | |
Other consumer | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 5,026 | 5,727 | |
Commercial | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 225,049 | 193,078 | |
Commercial | Total Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 380 | 537 | |
Commercial | Current or Less Than 30 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 223,811 | 191,373 | |
Commercial | 30-59 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 208 | 306 | |
Commercial | 60-89 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 35 | 98 | |
Commercial | 90 Days Or More Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 137 | 133 | |
Commercial | Nonperforming Loans | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 858 | 1,168 | |
Commercial | Commercial and industrial | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 182,219 | 152,933 | |
Commercial | Commercial and industrial | Total Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 333 | 439 | |
Commercial | Commercial and industrial | Current or Less Than 30 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 181,223 | 151,698 | |
Commercial | Commercial and industrial | 30-59 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 169 | 235 | |
Commercial | Commercial and industrial | 60-89 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 27 | 72 | |
Commercial | Commercial and industrial | 90 Days Or More Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 137 | 132 | |
Commercial | Commercial and industrial | Nonperforming Loans | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 663 | 796 | |
Commercial | Commercial real estate | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 36,316 | 34,015 | |
Commercial | Commercial real estate | Total Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 23 | 71 | |
Commercial | Commercial real estate | Current or Less Than 30 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 36,104 | 33,580 | |
Commercial | Commercial real estate | 30-59 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 19 | 46 | |
Commercial | Commercial real estate | 60-89 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 4 | 24 | |
Commercial | Commercial real estate | 90 Days Or More Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 1 | ||
Commercial | Commercial real estate | Nonperforming Loans | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 189 | 364 | |
Commercial | Equipment lease financing | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 6,514 | 6,130 | |
Commercial | Equipment lease financing | Total Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 24 | 27 | |
Commercial | Equipment lease financing | Current or Less Than 30 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 6,484 | 6,095 | |
Commercial | Equipment lease financing | 30-59 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 20 | 25 | |
Commercial | Equipment lease financing | 60-89 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 4 | 2 | |
Commercial | Equipment lease financing | 90 Days Or More Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | |||
Commercial | Equipment lease financing | Nonperforming Loans | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 6 | 8 | |
Consumer | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 100,976 | 95,294 | |
Consumer | Total Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 1,110 | 1,448 | |
Consumer | Current or Less Than 30 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 98,093 | 91,782 | |
Consumer | 30-59 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 539 | 705 | |
Consumer | 60-89 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 226 | 257 | |
Consumer | 90 Days Or More Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 345 | 486 | |
Consumer | Nonperforming Loans | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 1,127 | 1,312 | |
Consumer | Fair Value Option Nonaccrual Loans | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 646 | 752 | |
Consumer | Residential real estate | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 45,889 | 39,712 | |
Consumer | Residential real estate | Total Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 592 | 826 | |
Consumer | Residential real estate | Total Past Due | Government insured or guaranteed loans | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 300 | 400 | |
Consumer | Residential real estate | Current or Less Than 30 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 44,306 | 37,706 | |
Consumer | Residential real estate | 30-59 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 281 | 379 | |
Consumer | Residential real estate | 60-89 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 112 | 119 | |
Consumer | Residential real estate | 90 Days Or More Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 199 | 328 | |
Consumer | Residential real estate | Nonperforming Loans | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 424 | 517 | |
Consumer | Residential real estate | Fair Value Option Nonaccrual Loans | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 567 | 663 | |
Consumer | Home equity | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 25,983 | 24,061 | |
Consumer | Home equity | Total Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 73 | 71 | |
Consumer | Home equity | Current or Less Than 30 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 25,305 | 23,305 | |
Consumer | Home equity | 30-59 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 53 | 53 | |
Consumer | Home equity | 60-89 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 20 | 18 | |
Consumer | Home equity | 90 Days Or More Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | |||
Consumer | Home equity | Nonperforming Loans | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 526 | 596 | |
Consumer | Home equity | Fair Value Option Nonaccrual Loans | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 79 | 89 | |
Consumer | Automobile | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 14,836 | 16,635 | |
Consumer | Automobile | Total Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 138 | 200 | |
Consumer | Automobile | Current or Less Than 30 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 14,543 | 16,252 | |
Consumer | Automobile | 30-59 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 106 | 146 | |
Consumer | Automobile | 60-89 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 25 | 40 | |
Consumer | Automobile | 90 Days Or More Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 7 | 14 | |
Consumer | Automobile | Nonperforming Loans | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 155 | 183 | |
Consumer | Credit card | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 7,069 | 6,626 | |
Consumer | Credit card | Total Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 155 | 144 | |
Consumer | Credit card | Current or Less Than 30 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 6,906 | 6,475 | |
Consumer | Credit card | 30-59 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 50 | 49 | |
Consumer | Credit card | 60-89 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 35 | 33 | |
Consumer | Credit card | 90 Days Or More Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 70 | 62 | |
Consumer | Credit card | Nonperforming Loans | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 8 | 7 | |
Consumer | Education | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 2,173 | 2,533 | |
Consumer | Education | Total Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 115 | 133 | |
Consumer | Education | Total Past Due | Government insured or guaranteed loans | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 100 | 100 | |
Consumer | Education | Current or Less Than 30 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 2,058 | 2,400 | |
Consumer | Education | 30-59 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 34 | 43 | |
Consumer | Education | 60-89 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 22 | 25 | |
Consumer | Education | 90 Days Or More Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 59 | 65 | |
Consumer | Education | Nonperforming Loans | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | |||
Consumer | Other consumer | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 5,026 | 5,727 | |
Consumer | Other consumer | Total Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 37 | 74 | |
Consumer | Other consumer | Current or Less Than 30 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 4,975 | 5,644 | |
Consumer | Other consumer | 30-59 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 15 | 35 | |
Consumer | Other consumer | 60-89 Days Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 12 | 22 | |
Consumer | Other consumer | 90 Days Or More Past Due | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | 10 | 17 | |
Consumer | Other consumer | Nonperforming Loans | |||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||
Total loans | $ 14 | $ 9 | |
[1]Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $0.9 billion, Loans of $1.3 billion and Other assets of $0.1 billion at December 31, 2022 and Loans held for sale of $1.9 billion, Loans of $1.5 billion and Other assets of $0.1 billion at December 31, 2021. |
Loans and Related Allowance f_4
Loans and Related Allowance for Credit Losses (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) portfolio_segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of portfolio segments | portfolio_segment | 2 | ||
Financing receivable, after allowance for credit loss | $ 321,284 | $ 283,504 | |
Recorded Investment - Subsequently defaulted TDRs | 100 | 100 | $ 100 |
Allowance for credit loss and off-balance sheet liability | 5,435 | 5,530 | $ 5,945 |
Increase (decrease) in allowance for credit loss | (100) | ||
Nonperforming | TDRs | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Troubled debt restructurings (TDRs) | 700 | 1,000 | |
Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Troubled debt restructurings (TDRs) | 700 | 600 | |
Federal Reserve Bank | Asset Pledged as Collateral without Right | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing receivable, after allowance for credit loss | 28,100 | 25,700 | |
Federal Home Loan Bank | Asset Pledged as Collateral without Right | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing receivable, after allowance for credit loss | $ 90,400 | $ 66,200 |
Loans and Related Allowance f_5
Loans and Related Allowance for Credit Losses (Nonperforming Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financing receivable, nonaccrual, no allowance | $ 700 | $ 1,000 |
Nonperforming | ||
Total nonperforming loans | 1,985 | 2,480 |
OREO and Foreclosed Assets | 34 | 26 |
Total nonperforming assets | $ 2,019 | $ 2,506 |
Nonperforming loans to total loans | 0.61% | 0.86% |
Nonperforming assets to total loans, OREO and foreclosed assets | 0.62% | 0.87% |
Nonperforming assets to total assets | 0.36% | 0.45% |
Minimum | ||
Threshold period of financing receivable past due, writeoff | 120 days | |
Maximum | ||
Threshold period of financing receivable past due, writeoff | 180 days | |
Commercial | Nonperforming | ||
Total nonperforming loans | $ 858 | $ 1,168 |
Consumer | Nonperforming | ||
Total nonperforming loans | $ 1,127 | $ 1,312 |
Loans and Related Allowance f_6
Loans and Related Allowance for Credit Losses (Commercial Quality Indicators) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans, net | [1] | $ 326,025 | $ 288,372 |
Commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 53,984 | 33,040 | |
Year two | 18,123 | 18,072 | |
Year three | 12,997 | 19,883 | |
Year four | 13,538 | 13,112 | |
Year five | 8,745 | 10,577 | |
Prior | 24,043 | 23,114 | |
Revolving Loans | 93,519 | 75,160 | |
Revolving Loans Converted to Term | 100 | 120 | |
Total loans, net | 225,049 | 193,078 | |
Commercial | Commercial and industrial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 42,944 | 27,387 | |
Year two | 12,916 | 12,421 | |
Year three | 8,411 | 11,546 | |
Year four | 6,560 | 7,347 | |
Year five | 4,506 | 6,851 | |
Prior | 13,716 | 12,583 | |
Revolving Loans | 93,066 | 74,678 | |
Revolving Loans Converted to Term | 100 | 120 | |
Total loans, net | 182,219 | 152,933 | |
Commercial | Commercial real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 9,183 | 4,404 | |
Year two | 4,190 | 4,407 | |
Year three | 3,588 | 7,354 | |
Year four | 6,269 | 5,054 | |
Year five | 3,812 | 3,200 | |
Prior | 8,821 | 9,114 | |
Revolving Loans | 453 | 482 | |
Total loans, net | 36,316 | 34,015 | |
Commercial | Equipment lease financing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 1,857 | 1,249 | |
Year two | 1,017 | 1,244 | |
Year three | 998 | 983 | |
Year four | 709 | 711 | |
Year five | 427 | 526 | |
Prior | 1,506 | 1,417 | |
Total loans, net | 6,514 | 6,130 | |
Pass Rated | Commercial | Commercial and industrial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 41,685 | 27,104 | |
Year two | 12,493 | 12,053 | |
Year three | 8,134 | 10,731 | |
Year four | 6,261 | 6,698 | |
Year five | 4,209 | 6,355 | |
Prior | 13,165 | 11,759 | |
Revolving Loans | 89,384 | 71,230 | |
Revolving Loans Converted to Term | 69 | 90 | |
Total loans, net | 175,400 | 146,020 | |
Pass Rated | Commercial | Commercial real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 8,835 | 4,110 | |
Year two | 4,153 | 4,109 | |
Year three | 3,266 | 6,355 | |
Year four | 5,511 | 4,234 | |
Year five | 3,005 | 2,634 | |
Prior | 7,454 | 7,562 | |
Revolving Loans | 450 | 436 | |
Total loans, net | 32,674 | 29,440 | |
Pass Rated | Commercial | Equipment lease financing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 1,797 | 1,212 | |
Year two | 962 | 1,190 | |
Year three | 942 | 942 | |
Year four | 670 | 682 | |
Year five | 410 | 507 | |
Prior | 1,495 | 1,410 | |
Total loans, net | 6,276 | 5,943 | |
Criticized | Commercial | Commercial and industrial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 1,259 | 283 | |
Year two | 423 | 368 | |
Year three | 277 | 815 | |
Year four | 299 | 649 | |
Year five | 297 | 496 | |
Prior | 551 | 824 | |
Revolving Loans | 3,682 | 3,448 | |
Revolving Loans Converted to Term | 31 | 30 | |
Total loans, net | 6,819 | 6,913 | |
Criticized | Commercial | Commercial real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 348 | 294 | |
Year two | 37 | 298 | |
Year three | 322 | 999 | |
Year four | 758 | 820 | |
Year five | 807 | 566 | |
Prior | 1,367 | 1,552 | |
Revolving Loans | 3 | 46 | |
Total loans, net | 3,642 | 4,575 | |
Criticized | Commercial | Equipment lease financing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 60 | 37 | |
Year two | 55 | 54 | |
Year three | 56 | 41 | |
Year four | 39 | 29 | |
Year five | 17 | 19 | |
Prior | 11 | 7 | |
Total loans, net | $ 238 | $ 187 | |
[1]Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $0.9 billion, Loans of $1.3 billion and Other assets of $0.1 billion at December 31, 2022 and Loans held for sale of $1.9 billion, Loans of $1.5 billion and Other assets of $0.1 billion at December 31, 2021. |
Loans and Related Allowance f_7
Loans and Related Allowance for Credit Losses (Credit Quality Indicators for Residential Real Estate and Home Equity Loan Classes) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans, net | [1] | $ 326,025 | $ 288,372 |
Residential real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 10,594 | 16,961 | |
Year two | 16,650 | 8,473 | |
Year three | 7,392 | 3,114 | |
Year four | 2,482 | 1,133 | |
Year five | 878 | 1,688 | |
Prior | 7,893 | 8,343 | |
Total loans, net | 45,889 | 39,712 | |
Residential real estate | FICO Score, Greater Than Or Equal To 780 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 6,825 | 11,110 | |
Year two | 12,596 | 5,898 | |
Year three | 5,276 | 1,996 | |
Year four | 1,623 | 596 | |
Year five | 463 | 1,029 | |
Prior | 4,027 | 4,052 | |
Total loans, net | 30,810 | 24,681 | |
Residential real estate | FICO Score, 720 to 779 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 3,172 | 4,921 | |
Year two | 3,024 | 1,735 | |
Year three | 1,369 | 643 | |
Year four | 476 | 247 | |
Year five | 180 | 345 | |
Prior | 1,457 | 1,619 | |
Total loans, net | 9,678 | 9,510 | |
Residential real estate | FICO Score, 660 to 719 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 514 | 717 | |
Year two | 744 | 463 | |
Year three | 378 | 255 | |
Year four | 189 | 136 | |
Year five | 98 | 133 | |
Prior | 796 | 796 | |
Total loans, net | 2,719 | 2,500 | |
Residential real estate | FICO Score, Less Than 660 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 63 | 83 | |
Year two | 108 | 103 | |
Year three | 110 | 96 | |
Year four | 88 | 75 | |
Year five | 71 | 94 | |
Prior | 740 | 848 | |
Total loans, net | 1,180 | 1,299 | |
Residential real estate | No FICO score available | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 11 | 127 | |
Year two | 163 | 241 | |
Year three | 193 | 87 | |
Year four | 67 | 49 | |
Year five | 38 | 48 | |
Prior | 337 | 359 | |
Total loans, net | 809 | 911 | |
Residential real estate | Government insured or guaranteed loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 9 | 3 | |
Year two | 15 | 33 | |
Year three | 66 | 37 | |
Year four | 39 | 30 | |
Year five | 28 | 39 | |
Prior | 536 | 669 | |
Total loans, net | 693 | 811 | |
Residential real estate | Greater than 100% | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 4 | 10 | |
Year two | 52 | 52 | |
Year three | 20 | 21 | |
Year four | 10 | 12 | |
Year five | 4 | 13 | |
Prior | 41 | 77 | |
Total loans, net | 131 | 185 | |
Residential real estate | Greater than or equal to 80% to 100% | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 1,185 | 1,460 | |
Year two | 678 | 560 | |
Year three | 232 | 221 | |
Year four | 84 | 86 | |
Year five | 24 | 66 | |
Prior | 92 | 190 | |
Total loans, net | 2,295 | 2,583 | |
Residential real estate | Less than 80% | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 9,396 | 15,213 | |
Year two | 15,844 | 7,822 | |
Year three | 7,074 | 2,834 | |
Year four | 2,346 | 1,004 | |
Year five | 822 | 1,570 | |
Prior | 7,220 | 7,385 | |
Total loans, net | 42,702 | 35,828 | |
Residential real estate | No LTV available | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 275 | ||
Year two | 61 | 6 | |
Year three | 1 | ||
Year four | 3 | 1 | |
Year five | |||
Prior | 4 | 22 | |
Total loans, net | 68 | 305 | |
Home equity | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 212 | ||
Year two | 180 | 2,588 | |
Year three | 2,143 | 1,265 | |
Year four | 997 | 386 | |
Year five | 291 | 562 | |
Prior | 2,897 | 3,291 | |
Revolving Loans | 8,902 | 9,187 | |
Revolving Loans Converted to Term | 10,573 | 6,570 | |
Total loans, net | 25,983 | 24,061 | |
Home equity | FICO Score, Greater Than Or Equal To 780 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 124 | ||
Year two | 110 | 1,619 | |
Year three | 1,357 | 692 | |
Year four | 554 | 201 | |
Year five | 155 | 364 | |
Prior | 1,791 | 2,035 | |
Revolving Loans | 5,093 | 5,490 | |
Revolving Loans Converted to Term | 5,545 | 3,320 | |
Total loans, net | 14,605 | 13,845 | |
Home equity | FICO Score, 720 to 779 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 61 | ||
Year two | 47 | 666 | |
Year three | 515 | 348 | |
Year four | 248 | 96 | |
Year five | 64 | 116 | |
Prior | 567 | 642 | |
Revolving Loans | 2,305 | 2,283 | |
Revolving Loans Converted to Term | 2,843 | 1,679 | |
Total loans, net | 6,589 | 5,891 | |
Home equity | FICO Score, 660 to 719 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 23 | ||
Year two | 19 | 248 | |
Year three | 211 | 167 | |
Year four | 140 | 56 | |
Year five | 42 | 53 | |
Prior | 288 | 327 | |
Revolving Loans | 1,146 | 1,071 | |
Revolving Loans Converted to Term | 1,449 | 872 | |
Total loans, net | 3,295 | 2,817 | |
Home equity | FICO Score, Less Than 660 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 4 | ||
Year two | 4 | 53 | |
Year three | 57 | 57 | |
Year four | 54 | 32 | |
Year five | 29 | 28 | |
Prior | 242 | 277 | |
Revolving Loans | 342 | 325 | |
Revolving Loans Converted to Term | 671 | 615 | |
Total loans, net | 1,399 | 1,391 | |
Home equity | No FICO score available | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | |||
Year two | 2 | ||
Year three | 3 | 1 | |
Year four | 1 | 1 | |
Year five | 1 | 1 | |
Prior | 9 | 10 | |
Revolving Loans | 16 | 18 | |
Revolving Loans Converted to Term | 65 | 84 | |
Total loans, net | 95 | 117 | |
Home equity | Greater than 100% | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 1 | ||
Year two | 4 | 16 | |
Year three | 14 | 14 | |
Year four | 9 | 3 | |
Year five | 2 | 2 | |
Prior | 15 | 25 | |
Revolving Loans | 268 | 329 | |
Revolving Loans Converted to Term | 137 | 90 | |
Total loans, net | 449 | 480 | |
Home equity | Greater than or equal to 80% to 100% | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 7 | ||
Year two | 4 | 85 | |
Year three | 51 | 62 | |
Year four | 27 | 13 | |
Year five | 4 | 11 | |
Prior | 31 | 66 | |
Revolving Loans | 854 | 990 | |
Revolving Loans Converted to Term | 1,149 | 674 | |
Total loans, net | 2,120 | 1,908 | |
Home equity | Less than 80% | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 204 | ||
Year two | 172 | 2,487 | |
Year three | 2,078 | 1,189 | |
Year four | 961 | 370 | |
Year five | 285 | 549 | |
Prior | 2,851 | 3,200 | |
Revolving Loans | 7,780 | 7,868 | |
Revolving Loans Converted to Term | 9,287 | 5,806 | |
Total loans, net | $ 23,414 | $ 21,673 | |
[1]Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $0.9 billion, Loans of $1.3 billion and Other assets of $0.1 billion at December 31, 2022 and Loans held for sale of $1.9 billion, Loans of $1.5 billion and Other assets of $0.1 billion at December 31, 2021. |
Loans and Related Allowance f_8
Loans and Related Allowance for Credit Losses (Credit Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loan Classes) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans, net | [1] | $ 326,025 | $ 288,372 |
Automobile | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 5,139 | 6,612 | |
Year two | 4,424 | 3,403 | |
Year three | 2,054 | 3,765 | |
Year four | 2,067 | 1,874 | |
Year five | 878 | 738 | |
Prior | 274 | 243 | |
Total loans, net | 14,836 | 16,635 | |
Automobile | FICO Score, Greater Than Or Equal To 780 | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 2,390 | 3,247 | |
Year two | 2,162 | 1,496 | |
Year three | 922 | 1,380 | |
Year four | 760 | 533 | |
Year five | 241 | 226 | |
Prior | 75 | 79 | |
Total loans, net | 6,550 | 6,961 | |
Automobile | FICO Score, 720 to 779 | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 1,702 | 2,119 | |
Year two | 1,312 | 983 | |
Year three | 561 | 1,030 | |
Year four | 538 | 499 | |
Year five | 222 | 195 | |
Prior | 69 | 62 | |
Total loans, net | 4,404 | 4,888 | |
Automobile | FICO Score, 660 to 719 | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 854 | 969 | |
Year two | 660 | 609 | |
Year three | 341 | 772 | |
Year four | 401 | 413 | |
Year five | 187 | 155 | |
Prior | 56 | 44 | |
Total loans, net | 2,499 | 2,962 | |
Automobile | FICO Score, Less Than 660 | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 193 | 277 | |
Year two | 290 | 315 | |
Year three | 230 | 583 | |
Year four | 368 | 429 | |
Year five | 228 | 162 | |
Prior | 74 | 58 | |
Total loans, net | 1,383 | 1,824 | |
Credit card | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Revolving Loans | 7,010 | 6,564 | |
Revolving Loans Converted to Term | 59 | 62 | |
Total loans, net | 7,069 | 6,626 | |
Credit card | FICO Score, Greater Than Or Equal To 780 | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Revolving Loans | 1,954 | 1,815 | |
Revolving Loans Converted to Term | 2 | 2 | |
Total loans, net | 1,956 | 1,817 | |
Credit card | FICO Score, 720 to 779 | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Revolving Loans | 1,994 | 1,836 | |
Revolving Loans Converted to Term | 6 | 9 | |
Total loans, net | 2,000 | 1,845 | |
Credit card | FICO Score, 660 to 719 | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Revolving Loans | 1,957 | 1,856 | |
Revolving Loans Converted to Term | 13 | 19 | |
Total loans, net | 1,970 | 1,875 | |
Credit card | FICO Score, Less Than 660 | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Revolving Loans | 1,001 | 943 | |
Revolving Loans Converted to Term | 35 | 29 | |
Total loans, net | 1,036 | 972 | |
Credit card | No FICO Score Available Or Required | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Revolving Loans | 104 | 114 | |
Revolving Loans Converted to Term | 3 | 3 | |
Total loans, net | 107 | 117 | |
Education | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 126 | 76 | |
Year two | 97 | 109 | |
Year three | 88 | 134 | |
Year four | 105 | 107 | |
Year five | 85 | 78 | |
Prior | 1,672 | 2,029 | |
Total loans, net | 2,173 | 2,533 | |
Education | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 126 | 76 | |
Year two | 97 | 109 | |
Year three | 88 | 134 | |
Year four | 105 | 107 | |
Year five | 85 | 78 | |
Prior | 584 | 651 | |
Total loans, net | 1,085 | 1,155 | |
Education | FICO Score, Greater Than Or Equal To 780 | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 42 | 37 | |
Year two | 53 | 60 | |
Year three | 48 | 77 | |
Year four | 61 | 62 | |
Year five | 51 | 48 | |
Prior | 357 | 392 | |
Total loans, net | 612 | 676 | |
Education | FICO Score, 720 to 779 | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 39 | 20 | |
Year two | 27 | 29 | |
Year three | 24 | 37 | |
Year four | 30 | 30 | |
Year five | 24 | 21 | |
Prior | 143 | 160 | |
Total loans, net | 287 | 297 | |
Education | FICO Score, 660 to 719 | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 21 | 7 | |
Year two | 8 | 9 | |
Year three | 8 | 11 | |
Year four | 9 | 11 | |
Year five | 8 | 7 | |
Prior | 59 | 73 | |
Total loans, net | 113 | 118 | |
Education | FICO Score, Less Than 660 | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 4 | 1 | |
Year two | 1 | 1 | |
Year three | 1 | 2 | |
Year four | 2 | 2 | |
Year five | 2 | 2 | |
Prior | 24 | 25 | |
Total loans, net | 34 | 33 | |
Education | No FICO Score Available Or Required | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 20 | 11 | |
Year two | 8 | 10 | |
Year three | 7 | 7 | |
Year four | 3 | 2 | |
Year five | |||
Prior | 1 | 1 | |
Total loans, net | 39 | 31 | |
Education | Other Internal Credit Metrics | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior | 1,088 | 1,378 | |
Total loans, net | 1,088 | 1,378 | |
Other consumer | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 912 | 776 | |
Year two | 420 | 541 | |
Year three | 266 | 575 | |
Year four | 248 | 274 | |
Year five | 89 | 75 | |
Prior | 76 | 116 | |
Revolving Loans | 2,995 | 3,347 | |
Revolving Loans Converted to Term | 20 | 23 | |
Total loans, net | 5,026 | 5,727 | |
Other consumer | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 787 | 689 | |
Year two | 377 | 510 | |
Year three | 226 | 540 | |
Year four | 214 | 251 | |
Year five | 82 | 53 | |
Prior | 47 | 68 | |
Revolving Loans | 275 | 392 | |
Revolving Loans Converted to Term | 8 | 2 | |
Total loans, net | 2,016 | 2,505 | |
Other consumer | FICO Score, Greater Than Or Equal To 780 | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 224 | 199 | |
Year two | 97 | 131 | |
Year three | 53 | 123 | |
Year four | 46 | 47 | |
Year five | 14 | 12 | |
Prior | 18 | 32 | |
Revolving Loans | 47 | 95 | |
Revolving Loans Converted to Term | 2 | 1 | |
Total loans, net | 501 | 640 | |
Other consumer | FICO Score, 720 to 779 | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 302 | 250 | |
Year two | 122 | 172 | |
Year three | 68 | 167 | |
Year four | 62 | 68 | |
Year five | 20 | 15 | |
Prior | 15 | 19 | |
Revolving Loans | 89 | 125 | |
Revolving Loans Converted to Term | 2 | ||
Total loans, net | 680 | 816 | |
Other consumer | FICO Score, 660 to 719 | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 229 | 190 | |
Year two | 110 | 145 | |
Year three | 68 | 165 | |
Year four | 66 | 82 | |
Year five | 28 | 16 | |
Prior | 8 | 11 | |
Revolving Loans | 95 | 122 | |
Revolving Loans Converted to Term | 2 | ||
Total loans, net | 606 | 731 | |
Other consumer | FICO Score, Less Than 660 | Using FICO Credit Metric | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 32 | 50 | |
Year two | 48 | 62 | |
Year three | 37 | 85 | |
Year four | 40 | 54 | |
Year five | 20 | 10 | |
Prior | 6 | 6 | |
Revolving Loans | 44 | 50 | |
Revolving Loans Converted to Term | 2 | 1 | |
Total loans, net | 229 | 318 | |
Other consumer | Other Internal Credit Metrics | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year one | 125 | 87 | |
Year two | 43 | 31 | |
Year three | 40 | 35 | |
Year four | 34 | 23 | |
Year five | 7 | 22 | |
Prior | 29 | 48 | |
Revolving Loans | 2,720 | 2,955 | |
Revolving Loans Converted to Term | 12 | 21 | |
Total loans, net | $ 3,010 | $ 3,222 | |
[1]Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $0.9 billion, Loans of $1.3 billion and Other assets of $0.1 billion at December 31, 2022 and Loans held for sale of $1.9 billion, Loans of $1.5 billion and Other assets of $0.1 billion at December 31, 2021. |
Loans and Related Allowance f_9
Loans and Related Allowance for Credit Losses (Financial Impact and TDRs by Concession Type) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | Dec. 31, 2020 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 10,866 | 6,166 | 12,343 |
Pre-TDR Amortized Cost Basis | $ 525 | $ 644 | $ 691 |
Post-TDR Amortized Cost Basis | 414 | 613 | 602 |
Principal Forgiveness | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post-TDR Amortized Cost Basis | 9 | 6 | 39 |
Rate Reduction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post-TDR Amortized Cost Basis | 181 | 64 | 144 |
Other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post-TDR Amortized Cost Basis | $ 224 | $ 543 | $ 419 |
Commercial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 57 | 57 | 73 |
Pre-TDR Amortized Cost Basis | $ 363 | $ 536 | $ 513 |
Post-TDR Amortized Cost Basis | 269 | 516 | 441 |
Commercial | Principal Forgiveness | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post-TDR Amortized Cost Basis | 9 | 6 | 39 |
Commercial | Rate Reduction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post-TDR Amortized Cost Basis | 58 | 56 | |
Commercial | Other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post-TDR Amortized Cost Basis | $ 202 | $ 510 | $ 346 |
Consumer | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 10,809 | 6,109 | 12,270 |
Pre-TDR Amortized Cost Basis | $ 162 | $ 108 | $ 178 |
Post-TDR Amortized Cost Basis | 145 | 97 | 161 |
Consumer | Principal Forgiveness | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post-TDR Amortized Cost Basis | |||
Consumer | Rate Reduction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post-TDR Amortized Cost Basis | 123 | 64 | 88 |
Consumer | Other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post-TDR Amortized Cost Basis | $ 22 | $ 33 | $ 73 |
Loans and Related Allowance _10
Loans and Related Allowance for Credit Losses (Rollforward of Allowance for Credit Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 4,868 | $ 5,361 | $ 2,742 |
Acquisition PCD reserves | 1,056 | ||
Charge-offs | (985) | (1,101) | (1,192) |
Recoveries | 422 | 444 | 360 |
Net (charge-offs) | (563) | (657) | (832) |
Provision for (recapture of) credit losses | 439 | (887) | 2,985 |
Other | (3) | (5) | 3 |
Ending balance | 4,741 | 4,868 | 5,361 |
Allowance For Unfunded Lending Related Commitments [Roll Forward] | |||
Beginning balance | 662 | 584 | 318 |
Acquisition PCD reserves | 46 | ||
Provision for (recapture of) credit losses | 32 | 32 | 87 |
Ending balance | 694 | 662 | 584 |
Allowance for credit loss and off-balance sheet liability | 5,435 | 5,530 | 5,945 |
Allowances for investment securities and other financial assets | 176 | 171 | 109 |
Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 463 | ||
Allowance For Unfunded Lending Related Commitments [Roll Forward] | |||
Beginning balance | 179 | ||
Ending balance | |||
Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 4,868 | 5,361 | 3,205 |
Ending balance | 4,868 | 5,361 | |
Allowance For Unfunded Lending Related Commitments [Roll Forward] | |||
Beginning balance | 662 | 584 | 497 |
Ending balance | 662 | 584 | |
Commercial | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 3,185 | 3,337 | 1,812 |
Acquisition PCD reserves | 774 | ||
Charge-offs | (307) | (434) | (407) |
Recoveries | 114 | 106 | 94 |
Net (charge-offs) | (193) | (328) | (313) |
Provision for (recapture of) credit losses | 126 | (594) | 2,139 |
Other | (4) | (4) | 3 |
Ending balance | 3,114 | 3,185 | 3,337 |
Allowance For Unfunded Lending Related Commitments [Roll Forward] | |||
Beginning balance | 564 | 485 | 316 |
Acquisition PCD reserves | 43 | ||
Provision for (recapture of) credit losses | 49 | 36 | 116 |
Ending balance | 613 | 564 | 485 |
Allowance for credit loss and off-balance sheet liability | 3,727 | 3,749 | 3,822 |
Commercial | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | (304) | ||
Allowance For Unfunded Lending Related Commitments [Roll Forward] | |||
Beginning balance | 53 | ||
Ending balance | |||
Commercial | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 3,185 | 3,337 | 1,508 |
Ending balance | 3,185 | 3,337 | |
Allowance For Unfunded Lending Related Commitments [Roll Forward] | |||
Beginning balance | 564 | 485 | 369 |
Ending balance | 564 | 485 | |
Consumer | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1,683 | 2,024 | 930 |
Acquisition PCD reserves | 282 | ||
Charge-offs | (678) | (667) | (785) |
Recoveries | 308 | 338 | 266 |
Net (charge-offs) | (370) | (329) | (519) |
Provision for (recapture of) credit losses | 313 | (293) | 846 |
Other | 1 | (1) | |
Ending balance | 1,627 | 1,683 | 2,024 |
Allowance For Unfunded Lending Related Commitments [Roll Forward] | |||
Beginning balance | 98 | 99 | 2 |
Acquisition PCD reserves | 3 | ||
Provision for (recapture of) credit losses | (17) | (4) | (29) |
Ending balance | 81 | 98 | 99 |
Allowance for credit loss and off-balance sheet liability | 1,708 | 1,781 | 2,123 |
Consumer | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 767 | ||
Allowance For Unfunded Lending Related Commitments [Roll Forward] | |||
Beginning balance | 126 | ||
Ending balance | |||
Consumer | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1,683 | 2,024 | 1,697 |
Ending balance | 1,683 | 2,024 | |
Allowance For Unfunded Lending Related Commitments [Roll Forward] | |||
Beginning balance | $ 98 | 99 | 128 |
Ending balance | $ 98 | $ 99 |
Loan Sale and Servicing Activ_3
Loan Sale and Servicing Activities and Variable Interest Entities (Cash Flows Associated with Loan Sale and Servicing Activities) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Residential Mortgages | ||
Cash flows from sales of loans | $ 5,124 | $ 8,426 |
Cash flows from repurchases of previously transferred loans | 187 | 239 |
Cash flows from servicing fees | 405 | 367 |
Cash flows from servicing advances (funded) | 11 | 33 |
Cash flows on mortgage-backed securities held | 3,790 | 9,001 |
Carrying value of mortgage-backed securities held | 21,400 | 17,600 |
Commercial Mortgages | ||
Cash flows from sales of loans | 3,332 | 3,611 |
Cash flows from repurchases of previously transferred loans | 27 | 207 |
Cash flows from servicing fees | 190 | 165 |
Cash flows from servicing advances (funded) | 42 | 26 |
Cash flows on mortgage-backed securities held | 84 | 76 |
Carrying value of mortgage-backed securities held | $ 700 | $ 600 |
Loan Sale and Servicing Activ_4
Loan Sale and Servicing Activities and Variable Interest Entities (Principal Balance, Delinquent Loans ,and Net Charge-Offs Related to Serviced Loans For Others) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Residential Mortgages | ||
Total principal balance | $ 41,031 | $ 42,726 |
Delinquent loans | 346 | 569 |
Net charge-offs | 4 | 4 |
Commercial Mortgages | ||
Total principal balance | 57,974 | 39,551 |
Delinquent loans | 42 | |
Net charge-offs | $ 74 | $ 179 |
Loan Sale and Servicing Activ_5
Loan Sale and Servicing Activities and Variable Interest Entities (Non-Consolidated VIEs) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
PNC Risk of Loss | $ 27,077 | $ 22,573 |
Carrying Value of Assets Owned by PNC | 557,263 | 557,191 |
Carrying Value of Liabilities Owned by PNC | 511,451 | 501,465 |
Variable Interest Entity, Primary Beneficiary | ||
Carrying Value of Assets Owned by PNC | 26,910 | 22,601 |
Carrying Value of Liabilities Owned by PNC | 2,064 | 1,799 |
Mortgage-Backed Securitizations | Variable Interest Entity, Primary Beneficiary | ||
PNC Risk of Loss | 22,666 | 18,708 |
Carrying Value of Assets Owned by PNC | 22,670 | 18,708 |
Carrying Value of Liabilities Owned by PNC | 1 | 1 |
Tax Credit Investments And Other | Variable Interest Entity, Primary Beneficiary | ||
PNC Risk of Loss | 4,411 | 3,865 |
Carrying Value of Assets Owned by PNC | 4,240 | 3,893 |
Carrying Value of Liabilities Owned by PNC | $ 2,063 | $ 1,798 |
Loan Sale and Servicing Activ_6
Loan Sale and Servicing Activities and Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability related to investments in low income housing tax credits | $ 2,200 | $ 2,000 | |
Low Income Housing Tax Credit Investments | |||
Amortization Recognized Low Income Housing Tax Credit Investments | 400 | 300 | $ 200 |
Tax Credits Recognized Low Income Housing Tax Credit Investments | 400 | 300 | 200 |
Other tax benefits associated with qualified investments in low income housing tax credits (less than) | $ 100 | $ 100 | $ 100 |
Goodwill and Mortgage Servici_3
Goodwill and Mortgage Servicing Rights (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges related to goodwill | $ 0 | $ 0 | $ 0 |
Mortgage servicing rights | 3,423,000,000 | 1,818,000,000 | |
Fees from Mortgage and Other Loan Servicing | $ 600,000,000 | $ 500,000,000 | $ 500,000,000 |
Goodwill and Mortgage Servici_4
Goodwill and Mortgage Servicing Rights (Goodwill by Business Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Jun. 01, 2021 | |
Goodwill [Line Items] | |||
Goodwill | $ 10,987 | $ 10,916 | $ 1,600 |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 10,916 | 9,233 | |
Goodwill, acquired during period | 1,599 | ||
Goodwill from other increases | 71 | 84 | |
Goodwill, ending balance | 10,987 | 10,916 | |
Retail Banking | |||
Goodwill [Line Items] | |||
Goodwill | 6,473 | 6,473 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 6,473 | 5,795 | |
Goodwill, acquired during period | 678 | ||
Goodwill, ending balance | 6,473 | 6,473 | |
Corporate & Institutional Banking | |||
Goodwill [Line Items] | |||
Goodwill | 4,325 | 4,254 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 4,254 | 3,374 | |
Goodwill, acquired during period | 796 | ||
Goodwill from other increases | 71 | 84 | |
Goodwill, ending balance | 4,325 | 4,254 | |
Asset Management Group | |||
Goodwill [Line Items] | |||
Goodwill | 189 | 189 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 189 | 64 | |
Goodwill, acquired during period | 125 | ||
Goodwill, ending balance | $ 189 | $ 189 |
Goodwill and Mortgage Servici_5
Goodwill and Mortgage Servicing Rights (Commerical and Residential Mortgage Servicing Rights) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Mortgage servicing rights, beginning balance | $ 1,818 | ||
Mortgage servicing rights, ending balance | 3,423 | $ 1,818 | |
Mortgage Servicing Rights | Commercial real estate | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Mortgage servicing rights, beginning balance | 740 | 569 | $ 649 |
Mortgage servicing rights, ending balance | 1,113 | 740 | 569 |
Unpaid principal balance of loans serviced for others at end of period | 281,277 | 272,556 | 243,960 |
Servicing advances | 421 | 463 | 437 |
Mortgage Servicing Rights | Commercial real estate | Time and Payoffs | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Changes in Fair Value | (208) | (119) | (115) |
Mortgage Servicing Rights | Commercial real estate | Other | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Changes in Fair Value | 473 | 162 | (109) |
Mortgage Servicing Rights | Commercial real estate | From loans sold with servicing retained | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Additions | 62 | 87 | 100 |
Mortgage Servicing Rights | Commercial real estate | Purchases | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Additions | 46 | 41 | 44 |
Mortgage Servicing Rights | Residential Mortgages | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Mortgage servicing rights, beginning balance | 1,078 | 673 | 995 |
Mortgage servicing rights, ending balance | 2,310 | 1,078 | 673 |
Unpaid principal balance of loans serviced for others at end of period | 189,831 | 132,953 | 120,778 |
Servicing advances | 165 | 176 | 143 |
Mortgage Servicing Rights | Residential Mortgages | Time and Payoffs | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Changes in Fair Value | (231) | (320) | (198) |
Mortgage Servicing Rights | Residential Mortgages | Other | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Changes in Fair Value | 509 | 192 | (377) |
Mortgage Servicing Rights | Residential Mortgages | BBVA USA Bancshares, Inc. | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Additions | 35 | ||
Mortgage Servicing Rights | Residential Mortgages | From loans sold with servicing retained | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Additions | 57 | 87 | 45 |
Mortgage Servicing Rights | Residential Mortgages | Purchases | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Additions | $ 897 | $ 411 | $ 208 |
Goodwill and Mortgage Servici_6
Goodwill and Mortgage Servicing Rights (Commercial and Residential Mortgage Loan Servicing Assets - Key Valuation Assumptions) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
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 | $ 3,423 | $ 1,818 | ||
Mortgage Servicing Rights | Commercial real estate | ||||
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 | $ 1,113 | $ 740 | $ 569 | $ 649 |
Weighted-average life | 4 years | 4 years 2 months 12 days | ||
Decline in fair value from 10% adverse change in prepayment rate | $ 8 | $ 12 | ||
Decline in fair value from 20% adverse change in prepayment rate | 15 | 21 | ||
Decline in fair value from 10% adverse change in interest rate | 34 | 20 | ||
Decline in fair value from 20% adverse change in interest rate | 68 | 40 | ||
Mortgage Servicing Rights | Residential Mortgages | ||||
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 | $ 2,310 | $ 1,078 | $ 673 | $ 995 |
Weighted-average life | 8 years | 5 years 8 months 12 days | ||
Decline in fair value from 10% adverse change in prepayment rate | $ 55 | $ 46 | ||
Decline in fair value from 20% adverse change in prepayment rate | $ 107 | $ 89 | ||
Spread over the benchmark curve | 7.66% | 8.57% | ||
Decline in fair value from 10% adverse change in adjusted spread | $ 69 | $ 31 | ||
Decline in fair value from 20% adverse change in adjusted spread | $ 134 | $ 60 | ||
Mortgage Servicing Rights | Measurement Input, Constant Prepayment Rate | Commercial real estate | ||||
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] | ||||
Servicing asset, measurement input | 0.0428 | 0.0549 | ||
Mortgage Servicing Rights | Measurement Input, Constant Prepayment Rate | Residential Mortgages | ||||
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] | ||||
Servicing asset, measurement input | 0.0672 | 0.1263 | ||
Mortgage Servicing Rights | Measurement Input, Discount Rate | Commercial real estate | ||||
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] | ||||
Servicing asset, measurement input | 0.0977 | 0.0775 |
Leases - Lessor Income (Details
Leases - Lessor Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Sales-type and direct financing leases income | $ 243 | $ 243 | $ 269 |
Operating lease, lease income | 63 | 75 | 95 |
Lease income | $ 306 | $ 318 | $ 364 |
Lending and deposit services | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Total noninterest income | Total noninterest income | Total noninterest income |
Leases Sales-Type and Direct Fi
Leases Sales-Type and Direct Financing Leases (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Lease receivables | $ 5,853 | $ 5,829 |
Unguaranteed residual asset values (a) | 1,422 | 977 |
Unearned income | (761) | (677) |
Equipment lease financing | 6,514 | 6,129 |
Carrying value of residual assets with third-party residual value | $ 400 | $ 400 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Billions | Dec. 31, 2022 | Dec. 31, 2021 |
Lessee, Lease, Description [Line Items] | ||
Lessor, operating lease assets | $ 0.8 | $ 0.9 |
Lessor, accumulated depreciation | $ 0.2 | $ 0.2 |
Lease, renewal term | 99 years | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, term of contract | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, term of contract | 45 years |
Leases (Future Minimum Lessor R
Leases (Future Minimum Lessor Receivable Arrangements) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Lessor, Operating Lease, Receivable, Fiscal Year Maturity [Abstract] | |
2023 | $ 46 |
2024 | 37 |
2025 | 28 |
2026 | 21 |
2027 | 11 |
2028 and thereafter | 16 |
Total future minimum lease receivable arrangements | 159 |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract] | |
2023 | 1,474 |
2024 | 1,256 |
2025 | 890 |
2026 | 621 |
2027 | 609 |
2028 and thereafter | 1,003 |
Total future minimum lease receivable arrangements | $ 5,853 |
Leases (Operating Lease Costs a
Leases (Operating Lease Costs and Cash Flows ) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease, cost | $ 395 | $ 386 | $ 358 |
Operating cash flows | $ 434 | $ 400 | $ 360 |
Leases (Operating Lease Assets
Leases (Operating Lease Assets and Liabilities ) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Right-of-use assets | $ 1,857 | $ 1,919 |
Operating lease, right-of-use asset, statement of financial position [Extensible Enumeration] | Other | Other |
Lease liabilities | $ 2,160 | $ 2,220 |
Operating lease, liability, statement of financial position [Extensible Enumeration] | Accrued expenses and other liabilities | Accrued expenses and other liabilities |
Leases (Operating Lease Term an
Leases (Operating Lease Term and Discount Rates of Lessee Arrangements) (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Weighted-average remaining lease term (years) | 7 years | 8 years |
Weighted-average discount rate | 2.24% | 1.99% |
Leases (Maturities of Operating
Leases (Maturities of Operating Lease Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 428 | |
2024 | 385 | |
2025 | 343 | |
2026 | 291 | |
2027 | 247 | |
2028 and thereafter | 657 | |
Total future lease payments | 2,351 | |
Less: Interest | 191 | |
Lease liabilities | $ 2,160 | $ 2,220 |
Premises, Equipment and Lease_3
Premises, Equipment and Leasehold Improvements (Premises, Equipment and Leasehold Improvements) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
Total premises, equipment and leasehold improvements | $ 17,769 | $ 16,651 |
Accumulated depreciation and amortization | (9,015) | (8,058) |
Net book value | $ 8,754 | $ 8,593 |
Premises, Equipment and Lease_4
Premises, Equipment and Leasehold Improvements (Depreciation and Amortization Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 899 | $ 844 | $ 791 |
Amortization | 130 | 122 | 115 |
Total depreciation And amortization | $ 1,029 | $ 966 | $ 906 |
Time Deposits (Narrative) (Deta
Time Deposits (Narrative) (Details) - USD ($) $ in Billions | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
Time deposit accounts (including certificates of deposits) in denominations that met or exceeded the insured limit | $ 10.4 | $ 7.7 |
Time Deposits (Time Deposits) (
Time Deposits (Time Deposits) (Details) $ in Billions | Dec. 31, 2022 USD ($) |
Deposits [Abstract] | |
2023 | $ 15.9 |
2024 | 1.8 |
2025 | 0.2 |
2026 | 0.2 |
2027 | 0.1 |
2028 and thereafter | 0.3 |
Total | $ 18.5 |
Borrowed Funds (Narrative) (Det
Borrowed Funds (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Total borrowed funds | $ 58,713 | $ 30,784 |
PNC Capital Trust C | ||
Debt Instrument [Line Items] | ||
Carrrying value - junior subordinated debt | 205 | |
Trust preferred securities | $ 200 | |
PNC Capital Trust C | 3-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on LIBOR rate - trust preferred securities | 0.57% | |
Parent Company | ||
Debt Instrument [Line Items] | ||
Total borrowed funds | $ 13,103 | 11,351 |
Bank | ||
Debt Instrument [Line Items] | ||
Total borrowed funds | 41,936 | 16,306 |
Senior Notes | Parent Company | ||
Debt Instrument [Line Items] | ||
Total borrowed funds | 11,374 | 10,369 |
Basis adjustments - fair value accounting hedges | (723) | |
Senior Notes | Bank | ||
Debt Instrument [Line Items] | ||
Total borrowed funds | 5,283 | 10,292 |
Basis adjustments - fair value accounting hedges | (256) | |
Subordinated Debt | Parent Company | ||
Debt Instrument [Line Items] | ||
Total borrowed funds | 1,524 | 777 |
Basis adjustments - fair value accounting hedges | (72) | |
Subordinated Debt | Bank | ||
Debt Instrument [Line Items] | ||
Total borrowed funds | 4,578 | $ 6,014 |
Basis adjustments - fair value accounting hedges | $ (232) |
Borrowed Funds (Borrowed Funds)
Borrowed Funds (Borrowed Funds) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
Due in 2023 | $ 4,332 |
Due in 2024 | 20,673 |
Due in 2025 | 14,931 |
Due in 2026 | 5,666 |
Due in 2027 | 1,659 |
Due in 2028 and thereafter | 11,465 |
Long-Term Debt | $ 58,726 |
Borrowed Funds (FHLB Borrowings
Borrowed Funds (FHLB Borrowings, Bank Notes, Senior Debt and Subordinated Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Borrowed funds | $ 58,713 | $ 30,784 |
Total FHLB, Senior and Sub Debt | 55,039 | 27,657 |
Parent Company | ||
Debt Instrument [Line Items] | ||
Borrowed funds | 13,103 | 11,351 |
Bank | ||
Debt Instrument [Line Items] | ||
Borrowed funds | 41,936 | 16,306 |
Senior Notes | Parent Company | ||
Debt Instrument [Line Items] | ||
Borrowed funds | $ 11,374 | 10,369 |
Senior Notes | Parent Company | Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 1.15% | |
Senior Notes | Parent Company | Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.04% | |
Senior Notes | Bank | ||
Debt Instrument [Line Items] | ||
Borrowed funds | $ 5,283 | 10,292 |
Senior Notes | Bank | Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.50% | |
Senior Notes | Bank | Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.07% | |
Subordinated Debt | Parent Company | ||
Debt Instrument [Line Items] | ||
Borrowed funds | $ 1,524 | 777 |
Subordinated Debt | Parent Company | Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.90% | |
Subordinated Debt | Parent Company | Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.63% | |
Subordinated Debt | Bank | ||
Debt Instrument [Line Items] | ||
Borrowed funds | $ 4,578 | 6,014 |
Subordinated Debt | Bank | Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.70% | |
Subordinated Debt | Bank | Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.90% | |
Junior Subordinated Debt | Parent Company | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.33% | |
Borrowed funds | $ 205 | 205 |
FHLB | Bank | ||
Debt Instrument [Line Items] | ||
Borrowed funds | $ 32,075 | |
FHLB | Bank | Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.48% | |
FHLB | Bank | Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.72% |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Standby letters of credit | |
Loss Contingencies [Line Items] | |
Internal credit ratings (as a percentage of portfolio) - Pass | 98% |
Standby letters of credit - Assets securing certain specifically identified standby letters of credit | $ 1.3 |
Standby letters of credit and participations in standby letters of credit - Liability carrying amount | $ 0.2 |
Less than 1 year | |
Loss Contingencies [Line Items] | |
Standby letters of credit, term | 1 year |
Maximum | |
Loss Contingencies [Line Items] | |
Standby letters of credit, term | 8 years |
Commitments (Commitments to Ext
Commitments (Commitments to Extend Credit and Other Commitments) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other Commitments [Line Items] | ||
Commitments | $ 277,172 | $ 250,854 |
Liability related to investments in low income housing tax credits | 2,200 | 2,000 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Commitments | 261,728 | 237,238 |
Commitments to extend credit | Total commercial lending | ||
Other Commitments [Line Items] | ||
Commitments | 198,542 | 176,248 |
Commitments to extend credit | Home equity | ||
Other Commitments [Line Items] | ||
Commitments | 22,783 | 19,410 |
Commitments to extend credit | Credit card | ||
Other Commitments [Line Items] | ||
Commitments | 33,066 | 32,499 |
Commitments to extend credit | Other | ||
Other Commitments [Line Items] | ||
Commitments | 7,337 | 9,081 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Commitments | 10,575 | 9,303 |
Standby letters of credit | Remarketing Programs | ||
Other Commitments [Line Items] | ||
Commitments | 3,600 | 3,300 |
Standby bond purchase agreements | ||
Other Commitments [Line Items] | ||
Commitments | 1,208 | 1,268 |
Other commitments | ||
Other Commitments [Line Items] | ||
Commitments | $ 3,661 | $ 3,045 |
Equity (Preferred Stock - Autho
Equity (Preferred Stock - Authorized, Issued and Outstanding) (Details) - $ / shares shares in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Preferred stock authorized (shares) | 20,000 | 20,000 |
Preferred stock outstanding (shares) | 58 | 51 |
Series B Preferred Stock | ||
Preferred stock, liquidation preference per share (in USD per share) | $ 40 | |
Preferred stock outstanding (shares) | 1 | 1 |
Series O Preferred Stock | ||
Preferred stock, liquidation preference per share (in USD per share) | $ 100,000 | |
Preferred stock outstanding (shares) | 10 | 10 |
Series P Preferred Stock | ||
Preferred stock, liquidation preference per share (in USD per share) | $ 100,000 | |
Preferred stock outstanding (shares) | 15 | |
Series R Preferred Stock | ||
Preferred stock, liquidation preference per share (in USD per share) | $ 100,000 | |
Preferred stock outstanding (shares) | 5 | 5 |
Series S Preferred Stock | ||
Preferred stock, liquidation preference per share (in USD per share) | $ 100,000 | |
Preferred stock outstanding (shares) | 5 | 5 |
Series T Preferred Stock | ||
Preferred stock, liquidation preference per share (in USD per share) | $ 100,000 | |
Preferred stock outstanding (shares) | 15 | 15 |
Series U Preferred Stock | ||
Preferred stock, liquidation preference per share (in USD per share) | $ 100,000 | |
Preferred stock outstanding (shares) | 10 | |
Series V Preferred Stock | ||
Preferred stock, liquidation preference per share (in USD per share) | $ 100,000 | |
Preferred stock outstanding (shares) | 12 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Jan. 04, 2023 | Dec. 31, 2022 | Apr. 04, 2019 | |
Debt Instrument [Line Items] | |||
Common stock, capital shares reserved for future issuance | 79,000,000 | ||
Stock repurchase program, number of shares authorized to be repurchased | 100,000,000 | ||
Percent of shares available for repurchase | 49% | ||
Stock repurchase program, expected amount | $ 500,000,000 | ||
SCB percentage | 2.90% | ||
Subsequent Event | |||
Debt Instrument [Line Items] | |||
Common stock, dividends (in USD per share) | $ 1.50 |
Equity (Terms of Outstanding Pr
Equity (Terms of Outstanding Preferred Stock) (Details) | 12 Months Ended | ||||||
Aug. 19, 2022 shares | Apr. 26, 2022 shares | Sep. 13, 2021 shares | Nov. 01, 2016 shares | May 07, 2013 shares | Jul. 27, 2011 shares | Dec. 31, 2022 votingRightPerShare $ / shares | |
Series B Preferred Stock | |||||||
Debt Instrument [Line Items] | |||||||
Preferred stock, dividend rate (in dollars per share) | $ / shares | $ 1.80 | ||||||
Preferred stock, voting rights | votingRightPerShare | 8 | ||||||
Series O Preferred Stock | |||||||
Debt Instrument [Line Items] | |||||||
Number of Depositary Shares Issued and Outstanding | 1,000,000 | ||||||
Fractional Interest in a Share of Preferred Stock Represented by Each Depositary Share | 1% | ||||||
Preferred stock, dividend rate, percentage | 6.75% | ||||||
Series R Preferred Stock | |||||||
Debt Instrument [Line Items] | |||||||
Number of Depositary Shares Issued and Outstanding | 500,000 | ||||||
Fractional Interest in a Share of Preferred Stock Represented by Each Depositary Share | 1% | ||||||
Preferred stock, dividend rate, percentage | 4.85% | ||||||
Series S Preferred Stock | |||||||
Debt Instrument [Line Items] | |||||||
Number of Depositary Shares Issued and Outstanding | 525,000 | ||||||
Fractional Interest in a Share of Preferred Stock Represented by Each Depositary Share | 1% | ||||||
Preferred stock, dividend rate, percentage | 5% | ||||||
Series T Preferred Stock | |||||||
Debt Instrument [Line Items] | |||||||
Number of Depositary Shares Issued and Outstanding | 1,500,000 | ||||||
Fractional Interest in a Share of Preferred Stock Represented by Each Depositary Share | 1% | ||||||
Preferred stock, dividend rate, percentage | 3.40% | ||||||
Series U Preferred Stock | |||||||
Debt Instrument [Line Items] | |||||||
Number of Depositary Shares Issued and Outstanding | 1,000,000 | ||||||
Fractional Interest in a Share of Preferred Stock Represented by Each Depositary Share | 1% | ||||||
Preferred stock, dividend rate, percentage | 6% | ||||||
Series V Preferred Stock | |||||||
Debt Instrument [Line Items] | |||||||
Number of Depositary Shares Issued and Outstanding | 1,250,000 | ||||||
Fractional Interest in a Share of Preferred Stock Represented by Each Depositary Share | 1% | ||||||
Preferred stock, dividend rate, percentage | 6.20% | ||||||
3-month LIBOR | Series O Preferred Stock | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate - LIBOR Plus | 3.678% | ||||||
3-month LIBOR | Series R Preferred Stock | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate - LIBOR Plus | 3.04% | ||||||
3-month LIBOR | Series S Preferred Stock | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate - LIBOR Plus | 3.30% | ||||||
3-month LIBOR | Series T Preferred Stock | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate - LIBOR Plus | 2.595% | ||||||
3-month LIBOR | Series U Preferred Stock | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate - LIBOR Plus | 3% | ||||||
3-month LIBOR | Series V Preferred Stock | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate - LIBOR Plus | 3.238% |
Equity (Dividends per Share) (D
Equity (Dividends per Share) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Common stock | |||
Class of Stock [Line Items] | |||
Common stock, dividends (in USD per share) | $ 5.75 | $ 4.80 | $ 4.60 |
Series B Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, Dividends (in USD per share) | 1.80 | 1.80 | 1.80 |
Series O Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, Dividends (in USD per share) | 4,881 | 7,722 | 6,750 |
Series P Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, Dividends (in USD per share) | 6,181 | 6,125 | 6,125 |
Series Q Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, Dividends (in USD per share) | 4,031 | ||
Series R Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, Dividends (in USD per share) | 4,850 | 4,850 | 4,850 |
Series S Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, Dividends (in USD per share) | 5,000 | 5,000 | 5,000 |
Series T Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, Dividends (in USD per share) | 3,400 | 869 | |
Series U Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, Dividends (in USD per share) | 3,317 | ||
Series V Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, Dividends (in USD per share) | $ 1,998 |
Other Comprehensive Income (Oth
Other Comprehensive Income (Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Tax [Abstract] | |||
Increase in net unrealized gains (losses) on securities, pre-tax | $ (10,866) | $ (2,445) | $ 2,113 |
Less: Net realized gains (losses) reclassified to earnings, pre-tax | (723) | 6 | 302 |
Net increase (decrease), pre-tax | (10,143) | (2,451) | 1,811 |
Other Comprehensive Income (Loss), Available-for-sale Securities, before Reclassification Adjustments, Tax [Abstract] | |||
Increase in net unrealized gains (losses) on securities, tax effect | 2,561 | 576 | (485) |
Less: Net realized gains (losses) reclassified to earnings, tax effect | 171 | (2) | (69) |
Effect of income taxes | 2,390 | 578 | (416) |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, After Reclassification Adjustments, after Tax [Abstract] | |||
Increase in net unrealized gains (losses) on securities, after tax | (8,305) | (1,869) | 1,628 |
Less: Net realized gains (losses) reclassified to earnings, after tax | (552) | 4 | 233 |
Net increase (decrease), after-tax | (7,753) | (1,873) | 1,395 |
Net unrealized gains (losses) on cash flow hedge derivatives [Abstract] | |||
Increase in net unrealized gains (losses) on cash flow hedges, pre-tax | (3,536) | (632) | 918 |
Less: Net realized gains (losses) reclassified to earnings, pre-tax | (260) | 494 | 421 |
Net increase (decrease), pre-tax | (3,276) | (1,126) | 497 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax [Abstract] | |||
Increase in net unrealized gains (losses) on cash flow hedges, tax effect | 833 | 149 | (211) |
Less: Net realized gains (losses) reclassified to earnings, tax effect | 61 | (117) | (97) |
Effect of income taxes | 772 | 266 | (114) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax [Abstract] | |||
Increase in net unrealized gains (losses) on cash flow hedges, after tax | (2,703) | (483) | 707 |
Less: Net realized gains (losses) reclassified to earnings, after tax | (199) | 377 | 324 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | (2,504) | (860) | 383 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), after Reclassification Adjustment, before Tax [Abstract] | |||
Net pension and other postretirement benefit plan activity and other reclassified to earnings, pre-tax | (363) | 486 | 82 |
Net increase (decrease), pre-tax | (363) | 486 | 82 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax [Abstract] | |||
Net pension and other postretirement benefit plan activity and other reclassified to earnings, tax effect | 85 | (114) | (19) |
Net increase (decrease), tax | 85 | (114) | (19) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax [Abstract] | |||
Net pension and other postretirement benefit plan activity and other reclassified to earnings, after-tax | (278) | 372 | 63 |
Net increase (decrease), after-tax | (278) | 372 | 63 |
Other Comprehensive Income Other Adjustments [Abstract] | |||
Net unrealized gains (losses) on other transactions, pre-tax | (5) | 4 | 10 |
Total Other, net activity, Before tax | (5) | 4 | 10 |
Net unrealized gains (losses) on other transactions, tax effect | (41) | (4) | 5 |
Effect of income taxes | (41) | (4) | 5 |
Net unrealized gains (losses) on other transactions, after tax | (46) | 15 | |
Total Other, net activity, After tax | (46) | 15 | |
Other comprehensive income (loss), before tax and net of reclassifications into Net income | (13,787) | (3,087) | 2,548 |
Income tax benefit (expense) related to items of other comprehensive income | 3,206 | 726 | (577) |
Other comprehensive income (loss), after tax and net of reclassifications into Net income | (10,581) | (2,361) | 1,971 |
Continuing Operations | |||
Other Comprehensive Income Other Adjustments [Abstract] | |||
Net unrealized gains (losses) on other transactions, pre-tax | (5) | 4 | 10 |
Other comprehensive income (loss), before tax and net of reclassifications into Net income | (13,787) | (3,087) | 2,400 |
Income tax benefit (expense) related to items of other comprehensive income | 3,206 | 726 | (544) |
Other comprehensive income (loss), after tax and net of reclassifications into Net income | (10,581) | (2,361) | 1,856 |
Discontinued Operations | |||
Other Comprehensive Income Other Adjustments [Abstract] | |||
Other comprehensive income (loss), before tax and net of reclassifications into Net income | 148 | ||
Income tax benefit (expense) related to items of other comprehensive income | (33) | ||
Other comprehensive income (loss), after tax and net of reclassifications into Net income | $ 115 |
Other Comprehensive Income (Acc
Other Comprehensive Income (Accumulated Other Comprehensive Income (Loss) Components) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Total Equity, Beginning Balance | [1] | $ 55,726 | $ 54,041 | $ 49,343 | |
Other comprehensive income, net of tax | (10,581) | (2,361) | 1,971 | ||
Total Equity, Ending Balance | [1] | 45,812 | 55,726 | 54,041 | |
Pretax loss from derivatives | (314) | ||||
Continuing Operations | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income, net of tax | (10,581) | (2,361) | 1,856 | ||
Discontinued Operations | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income, net of tax | 115 | ||||
Debt securities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Total Equity, Beginning Balance | 589 | 2,462 | 1,067 | ||
Cumulative effect of adopting ASU 2018-02 | 1,395 | ||||
Other comprehensive income, net of tax | (7,753) | (1,873) | |||
Total Equity, Ending Balance | (7,164) | [2] | 589 | 2,462 | |
Cash flow hedge derivatives | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Total Equity, Beginning Balance | (201) | 659 | 276 | ||
Cumulative effect of adopting ASU 2018-02 | 383 | ||||
Other comprehensive income, net of tax | (2,504) | (860) | |||
Total Equity, Ending Balance | (2,705) | [2] | (201) | 659 | |
Pension and other postretirement benefit plan adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Total Equity, Beginning Balance | 27 | (345) | (408) | ||
Cumulative effect of adopting ASU 2018-02 | 63 | ||||
Other comprehensive income, net of tax | (278) | 372 | |||
Total Equity, Ending Balance | (251) | [2] | 27 | (345) | |
Other | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Total Equity, Beginning Balance | (6) | (6) | (21) | ||
Cumulative effect of adopting ASU 2018-02 | 15 | ||||
Other comprehensive income, net of tax | (46) | ||||
Total Equity, Ending Balance | (52) | [2] | (6) | (6) | |
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Total Equity, Beginning Balance | [1] | 409 | 2,770 | 799 | |
Cumulative effect of adopting ASU 2018-02 | 1,971 | ||||
Other comprehensive income, net of tax | (10,581) | (2,361) | 1,971 | ||
Total Equity, Ending Balance | [1] | (10,172) | [2] | 409 | 2,770 |
Accumulated Other Comprehensive Income (Loss) | Continuing Operations | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Total Equity, Beginning Balance | 409 | 2,770 | 914 | ||
Cumulative effect of adopting ASU 2018-02 | 1,856 | ||||
Other comprehensive income, net of tax | (10,581) | (2,361) | |||
Total Equity, Ending Balance | (10,172) | [2] | 409 | 2,770 | |
Accumulated Other Comprehensive Income (Loss) | Discontinued Operations | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Total Equity, Beginning Balance | (115) | ||||
Cumulative effect of adopting ASU 2018-02 | 115 | ||||
Other comprehensive income, net of tax | |||||
Total Equity, Ending Balance | [2] | ||||
[1]The par value of our preferred stock outstanding was less than $0.5 million at each date and, therefore, is excluded from this presentation.[2]At December 31, 2022, AOCI included pretax losses of $314 million from derivatives that hedged the purchase of investment securities classified as held to maturity. |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net income from continuing operations | $ 6,113 | $ 5,725 | $ 3,003 |
Less: Net income attributable to noncontrolling interests | 72 | 51 | 41 |
Preferred stock dividends | 301 | 233 | 229 |
Preferred stock discount accretion and redemptions | 5 | 5 | 4 |
Net income from continuing operations attributable to common shareholders | 5,735 | 5,436 | 2,729 |
Less: Dividends and undistributed earnings allocated to nonvested restricted shares | 27 | 27 | 13 |
Net income from continuing operations attributable to basic common shareholders | 5,708 | 5,409 | 2,716 |
Net income from discontinued operations attributable to common shareholders | 4,555 | ||
Less: Undistributed earnings allocated to nonvested restricted shares | 22 | ||
Net income from continuing operations attributable to diluted common shareholders | 5,708 | 5,409 | 2,716 |
Net income from discontinued operations attributable to basic common shareholders | $ 4,533 | ||
Basic weighted-average common shares outstanding (in shares) | 412 | 426 | 427 |
Basic earnings (loss) per common share from continuing operations (in dollars per share) | $ 13.86 | $ 12.71 | $ 6.37 |
Basic earnings from discontinued operations (dollars per share) | 10.62 | ||
Basic earnings per common share (dollars per share) | $ 13.86 | $ 12.71 | $ 16.99 |
Less: Impact of earnings per share dilution from discontinued operations | $ 2 | ||
Net income from discontinued operations attributable to diluted common shareholders | $ 4,531 | ||
Diluted weighted-average common shares outstanding (in shares) | 412 | 426 | 427 |
Diluted earnings (loss) per common share from continuing operations (in dollars per share) | $ 13.85 | $ 12.70 | $ 6.36 |
Diluted earnings from discontinued operations (dollars per share) | 10.60 | ||
Diluted earnings per common share (dollars per share) | $ 13.85 | $ 12.70 | $ 16.96 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Carrying value of FHLB and FRB stock | $ 2.5 | $ 1.3 |
Distributions received over the life of the partnerships from liquidation of the underlying investments by the investee, period | 12 years | |
Sensitivity analysis of fair value, inputs change for fair value | 0.10% |
Fair Value (Recurring Basis Sum
Fair Value (Recurring Basis Summary) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Assets | ||
Securities available for sale | $ 44,159 | $ 131,536 |
Mortgage servicing rights | 3,423 | 1,818 |
Financial derivatives | $ 1,531 | $ 3,620 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other | Other |
Liabilities | ||
Financial derivatives | $ 4,524 | $ 985 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities | Accrued expenses and other liabilities |
Level 3 assets | Assets, Total | Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Concentration risk, percentage | 12% | 4% |
Level 3 assets | Assets | Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Concentration risk, percentage | 1% | |
Liabilities at fair value | Liabilities, Total | Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Concentration risk, percentage | 2% | 1% |
Level 3 liabilities | Liabilities, Total | Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Concentration risk, percentage | 4% | 10% |
Level 3 liabilities | Liabilities | Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Concentration risk, percentage | 1% | 1% |
Assets at fair value | Assets, Total | Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Concentration risk, percentage | 11% | 26% |
Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | $ 44,159 | $ 131,536 |
Loans | 1,310 | 1,501 |
Equity investments | 3,147 | 3,231 |
Trading securities | 1,966 | 1,851 |
Financial derivatives | 3,768 | 5,152 |
Other assets | 432 | 518 |
Total Assets | 59,135 | 147,484 |
Liabilities | ||
Other borrowed funds | 1,466 | 773 |
Financial derivatives | 7,618 | 3,570 |
Other liabilities | 294 | 175 |
Total liabilities | 9,378 | 4,518 |
Residential Mortgages | Fair Value, Measurements, Recurring | ||
Assets | ||
Loans held for sale | 654 | 1,302 |
Mortgage servicing rights | 2,310 | 1,078 |
Commercial Mortgages | Fair Value, Measurements, Recurring | ||
Assets | ||
Loans held for sale | 276 | 575 |
Mortgage servicing rights | 1,113 | 740 |
U.S. Treasury and government agencies | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 8,370 | 46,164 |
Residential mortgage-backed Securities | Mortgage-backed Securities Agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 28,823 | 67,632 |
Residential mortgage-backed Securities | Mortgage-backed Securities Non-agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 819 | 1,158 |
Commercial Mortgage Backed Securities | Mortgage-backed Securities Agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 1,675 | 1,773 |
Commercial Mortgage Backed Securities | Mortgage-backed Securities Non-agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 1,256 | 3,436 |
Asset-backed | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 129 | 6,409 |
Other | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 3,087 | 4,964 |
Level 1 | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 8,108 | 41,873 |
Equity investments | 1,173 | 1,373 |
Trading securities | 798 | 250 |
Financial derivatives | 16 | 5 |
Other assets | 352 | 404 |
Total Assets | 10,447 | 43,905 |
Liabilities | ||
Other borrowed funds | 1,230 | 725 |
Financial derivatives | 4 | |
Total liabilities | 1,234 | 725 |
Level 1 | U.S. Treasury and government agencies | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 8,108 | 41,873 |
Level 2 | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 35,050 | 88,331 |
Loans | 541 | 617 |
Trading securities | 1,168 | 1,601 |
Financial derivatives | 3,747 | 5,109 |
Other assets | 80 | 114 |
Total Assets | 41,240 | 97,519 |
Liabilities | ||
Other borrowed funds | 232 | 45 |
Financial derivatives | 7,491 | 3,285 |
Total liabilities | 7,723 | 3,330 |
Level 2 | Residential Mortgages | Fair Value, Measurements, Recurring | ||
Assets | ||
Loans held for sale | 411 | 1,221 |
Level 2 | Commercial Mortgages | Fair Value, Measurements, Recurring | ||
Assets | ||
Loans held for sale | 243 | 526 |
Level 2 | U.S. Treasury and government agencies | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 262 | 4,291 |
Level 2 | Residential mortgage-backed Securities | Mortgage-backed Securities Agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 28,823 | 67,632 |
Level 2 | Residential mortgage-backed Securities | Mortgage-backed Securities Non-agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 61 | |
Level 2 | Commercial Mortgage Backed Securities | Mortgage-backed Securities Agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 1,675 | 1,773 |
Level 2 | Commercial Mortgage Backed Securities | Mortgage-backed Securities Non-agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 1,253 | 3,433 |
Level 2 | Asset-backed | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 5 | 6,246 |
Level 2 | Other | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 3,032 | 4,895 |
Level 3 | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 1,001 | 1,332 |
Loans | 769 | 884 |
Equity investments | 1,778 | 1,680 |
Financial derivatives | 5 | 38 |
Total Assets | 7,252 | 5,882 |
Liabilities | ||
Other borrowed funds | 4 | 3 |
Financial derivatives | 123 | 285 |
Other liabilities | 294 | 175 |
Total liabilities | 421 | 463 |
Level 3 | Residential Mortgages | Fair Value, Measurements, Recurring | ||
Assets | ||
Loans held for sale | 243 | 81 |
Mortgage servicing rights | 2,310 | 1,078 |
Level 3 | Commercial Mortgages | Fair Value, Measurements, Recurring | ||
Assets | ||
Loans held for sale | 33 | 49 |
Mortgage servicing rights | 1,113 | 740 |
Level 3 | Residential mortgage-backed Securities | Mortgage-backed Securities Non-agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 819 | 1,097 |
Level 3 | Commercial Mortgage Backed Securities | Mortgage-backed Securities Non-agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 3 | 3 |
Level 3 | Asset-backed | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | 124 | 163 |
Level 3 | Other | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale | $ 55 | $ 69 |
Fair Value (Reconciliation ofLe
Fair Value (Reconciliation ofLevel 3 Assets and Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Additional Information [Abstract] | ||
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest and Dividend Income, Operating, Total noninterest income | |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest and Dividend Income, Operating, Total noninterest income | Interest and Dividend Income, Operating, Total noninterest income |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Total noninterest income | |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Total noninterest income | |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Total noninterest income | |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 5,882 | $ 5,137 |
Included in Earnings | 1,457 | 1,147 |
Included in Other comprehensive income (b) | (126) | 8 |
Purchases | 1,529 | 1,207 |
Sales | (816) | (1,143) |
Issuances | 119 | 174 |
Settlements | (896) | (1,218) |
Transfers into Level 3 | 163 | 18 |
Transfers out of Level 3 | (60) | (36) |
Impact from BBVA Acquisition | 588 | |
Ending Balance | 7,252 | 5,882 |
Unrealized gains (losses) on assets held on Consolidated Balance Sheet | 1,250 | 847 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 463 | 318 |
Included in Earnings | 126 | 296 |
Purchases | 32 | |
Sales | 14 | 6 |
Issuances | 883 | 326 |
Settlements | (1,097) | (490) |
Impact from BBVA Acquisition | 7 | |
Ending Balance | 421 | 463 |
Unrealized gains or (losses) on liabilities held on Consolidated Balance Sheet | 128 | 269 |
Fair Value Additional Information [Abstract] | ||
Net gains (losses) included in earnings (realized and unrealized) relating to Level 3 assets and liabilities | 1,331 | 851 |
Net unrealized gains (losses) relating to Level 3 assets and liabilities | 1,122 | 578 |
Fair Value, Measurements, Recurring | Level 3 | Loans Held For Sale | Residential Mortgages | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 81 | 163 |
Included in Earnings | (5) | (1) |
Purchases | 226 | 47 |
Sales | (34) | (83) |
Settlements | (13) | (41) |
Transfers into Level 3 | 29 | 18 |
Transfers out of Level 3 | (41) | (22) |
Ending Balance | 243 | 81 |
Unrealized gains (losses) on assets held on Consolidated Balance Sheet | (5) | (1) |
Fair Value, Measurements, Recurring | Level 3 | Loans Held For Sale | Commercial Mortgages | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 49 | 57 |
Included in Earnings | (6) | |
Sales | (6) | |
Settlements | (10) | (2) |
Ending Balance | 33 | 49 |
Unrealized gains (losses) on assets held on Consolidated Balance Sheet | (6) | (1) |
Fair Value, Measurements, Recurring | Level 3 | Loans Held For Sale | Other consumer loans held for sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Sales | (256) | |
Impact from BBVA Acquisition | 256 | |
Fair Value, Measurements, Recurring | Level 3 | Securities available for sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 1,332 | 1,647 |
Included in Earnings | 24 | 39 |
Included in Other comprehensive income (b) | (126) | 8 |
Purchases | 6 | 6 |
Settlements | (235) | (368) |
Ending Balance | 1,001 | 1,332 |
Fair Value, Measurements, Recurring | Level 3 | Securities available for sale | Residential mortgage-backed Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 1,097 | 1,365 |
Included in Earnings | 22 | 37 |
Included in Other comprehensive income (b) | (108) | 6 |
Settlements | (192) | (311) |
Ending Balance | 819 | 1,097 |
Fair Value, Measurements, Recurring | Level 3 | Securities available for sale | Commercial mortgage- backed non-agency | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 3 | 11 |
Included in Other comprehensive income (b) | (8) | |
Ending Balance | 3 | 3 |
Fair Value, Measurements, Recurring | Level 3 | Securities available for sale | Asset-backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 163 | 199 |
Included in Earnings | 2 | 2 |
Included in Other comprehensive income (b) | (18) | 9 |
Settlements | (23) | (47) |
Ending Balance | 124 | 163 |
Fair Value, Measurements, Recurring | Level 3 | Securities available for sale | Other debt | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 69 | 72 |
Included in Other comprehensive income (b) | 1 | |
Purchases | 6 | 6 |
Settlements | (20) | (10) |
Ending Balance | 55 | 69 |
Fair Value, Measurements, Recurring | Level 3 | Loans | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 884 | 647 |
Included in Earnings | 23 | 45 |
Purchases | 55 | 124 |
Sales | (10) | (15) |
Settlements | (164) | (194) |
Transfers out of Level 3 | (19) | (14) |
Impact from BBVA Acquisition | 291 | |
Ending Balance | 769 | 884 |
Unrealized gains (losses) on assets held on Consolidated Balance Sheet | 23 | 44 |
Fair Value, Measurements, Recurring | Level 3 | Equity investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 1,680 | 1,263 |
Included in Earnings | 445 | 627 |
Purchases | 291 | 573 |
Sales | (772) | (783) |
Transfers into Level 3 | 134 | |
Ending Balance | 1,778 | 1,680 |
Unrealized gains (losses) on assets held on Consolidated Balance Sheet | 237 | 338 |
Fair Value, Measurements, Recurring | Level 3 | Mortgage Servicing Rights | Residential Mortgages | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 1,078 | 673 |
Included in Earnings | 509 | 192 |
Purchases | 897 | 411 |
Issuances | 57 | 87 |
Settlements | (231) | (320) |
Impact from BBVA Acquisition | 35 | |
Ending Balance | 2,310 | 1,078 |
Unrealized gains (losses) on assets held on Consolidated Balance Sheet | 509 | 192 |
Fair Value, Measurements, Recurring | Level 3 | Mortgage Servicing Rights | Commercial Mortgages | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 740 | 569 |
Included in Earnings | 473 | 162 |
Purchases | 46 | 41 |
Issuances | 62 | 87 |
Settlements | (208) | (119) |
Ending Balance | 1,113 | 740 |
Unrealized gains (losses) on assets held on Consolidated Balance Sheet | 473 | 162 |
Fair Value, Measurements, Recurring | Level 3 | Financial derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 38 | 118 |
Included in Earnings | (6) | 83 |
Purchases | 8 | 5 |
Settlements | (35) | (174) |
Impact from BBVA Acquisition | 6 | |
Ending Balance | 5 | 38 |
Unrealized gains (losses) on assets held on Consolidated Balance Sheet | 19 | 113 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 285 | 273 |
Included in Earnings | 49 | 145 |
Sales | 14 | 6 |
Settlements | (225) | (146) |
Impact from BBVA Acquisition | 7 | |
Ending Balance | 123 | 285 |
Unrealized gains or (losses) on liabilities held on Consolidated Balance Sheet | 62 | 158 |
Fair Value, Measurements, Recurring | Level 3 | Other borrowed funds | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 3 | 2 |
Issuances | 7 | 5 |
Settlements | (6) | (4) |
Ending Balance | 4 | 3 |
Fair Value, Measurements, Recurring | Level 3 | Other liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 175 | 43 |
Included in Earnings | 77 | 151 |
Purchases | 32 | |
Issuances | 876 | 321 |
Settlements | (866) | (340) |
Ending Balance | 294 | 175 |
Unrealized gains or (losses) on liabilities held on Consolidated Balance Sheet | $ 66 | $ 111 |
Fair Value (Fair Value Measurem
Fair Value (Fair Value Measurements- Recurring Quantitative Information) (Details) - Fair Value, Measurements, Recurring $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 59,135 | $ 147,484 |
Financial and nonfinancial liabilities, fair value disclosure | (9,378) | (4,518) |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 7,252 | 5,882 |
Financial and nonfinancial liabilities, fair value disclosure | (421) | (463) |
Recuring Assets, Net of Liabilities - Fair Value | 6,831 | 5,419 |
Assets, fair value disclosure | 7,300 | 5,900 |
Level 3 | Loans - Residential real estate | Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 76 | 109 |
Level 3 | Loans - Residential real estate | Consensus Pricing | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 570 | $ 622 |
Level 3 | Loans - Residential real estate | Consensus Pricing | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cumulative default rate | 3.60% | 3.60% |
Level 3 | Loans - Residential real estate | Consensus Pricing | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cumulative default rate | 100% | 100% |
Level 3 | Loans - Residential real estate | Consensus Pricing | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cumulative default rate | 66.20% | 74.20% |
Level 3 | Loans - Residential real estate | Consensus Pricing with Unobservable Inputs of credit and liquidity discount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 125 | |
Level 3 | Loans - Residential real estate | Consensus Pricing with Unobservable Inputs of credit and liquidity discount | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit and liquidity discount | 0.50% | |
Level 3 | Loans - Residential real estate | Consensus Pricing with Unobservable Inputs of credit and liquidity discount | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit and liquidity discount | 100% | |
Level 3 | Loans - Residential real estate | Consensus Pricing with Unobservable Inputs of credit and liquidity discount | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit and liquidity discount | 47.30% | |
Level 3 | Loans - Home equity | Consensus Pricing | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 25 | $ 28 |
Level 3 | Loans - Home equity | Consensus Pricing | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cumulative default rate | 3.60% | 3.60% |
Level 3 | Loans - Home equity | Consensus Pricing | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cumulative default rate | 100% | 100% |
Level 3 | Loans - Home equity | Consensus Pricing | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cumulative default rate | 72.50% | 75.80% |
Level 3 | Loans - Home equity | Consensus Pricing with Unobservable Inputs of credit and liquidity discount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 98 | |
Level 3 | Loans - Home equity | Consensus Pricing with Unobservable Inputs of credit and liquidity discount | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit and liquidity discount | 0.40% | |
Level 3 | Loans - Home equity | Consensus Pricing with Unobservable Inputs of credit and liquidity discount | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit and liquidity discount | 100% | |
Level 3 | Loans - Home equity | Consensus Pricing with Unobservable Inputs of credit and liquidity discount | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit and liquidity discount | 46.20% | |
Level 3 | Equity investments | Multiple of Adjusted Earnings | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 1,778 | $ 1,680 |
Level 3 | Equity investments | Multiple of Adjusted Earnings | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Multiple of earnings | 0.045 | 0.050 |
Level 3 | Equity investments | Multiple of Adjusted Earnings | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Multiple of earnings | 0.250 | 0.144 |
Level 3 | Equity investments | Multiple of Adjusted Earnings | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Multiple of earnings | 9.1 | 0.088 |
Level 3 | Insignificant Assets, Net of Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Insignificant assets, fair value disclosure | $ (8) | $ (5) |
Residential Mortgages | Level 3 | Mortgage Servicing Rights | Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 2,310 | $ 1,078 |
Residential Mortgages | Level 3 | Mortgage Servicing Rights | Discounted Cash Flow | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Spread over the benchmark curve | 2.54% | 2.49% |
Residential Mortgages | Level 3 | Mortgage Servicing Rights | Discounted Cash Flow | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Spread over the benchmark curve | 16.53% | 22.18% |
Residential Mortgages | Level 3 | Mortgage Servicing Rights | Discounted Cash Flow | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Spread over the benchmark curve | 7.66% | 8.57% |
Commercial Mortgages | Level 3 | Loans Held For Sale | Discounted Cash Flow, Spread Over the Benchmark Curve | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 33 | $ 49 |
Commercial Mortgages | Level 3 | Loans Held For Sale | Discounted Cash Flow | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Spread over the benchmark curve | 5.85% | 5.55% |
Commercial Mortgages | Level 3 | Loans Held For Sale | Discounted Cash Flow | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Spread over the benchmark curve | 24.65% | 159.90% |
Commercial Mortgages | Level 3 | Loans Held For Sale | Discounted Cash Flow | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Spread over the benchmark curve | 9.59% | 99.96% |
Commercial Mortgages | Level 3 | Mortgage Servicing Rights | Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 1,113 | $ 740 |
Residential mortgage-backed Securities | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 819 | $ 1,097 |
Residential mortgage-backed Securities | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Spread over the benchmark curve | 2.89% | 1.63% |
Asset-backed | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 124 | $ 163 |
Asset-backed | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Spread over the benchmark curve | 2.96% | 1.82% |
Visa Class B Swap | Level 3 | Financial derivatives | Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial and nonfinancial liabilities, fair value disclosure | $ (107) | $ (277) |
Estimated growth rate of Visa Class A share price | 16% | 16% |
Visa Class B Swap | Level 3 | Financial derivatives | Discounted Cash Flow | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated conversion factor of Class B shares into Class A shares | 160.60% | 161.80% |
Measurement Input, Constant Default Rate | Residential mortgage-backed Securities | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0 | 0 |
Measurement Input, Constant Default Rate | Residential mortgage-backed Securities | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.130 | 0.169 |
Measurement Input, Constant Default Rate | Residential mortgage-backed Securities | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.040 | 0.046 |
Measurement Input, Constant Default Rate | Asset-backed | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0 | 0.014 |
Measurement Input, Constant Default Rate | Asset-backed | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.073 | 0.200 |
Measurement Input, Constant Default Rate | Asset-backed | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.021 | 0.032 |
Measurement Input, Loss Severity | Level 3 | Loans - Residential real estate | Discounted Cash Flow | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, measurement input | 0.060 | 0.060 |
Measurement Input, Loss Severity | Level 3 | Loans - Residential real estate | Consensus Pricing | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, measurement input | 0 | 0 |
Measurement Input, Loss Severity | Level 3 | Loans - Residential real estate | Consensus Pricing | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, measurement input | 1 | 1 |
Measurement Input, Loss Severity | Level 3 | Loans - Residential real estate | Consensus Pricing | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, measurement input | 0.062 | 0.069 |
Measurement Input, Loss Severity | Level 3 | Loans - Home equity | Consensus Pricing | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, measurement input | 0 | 0 |
Measurement Input, Loss Severity | Level 3 | Loans - Home equity | Consensus Pricing | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, measurement input | 1 | 0.984 |
Measurement Input, Loss Severity | Level 3 | Loans - Home equity | Consensus Pricing | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, measurement input | 0.153 | 0.177 |
Measurement Input, Loss Severity | Residential mortgage-backed Securities | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.150 | 0.200 |
Measurement Input, Loss Severity | Residential mortgage-backed Securities | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.800 | 0.964 |
Measurement Input, Loss Severity | Residential mortgage-backed Securities | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.461 | 0.476 |
Measurement Input, Loss Severity | Asset-backed | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.200 | 0.080 |
Measurement Input, Loss Severity | Asset-backed | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 1 | 1 |
Measurement Input, Loss Severity | Asset-backed | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.490 | 0.574 |
Measurement Input, Constant Prepayment Rate | Residential Mortgages | Level 3 | Mortgage Servicing Rights | Discounted Cash Flow | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0 | 0 |
Measurement Input, Constant Prepayment Rate | Residential Mortgages | Level 3 | Mortgage Servicing Rights | Discounted Cash Flow | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.345 | 0.410 |
Measurement Input, Constant Prepayment Rate | Residential Mortgages | Level 3 | Mortgage Servicing Rights | Discounted Cash Flow | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.067 | 0.126 |
Measurement Input, Constant Prepayment Rate | Commercial Mortgages | Level 3 | Mortgage Servicing Rights | Discounted Cash Flow | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.039 | 0.050 |
Measurement Input, Constant Prepayment Rate | Commercial Mortgages | Level 3 | Mortgage Servicing Rights | Discounted Cash Flow | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.098 | 0.155 |
Measurement Input, Constant Prepayment Rate | Commercial Mortgages | Level 3 | Mortgage Servicing Rights | Discounted Cash Flow | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.043 | 0.055 |
Measurement Input, Constant Prepayment Rate | Residential mortgage-backed Securities | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.010 | 0.010 |
Measurement Input, Constant Prepayment Rate | Residential mortgage-backed Securities | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.279 | 0.307 |
Measurement Input, Constant Prepayment Rate | Residential mortgage-backed Securities | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.099 | 0.113 |
Measurement Input, Constant Prepayment Rate | Asset-backed | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.010 | 0.010 |
Measurement Input, Constant Prepayment Rate | Asset-backed | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.400 | 0.400 |
Measurement Input, Constant Prepayment Rate | Asset-backed | Level 3 | Securities available for sale | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.075 | 0.111 |
Measurement Input, Discount Rate | Level 3 | Loans - Residential real estate | Discounted Cash Flow | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, measurement input | 0.079 | 0.035 |
Measurement Input, Discount Rate | Level 3 | Loans - Residential real estate | Consensus Pricing | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, measurement input | 0.055 | 0.048 |
Measurement Input, Discount Rate | Level 3 | Loans - Residential real estate | Consensus Pricing | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, measurement input | 0.075 | 0.068 |
Measurement Input, Discount Rate | Level 3 | Loans - Residential real estate | Consensus Pricing | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, measurement input | 0.059 | 0.052 |
Measurement Input, Discount Rate | Level 3 | Loans - Home equity | Consensus Pricing | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, measurement input | 0.055 | 0.048 |
Measurement Input, Discount Rate | Level 3 | Loans - Home equity | Consensus Pricing | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, measurement input | 0.075 | 0.068 |
Measurement Input, Discount Rate | Level 3 | Loans - Home equity | Consensus Pricing | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, measurement input | 0.065 | 0.060 |
Measurement Input, Discount Rate | Commercial Mortgages | Level 3 | Mortgage Servicing Rights | Discounted Cash Flow | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.078 | 0.054 |
Measurement Input, Discount Rate | Commercial Mortgages | Level 3 | Mortgage Servicing Rights | Discounted Cash Flow | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.101 | 0.080 |
Measurement Input, Discount Rate | Commercial Mortgages | Level 3 | Mortgage Servicing Rights | Discounted Cash Flow | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.098 | 0.078 |
Fair Value (Nonrecurring) (Deta
Fair Value (Nonrecurring) (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets - gains (losses) | $ (303) | $ (49) | $ (140) |
Level 3 | Nonaccrual loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets - gains (losses) | (287) | (4) | (111) |
Level 3 | OREO and Foreclosed Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets - gains (losses) | (2) | ||
Level 3 | Equity investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 135 | ||
Total assets - gains (losses) | (1) | ||
Level 3 | Long-lived Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 23 | 103 | |
Total assets - gains (losses) | (15) | (45) | $ (27) |
Level 1 | Equity investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 42 | ||
Fair Value of Property or Collateral | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 448 | 457 | |
Fair Value of Property or Collateral | Level 3 | Nonaccrual loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 280 | 348 | |
Fair Value of Property or Collateral | Level 3 | OREO and Foreclosed Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | $ 10 | $ 6 |
Fair Value (Fair Value Option -
Fair Value (Fair Value Option - Fair Value and Principal Balances) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Loans Held For Sale | Residential Mortgages | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | $ 654 | $ 1,302 |
Aggregate Unpaid Principal Balance - Assets | 687 | 1,282 |
Difference - Assets | (33) | 20 |
Loans Held For Sale | Commercial Mortgage | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 276 | 575 |
Aggregate Unpaid Principal Balance - Assets | 300 | 580 |
Difference - Assets | (24) | (5) |
Loans Held For Sale | Accruing loans less than 90 days past due | Residential Mortgages | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 609 | 1,249 |
Aggregate Unpaid Principal Balance - Assets | 633 | 1,219 |
Difference - Assets | (24) | 30 |
Loans Held For Sale | Accruing loans less than 90 days past due | Commercial Mortgage | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 261 | 575 |
Aggregate Unpaid Principal Balance - Assets | 256 | 580 |
Difference - Assets | 5 | (5) |
Loans Held For Sale | Accruing loans 90 days or more past due | Residential Mortgages | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 5 | 6 |
Aggregate Unpaid Principal Balance - Assets | 5 | 6 |
Difference - Assets | ||
Loans Held For Sale | Nonaccrual loans | Residential Mortgages | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 40 | 47 |
Aggregate Unpaid Principal Balance - Assets | 49 | 57 |
Difference - Assets | (9) | (10) |
Loans Held For Sale | Nonaccrual loans | Commercial Mortgage | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 15 | |
Aggregate Unpaid Principal Balance - Assets | 44 | |
Difference - Assets | (29) | |
Loans | Residential Mortgages | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 1,310 | 1,501 |
Aggregate Unpaid Principal Balance - Assets | 1,568 | 1,804 |
Difference - Assets | (258) | (303) |
Loans | Accruing loans less than 90 days past due | Residential Mortgages | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 509 | 487 |
Aggregate Unpaid Principal Balance - Assets | 521 | 498 |
Difference - Assets | (12) | (11) |
Loans | Accruing loans 90 days or more past due | Residential Mortgages | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 155 | 262 |
Aggregate Unpaid Principal Balance - Assets | 167 | 278 |
Difference - Assets | (12) | (16) |
Loans | Nonaccrual loans | Residential Mortgages | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 646 | 752 |
Aggregate Unpaid Principal Balance - Assets | 880 | 1,028 |
Difference - Assets | (234) | (276) |
Other assets | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 80 | 105 |
Aggregate Unpaid Principal Balance - Assets | 80 | 107 |
Difference - Assets | (2) | |
Other borrowed funds | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Liabilities | 31 | 30 |
Aggregate Unpaid Principal Balance - Liabilities | 32 | 30 |
Difference - Liabilities | (1) | |
Other liabilities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Liabilities | 196 | |
Aggregate Unpaid Principal Balance - Liabilities | ||
Difference - Liabilities | $ 196 |
Fair Value (Fair Value Option_2
Fair Value (Fair Value Option - Changes in Fair Value) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans Held For Sale | Residential Mortgages | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Gains (Losses) - FVO: Changes in Fair Value | $ (80) | $ 152 | $ 198 |
Loans Held For Sale | Commercial Mortgages | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Gains (Losses) - FVO: Changes in Fair Value | 52 | 115 | 128 |
Loans | Residential Mortgages | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Gains (Losses) - FVO: Changes in Fair Value | 42 | 80 | 44 |
Other assets | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Gains (Losses) - FVO: Changes in Fair Value | (16) | 28 | (3) |
Other liabilities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Gains (Losses) - FVO: Changes in Fair Value | $ (67) |
Fair Value (Additional Fair Val
Fair Value (Additional Fair Value Information Related To Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Instruments, Financial Assets, Balance Sheet Groupings | ||
Securities held to maturity | $ 90,279 | $ 1,522 |
Carrying Amount | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings | ||
Cash and due from banks | 7,043 | 8,004 |
Interest-earning deposits with banks | 27,320 | 74,250 |
Securities held to maturity | 95,183 | 1,429 |
Net loans (excludes leases) | 313,460 | 275,874 |
Other assets | 6,022 | 4,205 |
Total assets | 449,028 | 363,762 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings | ||
Time deposits | 18,470 | 17,366 |
Borrowed funds | 57,182 | 30,011 |
Unfunded lending related commitments | 694 | 662 |
Other liabilities | 660 | 449 |
Total liabilities | 77,006 | 48,488 |
Fair Value | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings | ||
Cash and due from banks | 7,043 | 8,004 |
Interest-earning deposits with banks | 27,320 | 74,250 |
Securities held to maturity | 90,279 | 1,522 |
Net loans (excludes leases) | 310,864 | 280,498 |
Other assets | 6,022 | 4,204 |
Total assets | 441,528 | 368,478 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings | ||
Time deposits | 18,298 | 17,180 |
Borrowed funds | 57,557 | 30,616 |
Unfunded lending related commitments | 694 | 662 |
Other liabilities | 660 | 449 |
Total liabilities | 77,209 | 48,907 |
Fair Value | Level 1 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings | ||
Cash and due from banks | 7,043 | 8,004 |
Securities held to maturity | 30,748 | 890 |
Total assets | 37,791 | 8,894 |
Fair Value | Level 2 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings | ||
Interest-earning deposits with banks | 27,320 | 74,250 |
Securities held to maturity | 59,377 | 456 |
Other assets | 6,020 | 4,141 |
Total assets | 92,717 | 78,847 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings | ||
Time deposits | 18,298 | 17,180 |
Borrowed funds | 55,922 | 28,936 |
Other liabilities | 660 | 449 |
Total liabilities | 74,880 | 46,565 |
Fair Value | Level 3 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings | ||
Securities held to maturity | 154 | 176 |
Net loans (excludes leases) | 310,864 | 280,498 |
Other assets | 2 | 63 |
Total assets | 311,020 | 280,737 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings | ||
Borrowed funds | 1,635 | 1,680 |
Unfunded lending related commitments | 694 | 662 |
Total liabilities | $ 2,329 | $ 2,342 |
Financial Derivatives (Narrativ
Financial Derivatives (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Gain (loss) on net investment hedge derivatives | $ 119,000,000 | $ 0 | $ 0 |
Cash and securities held to collateralize net derivative assets | 1,500,000,000 | ||
Cash and securities pledged to collateralize net derivative liabilities | 2,500,000,000 | ||
Aggregate fair value of all derivative instruments with credit-risk-related contingent features | 5,800,000,000 | 2,400,000,000 | |
Collateral posted on derivative instruments with credit-risk-related contingent features | 1,700,000,000 | 1,800,000,000 | |
Maximum amount of collateral PNC would have been required to post if the credit-risk-related contingent features underlying these agreements had been triggered | 4,100,000,000 | 600,000,000 | |
Cash Flow Hedging | Interest Rate Contract | |||
Derivative [Line Items] | |||
Cash flow hedge gain (loss) to be reclassified within twelve months | 1,400,000,000 | ||
Cash flow hedge gain (loss) to be reclassified within twelve months, net of tax | $ 1,100,000,000 | ||
Maximum length of time over which forecasted loan cash flows are hedged | 10 years | ||
Net Investment Hedging | Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Gain (loss) from components excluded from assessment of net investment hedge effectiveness net | $ 0 | $ 0 | $ 0 |
Financial Derivatives (Total Gr
Financial Derivatives (Total Gross Derivatives) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Notional /Contract Amount | $ 581,268 | $ 515,302 |
Asset fair value | 3,768 | 5,152 |
Less: Impact of legally enforceable master netting agreements | 1,523 | 928 |
Less: Cash collateral received/paid | 714 | 604 |
Total derivatives | 1,531 | 3,620 |
Liability fair value | 7,618 | 3,570 |
Less: Impact of legally enforceable master netting agreements | 1,523 | 928 |
Less: Cash collateral received/paid | 1,571 | 1,657 |
Total derivatives | 4,524 | 985 |
Commodity Contracts | ||
Derivative [Line Items] | ||
Asset fair value | 1,208 | 1,363 |
Less: Cash collateral received/paid | 2 | 1 |
Liability fair value | 1,269 | 1,373 |
Less: Cash collateral received/paid | 520 | 784 |
Foreign Exchange And Other Contract | ||
Derivative [Line Items] | ||
Asset fair value | 437 | 208 |
Less: Cash collateral received/paid | 82 | 10 |
Liability fair value | 520 | 542 |
Less: Cash collateral received/paid | 10 | 97 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 65,661 | 73,419 |
Asset fair value | 24 | 15 |
Liability fair value | 1 | 38 |
Designated as Hedging Instrument | Fair Value Hedging | Interest Rate Contract | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 24,231 | 23,345 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Contract | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 40,310 | 48,961 |
Asset fair value | 15 | |
Liability fair value | 1 | 14 |
Designated as Hedging Instrument | Net Investment Hedging | Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 1,120 | 1,113 |
Asset fair value | 24 | |
Liability fair value | 24 | |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 515,607 | 441,883 |
Asset fair value | 3,744 | 5,137 |
Liability fair value | 7,617 | 3,532 |
Not Designated as Hedging Instrument | Mortgage Banking | Interest Rate Contract | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 75,978 | 62,357 |
Asset fair value | 182 | 101 |
Liability fair value | 104 | 43 |
Not Designated as Hedging Instrument | Mortgage Banking | Swap | Interest Rate Contract | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 47,908 | 35,623 |
Asset fair value | 7 | |
Liability fair value | 1 | |
Not Designated as Hedging Instrument | Mortgage Banking | Future | Interest Rate Contract | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 5,537 | 4,592 |
Not Designated as Hedging Instrument | Mortgage Banking | Mortgage-backed commitments | Interest Rate Contract | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 4,516 | 9,917 |
Asset fair value | 85 | 55 |
Liability fair value | 89 | 31 |
Not Designated as Hedging Instrument | Mortgage Banking | Other Contract | Interest Rate Contract | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 18,017 | 12,225 |
Asset fair value | 90 | 46 |
Liability fair value | 14 | 12 |
Not Designated as Hedging Instrument | Customer-related Contracts | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 426,844 | 368,014 |
Asset fair value | 3,515 | 5,027 |
Liability fair value | 7,286 | 3,150 |
Not Designated as Hedging Instrument | Customer-related Contracts | Interest Rate Contract | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 386,052 | 328,483 |
Asset fair value | 1,941 | 3,465 |
Liability fair value | 5,724 | 1,598 |
Not Designated as Hedging Instrument | Customer-related Contracts | Commodity Contracts | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 10,280 | 11,968 |
Asset fair value | 1,208 | 1,363 |
Liability fair value | 1,269 | 1,373 |
Not Designated as Hedging Instrument | Customer-related Contracts | Foreign Exchange And Other Contract | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 30,512 | 27,563 |
Asset fair value | 366 | 199 |
Liability fair value | 293 | 179 |
Not Designated as Hedging Instrument | Customer-related Contracts | Swap | Interest Rate Contract | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 354,150 | 297,711 |
Asset fair value | 1,597 | 3,335 |
Liability fair value | 5,397 | 1,520 |
Not Designated as Hedging Instrument | Customer-related Contracts | Swap | Commodity Contracts | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 5,792 | 8,840 |
Asset fair value | 1,003 | 1,150 |
Liability fair value | 1,067 | 1,161 |
Not Designated as Hedging Instrument | Customer-related Contracts | Future | Interest Rate Contract | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 32 | 907 |
Not Designated as Hedging Instrument | Customer-related Contracts | Mortgage-backed commitments | Interest Rate Contract | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 2,799 | 4,147 |
Asset fair value | 10 | 5 |
Liability fair value | 6 | 6 |
Not Designated as Hedging Instrument | Customer-related Contracts | Other Contract | Interest Rate Contract | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 29,071 | 25,718 |
Asset fair value | 334 | 125 |
Liability fair value | 321 | 72 |
Not Designated as Hedging Instrument | Customer-related Contracts | Other Contract | Commodity Contracts | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 4,488 | 3,128 |
Asset fair value | 205 | 213 |
Liability fair value | 202 | 212 |
Not Designated as Hedging Instrument | Other Risk Management Activity | Foreign Exchange And Other Contract | ||
Derivative [Line Items] | ||
Notional /Contract Amount | 12,785 | 11,512 |
Asset fair value | 47 | 9 |
Liability fair value | $ 227 | $ 339 |
Financial Derivatives (Gains (L
Financial Derivatives (Gains (Losses) Recognized on Fair Value and Cash Flow Hedges in Consolidated Income Statement) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loans, interest income | $ 11,795 | $ 9,007 | $ 8,927 |
Investment securities, interest income | 2,726 | 1,834 | 2,041 |
Borrowed funds, interest expense | 1,155 | 361 | 718 |
Total noninterest income | $ 8,106 | $ 8,564 | $ 6,955 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Investment securities, interest income, Interest Expense | Investment securities, interest income, Interest Expense | Investment securities, interest income, Interest Expense |
Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total noninterest income | $ 952 | $ 1,199 | $ 608 |
Fair Value Hedging | Designated as Hedging Instrument | Investment Securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | 143 | 9 | (202) |
Fair Value Hedging | Designated as Hedging Instrument | Investment Securities | Investment Securities Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on related hedged items recognized in income | (136) | (5) | 208 |
Interest settlements on derivatives | (2) | (4) | (9) |
Fair Value Hedging | Designated as Hedging Instrument | Borrowed Funds | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (1,976) | (993) | 959 |
Fair Value Hedging | Designated as Hedging Instrument | Borrowed Funds | Borrowed Funds Interest Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on related hedged items recognized in income | 1,945 | 937 | (1,059) |
Interest settlements on derivatives | 120 | 521 | 480 |
Cash Flow Hedging | Designated as Hedging Instrument | Loans | Investment Securities Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of derivative gains (losses) reclassified from accumulated other comprehensive income | (259) | 376 | 375 |
Cash Flow Hedging | Designated as Hedging Instrument | Investment Securities | Investment Securities Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of derivative gains (losses) reclassified from accumulated other comprehensive income | $ (1) | 57 | 40 |
Cash Flow Hedging | Designated as Hedging Instrument | Other Income | Noninterest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of derivative gains (losses) reclassified from accumulated other comprehensive income | $ 61 | $ 6 |
Financial Derivatives (Hedged I
Financial Derivatives (Hedged Items- Fair Value Hedges) (Details) - Designated as Hedging Instrument - Fair Value Hedging - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Investment Securities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Carrying Value of the Hedged Items | $ 2,376 | $ 2,655 |
Cumulative fair value hedge adjustment included in the carrying value of hedged items | (121) | 23 |
Borrowed Funds | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Carrying Value of the Hedged Items | 21,781 | 24,259 |
Cumulative fair value hedge adjustment included in the carrying value of hedged items | (1,283) | 663 |
Borrowed Funds Discontinued Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value hedge adjustments primarily related to discontinued borrowed funds hedge relationships, cumulative increase (decrease) | $ (100) | $ (100) |
Financial Derivatives (Risk Par
Financial Derivatives (Risk Participation Agreements) (Details) - Risk Participation Agreements Sold - USD ($) $ in Billions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivative liability, notional amount | $ 8 | $ 8 |
Credit derivative, maximum exposure, undiscounted | $ 0.1 | $ 0.3 |
Financial Derivatives (Gains _2
Financial Derivatives (Gains (Losses) on Derivatives Not Designated As Hedging) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Total gains (losses) from derivatives not designated as hedging instruments | $ (85) | $ 176 | $ 820 |
Mortgage Banking | Interest Rate Contract | |||
Derivative [Line Items] | |||
Total gains (losses) from derivatives not designated as hedging instruments | (671) | (78) | 792 |
Customer-related Contracts | |||
Derivative [Line Items] | |||
Total gains (losses) from derivatives not designated as hedging instruments | 331 | 284 | 366 |
Customer-related Contracts | Interest Rate Contract | |||
Derivative [Line Items] | |||
Total gains (losses) from derivatives not designated as hedging instruments | 220 | 149 | 210 |
Customer-related Contracts | Foreign Exchange And Other Contract | |||
Derivative [Line Items] | |||
Total gains (losses) from derivatives not designated as hedging instruments | 111 | 135 | 156 |
Other Risk Management Activity | Foreign Exchange And Other Contract | |||
Derivative [Line Items] | |||
Total gains (losses) from derivatives not designated as hedging instruments | $ 255 | $ (30) | $ (338) |
Financial Derivatives (Derivati
Financial Derivatives (Derivative Assets and Liabilities Offsetting) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative Asset, Fair Value, Amount Offset Against Collateral [Abstract] | ||
Gross Fair Value | $ 3,768 | $ 5,152 |
Fair Value Offset Amount | 1,523 | 928 |
Cash Collateral | 714 | 604 |
Net Fair Value | 1,531 | 3,620 |
Securities Collateral Held /Pledged Under Master Netting Agreements | 34 | 300 |
Net Amounts | 1,497 | 3,320 |
Derivative Liability, Fair Value, Amount Offset Against Collateral [Abstract] | ||
Gross Fair Value | 7,618 | 3,570 |
Fair Value Offset Amount | 1,523 | 928 |
Cash Collateral | 1,571 | 1,657 |
Net Fair Value | 4,524 | 985 |
Securities Collateral Held /Pledged Under Master Netting Agreements | 82 | |
Net Amounts | 4,442 | 985 |
Commodity contracts | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral [Abstract] | ||
Gross Fair Value | 1,208 | 1,363 |
Fair Value Offset Amount | 335 | 299 |
Cash Collateral | 2 | 1 |
Net Fair Value | 871 | 1,063 |
Net Amounts | 871 | 1,063 |
Derivative Liability, Fair Value, Amount Offset Against Collateral [Abstract] | ||
Gross Fair Value | 1,269 | 1,373 |
Fair Value Offset Amount | 679 | 291 |
Cash Collateral | 520 | 784 |
Net Fair Value | 70 | 298 |
Securities Collateral Held /Pledged Under Master Netting Agreements | 4 | |
Net Amounts | 66 | 298 |
Foreign exchange and other contracts | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral [Abstract] | ||
Gross Fair Value | 437 | 208 |
Fair Value Offset Amount | 214 | 96 |
Cash Collateral | 82 | 10 |
Net Fair Value | 141 | 102 |
Net Amounts | 141 | 102 |
Derivative Liability, Fair Value, Amount Offset Against Collateral [Abstract] | ||
Gross Fair Value | 520 | 542 |
Fair Value Offset Amount | 219 | 68 |
Cash Collateral | 10 | 97 |
Net Fair Value | 291 | 377 |
Net Amounts | 291 | 377 |
Over-the-counter cleared | Interest rate contracts: | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral [Abstract] | ||
Gross Fair Value | 23 | 20 |
Net Fair Value | 23 | 20 |
Net Amounts | 23 | 20 |
Derivative Liability, Fair Value, Amount Offset Against Collateral [Abstract] | ||
Gross Fair Value | 28 | 12 |
Net Fair Value | 28 | 12 |
Net Amounts | 28 | 12 |
Over-the-counter | Interest rate contracts: | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral [Abstract] | ||
Gross Fair Value | 2,100 | 3,561 |
Fair Value Offset Amount | 974 | 533 |
Cash Collateral | 630 | 593 |
Net Fair Value | 496 | 2,435 |
Securities Collateral Held /Pledged Under Master Netting Agreements | 34 | 300 |
Net Amounts | 462 | 2,135 |
Derivative Liability, Fair Value, Amount Offset Against Collateral [Abstract] | ||
Gross Fair Value | 5,801 | 1,643 |
Fair Value Offset Amount | 625 | 569 |
Cash Collateral | 1,041 | 776 |
Net Fair Value | 4,135 | 298 |
Securities Collateral Held /Pledged Under Master Netting Agreements | 78 | |
Net Amounts | $ 4,057 | $ 298 |
Financial Derivatives (Credit-R
Financial Derivatives (Credit-Risk Contingent Features) (Details) - USD ($) $ in Billions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Aggregate fair value of all derivative instruments with credit-risk-related contingent features | $ 5.8 | $ 2.4 |
Collateral posted on derivative instruments with credit-risk-related contingent features | 1.7 | 1.8 |
Maximum amount of collateral PNC would have been required to post if the credit-risk-related contingent features underlying these agreements had been triggered | $ 4.1 | $ 0.6 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Jan. 01, 2022 | Jan. 01, 2021 | Jan. 01, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Minimum annual earnings credit per participant | $ 2 | |||||
Percentage of bonds with highest yields excluded from calculation of yield curve for pension plan assumptions | 10% | |||||
Percentage of bonds with lowest yields excluded from calculation of yield curve for pension plan assumptions | 40% | |||||
Pension plan, decline in discount rate (percent) | 0.50% | |||||
Expected long-term return on plan assets | 4.50% | 4.40% | 5.50% | |||
Expected long-term return on plan assets in 2022 | 6.20% | |||||
Defined Contribution Plan, eligible compensation for deferral in absence of election otherwise (percent) | 4% | |||||
Defined Contribution Plan, employee benefit plan expense | $ 175,000 | $ 168,000 | $ 147,000 |
Employee Benefit Plans (Reconci
Employee Benefit Plans (Reconciliation of Changes in Projected Benefit Obligation and Change in Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, beginning balance | $ 6,788 | ||
Fair value of plan assets, end balance | 5,400 | $ 6,788 | |
Pension Plans | Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation at end of year | 4,517 | 5,370 | |
Projected benefit obligation at beginning of year | 5,423 | 5,174 | |
Service cost | 142 | 133 | $ 122 |
Interest cost | 156 | 139 | 160 |
Amendments | (4) | ||
Actuarial (gains)/losses and changes in assumptions | (833) | (88) | |
Benefits paid | (345) | (320) | |
Projected benefit obligation from BBVA acquisition | 389 | ||
Projected benefit obligation at end of year | 4,543 | 5,423 | 5,174 |
Fair value of plan assets, beginning balance | 6,788 | 6,073 | |
Actual return on plan assets | (1,043) | 670 | |
Benefits paid | (345) | (320) | |
Fair value of plan assets from BBVA acquisition | 365 | ||
Fair value of plan assets, end balance | 5,400 | 6,788 | 6,073 |
Funded status | 857 | 1,365 | |
Noncurrent asset | 857 | 1,365 | |
Net amount recognized on the consolidated balance sheet | 857 | 1,365 | |
Prior service cost (credit) | 14 | 17 | |
Net actuarial loss (gain) | 322 | (186) | |
Amount recognized in AOCI | 336 | (169) | |
Pension Plans | Nonqualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation at end of year | 219 | 272 | |
Projected benefit obligation at beginning of year | 280 | 263 | |
Service cost | 3 | 4 | 3 |
Interest cost | 7 | 6 | 8 |
Actuarial (gains)/losses and changes in assumptions | (44) | (4) | |
Benefits paid | (24) | (21) | |
Projected benefit obligation from BBVA acquisition | 32 | ||
Projected benefit obligation at end of year | 222 | 280 | 263 |
Fair value of plan assets, beginning balance | |||
Employer contribution | 24 | 21 | |
Benefits paid | (24) | (21) | |
Fair value of plan assets, end balance | |||
Funded status | (222) | (280) | |
Current liability | (24) | (25) | |
Noncurrent liability | (198) | (255) | |
Net amount recognized on the consolidated balance sheet | (222) | (280) | |
Net actuarial loss (gain) | 31 | 80 | |
Amount recognized in AOCI | 31 | 80 | |
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at beginning of year | 326 | 337 | |
Service cost | 4 | 4 | 4 |
Interest cost | 9 | 8 | 11 |
Actuarial (gains)/losses and changes in assumptions | (57) | (11) | |
Participant contributions | 2 | 3 | |
Federal Medicare subsidy on benefits paid | 1 | 1 | |
Benefits paid | (25) | (25) | |
Projected benefit obligation from BBVA acquisition | 9 | ||
Projected benefit obligation at end of year | 260 | 326 | 337 |
Fair value of plan assets, beginning balance | 263 | 262 | |
Actual return on plan assets | (21) | 2 | |
Employer contribution | 22 | 20 | |
Participant contributions | 2 | 3 | |
Federal Medicare subsidy on benefits paid | 1 | 1 | |
Benefits paid | (25) | (25) | |
Fair value of plan assets, end balance | 242 | 263 | $ 262 |
Funded status | (18) | (63) | |
Current liability | (3) | (2) | |
Noncurrent liability | (25) | (61) | |
Net amount recognized on the consolidated balance sheet | (18) | (63) | |
Prior service cost (credit) | 1 | 1 | |
Net actuarial loss (gain) | (32) | (2) | |
Amount recognized in AOCI | $ (31) | $ (1) |
Employee Benefit Plans (Asset S
Employee Benefit Plans (Asset Strategy Allocation) (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range | 100% | |
Percentage of plan assets by strategy | 100% | 100% |
Domestic Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets by strategy | 21% | 20% |
Domestic Equity | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range | 15% | |
Domestic Equity | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range | 40% | |
International Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets by strategy | 17% | 17% |
International Equity | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range | 10% | |
International Equity | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range | 25% | |
Private Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets by strategy | 11% | 12% |
Private Equity | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range | 0% | |
Private Equity | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range | 15% | |
Total Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets by strategy | 49% | 49% |
Actual percentage of the fair value of total Plan assets held | 63% | |
Total Equity | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range | 30% | |
Total Equity | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range | 70% | |
Domestic Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets by strategy | 30% | 28% |
Domestic Fixed Income | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range | 10% | |
Domestic Fixed Income | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range | 40% | |
High Yield Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets by strategy | 9% | 7% |
High Yield Fixed Income | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range | 0% | |
High Yield Fixed Income | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range | 25% | |
Total Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets by strategy | 39% | 35% |
Actual percentage of the fair value of total Plan assets held | 24% | |
Total Fixed Income | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range | 10% | |
Total Fixed Income | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range | 65% | |
Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets by strategy | 6% | 5% |
Actual percentage of the fair value of total Plan assets held | 6% | |
Real Estate | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range | 0% | |
Real Estate | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range | 10% | |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets by strategy | 6% | 11% |
Actual percentage of the fair value of total Plan assets held | 7% | |
Other | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range | 0% | |
Other | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range | 20% |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension Plan Assets Fair Value Hierarchy) (Details) - PNC Pension Plan - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 5,400 | $ 6,788 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,444 | 2,047 |
Level 1 | Interest bearing cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 51 | |
Level 1 | Money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 333 | 725 |
Level 1 | U.S. government and agency securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 454 | 583 |
Level 1 | Common stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 605 | 739 |
Level 1 | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1 | |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 986 | 1,523 |
Level 2 | Interest bearing cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 11 | |
Level 2 | U.S. government and agency securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 136 | 124 |
Level 2 | Corporate debt | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 699 | 962 |
Level 2 | Mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 150 | 278 |
Level 2 | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1 | 148 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2 | 5 |
Level 3 | Corporate debt | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2 | 4 |
Level 3 | Common stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1 | |
Fair Value, Inputs, Level 1, 2 and 3 | Interest bearing cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 51 | 11 |
Fair Value, Inputs, Level 1, 2 and 3 | Money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 333 | 725 |
Fair Value, Inputs, Level 1, 2 and 3 | U.S. government and agency securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 590 | 707 |
Fair Value, Inputs, Level 1, 2 and 3 | Corporate debt | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 701 | 966 |
Fair Value, Inputs, Level 1, 2 and 3 | Common stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 605 | 740 |
Fair Value, Inputs, Level 1, 2 and 3 | Mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 150 | 278 |
Fair Value, Inputs, Level 1, 2 and 3 | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2 | 148 |
Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 2,968 | $ 3,213 |
Employee Benefit Plans (Estimat
Employee Benefit Plans (Estimated Cash Flows) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Pension Plans | Qualified Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future benefit payments during 2023 | $ 326 |
Estimated future benefit payments during 2024 | 336 |
Estimated future benefit payments during 2025 | 353 |
Estimated future benefit payments during 2026 | 356 |
Estimated future benefit payments during 2027 | 337 |
Estimated future benefit payments during 2028-2032 | 1,691 |
Pension Plans | Nonqualified Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated 2023 employer contributions | 25 |
Estimated future benefit payments during 2023 | 25 |
Estimated future benefit payments during 2024 | 24 |
Estimated future benefit payments during 2025 | 24 |
Estimated future benefit payments during 2026 | 23 |
Estimated future benefit payments during 2027 | 22 |
Estimated future benefit payments during 2028-2032 | 96 |
Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated 2023 employer contributions | 23 |
Estimated future benefit payments during 2023 | 23 |
Estimated future benefit payments during 2024 | 24 |
Estimated future benefit payments during 2025 | 23 |
Estimated future benefit payments during 2026 | 23 |
Estimated future benefit payments during 2027 | 23 |
Estimated future benefit payments during 2028-2032 | $ 106 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Costs (Components of Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plans | Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 142 | $ 133 | $ 122 |
Interest cost | 156 | 139 | 160 |
Expected return on plan assets | (298) | (273) | (302) |
Amortization of prior service cost/(credit) | 3 | 4 | 4 |
Net periodic cost (benefit) | 3 | 3 | (16) |
Current year prior service cost/(credit) | (4) | ||
Amortization of prior service (cost)/credit | (3) | (4) | (4) |
Current year actuarial loss/(gain) | 508 | (485) | (112) |
Total recognized in OCI | 505 | (493) | (116) |
Total amounts recognized in net periodic cost and OCI | 508 | (490) | (132) |
Pension Plans | Nonqualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 3 | 4 | 3 |
Interest cost | 7 | 6 | 8 |
Amortization of actuarial (gain)/loss | 5 | 6 | 5 |
Net periodic cost (benefit) | 15 | 16 | 16 |
Current year actuarial loss/(gain) | (44) | (4) | 17 |
Amortization of actuarial gain/(loss) | (5) | (6) | (5) |
Total recognized in OCI | (49) | (10) | 12 |
Total amounts recognized in net periodic cost and OCI | (34) | 6 | 28 |
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 4 | 4 | 4 |
Interest cost | 9 | 8 | 11 |
Expected return on plan assets | (6) | (6) | (6) |
Net periodic cost (benefit) | 7 | 6 | 9 |
Current year actuarial loss/(gain) | (30) | (7) | 3 |
Total recognized in OCI | (30) | (7) | 3 |
Total amounts recognized in net periodic cost and OCI | $ (23) | $ (1) | $ 12 |
Employee Benefit Plans (Net P_2
Employee Benefit Plans (Net Periodic Costs (Assumptions) (Details) | Jan. 01, 2022 | Jan. 01, 2021 | Jan. 01, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of compensation increase (average) | 4.25% | 4.25% | 4.25% |
Assumed health care cost trend rate - Initial trend | 6% | 6% | 6.25% |
Assumed health care cost trend rate - Ultimate trend | 4.50% | 5% | 5% |
Assumed health care cost trend rate - Year ultimate trend reached | 2028 | 2025 | 2025 |
Expected long-term return on plan assets | 4.50% | 4.40% | 5.50% |
Pension Plans | Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.90% | 2.60% | 3.30% |
Interest crediting rate (average) | 3.70% | 3.70% | 3.85% |
Pension Plans | Nonqualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.65% | 2.15% | 3.05% |
Interest crediting rate (average) | 4% | 4% | 4.15% |
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.80% | 2.40% | 3.20% |
Interest crediting rate (average) | 1.65% | 1.30% | 2.05% |
Employee Benefit Plans (Other P
Employee Benefit Plans (Other Pension Assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase (average) | 4.25% | 4.25% |
Assumed health care cost trend rate Initial trend | 6% | 6% |
Assumed health care cost trend rate Ultimate trend | 4.50% | 4.50% |
Assumed health care cost trend rate Year ultimate trend reached | 2029 | 2025 |
Pension Plans | Qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.55% | 2.90% |
Interest crediting rate (average) | 4.65% | 3.70% |
Pension Plans | Nonqualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.45% | 2.65% |
Interest crediting rate (average) | 4.80% | 4% |
Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.50% | 2.80% |
Interest crediting rate (average) | 4.30% | 1.65% |
Stock Based Compensation Plan_2
Stock Based Compensation Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |||
Weighted-average grant date fair value of incentive/performance unit awards and restricted share/restricted share unit awards granted | $ 198.28 | $ 161.04 | $ 150.23 |
Total intrinsic value of incentive/performance unit and restricted share/restricted share unit awards vested during the year. | $ 322 | $ 207 | $ 213 |
Stock Based Compensation Plan_3
Stock Based Compensation Plans (Nonvested Performance Share Unit Awards and Restricted Share Unit Awards - Rollforward) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-average grant date fair value, vested/released (in dollars per share) | $ 198.28 | $ 161.04 | $ 150.23 |
Nonvested Performance Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 599,000 | ||
Granted (in shares) | 332,000 | ||
Vested/Released (in shares) | (246,000) | ||
Forfeitures (in shares) | |||
Outstanding, ending balance (in shares) | 685,000 | 599,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-average grant date fair value, beginning of period (in dollars per share) | $ 133.59 | ||
Weighted-average grant date fair value, granted (in dollars per share) | 173.25 | ||
Weighted-average grant date fair value, vested/released (in dollars per share) | 110.14 | ||
Weighted-average grant date fair value, forfeitures (in dollars per share) | |||
Weighted-average grant date fair value, end of period (in dollars per share) | $ 161.20 | $ 133.59 | |
Nonvested Restricted Share / Restricted Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 3,582,000 | ||
Granted (in shares) | 1,214,000 | ||
Vested/Released (in shares) | (1,328,000) | ||
Forfeitures (in shares) | (120,000) | ||
Outstanding, ending balance (in shares) | 3,348,000 | 3,582,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-average grant date fair value, beginning of period (in dollars per share) | $ 142.94 | ||
Weighted-average grant date fair value, granted (in dollars per share) | 205.11 | ||
Weighted-average grant date fair value, vested/released (in dollars per share) | 122.88 | ||
Weighted-average grant date fair value, forfeitures (in dollars per share) | 172.63 | ||
Weighted-average grant date fair value, end of period (in dollars per share) | $ 172.40 | $ 142.94 | |
Nonvested Performance Units with Market Conditions | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted (in shares) | 170 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal, current | $ 782 | $ 894 | $ 669 |
State, current | 227 | 191 | 158 |
Total current | 1,009 | 1,085 | 827 |
Federal, deferred | 307 | 123 | (373) |
State, deferred | 44 | 55 | (28) |
Total deferred | 351 | 178 | (401) |
Total | $ 1,360 | $ 1,263 | $ 426 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets, Net [Abstract] | ||
Net unrealized losses on securities and financial instruments | $ 3,107 | |
Allowance for loan and lease losses | 1,152 | 1,170 |
Lease obligations | 548 | 563 |
Compensation and benefits | 369 | 290 |
Allowance for unfunded lending related commitments | 170 | 161 |
Loss and credit carryforward | 98 | 140 |
Accrued expenses | 78 | 151 |
Other | 252 | 311 |
Total gross deferred tax assets | 5,774 | 2,786 |
Valuation allowance | (27) | (33) |
Total deferred tax assets | 5,747 | 2,753 |
Deferred tax liabilities | ||
Leasing | 1,034 | 1,023 |
Fixed assets | 589 | 704 |
Right of Use Assets | 472 | 488 |
Mortgage servicing rights | 325 | 89 |
Goodwill and intangibles | 270 | 278 |
Net unrealized gains on securities and financial instruments | 120 | |
Other | 405 | 254 |
Total deferred tax liabilities | 3,095 | 2,956 |
Net deferred tax asset (liability) | $ 2,652 | |
Net deferred tax asset (liability) | $ (203) |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Statutory and Effective Tax Rates) (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax rate | 21% | 21% | 21% |
Effective tax rate increase (decrease) - State taxes net of federal benefit | 2.70% | 2.60% | 2% |
Effective tax rate increase (decrease) - Tax-exempt interest | (1.20%) | (0.90%) | (1.70%) |
Effective tax rate increase (decrease) - Life insurance | (0.80%) | (0.80%) | (1.60%) |
Effective tax rate increase (decrease) - Tax credits | (3.20%) | (4.40%) | (6.00%) |
Effective tax rate increase (decrease) - unrecognized tax benefits, percent | 0.10% | 0.30% | (1.60%) |
Effective tax rate increase (decrease) - subsidiary liquidation, percent | (1.20%) | ||
Effective tax rate increase (decrease) - Other | (0.40%) | 0.30% | 1.50% |
Effective tax rate | 18.20% | 18.10% | 12.40% |
Income Taxes (Net Operating Los
Income Taxes (Net Operating Loss Carryforwards) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net Operating Loss Carryforwards: | $ 45 | $ 166 |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Net Operating Loss Carryforwards: | $ 698 | $ 872 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward, amount | $ 45 | $ 51 |
Allocations for bad debt deductions of former thrift subsidiaries included in retained earnings | $ 100 | $ 100 |
Income Taxes (Changes in Liabil
Income Taxes (Changes in Liability for Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance of gross unrecognized tax benefits | $ 275 | $ 265 | $ 130 |
Increases: Positions taken during a current period | 265 | ||
Increases: Acquired unrecognized tax benefits | 8 | ||
Increases: Positions taken during a prior period | 46 | 7 | |
Decreases: Positions taken during a prior period | (2) | ||
Decreases: Settlements with taxing authorities | (3) | (3) | (130) |
Ending balance of gross unrecognized tax benefits | 318 | 275 | 265 |
Favorable impact if recognized | $ 258 | $ 217 | $ 209 |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Amount available for dividend payments to parent company without prior regulatory approval | $ 3,500 |
Outstanding cash reserves at the Federal Reserve Bank | $ 26,900 |
Regulatory Matters (Basel Regul
Regulatory Matters (Basel Regulatory Capital) (Details) - Transitional Basel III - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
PNC | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity Tier 1 Capital amount | $ 39,685 | $ 40,066 |
Common equity Tier 1 Capital ratio | 9.10% | 10.30% |
Tier 1 Risk-based capital amount | $ 45,431 | $ 45,075 |
Tier 1 Risk-based capital ratio | 0.104 | 0.116 |
US regulatory well capitalized level - Tier 1 risk-based capital ratio | 0.060 | 0.060 |
Total Risk-based capital amount | $ 53,440 | $ 52,451 |
Total Risk-based capital ratio | 0.123 | 0.135 |
US regulatory well capitalized level - Total risk-based capital ratio | 0.100 | 0.100 |
Leverage amount | $ 45,431 | $ 45,075 |
Leverage ratio | 0.082 | 0.082 |
PNC Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity Tier 1 Capital amount | $ 43,658 | $ 42,024 |
Common equity Tier 1 Capital ratio | 10.20% | 11.10% |
US regulatory well capitalized level - Common equity Tier 1 risk-based capital ratio | 6.50% | 6.50% |
Tier 1 Risk-based capital amount | $ 43,658 | $ 42,024 |
Tier 1 Risk-based capital ratio | 0.102 | 0.111 |
US regulatory well capitalized level - Tier 1 risk-based capital ratio | 0.080 | 0.080 |
Total Risk-based capital amount | $ 50,666 | $ 49,083 |
Total Risk-based capital ratio | 0.118 | 0.129 |
US regulatory well capitalized level - Total risk-based capital ratio | 0.100 | 0.100 |
Leverage amount | $ 43,658 | $ 42,024 |
Leverage ratio | 0.080 | 0.078 |
US regulatory well capitalized level - Leverage ratio | 0.050 | 0.050 |
Legal Proceedings (Details)
Legal Proceedings (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | May 31, 2022 | Sep. 30, 2018 | Jul. 31, 2012 | Dec. 31, 2022 | |
Maximum | Legal Reserve | |||||
Loss Contingencies [Line Items] | |||||
Range of possible loss | $ 300 | ||||
Interchange Litigation | |||||
Loss Contingencies [Line Items] | |||||
Litigation settlement amount | $ 900 | $ 6,600 | |||
Payments for legal settlements | 5,300 | $ 700 | |||
Conditional return of legal settlements paid maximum amount | $ 700 | ||||
Litigation settlement, trigger percent of opt out by class members for return of portion of settlement payments | 15% | 15% | |||
Interchange Litigation | Visa | |||||
Loss Contingencies [Line Items] | |||||
Litigation settlement amount | $ 600 | ||||
Payments for legal settlements | $ 467 | ||||
Conditional return of legal settlements paid maximum amount | $ 467 | ||||
USAA Patent Infringement Litigation | |||||
Loss Contingencies [Line Items] | |||||
Litigation settlement amount | $ 4.3 | $ 218 |
Parent Company (Income Statemen
Parent Company (Income Statement) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Expenses [Abstract] | |||
Income from continuing operations before income taxes and noncontrolling interests | $ 7,473 | $ 6,988 | $ 3,429 |
Income tax expense (benefit) | 1,360 | 1,263 | 426 |
Net income from continuing operations | 6,113 | 5,725 | 3,003 |
Income from discontinued operations before taxes | 5,777 | ||
Income taxes from discontinued operations | 1,222 | ||
Net income from discontinued operations | 4,555 | ||
Net pension and other postretirement benefit plan activity arising during the period. | (278) | 372 | 63 |
Other comprehensive income (loss), after tax and net of reclassifications into Net income | (10,581) | (2,361) | 1,971 |
Comprehensive income (loss) attributable to PNC | (4,540) | 3,313 | 9,488 |
Discontinued Operations | |||
Operating Expenses [Abstract] | |||
Other comprehensive income (loss), after tax and net of reclassifications into Net income | 115 | ||
Parent Company | |||
Operating Revenues [Abstract] | |||
Interest income | 104 | 15 | 38 |
Noninterest income (loss) | (37) | 41 | 37 |
Total operating revenue | 4,272 | 4,460 | 14,121 |
Operating Expenses [Abstract] | |||
Interest expense | 326 | 129 | 179 |
Other expense | 136 | 245 | 91 |
Total operating expense | 462 | 374 | 270 |
Income before income taxes and equity in undistributed net income of subsidiaries | 3,810 | 4,086 | 13,851 |
Equity in undistributed net income of subsidiaries from continuing operations: | 2,303 | 1,628 | |
Income from continuing operations before income taxes and noncontrolling interests | 6,113 | 5,714 | 1,756 |
Income tax expense (benefit) | 72 | 41 | (1,206) |
Net income from continuing operations | 6,041 | 5,673 | 2,962 |
Income from discontinued operations before taxes | 5,777 | ||
Income taxes from discontinued operations | 1,222 | ||
Net income from discontinued operations | 4,555 | ||
Net income | 6,041 | 5,673 | 7,517 |
Net pension and other postretirement benefit plan activity arising during the period. | 1 | 11 | 1 |
Other comprehensive income (loss), after tax and net of reclassifications into Net income | 1 | 11 | 1 |
Comprehensive income (loss) attributable to PNC | 6,042 | 5,684 | 7,518 |
Parent Company | Bank Subsidiaries And Bank Holding Company | |||
Operating Revenues [Abstract] | |||
Dividends from | 3,925 | 3,980 | 13,701 |
Operating Expenses [Abstract] | |||
Equity in undistributed net income of subsidiaries from continuing operations: | 1,848 | 1,085 | (12,009) |
Parent Company | Bank Subsidiaries And Bank Holding Company | Discontinued Operations | |||
Operating Revenues [Abstract] | |||
Dividends from | 126 | ||
Operating Expenses [Abstract] | |||
Equity in undistributed net income of subsidiaries from continuing operations: | 5,651 | ||
Parent Company | Non Bank Subsidiaries | |||
Operating Revenues [Abstract] | |||
Dividends from | 280 | 424 | 345 |
Operating Expenses [Abstract] | |||
Equity in undistributed net income of subsidiaries from continuing operations: | $ 455 | $ 543 | $ (86) |
Parent Company (Balance Sheet)
Parent Company (Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Financial Statements, Captions [Line Items] | |||
Other assets | [1] | $ 38,425 | $ 35,326 |
Total assets | 557,263 | 557,191 | |
Subordinated debt | 6,307 | 6,996 | |
Senior debt | 16,657 | 20,661 | |
Total liabilities | 511,451 | 501,465 | |
Shareholders’ equity | 45,774 | 55,695 | |
Total liabilities and equity | 557,263 | 557,191 | |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash held at banking subsidiary | 4,654 | 5,367 | |
Restricted deposits with banking subsidiary | 175 | 175 | |
Loans with affiliates | 1,484 | 1,179 | |
Other assets | 2,057 | 1,999 | |
Total assets | 60,407 | 68,009 | |
Subordinated debt | 1,728 | 982 | |
Senior debt | 11,379 | 10,362 | |
Other borrowed funds from affiliates | 343 | ||
Accrued expenses and other liabilities | 1,526 | 627 | |
Total liabilities | 14,633 | 12,314 | |
Shareholders’ equity | 45,774 | 55,695 | |
Total liabilities and equity | 60,407 | 68,009 | |
Bank Subsidiaries And Bank Holding Company | Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Investments in subsidiaries | 48,867 | 56,596 | |
Non Bank Subsidiaries | Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Investments in subsidiaries | $ 3,170 | $ 2,693 | |
[1]Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $0.9 billion, Loans of $1.3 billion and Other assets of $0.1 billion at December 31, 2022 and Loans held for sale of $1.9 billion, Loans of $1.5 billion and Other assets of $0.1 billion at December 31, 2021. |
Parent Company (Interest Paid a
Parent Company (Interest Paid and Income Tax Refunds (Payments)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Financial Statements, Captions [Line Items] | |||
Interest paid | $ 2,172 | $ 582 | $ 1,292 |
Income Tax Refunds/ (Payments) | 26 | 73 | 10 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest paid | 314 | 307 | 335 |
Income Tax Refunds/ (Payments) | $ (255) | $ 386 | $ 29 |
Parent Company (Statement of Ca
Parent Company (Statement of Cash Flows) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||||
Other | $ 831 | $ (194) | $ 684 | |
Net cash provided (used) by operating activities | 9,083 | 7,214 | 4,659 | |
Investing Activities | ||||
Securities available for sale | 4,137 | 26,329 | 13,851 | |
Net cash paid for acquisition | [1] | (10,511) | ||
Other | (2,995) | (2,682) | (1,264) | |
Net cash provided (used) by investing activities | (13,428) | (2,795) | (51,122) | |
Financing Activities | ||||
Preferred stock issuances | 2,225 | 1,484 | ||
Preferred stock redemptions | (1,500) | (480) | ||
Acquisition of treasury stock | (3,731) | (1,079) | (1,624) | |
Preferred stock cash dividends paid | (301) | (233) | (229) | |
Common stock cash dividends paid | (2,391) | (2,056) | (1,980) | |
Net Increase (Decrease) In Cash And Due From Banks And Restricted Cash | (961) | 987 | 1,956 | |
Net Cash Provided By Discontinued Operations | 11,542 | |||
Net Cash Provided (Used) By Continuing Operations | (961) | 987 | (9,586) | |
Cash and due from banks and restricted cash at beginning of period | 8,004 | 7,017 | 5,061 | |
Cash and due from banks and restricted cash at end of period | 7,043 | 8,004 | 7,017 | |
Parent Company | ||||
Operating Activities | ||||
Net income | 6,041 | 5,673 | 7,517 | |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||||
Equity in undistributed net earnings of subsidiaries | (2,303) | (1,628) | ||
Return on investment in subsidiaries | 6,444 | |||
Other | 95 | (248) | 237 | |
Net cash provided (used) by operating activities | 3,833 | 3,797 | 14,198 | |
Investing Activities | ||||
Securities available for sale | 300 | |||
Net change in loans and securities from affiliates | (531) | (1,188) | (2,808) | |
Net change in nonrestricted interest-earning deposits | 7,024 | |||
Net cash paid for acquisition | (11,358) | |||
Other | (84) | (5) | ||
Net cash provided (used) by investing activities | (615) | (12,251) | 4,216 | |
Financing Activities | ||||
Net change in other borrowed funds from affiliates | (1,138) | (435) | 473 | |
Proceeds from long-term borrowings | 4,335 | 1,692 | 1,986 | |
Repayments of long-term borrowings | (1,500) | (500) | (1,750) | |
Preferred stock issuances | 2,225 | 1,484 | ||
Preferred stock redemptions | (1,500) | (480) | ||
Common and treasury stock issuances | 68 | 66 | 65 | |
Acquisition of treasury stock | (3,731) | (1,079) | (1,624) | |
Preferred stock cash dividends paid | (301) | (233) | (229) | |
Common stock cash dividends paid | (2,389) | (2,056) | (1,979) | |
Net cash provided (used) by financing activities | (3,931) | (1,061) | (3,538) | |
Net Increase (Decrease) In Cash And Due From Banks And Restricted Cash | (713) | (9,515) | 14,876 | |
Net Cash Provided By Discontinued Operations | 11,542 | |||
Net Cash Provided (Used) By Continuing Operations | (713) | (9,515) | 3,334 | |
Cash and due from banks and restricted cash at beginning of period | 5,542 | 15,057 | 181 | |
Cash and due from banks and restricted cash at end of period | $ 4,829 | $ 5,542 | $ 15,057 | |
[1]During the year ended December 31, 2022, we transferred securities from available for sale to held to maturity in non-cash transactions. The amount of $88.6 billion includes the aggregate fair value of the securities of $82.7 billion and aggregate net pretax unrealized losses of $5.9 billion included in AOCI at transfer. See Note 3 Investment Securities for more detailed information on the transfers. |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2022 segment operating_unit | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 3 | |
Number of distinct operating units | operating_unit | 2 | |
BlackRock, Inc. | ||
Segment Reporting Information [Line Items] | ||
PNC's economic interest in BlackRock | 22.40% |
Segment Reporting (Results of B
Segment Reporting (Results of Business) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Net interest income | $ 13,014 | $ 10,647 | $ 9,946 |
Noninterest income | 8,106 | 8,564 | 6,955 |
Total revenue | 21,120 | 19,211 | 16,901 |
Provision for (recapture of) credit losses | 477 | (779) | 3,175 |
Depreciation and amortization | 1,139 | 1,066 | 983 |
Other noninterest expense | 12,031 | 11,936 | 9,314 |
Income from continuing operations before income taxes and noncontrolling interests | 7,473 | 6,988 | 3,429 |
Income tax expense (benefit) | 1,360 | 1,263 | 426 |
Net income from continuing operations | 6,113 | 5,725 | 3,003 |
Less: Net income attributable to noncontrolling interests | 72 | 51 | 41 |
Net income (loss) from continuing operations excluding noncontrolling interests | 6,041 | 5,674 | 2,962 |
Average Assets | 550,652 | 523,166 | 449,295 |
Other Segments | |||
Segment Reporting Information [Line Items] | |||
Noninterest income | 582 | 998 | 520 |
Retail Banking | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 7,540 | 6,206 | 5,609 |
Noninterest income | 2,967 | 2,796 | 2,519 |
Total revenue | 10,507 | 9,002 | 8,128 |
Provision for (recapture of) credit losses | 259 | (101) | 968 |
Depreciation and amortization | 310 | 293 | 251 |
Other noninterest expense | 7,288 | 6,623 | 5,768 |
Income from continuing operations before income taxes and noncontrolling interests | 2,650 | 2,187 | 1,141 |
Income tax expense (benefit) | 621 | 508 | 266 |
Net income from continuing operations | 2,029 | 1,679 | 875 |
Less: Net income attributable to noncontrolling interests | 55 | 31 | 31 |
Net income (loss) from continuing operations excluding noncontrolling interests | 1,974 | 1,648 | 844 |
Average Assets | 113,829 | 106,331 | 97,643 |
Corporate & Institutional Banking | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 5,179 | 4,526 | 3,999 |
Noninterest income | 3,621 | 3,783 | 3,062 |
Total revenue | 8,800 | 8,309 | 7,061 |
Provision for (recapture of) credit losses | 198 | (646) | 2,088 |
Depreciation and amortization | 213 | 208 | 197 |
Other noninterest expense | 3,438 | 3,271 | 2,659 |
Income from continuing operations before income taxes and noncontrolling interests | 4,951 | 5,476 | 2,117 |
Income tax expense (benefit) | 1,064 | 1,138 | 433 |
Net income from continuing operations | 3,887 | 4,338 | 1,684 |
Less: Net income attributable to noncontrolling interests | 17 | 14 | 10 |
Net income (loss) from continuing operations excluding noncontrolling interests | 3,870 | 4,324 | 1,674 |
Average Assets | 219,941 | 188,470 | 183,189 |
Asset Management Group | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 608 | 476 | 357 |
Noninterest income | 936 | 987 | 854 |
Total revenue | 1,544 | 1,463 | 1,211 |
Provision for (recapture of) credit losses | 28 | (7) | 21 |
Depreciation and amortization | 29 | 23 | 45 |
Other noninterest expense | 1,057 | 918 | 813 |
Income from continuing operations before income taxes and noncontrolling interests | 430 | 529 | 332 |
Income tax expense (benefit) | 100 | 123 | 77 |
Net income from continuing operations | 330 | 406 | 255 |
Less: Net income attributable to noncontrolling interests | |||
Net income (loss) from continuing operations excluding noncontrolling interests | 330 | 406 | 255 |
Average Assets | 14,505 | 11,677 | 8,186 |
Other | |||
Segment Reporting Information [Line Items] | |||
Net interest income | (313) | (561) | (19) |
Noninterest income | 582 | 998 | 520 |
Total revenue | 269 | 437 | 501 |
Provision for (recapture of) credit losses | (8) | (25) | 98 |
Depreciation and amortization | 587 | 542 | 490 |
Other noninterest expense | 248 | 1,124 | 74 |
Income from continuing operations before income taxes and noncontrolling interests | (558) | (1,204) | (161) |
Income tax expense (benefit) | (425) | (506) | (350) |
Net income from continuing operations | (133) | (698) | 189 |
Less: Net income attributable to noncontrolling interests | 6 | ||
Net income (loss) from continuing operations excluding noncontrolling interests | (133) | (704) | 189 |
Average Assets | $ 202,377 | $ 216,688 | $ 160,277 |
Fee-based Revenue from Contra_3
Fee-based Revenue from Contracts with Customers (Noninterest Income Disaggregation By Business Segment) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Revenue from Contract with Customer [Abstract] | |||
Number of reportable segments | segment | 3 | ||
Disaggregation of Revenue [Line Items] | |||
Noninterest income | $ 8,106 | $ 8,564 | $ 6,955 |
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 5,710 | 5,758 | 4,596 |
Out-of-scope noninterest income | 1,814 | 1,808 | 1,839 |
Other Segments | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income | 582 | 998 | 520 |
Retail Banking | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 2,422 | 2,285 | 1,910 |
Out-of-scope noninterest income | 545 | 511 | 609 |
Noninterest income | 2,967 | 2,796 | 2,519 |
Retail Banking | Asset management and brokerage | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 528 | 464 | 367 |
Retail Banking | Asset management fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | |||
Retail Banking | Brokerage fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 528 | 464 | 367 |
Retail Banking | Card and cash management | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 1,244 | 1,221 | 993 |
Retail Banking | Treasury management fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 40 | 46 | 33 |
Retail Banking | Debit card fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 684 | 665 | 522 |
Retail Banking | Net credit card fees | In-Scope Retail Banking Noninterest Income | |||
Disaggregation of Revenue [Line Items] | |||
Interchange fees | 662 | 582 | 469 |
Credit card reward costs | 425 | 361 | 290 |
Retail Banking | Net credit card fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 237 | 221 | 179 |
Retail Banking | Merchant services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 186 | 174 | 154 |
Retail Banking | Other | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 97 | 115 | 105 |
Retail Banking | Lending and deposit services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 650 | 600 | 550 |
Retail Banking | Deposit account fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 583 | 542 | 497 |
Retail Banking | Other | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 67 | 58 | 53 |
Corporate & Institutional Banking | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 2,372 | 2,500 | 1,850 |
Out-of-scope noninterest income | 1,249 | 1,283 | 1,212 |
Noninterest income | 3,621 | 3,783 | 3,062 |
Corporate & Institutional Banking | Asset management and brokerage | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | |||
Corporate & Institutional Banking | Asset management fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | |||
Corporate & Institutional Banking | Brokerage fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | |||
Corporate & Institutional Banking | Card and cash management | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 1,350 | 1,159 | 897 |
Corporate & Institutional Banking | Treasury management fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 1,284 | 1,097 | 863 |
Corporate & Institutional Banking | Debit card fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | |||
Corporate & Institutional Banking | Net credit card fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | |||
Corporate & Institutional Banking | Merchant services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 66 | 62 | 34 |
Corporate & Institutional Banking | Other | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | |||
Corporate & Institutional Banking | Lending and deposit services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 33 | 40 | 42 |
Corporate & Institutional Banking | Deposit account fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | |||
Corporate & Institutional Banking | Other | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 33 | 40 | 42 |
Corporate & Institutional Banking | Residential and commerical mortgage | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 140 | 141 | 111 |
Corporate & Institutional Banking | Capital markets and advisory | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 790 | 1,110 | 759 |
Corporate & Institutional Banking | Other | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 59 | 50 | 41 |
Asset Management Group | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 916 | 973 | 836 |
Out-of-scope noninterest income | 20 | 14 | 18 |
Noninterest income | 936 | 987 | 854 |
Asset Management Group | Asset management and brokerage | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 916 | 973 | 836 |
Asset Management Group | Asset management fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 908 | 964 | 836 |
Asset Management Group | Brokerage fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | 8 | 9 | |
Asset Management Group | Card and cash management | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | |||
Asset Management Group | Treasury management fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | |||
Asset Management Group | Debit card fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | |||
Asset Management Group | Net credit card fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | |||
Asset Management Group | Merchant services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | |||
Asset Management Group | Other | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | |||
Asset Management Group | Lending and deposit services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | |||
Asset Management Group | Deposit account fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income | |||
Asset Management Group | Other | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total in-scope noninterest income |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ / shares in Units, $ in Millions | Feb. 07, 2023 $ / shares shares | Jan. 19, 2023 USD ($) |
Series W Preferred Stock | ||
Debt Instrument [Line Items] | ||
Common stock activity, shares | shares | 1,500,000 | |
Depositary shares, conversion ratio | 0.1 | |
Preferred stock, dividend rate, percentage | 6.25% | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 1 | |
Senior Notes | 2027 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 1,250 | |
Stated interest rate | 4.758% | |
Senior Notes | 2027 Senior Notes | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on LIBOR rate - trust preferred securities | 1.085% | |
Senior Notes | 2034 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 1,500 | |
Stated interest rate | 5.068% | |
Senior Notes | 2034 Senior Notes | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on LIBOR rate - trust preferred securities | 1.933% |
Uncategorized Items - pnc-20221
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |