Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 17, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 $5.00 | |
Trading Symbol | PNC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 398,341,110 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000713676 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Income Statement
Consolidated Income Statement - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest Income | ||||
Loans | $ 4,643 | $ 3,138 | $ 13,424 | $ 7,935 |
Investment securities | 892 | 715 | 2,660 | 1,890 |
Other | 668 | 279 | 1,722 | 502 |
Total interest income | 6,203 | 4,132 | 17,806 | 10,327 |
Interest Expense | ||||
Deposits | 1,792 | 340 | 4,614 | 455 |
Borrowed funds | 993 | 317 | 2,679 | 542 |
Total interest expense | 2,785 | 657 | 7,293 | 997 |
Net interest income | 3,418 | 3,475 | 10,513 | 9,330 |
Noninterest Income | ||||
Total noninterest income | 1,815 | 2,074 | 5,616 | 6,027 |
Total revenue | 5,233 | 5,549 | 16,129 | 15,357 |
Provision For Credit Losses | 129 | 241 | 510 | 69 |
Noninterest Expense | ||||
Personnel | 1,773 | 1,805 | 5,445 | 5,301 |
Occupancy | 244 | 241 | 739 | 745 |
Equipment | 347 | 344 | 1,046 | 1,026 |
Marketing | 93 | 93 | 276 | 249 |
Other | 788 | 797 | 2,432 | 2,375 |
Total noninterest expense | 3,245 | 3,280 | 9,938 | 9,696 |
Income (loss) before income taxes (benefit) and noncontrolling interests | 1,859 | 2,028 | 5,681 | 5,592 |
Income taxes | 289 | 388 | 917 | 1,027 |
Net income from continuing operations | 1,570 | 1,640 | 4,764 | 4,565 |
Less: Net income (loss) attributable to noncontrolling interests | 16 | 16 | 50 | 52 |
Preferred stock dividends | 104 | 65 | 299 | 181 |
Preferred stock discount accretion and redemptions | 2 | 1 | 6 | 4 |
Net income attributable to common shareholders | $ 1,448 | $ 1,558 | $ 4,409 | $ 4,328 |
Earnings Per Common Share | ||||
Basic earnings per common share (in dollars per share) | $ 3.60 | $ 3.78 | $ 10.95 | $ 10.39 |
Diluted earnings per common share (in dollars per share) | $ 3.60 | $ 3.78 | $ 10.94 | $ 10.39 |
Average Common Shares Outstanding | ||||
Basic (in shares) | 400 | 410 | 401 | 414 |
Diluted (in shares) | 400 | 410 | 401 | 415 |
Asset management and brokerage | ||||
Noninterest Income | ||||
Total noninterest income | $ 348 | $ 357 | $ 1,052 | $ 1,099 |
Capital markets and advisory | ||||
Noninterest Income | ||||
Total noninterest income | 168 | 299 | 643 | 960 |
Card and cash management | ||||
Noninterest Income | ||||
Total noninterest income | 689 | 671 | 2,045 | 1,962 |
Lending and deposit services | ||||
Noninterest Income | ||||
Total noninterest income | 315 | 287 | 919 | 838 |
Residential and commercial mortgage | ||||
Noninterest Income | ||||
Total noninterest income | 201 | 143 | 476 | 463 |
Other | ||||
Noninterest Income | ||||
Total noninterest income | $ 94 | $ 317 | $ 481 | $ 705 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,570 | $ 1,640 | $ 4,764 | $ 4,565 |
Other comprehensive income (loss), before tax and net of reclassifications into Net income | ||||
Net change in debt securities | (932) | (1,738) | (304) | (10,768) |
Net change in cash flow hedge derivatives | (35) | (1,025) | 176 | (3,484) |
Pension and other postretirement benefit plan adjustments | 1 | 2 | (3) | 64 |
Net change in Other | 1 | 4 | 8 | (3) |
Other comprehensive loss, before tax and net of reclassifications into Net income | (965) | (2,757) | (123) | (14,191) |
Income tax benefit related to items of other comprehensive income | 229 | 629 | 34 | 3,296 |
Other comprehensive income loss, after tax and net of reclassifications into Net income | (736) | (2,128) | (89) | (10,895) |
Comprehensive income (loss) | 834 | (488) | 4,675 | (6,330) |
Less: Comprehensive income attributable to noncontrolling interests | 16 | 16 | 50 | 52 |
Comprehensive income (loss) attributable to PNC | $ 818 | $ (504) | $ 4,625 | $ (6,382) |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Assets | |||
Cash and due from banks | $ 5,300 | $ 7,043 | |
Interest-earning deposits with banks | 41,484 | 27,320 | |
Loans held for sale | [1] | 923 | 1,010 |
Investment securities – available for sale | 40,590 | 44,159 | |
Investment securities – held to maturity | 91,797 | 95,175 | |
Loans | [1] | 318,416 | 326,025 |
Allowance for loan and lease losses | (4,767) | (4,741) | |
Net loans | 313,649 | 321,284 | |
Equity investments | 8,046 | 8,437 | |
Mortgage servicing rights | 4,006 | 3,423 | |
Goodwill | 10,987 | 10,987 | |
Other | [1] | 40,552 | 38,425 |
Total assets | 557,334 | 557,263 | |
Deposits | |||
Noninterest-bearing | 105,672 | 124,486 | |
Interest-bearing | 317,937 | 311,796 | |
Total deposits | 423,609 | 436,282 | |
Borrowed funds | |||
Federal Home Loan Bank borrowings | 36,000 | 32,075 | |
Senior debt | 22,407 | 16,657 | |
Subordinated debt | 4,728 | 6,307 | |
Other | [2] | 3,032 | 3,674 |
Total borrowed funds | 66,167 | 58,713 | |
Allowance for unfunded lending related commitments | 640 | 694 | |
Accrued expenses and other liabilities | [2] | 17,437 | 15,762 |
Total liabilities | 507,853 | 511,451 | |
Equity | |||
Preferred stock | [3] | ||
Common stock ($5 par value, Authorized 800,000,000 shares, issued 543,012,047 and 542,874,829 shares) | 2,715 | 2,714 | |
Capital surplus | 19,971 | 18,376 | |
Retained earnings | 56,170 | 53,572 | |
Accumulated other comprehensive income (loss) | (10,261) | (10,172) | |
Common stock held in treasury at cost: 144,671,252 and 142,298,689 shares | (19,141) | (18,716) | |
Total shareholders’ equity | 49,454 | 45,774 | |
Noncontrolling interests | 27 | 38 | |
Total equity | 49,481 | 45,812 | |
Total liabilities and equity | $ 557,334 | $ 557,263 | |
Common stock, issued (shares) | 543,012,047 | 542,874,829 | |
[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 held for investment of $1.2 billion and Other assets of $0.1 billion at September 30, 2023. Comparable amounts at December 31, 2022 were $0.9 billion, $1.3 billion and $0.1 billion, respectively.[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 $0.1 billion at September 30, 2023. Comparable amounts at December 31, 2022 were less than $0.1 billion and $0.2 billion, respectively.[3]Par value less than $0.5 million at each date. |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Common stock, authorized (shares) | 800,000,000 | 800,000,000 |
Common stock, issued (shares) | 543,012,047 | 542,874,829 |
Common stock held in treasury at cost (shares) | 144,671,252,000,000 | 142,298,689,000,000 |
Preferred stock, par value | $ 0.5 | $ 0.5 |
Portion at Fair Value, Fair Value Disclosure | ||
Loans held for sale, fair value | 900 | 900 |
Loans, fair value | 1,200 | 1,300 |
Other assets, fair value | 100 | 100 |
Other borrowed funds, fair value (less than) | 100 | 100 |
Other liabilities | $ 100 | $ 200 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Activities | ||
Net income | $ 4,764 | $ 4,565 |
Adjustments to reconcile net income to net cash provided (used) by operating activities | ||
Provision for (recapture of) credit losses | 510 | 69 |
Depreciation, amortization and accretion | 174 | 587 |
Deferred income taxes (benefit) | (119) | 401 |
Net losses on sales of securities | 2 | 4 |
Changes in fair value of mortgage servicing rights | (63) | (635) |
Net change in | ||
Trading securities and other short-term investments | (506) | (573) |
Loans held for sale and related securitization activity | 40 | 962 |
Other assets | (1,899) | (3,512) |
Accrued expenses and other liabilities | 1,304 | 2,586 |
Other | 1,040 | 583 |
Net cash provided (used) by operating activities | 5,247 | 5,037 |
Sales | ||
Securities available for sale | (93) | 2,765 |
Loans | 812 | 5,353 |
Repayments/maturities | ||
Securities available for sale | 5,524 | 11,473 |
Securities held to maturity | 5,592 | 3,206 |
Purchases | ||
Securities available for sale | (2,791) | (23,591) |
Securities held to maturity | (1,664) | (7,961) |
Loans | (588) | (1,681) |
Net change in | ||
Federal funds sold and resale agreements | 417 | (905) |
Interest-earning deposits with banks | (14,199) | 33,972 |
Loans | 6,230 | (31,029) |
Other | (954) | (2,275) |
Net cash provided (used) by investing activities | (1,714) | (10,673) |
Net change in | ||
Noninterest-bearing deposits | (18,823) | (16,748) |
Interest-bearing deposits | 6,141 | (2,332) |
Federal funds purchased and repurchase agreements | 231 | (1) |
Other borrowed funds | (272) | 862 |
Sales/issuances | ||
Federal Home Loan Bank borrowings | 4,000 | 30,075 |
Senior debt | 6,977 | |
Subordinated debt | 847 | |
Other borrowed funds | 619 | 573 |
Preferred stock | 1,484 | 2,225 |
Common and treasury stock | 62 | 58 |
Repayments/maturities | ||
Federal Home Loan Bank borrowings | (75) | |
Senior debt | (750) | (5,750) |
Subordinated debt | (1,500) | |
Other borrowed funds | (635) | (591) |
Acquisition of treasury stock | (599) | (3,078) |
Preferred stock cash dividends paid | (299) | (181) |
Common stock cash dividends paid | (1,837) | (1,779) |
Net cash provided (used) by financing activities | (5,276) | 4,180 |
Net Increase (Decrease) In Cash And Due From Banks And Restricted Cash | (1,743) | (1,456) |
Cash and due from banks and restricted cash at end of period | 5,300 | 6,548 |
Cash and due from banks and restricted cash at beginning of period | 7,043 | 8,004 |
Cash And Due From Banks And Restricted Cash | ||
Cash and due from banks at end of period (unrestricted cash) | 4,782 | 5,974 |
Restricted cash | 518 | 574 |
Cash and due from banks and restricted cash at end of period | 5,300 | 6,548 |
Supplemental Disclosures | ||
Interest paid | 6,273 | 895 |
Income taxes paid | 945 | 80 |
Income taxes refunded | 830 | 15 |
Leased assets obtained in exchange for new operating lease liabilities | 148 | 149 |
Non-cash Investing And Financing Items | ||
Transfer from securities available for sale to securities held to maturity | 88,605 | |
Transfer from loans to loans held for sale, net | 349 | 341 |
Transfer from loans to foreclosed assets | 44 | 38 |
Adjustment to assets and liabilities related to partially financed investment exits | $ 834 |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
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. 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. We prepared these consolidated financial statements in accordance with GAAP. We have eliminated intercompany accounts and transactions. In our opinion, the unaudited interim consolidated financial statements reflect all normal, recurring adjustments needed to state fairly our results for the interim periods. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. We have also considered the impact of subsequent events on these consolidated financial statements. When preparing these unaudited interim consolidated financial statements, we have assumed that you have read the audited consolidated financial statements included in our 2022 Form 10-K. These interim consolidated financial statements serve to update our 2022 Form 10-K and may not include all information and Notes necessary to constitute a complete set of financial statements. There have been changes to certain of our accounting policies as disclosed in our 2022 Form 10-K due to the adoption of ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (ASU 2022-02) in the first quarter of 2023 and the adoption of ASU 2023-02 Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (ASU 2023-02) in the third quarter of 2023. The updated policies impacted by this adoption are included in this Note 1. Reference is made to Note 1 Accounting Policies in our 2022 Form 10-K for a detailed description of all other significant accounting policies. 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. Actual results may differ from the estimates and the differences may be material to the consolidated financial statements. 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. The CARES Act credit reporting rules, which required exceptions to this policy, expired in the third quarter of 2023. As such, delinquency status at September 30, 2023 is being reported for all loans based on the contractual terms of each loan. Prior period amounts continue to be presented in accordance with the credit reporting rules under the CARES Act, which required certain loans modified due to pandemic-related hardships to not be reported as past due based on the contractual terms of the loan, even when borrowers may not have made payments on their loans during the modification period. 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 the 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 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. Collateral dependent designation is removed when a loan no longer meets these conditions. On January 1, 2023, we adopted ASU 2022-02, which eliminates the accounting guidance for TDRs. See Note 1 Accounting Policies in our 2022 Form 10-K for a description of our accounting policies for TDRs that were in effect prior to adoption. Loan modifications to borrowers experiencing financial difficulty, or FDMs, result from our loss mitigation activities and include principal forgiveness, interest rate reductions, term extensions, payment delays, repayment plans or combinations thereof. FDMs continue to be subject to our existing nonaccrual policies. Expected losses or recoveries on FDMs have been factored into the ALLL estimates for each loan class under the methodologies described in this Note. Refer to Note 3 Loans and Related Allowance for Credit Losses for more information on FDMs. 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, • Note 3 Loans and Related Allowance for Credit Losses in this Report, and • Note 4 Loans and Related Allowance for Credit Losses in our 2022 Form 10-K. 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, and it is not probable the borrower will be able to repay contractual payments due under the loan, • 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 or guaranteed loans where substantially all principal and interest is insured. • Commercial purchasing card assets that 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 due to a borrower experiencing financial difficulty and is not government insured or guaranteed, – 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 or guaranteed 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 generally charged off in full after 180 days for loans and 120 days for leases. 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 the fair value is lower than the amortized cost basis of the loan outstanding and the delinquency of the loan, combined with other risk factors such as bankruptcy or lien position, indicates that the loan (or a portion thereof) is uncollectible as per our historical experience. These nonperforming loans would also be charged off when 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 a 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 the 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 loans modified due to a borrower experiencing financial difficulty, payments are applied based upon their contractual terms unless the related loan is deemed nonperforming. Loans modified due to a borrower experiencing financial difficulty are generally included in nonperforming and nonaccrual loans if they are not government insured or guaranteed. However, after a reasonable period of time, generally six months, in which the loan performs under modified terms and meets other performance indicators, it is returned to accruing status. This return to accruing status demonstrates that the bank expects to collect all of the loan’s remaining contractual principal and interest. Loan modifications granted to borrowers experiencing financial difficulty 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 modified terms are not returned to accrual status. Other nonaccrual loans are generally not returned to accruing status until the borrower has performed in accordance with the loan’s contractual terms and other performance indicators for at least six months, the period of time which was determined to demonstrate the expected collectability of the loan’s remaining contractual principal and interest. Nonaccrual loans with partially charged-off principal may return to accruing status if the loan performs after a reasonable period of time, generally six months, and the loan meets other performance indicators. Nonaccrual loans with fully charged-off principal are prohibited from returning to accruing status. When a nonperforming loan is returned to accruing 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 residential and commercial 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 3 Loans and Related Allowance for Credit Losses for additional information on FDMs, nonperforming assets and credit quality indicators related to our loan portfolio. Allowance for Credit Losses Our ACL 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 remaining 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 contractually 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 currently 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 one to three 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 loans and leases and unfunded lending related commitments for details about specific reserve methodologies. 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, LTV, 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 (CRE) • 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 type, LTV, market, risk pool and costs to sell for the forecast period • For the long-run average period, internal ratings based on collateral performance • 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 • Modeled using either discrete risk parameters or analytical approaches based on net charge-offs and pay-down rates 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) • 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, disposable personal income and Manheim used car index • Straight-line over 1 year • Average parameters determined based on internal 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 • Modeled using either discrete risk parameters or analytical approaches based net charge-offs and pay-down rates 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 Prior to January 1, 2023, we used a discounted cash flow methodology for our home equity and residential real estate loan classes. Effective January 1, 2023, we discontinued our use of a discounted cash flow methodology, and we now use a pooled expected loss methodology based upon the quantification of risk parameters, such as PD, LGD and EAD for a loan or loan segment. See Note 1 Accounting Policies in our 2022 Form 10-K for a description of our use of a discounted cash flow methodology prior to January 1, 2023. 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 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 expected credit risk factors, the ACL also accounts for 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, and • Timing of available information. See Note 3 Loans and Related Allowance for Credit Losses for additional information about our loan portfolio and the related allowance. 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 section of Note 1 Accounting Policies in our 2022 Form 10-K and the Nonperforming Loans and Leases section of this Note 1 for additional information on our nonaccrual and charge-off policies. See Note 1 Accounting Policies in our 2022 Form 10-K for a description of the accounting policies related to the applicable reserves on accrued interest for our home equity and residential real estate loan classes prior to January 1, 2023. Purchased Credit Deteriorated Loans or Securities The allowance for PCD loans or securities is determined at the time of acquisition, 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 3 Loans and Related Allowance for Credit Losses for additional information about this allowance. Income Taxes We have elected to apply the proportional amortization method to our qualifying LIHTC and NMTC equity investments. Investment tax credits and investment impairment are recognized in tax expense for any individual LIHTC and NMTC equity investment for which we can demonstrate that the investment was made primarily for the purpose of receiving income tax credits and other income tax benefits. We use the deferral method of accounting for all other tax credit investments. Under this method, the investment tax credits are recogn |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | I NVESTMENT S ECURITIES Table 36: Investment Securities Summary (a)(b) September 30, 2023 December 31, 2022 In millions Amortized Unrealized Fair Amortized Unrealized Fair Gains Losses Gains Losses Securities Available for Sale U.S. Treasury and government agencies $ 7,494 $ 4 $ (781) $ 6,717 $ 9,196 $ 10 $ (836) $ 8,370 Residential mortgage-backed Agency 31,177 (4,278) 26,899 32,114 13 (3,304) 28,823 Non-agency 607 115 (9) 713 697 131 (9) 819 Commercial mortgage-backed Agency 1,738 (194) 1,544 1,845 (170) 1,675 Non-agency 982 (59) 923 1,325 (69) 1,256 Asset-backed 1,084 18 (7) 1,095 103 27 (1) 129 Other 2,908 42 (251) 2,699 3,288 44 (245) 3,087 Total securities available for sale $ 45,990 $ 179 $ (5,579) $ 40,590 $ 48,568 $ 225 $ (4,634) $ 44,159 Securities Held to Maturity U.S. Treasury and government agencies $ 36,385 $ (1,946) $ 34,439 $ 36,571 $ 6 $ (1,617) $ 34,960 Residential mortgage-backed Agency 43,390 (5,056) 38,334 45,271 74 (3,095) 42,250 Non-agency 263 (35) 228 276 (21) 255 Commercial mortgage-backed Agency 910 (53) 857 848 4 (26) 826 Non-agency 1,456 $ 1 (28) 1,429 1,667 (40) 1,627 Asset-backed 6,214 3 (97) 6,120 7,188 6 (140) 7,054 Other 3,179 4 (143) 3,040 3,354 25 (72) 3,307 Total securities held to maturity (d) $ 91,797 $ 8 $ (7,358) $ 84,447 $ 95,175 $ 115 $ (5,011) $ 90,279 (a) At September 30, 2023, the accrued interest associated with our held to maturity and available for sale portfolios totaled $255 million and $134 million, respectively. The comparable amounts at December 31, 2022 were $282 million and $144 million, respectively. These amounts are included in Other assets on the Consolidated Balance Sheet. (b) Credit ratings represent a primary credit quality indicator used to monitor and manage credit risk. Of our total securities portfolio, 97% were rated AAA/AA at both September 30, 2023 and December 31, 2022. (c) Amortized cost is presented net of allowance of $92 million for securities available for sale, primarily related to non-agency commercial mortgage-backed securities, and $6 million for securities held to maturity at September 30, 2023. The comparable amounts at December 31, 2022 were $142 million and $7 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 $4.4 billion at September 30, 2023 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, net of any allowance. Investment securities at September 30, 2023 included less than $0.1 billion of net unsettled purchases that represent non-cash investing activity, and accordingly, are not reflected on the Consolidated Statement of Cash Flows. The comparable amount for September 30, 2022 was $2.0 billion of net unsettled purchases. 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. At September 30, 2023, the allowance for investment securities was $98 million and primarily related to non-agency commercial mortgage-backed securities in the available for sale portfolio. The comparable amount at December 31, 2022 was $149 million. See Note 1 Accounting Policies in our 2022 Form 10-K for a discussion of the methodologies used to determine the allowance for investment securities. At September 30, 2023, AOCI included pretax losses of $297 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 37 presents the gross unrealized losses and fair value of securities available for sale that do not have an associated allowance for investment securities at September 30, 2023 and December 31, 2022. 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 Table 37: 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 September 30, 2023 U.S. Treasury and government agencies $ (3) $ 374 $ (778) $ 6,013 $ (781) $ 6,387 Residential mortgage-backed Agency (107) 3,294 (4,171) 23,547 (4,278) 26,841 Non-agency (1) 51 (6) 71 (7) 122 Commercial mortgage-backed Agency (1) 42 (193) 1,493 (194) 1,535 Non-agency (55) 793 (55) 793 Asset-backed (6) 687 (1) 10 (7) 697 Other (8) 205 (208) 2,152 (216) 2,357 Total securities available for sale $ (126) $ 4,653 $ (5,412) $ 34,079 $ (5,538) $ 38,732 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 Information related to gross realized securities gains and losses from the sales of securities is set forth in the following table: Table 38: Gains (Losses) on Sales of Securities Available for Sale Nine months ended September 30 Gross Gains Gross Losses Net Gains (Losses) Tax Expense (Benefit) 2023 $ (2) $ (2) 2022 $ 11 $ (15) $ (4) $ (1) The following table presents, by remaining contractual maturity, the amortized cost, fair value and weighted-average yield of debt securities at September 30, 2023: Table 39: Contractual Maturity of Debt Securities September 30, 2023 1 Year or Less After 1 Year After 5 Years After 10 Total Securities Available for Sale U.S. Treasury and government agencies $ 1,912 $ 2,958 $ 800 $ 1,824 $ 7,494 Residential mortgage-backed Agency 1 185 3,811 27,180 31,177 Non-agency 9 598 607 Commercial mortgage-backed Agency 46 444 865 383 1,738 Non-agency 1 103 118 760 982 Asset-backed 249 171 664 1,084 Other 286 2,055 416 151 2,908 Total securities available for sale at amortized cost $ 2,246 $ 5,994 $ 6,190 $ 31,560 $ 45,990 Fair value $ 2,179 $ 5,487 $ 5,603 $ 27,321 $ 40,590 Weighted-average yield, GAAP basis (a) 1.25 % 2.25 % 2.77 % 3.08 % 2.84 % Securities Held to Maturity U.S. Treasury and government agencies $ 3,087 $ 30,686 $ 1,705 $ 907 $ 36,385 Residential mortgage-backed Agency 6 321 43,063 43,390 Non-agency 263 263 Commercial mortgage-backed Agency 136 490 284 910 Non-agency 42 49 1,365 1,456 Asset-backed 7 1,886 1,949 2,372 6,214 Other 181 1,053 600 1,345 3,179 Total securities held to maturity at amortized cost $ 3,317 $ 33,816 $ 5,065 $ 49,599 $ 91,797 Fair value $ 3,253 $ 32,192 $ 4,753 $ 44,249 $ 84,447 Weighted-average yield, GAAP basis (a) 0.93 % 1.44 % 4.10 % 2.93 % 2.38 % (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 September 30, 2023, 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 $38.1 billion and $32.4 billion and fair value of $33.4 billion and $28.7 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 40: Fair Value of Securities Pledged and Accepted as Collateral In millions September 30, 2023 December 31, 2022 Pledged to others $ 27,462 $ 24,708 Accepted from others: Permitted by contract or custom to sell or repledge $ 946 $ 1,266 Permitted amount repledged to others $ 946 $ 1,266 |
Loans and Related Allowance for
Loans and Related Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2023 | |
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. 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 elevated inflation levels, industry specific risks, higher interest rates, declining consumer savings and deposit balances, and structural and secular changes fostered by the pandemic. To mitigate losses and enhance customer support, we offer loan modifications and collection programs to assist our customers. Table 41 presents the composition and delinquency status of our loan portfolio at September 30, 2023 and December 31, 2022. Loan delinquencies include government insured or guaranteed loans and loans accounted for under the fair value option. Table 41: Analysis of Loan Portfolio (a) (b) (c) Accruing Dollars in millions Current or Less 30-59 60-89 90 Days Total Nonperforming Fair Value Total Loans September 30, 2023 Commercial Commercial and industrial $ 173,487 $ 84 $ 32 $ 102 $ 218 $ 458 $ 174,163 Commercial real estate 35,049 2 2 4 723 35,776 Equipment lease financing 6,432 25 6 31 30 6,493 Total commercial 214,968 111 40 102 253 1,211 216,432 Consumer Residential real estate 45,958 257 103 182 542 (d) 330 $ 529 47,359 Home equity 25,562 59 22 81 446 70 26,159 Automobile 14,718 83 19 6 108 114 14,940 Credit card 6,881 50 38 80 168 11 7,060 Education 1,918 32 22 48 102 (d) 2,020 Other consumer 4,402 15 9 9 33 11 4,446 Total consumer 99,439 496 213 325 1,034 912 599 101,984 Total $ 314,407 $ 607 $ 253 $ 427 $ 1,287 $ 2,123 $ 599 $ 318,416 Percentage of total loans 98.74 % 0.19 % 0.08 % 0.13 % 0.40 % 0.67 % 0.19 % 100.00 % 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 (d) 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 (d) 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 % (a) Amounts in table represent loans held for investment and do not include any associated ALLL. (b) The CARES Act credit reporting rules expired in the third quarter of 2023 and as such, delinquency status at September 30, 2023 is being reported for all loans based on the contractual terms of the loan. Amounts as of December 31, 2022 continue to be presented in accordance with the credit reporting rules under the CARES Act, which required certain loans modified due to pandemic related hardships to not be reported as past due based on the contractual terms of the loan, even when borrowers may not have made payments on their loans during the modification period. (c) The accrued interest associated with our loan portfolio totaled $1.4 billion and $1.2 billion at September 30, 2023 and December 31, 2022, respectively. These amounts are included in Other assets on the Consolidated Balance Sheet. (d) 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 both September 30, 2023 and December 31, 2022. (e) 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, they have been excluded from the nonperforming loan population. (f) Includes unearned income, unamortized deferred fees and costs on originated loans and premiums or discounts on purchased loans totaling $0.8 billion and $0.9 billion at September 30, 2023 and December 31, 2022, respectively. (g) Collateral dependent loans totaled $1.1 billion and $1.3 billion at September 30, 2023 and December 31, 2022, respectively. At September 30, 2023, we pledged $50.4 billion of commercial and other loans to the Federal Reserve Bank and $91.4 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, 2022 were $28.1 billion and $90.4 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. 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 September 30, 2023 and December 31, 2022, respectively: Table 42: Nonperforming Assets Dollars in millions September 30, 2023 December 31, 2022 Nonperforming loans (a) Commercial $ 1,211 $ 858 Consumer (b) 912 1,127 Total nonperforming loans (c) 2,123 1,985 OREO and foreclosed assets 35 34 Total nonperforming assets $ 2,158 $ 2,019 Nonperforming loans to total loans 0.67 % 0.61 % Nonperforming assets to total loans, OREO and foreclosed assets 0.68 % 0.62 % Nonperforming assets to total assets 0.39 % 0.36 % (a) In connection with the adoption of ASU 2022-02, nonperforming loans as of September 30, 2023 include certain loans where terms were modified as a result of a borrower’s financial difficulty. Prior period amounts included nonperforming TDRs, for which accounting guidance was eliminated effective January 1, 2023. See Note 1 Accounting Policies and the Loan Modifications to Borrowers Experiencing Financial Difficulty section of this Note 3 for more information on our adoption of this ASU. (b) 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. (c) Nonperforming loans for which there is no related ALLL totaled $0.5 billion at September 30, 2023 and primarily include loans with a fair value of collateral that exceeds the amortized cost basis. The comparable amount at December 31, 2022 was $0.7 billion. Additional Credit Quality Indicators by Loan Class Commercial Loan Classes See Note 4 Loans and Related Allowance for Credit Losses in our 2022 Form 10-K for additional information related to these loan classes, including discussion around the credit quality indicators that we use to monitor and manage the credit risk associated with each loan class. The following table presents credit quality indicators for our commercial loan classes: Table 43: Commercial Credit Quality Indicators (a) Term Loans by Origination Year September 30, 2023 In millions 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and industrial Pass Rated $ 18,791 $ 29,249 $ 8,476 $ 6,061 $ 4,654 $ 12,952 $ 84,123 $ 603 $ 164,909 Criticized 537 1,916 743 355 249 710 4,705 39 9,254 Total commercial and industrial loans $ 19,328 $ 31,165 $ 9,219 $ 6,416 $ 4,903 $ 13,662 $ 88,828 $ 642 $ 174,163 Gross charge-offs (b) $ 17 (c) $ 19 $ 27 $ 7 $ 2 $ 19 $ 90 $ 11 $ 192 Commercial real estate Pass Rated $ 3,592 $ 9,008 $ 3,282 $ 2,376 $ 4,918 $ 8,062 $ 342 $ 31,580 Criticized 109 685 470 370 664 1,880 18 4,196 Total commercial real estate loans $ 3,701 $ 9,693 $ 3,752 $ 2,746 $ 5,582 $ 9,942 $ 360 $ 35,776 Gross charge-offs (b) $ 29 $ 95 $ 124 Equipment lease financing Pass Rated $ 1,126 $ 1,507 $ 779 $ 761 $ 506 $ 1,469 $ 6,148 Criticized 68 79 56 50 38 54 345 Total equipment lease financing loans $ 1,194 $ 1,586 $ 835 $ 811 $ 544 $ 1,523 $ 6,493 Gross charge-offs (b) $ 1 $ 2 $ 2 $ 4 $ 1 $ 1 $ 11 Total commercial loans $ 24,223 $ 42,444 $ 13,806 $ 9,973 $ 11,029 $ 25,127 $ 89,188 $ 642 $ 216,432 Total commercial gross charge-offs $ 18 $ 21 $ 29 $ 11 $ 32 $ 115 $ 90 $ 11 $ 327 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 (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 September 30, 2023 and December 31, 2022. (b) Gross charge-offs are presented on a year-to-date basis, as of the reporting date. (c) Includes charge-offs of deposit overdrafts. Consumer Loan Classes See Note 4 Loans and Related Allowance for Credit Losses in our 2022 Form 10-K for additional information related to these loan classes, including discussion around the credit quality indicators that we use to monitor and manage the credit risk associated with each loan class. Residential Real Estate and Home Equity The following table presents credit quality indicators for our residential real estate and home equity loan classes: Table 44: Credit Quality Indicators for Residential Real Estate and Home Equity Loan Classes Term Loans by Origination Year September 30, 2023 In millions 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Total Residential real estate Current estimated LTV ratios Greater than 100% $ 34 $ 141 $ 103 $ 33 $ 8 $ 34 $ 353 Greater than or equal to 80% to 100% 1,770 3,372 1,044 207 69 105 6,567 Less than 80% 2,577 6,661 14,517 6,639 2,196 7,129 39,719 No LTV available 52 13 3 68 Government insured or guaranteed loans 9 18 18 66 37 504 652 Total residential real estate loans $ 4,442 $ 10,192 $ 15,695 $ 6,945 $ 2,310 $ 7,775 $ 47,359 Updated FICO scores Greater than or equal to 780 $ 2,418 $ 7,728 $ 12,239 $ 5,060 $ 1,538 $ 4,099 $ 33,082 720 to 779 1,495 1,857 2,547 1,214 414 1,439 8,966 660 to 719 302 514 670 322 176 782 2,766 Less than 660 86 64 129 110 87 676 1,152 No FICO score available 132 11 92 173 58 275 741 Government insured or guaranteed loans 9 18 18 66 37 504 652 Total residential real estate loans $ 4,442 $ 10,192 $ 15,695 $ 6,945 $ 2,310 $ 7,775 $ 47,359 Gross charge-offs (a) $ 1 $ 1 $ 4 $ 6 Home equity Current estimated LTV ratios Greater than 100% $ 2 $ 10 $ 5 $ 13 $ 294 $ 285 $ 609 Greater than or equal to 80% to 100% 5 39 21 27 1,266 1,949 3,307 Less than 80% 161 1,922 871 2,683 6,901 9,705 22,243 Total home equity loans $ 168 $ 1,971 $ 897 $ 2,723 $ 8,461 $ 11,939 $ 26,159 Updated FICO scores Greater than or equal to 780 $ 107 $ 1,283 $ 503 $ 1,685 $ 4,700 $ 6,039 $ 14,317 720 to 779 38 443 223 525 2,203 3,193 6,625 660 to 719 18 185 117 286 1,210 1,756 3,572 Less than 660 5 58 53 219 338 895 1,568 No FICO score available 2 1 8 10 56 77 Total home equity loans $ 168 $ 1,971 $ 897 $ 2,723 $ 8,461 $ 11,939 $ 26,159 Gross charge-offs (a) $ 2 $ 4 $ 9 $ 15 (Continued from previous page) 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 (a) Gross charge-offs are presented on a year-to-date basis, as of the reporting date. Automobile, Credit Card, Education and Other Consumer The following table presents credit quality indicators for our automobile, credit card, education and other consumer loan classes: Table 45: Credit Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loan Classes Term Loans by Origination Year September 30, 2023 In millions 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Total Automobile Updated FICO scores Greater than or equal to 780 $ 2,221 $ 1,776 $ 1,653 $ 624 $ 456 $ 127 $ 6,857 720 to 779 1,454 1,266 892 356 309 115 4,392 660 to 719 804 677 456 218 228 100 2,483 Less than 660 168 261 248 165 230 136 1,208 Total automobile loans $ 4,647 $ 3,980 $ 3,249 $ 1,363 $ 1,223 $ 478 $ 14,940 Gross charge-offs (a) $ 18 $ 18 $ 13 $ 23 $ 19 $ 91 Credit card Updated FICO scores Greater than or equal to 780 $ 1,920 $ 1 $ 1,921 720 to 779 1,967 5 1,972 660 to 719 1,982 13 1,995 Less than 660 1,016 44 1,060 No FICO score available or required (b) 109 3 112 Total credit card loans $ 6,994 $ 66 $ 7,060 Gross charge-offs (a) $ 212 $ 20 $ 232 Education Updated FICO scores Greater than or equal to 780 $ 7 $ 25 $ 8 $ 11 $ 19 $ 133 $ 203 720 to 779 20 45 25 25 32 182 329 660 to 719 19 45 27 23 29 156 299 Less than 660 9 37 16 8 7 94 171 No FICO score available or required (b) 20 13 10 7 2 5 57 Total loans using FICO credit metric 75 165 86 74 89 570 1,059 Other internal credit metrics 961 961 Total education loans $ 75 $ 165 $ 86 $ 74 $ 89 $ 1,531 $ 2,020 Gross charge-offs (a) $ 1 $ 1 $ 1 $ 10 $ 13 Other consumer Updated FICO scores Greater than or equal to 780 $ 195 $ 151 $ 57 $ 27 $ 20 $ 14 $ 40 $ 2 $ 506 720 to 779 244 189 68 32 25 14 81 1 654 660 to 719 117 155 68 35 29 14 88 2 508 Less than 660 11 51 34 21 19 10 43 1 190 Total loans using FICO credit metric 567 546 227 115 93 52 252 6 1,858 Other internal credit metrics 32 107 32 73 72 23 2,239 10 2,588 Total other consumer loans $ 599 $ 653 $ 259 $ 188 $ 165 $ 75 $ 2,491 $ 16 $ 4,446 Gross charge-offs (a) $ 54 (c) $ 16 $ 14 $ 12 $ 12 $ 7 $ 8 $ 1 $ 124 (Continued from previous page) 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 (b) 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 (b) 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 (a) Gross charge-offs are presented on a year-to-date basis, as of the reporting date. (b) 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. (c) Includes charge-offs of deposit overdrafts. Loan Modifications to Borrowers Experiencing Financial Difficulty On January 1, 2023, we adopted ASU 2022-02, which eliminates the accounting guidance for TDRs and enhances the disclosure requirements for certain loan modifications when a borrower is experiencing financial difficulty (FDMs). FDMs occur as a result of our loss mitigation activities. A variety of solutions are offered to borrowers, including loan modifications that may result in principal forgiveness, interest rate reductions, term extensions, payment delays, repayment plans or combinations thereof: • Principal forgiveness includes principal and accrued interest forgiveness. • Interest rate reductions include modifications where the interest rate is reduced and/or interest is deferred. • Term extensions extend the original contractual maturity date of the loan. • Payment delays consist of modifications where we expect to collect contractual amounts due but that result in a delay in the receipt of payments specified under the original loan terms. We generally consider payment delays to be insignificant when the delay is three months or less. • Repayment plans are offered for some of our credit card and unsecured line of credit products, which provide for a reduced payment and interest rate for a specific period of time. Additionally, modifications to borrowers experiencing financial difficulty also result from borrowers that have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their obligations to us, and those that enter into trial modifications. FDMs exclude loans held for sale and loans accounted for under the fair value option. Our disclosed FDM population also excludes government insured or guaranteed education loans as loss mitigation activities for these loans are either required by law or they are considered separate from PNC’s loss mitigation treatments. Commercial loans with an appraised value of collateral that exceeds the loan value, loans with guarantor support, and residential mortgage government insured or guaranteed loans are included in our disclosed population of FDMs when those loan modifications are granted to a borrower experiencing financial difficulty. Refer to Note 1 Accounting Policies for additional information around our adoption of ASU 2022-02. The following table presents the amortized cost basis, as of September 30, 2023, of FDMs granted during the three and nine months ended September 30, 2023: Table 46: Loan Modifications Granted to Borrowers Experiencing Financial Difficulty (a) (b) Three months ended September 30, 2023 Dollars in millions Interest Rate Reduction Term Extension Payment Delay Repayment Plan Interest Rate Reduction and Term Extension Payment Delay and Term Extension Other (c) Total % of Loan Class Commercial Commercial and industrial $ 15 $ 356 $ 37 $ 7 $ 83 $ 498 0.29 % Commercial real estate 307 16 323 0.90 % Total commercial 15 663 53 7 83 821 0.38 % Consumer Residential real estate 1 50 3 54 0.11 % Home equity 2 5 7 0.03 % Credit card $ 20 20 0.28 % Education 1 1 0.05 % Other consumer 1 1 0.02 % Total consumer 1 1 52 21 8 83 0.08 % Total $ 16 $ 664 $ 105 $ 21 $ 7 $ 91 $ 904 0.28 % Nine months ended September 30, 2023 Dollars in millions Commercial Commercial and industrial $ 15 $ 704 $ 91 $ 20 $ 130 $ 960 0.55 % Commercial real estate 745 16 61 822 2.30 % Total commercial 15 1,449 107 20 191 1,782 0.82 % Consumer Residential real estate 1 83 $ 3 6 93 0.20 % Home equity 6 7 9 22 0.08 % Credit card $ 45 45 0.64 % Education 3 3 0.15 % Other consumer 1 1 0.02 % Total consumer 1 3 89 46 10 15 164 0.16 % Total $ 16 $ 1,452 $ 196 $ 46 $ 10 $ 20 $ 206 $ 1,946 0.61 % (a) At September 30, 2023, there were $0.3 billion of unfunded lending related commitments associated with FDMs. (b) Excludes the amortized cost basis of modified loans that were paid off, charged off or otherwise liquidated as of period end. (c) Includes loans where we have received notification that a borrower has filed for Chapter 7 bankruptcy relief, but specific instructions as to the terms of the relief have not been formally ruled upon by the court. Amounts also include trial modifications. Table 47 presents the financial effect of FDMs granted during the three and nine months ended September 30, 2023: Table 47: Financial Effect of FDMs (a) Three months ended September 30, 2023 Dollars in millions Weighted-Average Interest Rate Reduction Weighted-Average Term Extension Weighted-Average Payment Delay Commercial Commercial and industrial 0.25 % 13 6 Commercial real estate 13 8 Consumer Residential real estate 0.72 % 10 Home equity 5 Education 15 Nine months ended September 30, 2023 Dollars in millions Commercial Commercial and industrial 0.25 % 12 6 Commercial real estate 16 8 Consumer Residential real estate 1.13 % 118 9 Home equity 1.17 % 53 4 Education 16 (a) Excludes the financial effects of modifications for loans that were paid off, charged off or otherwise liquidated as of period end. Repayment plans are excluded from Table 47. The terms of these programs, which are offered for certain credit card and unsecured line of credit products, are as follows: • Short-term programs are granted for periods of 6 and 12 months. These programs are structurally similar such that the interest rate is reduced to a standard rate of 4.99% and the minimum payment percentage is adjusted to 1.90% of the outstanding balance. At the end of the 6 or 12 months, the borrower is returned to the original contractual interest rate and minimum payment amount specified in the original lending agreement. • Fully-amortized repayment plans are also granted, the most common of which being a 60-month program. In this program, we convert the borrower’s drawn and unpaid balances into a fully-amortized repayment plan consisting of an interest rate of 4.99% and a minimum payment amount of 1.90%. This fully-amortized program is designed in a manner that allows the drawn and unpaid amounts to be recaptured at the end of the 60 months. After we modify a loan, we continue to track its performance under its most recent modified terms. The following table presents the performance, as of September 30, 2023, of FDMs granted during the nine months ended September 30, 2023: Table 48: Delinquency Status of FDMs (a) Nine months ended September 30, 2023 Dollars in millions Current or Less Than 30 Days Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days Nonperforming Total Commercial Commercial and industrial $ 801 $ 3 $ 156 $ 960 Commercial real estate 755 67 822 Total commercial 1,556 3 223 1,782 Consumer Residential real estate 4 $ 1 88 93 Home equity 1 21 22 Credit card 31 4 $ 3 6 1 45 Education 3 3 Other consumer 1 1 Total consumer 39 5 3 6 111 164 Total $ 1,595 $ 5 $ 3 $ 9 $ 334 $ 1,946 (a) Represents amortized cost basis. We generally consider FDMs to have subsequently defaulted when they become 60 days past due after the most recent date the loan was modified. Loans that were both (i) modified due to a financial difficulty during the period, and (ii) subsequently defaulted during the three and nine months ended September 30, 2023 were $36 million and $84 million, respectively. Troubled Debt Restructuring Disclosures Prior to the Adoption of ASU 2022-02 Table 49 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 the three and nine months ended September 30, 2022. Additionally, the table provides information about the types of TDR concessions. See Note 1 Accounting Policies and Note 4 Loans and Related Allowance for Credit Losses in our 2022 Form 10-K for additional discussion of TDRs. Table 49: Financial Impact and TDRs by Concession Type (a) Pre-TDR Post-TDR Amortized Cost Basis (c) During the three months ended September 30, 2022 Number Principal Rate Other Total Commercial 15 $ 96 $ 10 $ 67 $ 77 Consumer 2,232 40 29 6 35 Total TDRs 2,247 $ 136 $ 39 $ 73 $ 112 During the nine months ended September 30, 2022 Commercial 42 $ 184 $ 9 $ 10 $ 135 $ 154 Consumer 8,152 126 $ 95 18 113 Total TDRs 8,194 $ 310 $ 9 $ 105 $ 153 $ 267 (a) Impact of partial charge-offs at TDR date is 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 occurred. After a loan was determined to be a TDR, we continued to track its performance under its most recent restructured terms. We considered a TDR to have subsequently defaulted when it became 60 days past due after the most recent date the loan was restructured. Loans that were both (i) classified as TDRs within the last twelve months from the balance sheet date, and (ii) subsequently defaulted during the three and nine months ended September 30, 2022 totaled $23 million and $45 million, 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 50: Rollforward of Allowance for Credit Losses Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 In millions Commercial Consumer Total Commercial Consumer Total Commercial Consumer Total Commercial Consumer Total Allowance for loan and lease losses Beginning balance $ 3,142 $ 1,595 $ 4,737 $ 2,937 $ 1,525 $ 4,462 $ 3,114 $ 1,627 $ 4,741 $ 3,185 $ 1,683 $ 4,868 Adoption of ASU 2022-02 (a) (35) (35) Beginning balance, adjusted 3,142 1,595 4,737 2,937 1,525 4,462 3,114 1,592 4,706 3,185 1,683 4,868 Charge-offs (72) (161) (233) (73) (149) (222) (327) (481) (808) (162) (506) (668) Recoveries 49 63 112 25 78 103 110 188 298 78 251 329 Net (charge-offs) (23) (98) (121) (48) (71) (119) (217) (293) (510) (84) (255) (339) Provision for (recapture of) credit losses 105 48 153 174 67 241 325 246 571 (34) 93 59 Other (2) (2) (2) (1) (3) (6) (1) (7) Ending balance $ 3,222 $ 1,545 $ 4,767 $ 3,061 $ 1,520 $ 4,581 $ 3,222 $ 1,545 $ 4,767 $ 3,061 $ 1,520 $ 4,581 Allowance for unfunded lending related commitments (b) Beginning balance $ 555 $ 108 $ 663 $ 630 $ 51 $ 681 $ 613 $ 81 $ 694 $ 564 $ 98 $ 662 Provision for (recapture of) credit losses (22) (1) (23) (22) 23 1 (80) 26 (54) 44 (24) 20 Ending balance $ 533 $ 107 $ 640 $ 608 $ 74 $ 682 $ 533 $ 107 $ 640 $ 608 $ 74 $ 682 Allowance for credit losses at September 30 (c) $ 3,755 $ 1,652 $ 5,407 $ 3,669 $ 1,594 $ 5,263 $ 3,755 $ 1,652 $ 5,407 $ 3,669 $ 1,594 $ 5,263 (a) Represents the impact of adopting ASU 2022-02 on January 1, 2023. As a result of adoption, we eliminated the accounting guidance for TDRs, including the use of a discounted cash flow approach to measure the allowance for TDRs. (b) See Note 8 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 $131 million and $162 million at September 30, 2023 and 2022, respectively. |
Loan Sale and Servicing Activit
Loan Sale and Servicing Activities and Variable Interest Entities | 9 Months Ended |
Sep. 30, 2023 | |
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 As more fully described in Note 5 Loan Sale and Servicing Activities and Variable Interest Entities in our 2022 Form 10-K, we have transferred residential and commercial mortgage loans in securitization or sales transactions in which we have continuing involvement. 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. 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 8 Commitments and Note 11 Fair Value for information on our servicing rights, including the carrying value of servicing assets. The following table provides our loan sale and servicing activities: Table 51: Loan Sale and Servicing Activities In millions Residential Mortgages Commercial Mortgages (a) Cash Flows - Three months ended September 30, 2023 Sales of loans and related securitization activity (b) $ 873 $ 398 Repurchases of previously transferred loans (c) $ 16 $ (9) Servicing fees (d) $ 129 $ 51 Servicing advances recovered/(funded), net $ 5 $ (22) Cash flows on mortgage-backed securities held (e) $ 710 $ 19 Cash Flows - Three months ended September 30, 2022 Sales of loans and related securitization activity (b) $ 1,019 $ 863 Repurchases of previously transferred loans (c) $ 49 Servicing fees (d) $ 99 $ 51 Servicing advances recovered/(funded), net $ 11 $ 11 Cash flows on mortgage-backed securities held (e) $ 797 $ 15 Cash Flows - Nine months ended September 30, 2023 Sales of loans and related securitization activity (b) $ 2,044 $ 2,554 Repurchases of previously transferred loans (c) $ 67 Servicing fees (d) $ 384 $ 146 Servicing advances recovered/(funded), net $ 44 $ (86) Cash flows on mortgage-backed securities held (e) $ 2,008 $ 49 Cash Flows - Nine months ended September 30, 2022 Sales of loans and related securitization activity (b) $ 4,367 $ 2,702 Repurchases of previously transferred loans (c) $ 154 $ 27 Servicing fees (d) $ 283 $ 140 Servicing advances recovered/(funded), net $ 44 $ 15 Cash flows on mortgage-backed securities held (e) $ 3,122 $ 43 (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 $20.5 billion, $21.4 billion and $19.1 billion in residential mortgage-backed securities and $0.7 billion, $0.7 billion and $0.7 billion in commercial mortgage-backed securities at September 30, 2023, December 31, 2022 and September 30, 2022, respectively. Table 52 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 September 30, 2023. Table 52: Principal Balance, Delinquent Loans and Net Charge-offs Related to Serviced Loans For Others In millions Residential Mortgages Commercial Mortgages (a) September 30, 2023 Total principal balance $ 39,542 $ 58,761 Delinquent loans (b) $ 324 December 31, 2022 Total principal balance $ 41,031 $ 57,974 Delinquent loans (b) $ 346 Three months ended September 30, 2023 Net charge-offs (c) $ 14 Three months ended September 30, 2022 Net charge-offs (c) $ 1 $ 9 Nine months ended September 30, 2023 Net charge-offs (c) $ 2 $ 18 Nine months ended September 30, 2022 Net charge-offs (c) $ 3 $ 12 (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) As discussed in Note 5 Loan Sale and Servicing Activities and Variable Interest Entities included in our 2022 Form 10-K, we are involved with various entities in the normal course of business that are deemed to be VIEs. 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 53 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 course of business with entities that could be VIEs, we have excluded these transactions with non-consolidated entities from the balances presented in Table 53. These loans are included as part of the credit quality disclosures that we make in Note 3 Loans and Related Allowance for Credit Losses. Table 53: Non-Consolidated VIEs In millions PNC Risk of Loss (a) Carrying Value of Assets Carrying Value of Liabilities September 30, 2023 Mortgage-backed securitizations (b) $ 21,511 $ 21,522 (c) Tax credit investments and other 4,639 4,586 (d) (e) $ 2,264 (f) (g) Total $ 26,150 $ 26,108 $ 2,264 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 (f) Total $ 27,077 $ 26,910 $ 2,064 (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) Amount includes $2.9 billion of LIHTCs and $0.2 billion of NMTCs, which are included in Equity investments on our Consolidated Balance Sheet. (f) Included in Deposits and Other liabilities on our Consolidated Balance Sheet. (g) Amount includes $1.6 billion of LIHTCs and $0.2 billion of NMTCs, which are included in Other liabilities on our Consolidated Balance Sheet. We make certain equity investments in various tax credit limited partnerships or LLCs. The purpose of these investments is to achieve a satisfactory return on capital and to assist us in achieving goals associated with the Community Reinvestment Act. Within Income taxes, during the nine months ended September 30, 2023, we recognized $0.3 billion of amortization, $0.3 billion of tax credits and $0.1 billion of other tax benefits associated with qualified investments in LIHTCs and NMTCs. During the nine months ended |
Goodwill and Mortgage Servicing
Goodwill and Mortgage Servicing Rights | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Mortgage Servicing Rights | G OODWILL AND M ORTGAGE S ERVICING R IGHTS Goodwill See Note 6 Goodwill and Mortgage Servicing Rights in our 2022 Form 10-K for more information regarding our goodwill. 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 $4.0 billion at September 30, 2023 and $3.4 billion at December 31, 2022, and consisted of loan servicing contracts for commercial and residential mortgages which are measured at fair value. We recognize gains (losses) on changes in the fair value of MSRs. 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 MSRs with securities, derivative instruments and resale agreements, which are expected to increase (or decrease) in value when the value of MSRs decreases (or increases). See the Sensitivity Analysis section of this Note 5 for more detail on our fair value measurement of MSRs. See Note 6 Goodwill and Mortgage Servicing Rights and Note 15 Fair Value in our 2022 Form 10-K for more detail on our fair value measurement and our accounting of MSRs. Changes in the commercial and residential MSRs follow: Table 54: Mortgage Servicing Rights Commercial MSRs Residential MSRs In millions 2023 2022 2023 2022 January 1 $ 1,113 $ 740 $ 2,310 $ 1,078 Additions: From loans sold with servicing retained 38 52 17 49 Purchases 27 32 438 620 Changes in fair value due to: Time and payoffs (a) (247) (130) (176) (178) Other (b) 238 438 248 505 September 30 $ 1,169 $ 1,132 $ 2,837 $ 2,074 Related unpaid principal balance of loans serviced at September 30 $ 282,123 $ 281,931 $ 212,521 $ 169,678 Servicing advances at September 30 $ 507 $ 448 $ 121 $ 132 (a) Represents decrease in MSR value due to passage of time, including the impact from regularly scheduled loan principal payments, prepayments and loans that were paid off during the period. (b) Represents MSR value changes resulting primarily 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 September 30, 2023 and December 31, 2022 are shown in Tables 55 and 56. 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 55 and 56. 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 55: Commercial Mortgage Servicing Rights – Key Valuation Assumptions Dollars in millions September 30, 2023 December 31, 2022 Fair value $ 1,169 $ 1,113 Weighted-average life (years) 4.0 4.0 Weighted-average constant prepayment rate 5.42 % 4.28 % Decline in fair value from 10% adverse change $ 9 $ 8 Decline in fair value from 20% adverse change $ 18 $ 15 Effective discount rate 10.22 % 9.77 % Decline in fair value from 10% adverse change $ 36 $ 34 Decline in fair value from 20% adverse change $ 73 $ 68 Table 56: Residential Mortgage Servicing Rights – Key Valuation Assumptions Dollars in millions September 30, 2023 December 31, 2022 Fair value $ 2,837 $ 2,310 Weighted-average life (years) 8.4 8.0 Weighted-average constant prepayment rate 5.77 % 6.72 % Decline in fair value from 10% adverse change $ 58 $ 55 Decline in fair value from 20% adverse change $ 112 $ 107 Weighted-average option adjusted spread 765 bps 766 bps Decline in fair value from 10% adverse change $ 89 $ 69 Decline in fair value from 20% adverse change $ 173 $ 134 Fees from mortgage loan servicing, which include contractually specified servicing fees, late fees and ancillary fees were $0.1 billion for both three months ended September 30, 2023 and 2022, and $0.5 billion and $0.4 billion for the nine months ended September 30, 2023 and 2022, respectively. We also generate servicing fees from fee-based activities provided to others for which we do not have an associated servicing asset. Fees from commercial and residential MSRs are reported within Noninterest income on our Consolidated Income Statement in Residential and commercial mortgage. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | LEASESPNC’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. For more information on lease accounting, see Note 1 Accounting Policies and Note 7 Leases in our 2022 Form 10-K. Table 57: Lessor Income Three months ended Nine months ended September 30 In millions 2023 2022 2023 2022 Sales-type and direct financing leases (a) $ 76 $ 61 $ 219 $ 177 Operating leases (b) 9 15 40 48 Lease income $ 85 $ 76 $ 259 $ 225 (a) Included in Loans interest income on the Consolidated Income Statement. (b) Included in Lending and deposit services on the Consolidated Income Statement. |
Leases | LEASESPNC’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. For more information on lease accounting, see Note 1 Accounting Policies and Note 7 Leases in our 2022 Form 10-K. Table 57: Lessor Income Three months ended Nine months ended September 30 In millions 2023 2022 2023 2022 Sales-type and direct financing leases (a) $ 76 $ 61 $ 219 $ 177 Operating leases (b) 9 15 40 48 Lease income $ 85 $ 76 $ 259 $ 225 (a) Included in Loans interest income on the Consolidated Income Statement. (b) Included in Lending and deposit services on the Consolidated Income Statement. |
Borrowed Funds
Borrowed Funds | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | B ORROWED F UNDS Table 58: Borrowed Funds In millions Less than 1 year $ 14,193 1 to 2 years 21,763 2 to 3 years 12,138 3 to 4 years 1,945 4 to 5 years 2,931 Over 5 years 13,197 Total $ 66,167 The following table presents the contractual rates and maturity dates of our FHLB borrowings, senior debt and subordinated debt as of September 30, 2023, and the carrying values as of September 30, 2023 and December 31, 2022. Table 59: FHLB Borrowings, Senior Debt and Subordinated Debt Stated Rate Maturity Carrying Value Dollars in millions September 30, 2023 September 30, 2023 September 30, 2023 December 31, 2022 Parent Company Senior debt 1.20% - 6.00% 2024-2034 $ 17,880 $ 11,374 Subordinated debt 3.90% - 4.60% 2024-2033 1,493 1,524 Junior subordinated debt 6.20 % 2028 205 205 Total Parent Company 19,578 13,103 Bank Federal Home Loan Bank borrowings (a) 5.50% - 5.90% 2024-2026 36,000 32,075 Senior debt 2.50% - 6.10% 2024-2043 4,527 5,283 Subordinated debt 2.70% - 5.90% 2025-2029 3,030 4,578 Total Bank 43,557 41,936 Total $ 63,135 $ 55,039 (a) FHLB borrowings are generally collateralized by residential mortgage loans, other mortgage-related loans and investment securities. In Table 59, the carrying values for parent company senior and subordinated debt include basis adjustments of $(1,214) million and $(104) million, respectively, whereas Bank senior and subordinated debt include basis adjustments of $(254) million and $(262) million, respectively, related to fair value accounting hedges as of September 30, 2023. Certain borrowings are reported at fair value. Refer to Note 11 Fair Value for more information on those borrowings. |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Guarantees [Abstract] | |
Commitments | COMMITMENTSIn 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 September 30, 2023 and December 31, 2022, respectively.Table 60: Commitments to Extend Credit and Other Commitments In millions September 30, 2023 December 31, 2022 Commitments to extend credit Commercial (a) $ 209,397 $ 198,542 Home equity 24,037 22,783 Credit card 34,197 33,066 Other 7,741 7,337 Total commitments to extend credit 275,372 261,728 Net outstanding standby letters of credit (b) 10,326 10,575 Standby bond purchase agreements (c) 1,088 1,208 Other commitments (d) 3,585 3,661 Total commitments to extend credit and other commitments $ 290,371 $ 277,172 (a) September 30, 2023 includes approximately $16 billion of acquired Signature Bridge Bank, N.A capital commitments facilities. (b) Net outstanding standby letters of credit include $3.6 billion at both September 30, 2023 and December 31, 2022, which support remarketing programs. (c) We enter into standby bond purchase agreements to support municipal bond obligations. (d) Includes $2.1 billion and $2.2 billion related to investments in qualified affordable housing projects at September 30, 2023 and December 31, 2022, 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 September 30, 2023, 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 September 30, 2023 had terms ranging from less than one year to seven years. As of September 30, 2023, assets of $1.2 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 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 September 30, 2023 and is included in Other liabilities on our Consolidated Balance Sheet. |
Total Equity and Other Comprehe
Total Equity and Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2023 | |
Other Comprehensive Income [Abstract] | |
Total Equity and Other Comprehensive Income | T OTAL E QUITY A ND O THER C OMPREHENSIVE I NCOME Table 61: Rollforward of Total Equity Shareholders’ Equity In millions Shares Common Capital Capital Retained Accumulated Treasury Non- Total Equity Three months ended Balance at June 30, 2022 (a) 411 $ 2,714 $ 6,004 $ 12,527 $ 51,841 $ (8,358) $ (17,076) $ 36 $ 47,688 Net income 1,624 16 1,640 Other comprehensive loss, net of tax (2,128) (2,128) Cash dividends declared - Common (622) (622) Cash dividends declared - Preferred (65) (65) Preferred stock discount accretion 1 (1) Preferred stock issuance (b) 1,239 1,239 Treasury stock activity (7) 6 (1,051) (1,045) Other 33 (17) 16 Balance at September 30, 2022 (a) 404 $ 2,714 $ 7,244 $ 12,566 $ 52,777 $ (10,486) $ (18,127) $ 35 $ 46,723 Balance at June 30, 2023 (a) 398 $ 2,715 $ 7,237 $ 12,697 $ 55,346 $ (9,525) $ (19,150) $ 26 $ 49,346 Net income 1,554 16 1,570 Other comprehensive loss, net of tax (736) (736) Cash dividends declared - Common (624) (624) Cash dividends declared - Preferred (104) (104) Preferred stock discount accretion 2 (2) Treasury stock activity 3 9 12 Other 32 (15) 17 Balance at September 30, 2023 (a) 398 $ 2,715 $ 7,239 $ 12,732 $ 56,170 $ (10,261) $ (19,141) $ 27 $ 49,481 Nine months ended Balance at December 31, 2021 (a) 420 $ 2,713 $ 5,009 $ 12,448 $ 50,228 $ 409 $ (15,112) $ 31 $ 55,726 Net income 4,513 52 4,565 Other comprehensive loss, net of tax (10,895) (10,895) Cash dividends declared - Common (1,779) (1,779) Cash dividends declared - Preferred (181) (181) Preferred stock discount accretion 4 (4) Preferred stock issuance (b) (c) 2,231 2,231 Common stock activity 1 14 15 Treasury stock activity (16) 56 (3,015) (2,959) Other 48 (48) Balance at September 30, 2022 (a) 404 $ 2,714 $ 7,244 $ 12,566 $ 52,777 $ (10,486) $ (18,127) $ 35 $ 46,723 Balance at December 31, 2022 (a) 401 $ 2,714 $ 5,746 $ 12,630 $ 53,572 $ (10,172) $ (18,716) $ 38 $ 45,812 Cumulative effect of ASU adoptions (d) 26 26 Balance at January 1, 2023 (a) 401 $ 2,714 $ 5,746 $ 12,630 $ 53,598 $ (10,172) $ (18,716) $ 38 $ 45,838 Net income 4,714 50 4,764 Other comprehensive loss, net of tax (89) (89) Cash dividends declared - Common (1,837) (1,837) Cash dividends declared - Preferred (299) (299) Preferred stock discount accretion 6 (6) Preferred stock issuance (e) 1,487 1,487 Common stock activity 1 16 17 Treasury stock activity (3) 76 (425) (349) Other 10 (61) (51) Balance at September 30, 2023 (a) 398 $ 2,715 $ 7,239 $ 12,732 $ 56,170 $ (10,261) $ (19,141) $ 27 $ 49,481 (a) The par value of our preferred stock outstanding was less than $0.5 million at each date and, therefore, is excluded from this presentation. (b) On August 19, 2022, PNC issued 1,250,000 depositary shares each representing 1/100th ownership in a share of 6.200% fixed-rate reset non-cumulative perpetual preferred stock, Series V, with a par value of $1 per share. (c) On April 26, 2022, PNC issued 1,000,000 depositary shares each representing 1/100th ownership in a share of 6.000% fixed-rate reset non-cumulative perpetual preferred stock, Series U, with a par value of $1 per share. (d) Represents the cumulative effect of adopting ASU 2022-02. (e) On February 7, 2023, PNC issued 1,500,000 depositary shares each representing 1/100th ownership in a share of 6.250% fixed-rate reset non-cumulative perpetual preferred stock, Series W, with a par value of $1 per share. Details of other comprehensive income (loss) are as follows: Table 62: Other Comprehensive Income (Loss) Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 In millions Pre-tax Tax effect After-tax 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 $ (1,171) $ 280 $ (891) $ (1,998) $ 471 $ (1,527) $ (993) $ 238 $ (755) $ (11,245) $ 2,650 $ (8,595) Less: Net realized gains (losses) reclassified to (239) 57 (182) (260) 61 (199) (689) 163 (526) (477) 112 (365) Net change (932) 223 (709) (1,738) 410 (1,328) (304) 75 (229) (10,768) 2,538 (8,230) Cash flow hedge derivatives Net unrealized gains (losses) on cash flow hedge derivatives (461) 122 (339) (1,154) 272 (882) (953) 238 (715) (3,486) 821 (2,665) Less: Net realized gains (losses) reclassified to earnings (a) (426) 112 (314) (129) 30 (99) (1,129) 278 (851) (2) (2) Net change (35) 10 (25) (1,025) 242 (783) 176 (40) 136 (3,484) 821 (2,663) Pension and other postretirement benefit plan adjustments Net pension and other postretirement benefit plan activity and other reclassified to earnings (b) 1 (1) 2 (1) 1 (3) (3) 64 (16) 48 Net change 1 (1) 2 (1) 1 (3) (3) 64 (16) 48 Other Net unrealized gains (losses) on other transactions 1 (3) (2) 4 (22) (18) 8 (1) 7 (3) (47) (50) Net change 1 (3) (2) 4 (22) (18) 8 (1) 7 (3) (47) (50) Total other comprehensive income (loss) $ (965) $ 229 $ (736) $ (2,757) $ 629 $ (2,128) $ (123) $ 34 $ (89) $ (14,191) $ 3,296 $ (10,895) (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 63: Accumulated Other Comprehensive Income (Loss) Components In millions, after-tax Debt securities Cash flow hedge derivatives Pension and other postretirement benefit plan adjustments Other Total Three months ended Balance at June 30, 2022 $ (6,313) $ (2,081) $ 74 $ (38) $ (8,358) Net activity (1,328) (783) 1 (18) (2,128) Balance at September 30, 2022 (a) $ (7,641) $ (2,864) $ 75 $ (56) $ (10,486) Balance at June 30, 2023 $ (6,684) $ (2,544) $ (254) $ (43) $ (9,525) Net activity (709) (25) (2) (736) Balance at September 30, 2023 (a) $ (7,393) $ (2,569) $ (254) $ (45) $ (10,261) Nine months ended Balance at December 31, 2021 $ 589 $ (201) $ 27 $ (6) $ 409 Net activity (8,230) (2,663) 48 (50) (10,895) Balance at September 30, 2022 (a) $ (7,641) $ (2,864) $ 75 $ (56) $ (10,486) Balance at December 31, 2022 $ (7,164) $ (2,705) $ (251) $ (52) $ (10,172) Net activity (229) 136 (3) 7 (89) Balance at September 30, 2023 (a) $ (7,393) $ (2,569) $ (254) $ (45) $ (10,261) (a) AOCI included pretax losses of $297 million and $132 million from derivatives that hedged the purchase of investment securities classified as held to maturity at September 30, 2023 and September 30, 2022, respectively. The following table provides the dividends per share for PNC’s common and preferred stock: Table 64: Dividends Per Share (a) Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 Common Stock $ 1.55 $ 1.50 $ 4.55 $ 4.25 Preferred Stock Series B $ 0.45 $ 0.45 $ 1.35 $ 1.35 Series O $ 2,294 $ 1,269 $ 6,468 $ 3,230 Series P $ 1,368 $ 4,431 Series R (b) $ 2,181 $ 4,606 $ 2,425 Series S $ 2,500 $ 2,500 Series T $ 850 $ 850 $ 2,550 $ 2,550 Series U $ 1,500 $ 1,817 $ 4,500 $ 1,817 Series V $ 1,550 $ 4,650 Series W $ 1,563 $ 3,785 (a) Dividends are payable quarterly, other than Series S preferred stock, which is payable semiannually. (b) Beginning September 1, 2023, Series R preferred stock dividends are payable quarterly. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | E ARNINGS P ER S HARE Table 65: Basic and Diluted Earnings Per Common Share Three months ended September 30 Nine months ended September 30 In millions, except per share data 2023 2022 2023 2022 Basic Net income $ 1,570 $ 1,640 $ 4,764 $ 4,565 Less: Net income attributable to noncontrolling interests 16 16 50 52 Preferred stock dividends 104 65 299 181 Preferred stock discount accretion and redemptions 2 1 6 4 Net income attributable to common shareholders 1,448 1,558 4,409 4,328 Less: Dividends and undistributed earnings allocated to nonvested restricted shares 8 8 23 21 Net income attributable to basic common shareholders $ 1,440 $ 1,550 $ 4,386 $ 4,307 Basic weighted-average common shares outstanding 400 410 401 414 Basic earnings per common share (a) $ 3.60 $ 3.78 $ 10.95 $ 10.39 Diluted Net income attributable to diluted common shareholders $ 1,440 $ 1,550 $ 4,386 $ 4,307 Basic weighted-average common shares outstanding 400 410 401 414 Dilutive potential common shares 1 Diluted weighted-average common shares outstanding 400 410 401 415 Diluted earnings per common share (a) $ 3.60 $ 3.78 $ 10.94 $ 10.39 (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 | 9 Months Ended |
Sep. 30, 2023 | |
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. For more information regarding the fair value hierarchy, see Note 15 Fair Value in our 2022 Form 10-K. Assets and Liabilities Measured at Fair Value on a Recurring Basis For more information on the valuation methodologies used to measure assets and liabilities at fair value on a recurring basis, see Note 15 Fair Value in our 2022 Form 10-K. 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 66: Fair Value Measurements – Recurring Basis Summary September 30, 2023 December 31, 2022 In millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Residential mortgage loans held for sale $ 432 $ 97 $ 529 $ 411 $ 243 $ 654 Commercial mortgage loans held for sale 354 25 379 243 33 276 Securities available for sale U.S. Treasury and government agencies $ 6,320 397 6,717 $ 8,108 262 8,370 Residential mortgage-backed Agency 26,899 26,899 28,823 28,823 Non-agency 713 713 819 819 Commercial mortgage-backed Agency 1,544 1,544 1,675 1,675 Non-agency 828 95 923 1,253 3 1,256 Asset-backed 992 103 1,095 5 124 129 Other 2,643 56 2,699 3,032 55 3,087 Total securities available for sale 6,320 33,303 967 40,590 8,108 35,050 1,001 44,159 Loans 506 738 1,244 541 769 1,310 Equity investments (a) 696 1,729 2,618 1,173 1,778 3,147 Residential mortgage servicing rights 2,837 2,837 2,310 2,310 Commercial mortgage servicing rights 1,169 1,169 1,113 1,113 Trading securities (b) 464 2,002 2,466 798 1,168 1,966 Financial derivatives (b) (c) 11 3,821 6 3,838 16 3,747 5 3,768 Other assets 376 67 5 448 352 80 432 Total assets (d) $ 7,867 $ 40,485 $ 7,573 $ 56,118 $ 10,447 $ 41,240 $ 7,252 $ 59,135 Liabilities Other borrowed funds $ 954 $ 81 $ 7 $ 1,042 $ 1,230 $ 232 $ 4 $ 1,466 Financial derivatives (c) (e) 14 8,098 108 8,220 4 7,491 123 7,618 Other liabilities 250 250 294 294 Total liabilities (f) $ 968 $ 8,179 $ 365 $ 9,512 $ 1,234 $ 7,723 $ 421 $ 9,378 (a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. (b) Included in Other assets on the Consolidated Balance Sheet. (c) Amounts at September 30, 2023 and December 31, 2022 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 12 Financial Derivatives for additional information related to derivative offsetting. (d) Total assets at fair value as a percentage of total consolidated assets was 10% and 11% as of September 30, 2023 and December 31, 2022, respectively. Level 3 assets as a percentage of total assets at fair value was 13% and 12% at September 30, 2023 and December 31, 2022, respectively. Level 3 assets as a percentage of total consolidated assets was 1% at both September 30, 2023 and December 31, 2022. (e) Included in Other liabilities on the Consolidated Balance Sheet. (f) Total liabilities at fair value as a percentage of total consolidated liabilities was 2% at both September 30, 2023 and December 31, 2022. Level 3 liabilities as a percentage of total liabilities at fair value was 4% at both September 30, 2023 and December 31, 2022. Level 3 liabilities as a percentage of total consolidated liabilities was less than 1% at both September 30, 2023 and December 31, 2022. Reconciliations of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the three and nine months ended September 30, 2023 and 2022 are as follows: Table 67: Reconciliation of Level 3 Assets and Liabilities Three Months Ended September 30, 2023 Total realized / unrealized Unrealized Level 3 Instruments Only Fair Value June 30, 2023 Included in Included Purchases Sales Issuances Settlements Transfers Transfers Fair Assets Residential mortgage $ 191 $ (3) $ 3 $ (89) $ (2) $ 1 $ (4) (e) $ 97 $ (4) Commercial mortgage 25 25 Securities available for sale Residential mortgage- 768 5 $ (20) (40) 713 Commercial mortgage- backed non-agency 3 92 95 Asset-backed 117 (3) (11) 103 Other 54 (1) 1 3 (1) 56 Total securities 942 4 (22) 3 (52) 92 967 Loans 745 5 19 (27) 2 (6) (e) 738 5 Equity investments 1,623 (9) 212 (97) 1,729 (16) Residential mortgage 2,349 215 329 $ 7 (63) 2,837 215 Commercial mortgage 1,106 130 10 6 (83) 1,169 130 Financial derivatives 6 6 (6) 6 7 Other assets 1 4 5 Total assets $ 6,987 $ 348 $ (22) $ 577 $ (186) $ 13 $ (233) $ 99 $ (10) $ 7,573 $ 337 Liabilities Other borrowed funds $ 5 $ 3 $ (1) $ 7 Financial derivatives 140 $ 50 $ 2 (84) 108 $ 51 Other liabilities 239 6 329 (324) 250 Total liabilities $ 384 $ 56 $ 2 $ 332 $ (409) $ 365 $ 51 Net gains (losses) $ 292 (f) $ 286 (g) (Continued from previous page) Three Months Ended September 30, 2022 Total realized / unrealized Unrealized gains/losses for the period on assets and liabilities held on Consolidated Balance Sheet at Sept. 30, 2022 (a) (c) Level 3 Instruments Only Fair Value June 30, 2022 Included in Earnings Included in Other comprehensive income (b) Purchases Sales Issuances Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value Sept. 30, 2022 Assets Residential mortgage $ 83 $ (4) $ 46 $ (1) $ (2) $ 8 $ (14) (e) $ 116 $ (4) Commercial mortgage 38 (3) 35 Securities available for sale Residential mortgage- 925 4 $ (18) (40) 871 Commercial mortgage-backed non-agency 3 3 Asset-backed 138 (5) (6) 127 Other 67 2 69 Total securities 1,133 4 (21) (46) 1,070 Loans 804 (1) 11 (2) (35) (2) (e) 775 Equity investments 1,867 167 69 (308) 1,795 65 Residential mortgage 1,620 135 363 $ 11 (55) 2,074 135 Commercial mortgage 988 176 7 17 (56) 1,132 176 Financial derivatives 13 4 1 (10) 8 7 Total assets $ 6,546 $ 481 $ (21) $ 497 $ (311) $ 28 $ (207) $ 8 $ (16) $ 7,005 $ 379 Liabilities Other borrowed funds $ 3 $ (1) $ 2 Financial derivatives 213 $ (11) $ 4 (86) 120 $ (7) Other liabilities 182 26 $ 32 $ 362 (333) 269 24 Total liabilities $ 398 $ 15 $ 32 $ 4 $ 362 $ (420) $ 391 $ 17 Net gains (losses) $ 466 (f) $ 362 (g) (Continued from previous page) Nine Months Ended September 30, 2023 Total realized / unrealized Unrealized Level 3 Instruments Only Fair Included in Included Purchases Sales Issuances Settlements Transfers Transfers Fair Assets Residential mortgage $ 243 $ (3) $ 12 $ (131) $ (9) $ 4 $ (19) (e) $ 97 $ (3) Commercial mortgage 33 (8) 25 Securities available for sale Residential mortgage- 819 13 $ (16) (103) 713 Commercial mortgage- 3 92 95 Asset-backed 124 1 (3) (19) 103 Other 55 (1) (3) 6 (4) 3 56 Total securities 1,001 13 (22) 6 (126) 95 967 Loans 769 11 39 (1) (77) 17 (20) (e) 738 11 Equity investments 1,778 136 444 (495) (134) (d) 1,729 103 Residential mortgage 2,310 248 438 $ 17 (176) 2,837 248 Commercial mortgage 1,113 238 27 38 (247) 1,169 238 Financial derivatives 5 13 3 (15) 6 16 Other assets 1 4 5 Total assets $ 7,252 $ 656 $ (22) $ 970 $ (627) $ 55 $ (658) $ 120 $ (173) 7,573 $ 613 Liabilities Other borrowed funds $ 4 $ 9 $ (6) $ 7 Financial derivatives 123 $ 168 $ 5 (188) 108 $ 173 Other liabilities 294 61 436 (541) 250 41 Total liabilities $ 421 $ 229 $ 5 $ 445 $ (735) $ 365 $ 214 Net gains (losses) $ 427 (f) $ 399 (g) (Continued from previous page) Nine Months Ended September 30, 2022 Total realized / unrealized Unrealized gains / losses for the period on assets and liabilities held on Consolidated Balance Sheet at Sept. 30, 2022 (a) (c) Level 3 Instruments Only Fair Included in Included Purchases Sales Issuances Settlements Transfers Transfers Fair Value Sept. 30, 2022 Assets Residential mortgage $ 81 $ (6) $ 91 $ (33) $ (11) $ 22 $ (28) (e) $ 116 $ (6) Commercial mortgage 49 (4) (10) 35 (4) Securities available for sale Residential mortgage- 1,097 19 $ (84) (161) 871 Commercial mortgage- 3 3 Asset-backed 163 1 (18) (19) 127 Other 69 3 (3) 69 Total securities 1,332 20 (102) 3 (183) 1,070 Loans 884 20 31 (10) (132) (18) (e) 775 20 Equity investments 1,680 312 185 (382) 1,795 211 Residential mortgage 1,078 505 620 $ 49 (178) 2,074 506 Commercial mortgage 740 438 32 52 (130) 1,132 438 Financial derivatives 38 (2) 4 (32) 8 18 Total assets $ 5,882 $ 1,283 $ (102) $ 966 $ (425) $ 101 $ (676) $ 22 $ (46) $ 7,005 $ 1,183 Liabilities Other borrowed funds $ 3 $ 4 $ (5) $ 2 Financial derivatives 285 $ 12 $ 10 (187) 120 $ 22 Other liabilities 175 47 $ 32 604 (589) 269 39 Total liabilities $ 463 $ 59 $ 32 $ 10 $ 608 $ (781) $ 391 $ 61 Net gains (losses) $ 1,224 (f) $ 1,122 (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) Transfers out of Level 3 during the current period were due to valuation methodology changes for certain private company investments. See Note 1 Accounting Policies in our 2022 Form 10-K for more information on our accounting for private company investments. (e) 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. (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 on the Consolidated Income Statement and the remaining net gains (losses) realized and unrealized were included in Noninterest income on the Consolidated Income Statement. (g) Net unrealized gains (losses) related to assets and liabilities held at the end of the reporting period were included in Noninterest income on the Consolidated Income Statement. 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. Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities follows: Table 68: Fair Value Measurements – Recurring Quantitative Information September 30, 2023 Level 3 Instruments Only Fair Value Valuation Techniques Unobservable Inputs Range (Weighted-Average) (a) Commercial mortgage loans held for sale $ 25 Discounted cash flow Spread over the benchmark curve (b) 585bps - 7,140bps (2,611bps) Residential mortgage-backed 713 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate 1.0% - 27.9% (3.8%) Constant default rate 0.0% - 12.0% (2.8%) Loss severity 10.0% - 71.4% (42.1%) Spread over the benchmark curve (b) 250bps weighted-average Asset-backed securities 103 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate 1.0% - 11.0% (5.3%) Constant default rate 0.0% - 4.3% (1.7%) Loss severity 30.0% - 100.0% (48.8%) Spread over the benchmark curve (b) 256bps weighted-average Loans - Residential real estate - Uninsured 555 Consensus pricing (c) Cumulative default rate 3.6% - 100.0% (59.6%) Loss severity 0.0% - 100.0% (5.4%) Discount rate 5.5% - 7.5% (5.8%) Loans - Residential real estate 75 Discounted cash flow Loss severity 6.0% weighted-average Discount rate 8.4% weighted-average Loans - Home equity - First-lien 19 Consensus pricing (c) Cumulative default rate 3.6% - 100.0% (63.3%) Loss severity 0.0% - 100.0% (15.2%) Discount rate 5.5% - 7.5% (6.3%) Loans - Home equity 89 Consensus pricing (c) Credit and liquidity discount 0.4% - 100.0% (44.7%) Equity investments 1,729 Multiple of adjusted earnings Multiple of earnings 4.5x - 20.0x (9.7x) Residential mortgage servicing rights 2,837 Discounted cash flow Constant prepayment rate 0.0% - 29.7% (5.8%) Spread over the benchmark curve (b) 337bps - 1,650bps (765bps) Commercial mortgage servicing rights 1,169 Discounted cash flow Constant prepayment rate 5.2% - 7.4% (5.4%) Discount rate 8.3% - 10.7% (10.2%) Financial derivatives - Swaps related to (99) Discounted cash flow Estimated conversion factor of Visa Class B shares into Class A shares 1.59 weighted-average Estimated annual growth rate of Visa Class A share price 16.0% Estimated litigation resolution date Q1 2024 Insignificant Level 3 assets, net of (7) Total Level 3 assets, net of liabilities (e) $ 7,208 (Continued from previous page) 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 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 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 1.61 weighted-average Estimated annual growth rate of Visa Class A share price 16.0% Estimated litigation resolution date Q2 2023 Insignificant Level 3 assets, net of (8) Total Level 3 assets, net of liabilities (e) $ 6,831 (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 $7.6 billion and total Level 3 liabilities of $0.4 billion as of September 30, 2023 and $7.3 billion and $0.4 billion as of December 31, 2022, respectively. Financial Assets Accounted for at Fair Value on a Nonrecurring Basis We may be required to measure certain financial assets at fair value on a nonrecurring basis. These adjustments to fair value usually result from the application of lower of amortized cost or fair value accounting or write-downs of individual assets due to impairment and are included in Table 69. For more information regarding the valuation methodologies of our financial assets measured at fair value on a nonrecurring basis, see Note 15 Fair Value in our 2022 Form 10-K. Assets measured at fair value on a nonrecurring basis follow: Table 69: Fair Value Measurements – Nonrecurring (a) (b) (c) Fair Value Gains (Losses) Gains (Losses) In millions September 30 December 31 September 30 September 30 September 30 September 30 Assets Nonaccrual loans $ 361 $ 280 $ (84) $ (111) $ (260) $ (145) Equity investments 57 135 (15) (19) OREO and foreclosed assets 11 10 (1) (1) Long-lived assets 4 23 (3) (1) (17) (5) Total assets $ 433 $ 448 $ (103) $ (112) $ (297) $ (150) (a) All Level 3 for the periods presented, except for $28 million and $42 million included in Equity investments which were categorized as Level 1 as of September 30, 2023 and December 31, 2022, respectively. (b) Valuation techniques applied were discounted cash flow and 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. Financial Instruments Accounted for under Fair Value Option We elect the fair value option to account for certain financial instruments. For more information on these financial instruments for which the fair value option election has been made, see Note 15 Fair Value in our 2022 Form 10-K. Fair values and aggregate unpaid principal balances of items for which we elected the fair value option are as follows: Table 70: Fair Value Option – Fair Value and Principal Balances September 30, 2023 December 31, 2022 In millions Fair Value Aggregate Unpaid Difference Fair Value Aggregate Unpaid Difference Assets Residential mortgage loans held for sale Accruing loans less than 90 days past due $ 486 $ 496 $ (10) $ 609 $ 633 $ (24) Accruing loans 90 days or more past due 10 10 5 5 Nonaccrual loans 33 40 (7) 40 49 (9) Total $ 529 $ 546 $ (17) $ 654 $ 687 $ (33) Commercial mortgage loans held for sale (a) Accruing loans less than 90 days past due $ 365 $ 368 $ (3) $ 261 $ 256 $ 5 Nonaccrual loans 14 43 (29) 15 44 (29) Total $ 379 $ 411 $ (32) $ 276 $ 300 $ (24) Loans Accruing loans less than 90 days past due $ 505 $ 518 $ (13) $ 509 $ 521 $ (12) Accruing loans 90 days or more past due 140 152 (12) 155 167 (12) Nonaccrual loans 599 815 (216) 646 880 (234) Total $ 1,244 $ 1,485 $ (241) $ 1,310 $ 1,568 $ (258) Other assets $ 68 $ 75 $ (7) $ 80 $ 80 Liabilities Other borrowed funds $ 37 $ 38 $ (1) $ 31 $ 32 $ (1) Other liabilities $ 141 $ 141 $ 196 $ 196 The changes in fair value for items for which we elected the fair value option are as follows: Table 71: Fair Value Option – Changes in Fair Value (a) Gains (Losses) Gains (Losses) Three months ended Nine months ended September 30 September 30 September 30 September 30 In millions 2023 2022 2023 2022 Assets Residential mortgage loans held for sale $ (3) $ (29) $ 14 $ (92) Commercial mortgage loans held for sale $ 6 $ 14 $ 29 $ 34 Loans $ 8 $ 1 $ 17 $ 37 Other assets $ (3) $ (12) $ (21) Liabilities Other liabilities $ (24) $ (41) $ (40) (a) The impact on earnings of offsetting hedged items or hedging instruments is not reflected in these amounts. Additional Fair Value Information Related to Financial Instruments Not Recorded at Fair Value The following table presents the carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of all other financial instruments that are not recorded on our Consolidated Balance Sheet at fair value as of September 30, 2023 and December 31, 2022. For more information regarding the methods and assumptions used to estimate the fair values of financial instruments included in Table 72, see Note 15 Fair Value in our 2022 Form 10-K. Table 72: Additional Fair Value Information Related to Other Financial Instruments Carrying Fair Value In millions Amount Total Level 1 Level 2 Level 3 September 30, 2023 Assets Cash and due from banks $ 5,300 $ 5,300 $ 5,300 Interest-earning deposits with banks 41,484 41,484 $ 41,484 Securities held to maturity 91,803 84,447 30,110 54,189 $ 148 Net loans (excludes leases) 305,911 295,609 295,609 Other assets 5,916 5,916 5,915 1 Total assets $ 450,414 $ 432,756 $ 35,410 $ 101,588 $ 295,758 Liabilities Time deposits $ 27,209 $ 27,142 $ 27,142 Borrowed funds 65,052 65,127 63,943 $ 1,184 Unfunded lending related commitments 640 640 640 Other liabilities 1,106 1,106 1,106 Total liabilities $ 94,007 $ 94,015 $ 92,191 $ 1,824 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 The aggregate fair values in Table 72 represent only a portion of the total market value of our assets and liabilities as, in accordance with the guidance related to fair values about financial instruments, we exclude the following: • financial instruments recorded at fair value on a recurring basis (as they are disclosed in Table 66), • investments accounted for under the equity method, • equity securities without a readily determinable fair value that apply for the alternative measurement approach to fair value under ASU 2016-01, • real and personal property, • lease financing, • loan customer relationships, • deposit customer intangibles, • MSRs, • retail branch networks, • fee-based businesses, such as asset management and brokerage, • trademarks and brand names, • trade receivables and payables due in one year or less, • deposit liabilities with no defined or contractual maturities under ASU 2016-01, and • insurance contracts. |
Financial Derivatives
Financial Derivatives | 9 Months Ended |
Sep. 30, 2023 | |
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. For more information regarding derivatives see Note 1 Accounting Policies and Note 16 Financial Derivatives in our 2022 Form 10-K. During the second quarter, in anticipation of LIBOR’s cessation on June 30, 2023, LIBOR-indexed interest-rate swap contracts with central clearing counterparties were subject to a conversion process whereby an individual LIBOR swap contract was exchanged for a SOFR replacement swap contract, along with one or more overlay swap contracts replicating the final LIBOR cash flows on the original swap contract. The swap contracts exchanged were substantially economically equivalent. Conversion-related valuation differences were settled in cash on the conversion dates and were not material. The SOFR replacement and overlay swaps are considered separate contracts, and the overlay swaps will result in a gross-up of the notional amounts presented until those swaps mature upon settlement of the final LIBOR payment. The majority of overlay swaps matured during the third quarter of 2023. Table 73: Total Gross Derivatives (a) September 30, 2023 December 31, 2022 In millions Notional / Asset Fair Liability Fair Notional / Asset Fair Liability Fair Derivatives used for hedging Interest rate contracts: Fair value hedges (d) $ 29,523 $ 24,231 Cash flow hedges (d) 35,241 $ 2 40,310 $ 1 Cash flow hedges - other (e) 25,000 $ 222 281 Foreign exchange contracts: Net investment hedges 1,168 22 1,120 $ 24 Total derivatives designated for hedging $ 90,932 $ 244 $ 283 $ 65,661 $ 24 $ 1 Derivatives not used for hedging Derivatives used for mortgage banking activities (f): Interest rate contracts: Swaps (g) $ 45,056 $ 4 $ 47,908 $ 7 $ 1 Futures (h) 8,860 5,537 Mortgage-backed commitments 4,750 $ 77 73 4,516 85 89 Other 16,588 51 21 18,017 90 14 Total interest rate contracts 75,254 128 98 75,978 182 104 Derivatives used for customer-related activities: Interest rate contracts: Swaps (g) 420,301 2,170 6,579 354,150 1,597 5,397 Futures (h) 41 32 Mortgage-backed commitments 3,675 27 11 2,799 10 6 Other 28,734 292 285 29,071 334 321 Total interest rate contracts 452,751 2,489 6,875 386,052 1,941 5,724 Commodity contracts: Swaps 6,558 477 504 5,792 1,003 1,067 Other 2,894 71 73 4,488 205 202 Total commodity contracts 9,452 548 577 10,280 1,208 1,269 Foreign exchange contracts and other 31,358 312 277 30,512 366 293 Total derivatives for customer-related activities 493,561 3,349 7,729 426,844 3,515 7,286 Derivatives used for other risk management activities: Foreign exchange contracts and other 17,427 117 110 12,785 47 227 Total derivatives not designated for hedging $ 586,242 $ 3,594 $ 7,937 $ 515,607 $ 3,744 $ 7,617 Total gross derivatives $ 677,174 $ 3,838 $ 8,220 $ 581,268 $ 3,768 $ 7,618 Less: Impact of legally enforceable master netting agreements 1,396 1,396 1,523 1,523 Less: Cash collateral received/paid 1,593 1,599 714 1,571 Total derivatives $ 849 $ 5,225 $ 1,531 $ 4,524 (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) Represents caps and floors. (f) Includes both residential and commercial mortgage banking activities. (g) At September 30, 2023, the gross-up of the notional amounts due to overlay swap contracts used for mortgage banking and customer-related activities were $0.4 billion and $22.6 billion, respectively (h) 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 12. Any nonperformance risk, including credit risk, is included in the determination of the estimated net fair value of the derivatives. 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. In the 12 months that follow September 30, 2023, we expect to reclassify net derivative losses of $1.5 billion pretax, or $1.1 billion after-tax, from AOCI to interest income for these cash flow hedge strategies. This reclassified amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations and the addition of other hedges subsequent to September 30, 2023. As of September 30, 2023, the maximum length of time over which forecasted transactions are hedged is eight years. Further detail regarding gains (losses) related to our fair value and cash flow hedge derivatives is presented in the following table: Table 74: 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 For the three months ended September 30, 2023 Total amounts in the Consolidated Income Statement $ 4,643 $ 892 $ 993 $ 94 Gains (losses) on fair value hedges recognized on: Hedged items (c) $ (156) $ 416 Derivatives $ 158 $ (421) Amounts related to interest settlements on derivatives $ 8 $ (167) Gains (losses) on cash flow hedges (d): Amount of derivative gains (losses) reclassified from accumulated $ (418) $ (8) For the three months ended September 30, 2022 Total amounts in the Consolidated Income Statement $ 3,138 $ 715 $ 317 $ 317 Gains (losses) on fair value hedges recognized on: Hedged items (c) $ (85) $ 696 Derivatives $ 86 $ (706) Amounts related to interest settlements on derivatives $ (1) $ 1 Gains (losses) on cash flow hedges (d): Amount of derivative gains (losses) reclassified from accumulated $ (122) $ (7) For the nine months ended September 30, 2023 Total amounts on the Consolidated Income Statement $ 13,424 $ 2,660 $ 2,679 $ 481 Gains (losses) on fair value hedges recognized on: Hedged items (c) $ (157) $ 551 Derivatives $ 163 $ (569) Amounts related to interest settlements on derivatives $ 20 $ (427) Gains (losses) on cash flow hedges (d): Amount of derivative gains (losses) reclassified from accumulated $ (1,108) $ (21) For the nine months ended September 30, 2022 Total amounts on the Consolidated Income Statement $ 7,935 $ 1,890 $ 542 $ 705 Gains (losses) on fair value hedges recognized on: Hedged items (c) $ (131) $ 2,073 Derivatives $ 135 $ (2,101) Amounts related to interest settlements on derivatives $ (4) $ 185 Gains (losses) on cash flow hedges (d): Amount of derivative gains (losses) reclassified from accumulated $ (5) $ 3 (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. Detail regarding the impact of fair value hedge accounting on the carrying value of the hedged items is presented in the following table: Table 75: Hedged Items - Fair Value Hedges September 30, 2023 December 31, 2022 In millions Carrying Value of the Hedged Items Cumulative Fair Carrying Value of the Hedged Items Cumulative Fair Value Investment securities - available for sale (b) $ 1,874 $ (282) $ 2,376 $ (121) Borrowed funds $ 25,959 $ (1,834) $ 21,781 $ (1,283) (a) Includes less than $(0.1) billion of fair value hedge adjustments primarily related to discontinued borrowed funds hedge relationships at both September 30, 2023 and December 31, 2022. (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 (losses) on net investment hedge derivatives recognized in OCI were $44 million and $(2) million for the three and nine months ended September 30, 2023, respectively, and insignificant for both the three and nine months ended September 30, 2022. Derivatives Not Designated As Hedging Instruments For additional information on derivatives not designated as hedging instruments under GAAP, see Note 16 Financial Derivatives in our 2022 Form 10-K. Further detail regarding the gains (losses) on derivatives not designated in hedging relationships is presented in the following table: Table 76: Gains (Losses) on Derivatives Not Designated for Hedging Three months ended Nine months ended In millions 2023 2022 2023 2022 Derivatives used for mortgage banking activities: Interest rate contracts (a) $ (224) $ (245) $ (301) $ (700) Derivatives used for customer-related activities: Interest rate contracts 11 65 46 231 Foreign exchange contracts and other 31 (2) 145 22 Gains from customer-related activities (b) 42 63 191 253 Derivatives used for other risk management activities: Foreign exchange contracts and other (b) 129 309 (85) 572 Total gains (losses) from derivatives not designated as hedging instruments $ (53) $ 127 $ (195) $ 125 (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. For additional information on derivative offsetting and counterparty credit risk, see Note 16 Financial Derivatives in our 2022 Form 10-K. Table 77 shows the impact legally enforceable master netting agreements had on our derivative assets and derivative liabilities at September 30, 2023 and December 31, 2022. 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 Table 77: Derivative Assets and Liabilities Offsetting In millions Amounts Offset on the Securities Collateral Held/Pledged Under Master Netting Agreements Gross Fair Value Cash Net Net Amounts September 30, 2023 Derivative assets Interest rate contracts: Over-the-counter cleared $ 43 $ 43 $ 43 Over-the-counter 2,796 $ 1,014 $ 1,318 464 $ 116 348 Commodity contracts 548 250 71 227 2 225 Foreign exchange and other contracts 451 132 204 115 115 Total derivative assets $ 3,838 $ 1,396 $ 1,593 $ 849 (a) $ 118 $ 731 Derivative liabilities Interest rate contracts: Over-the-counter cleared $ 30 $ 30 $ 30 Over-the-counter 7,226 $ 811 $ 1,567 4,848 $ 87 4,761 Commodity contracts 577 459 31 87 87 Foreign exchange and other contracts 387 126 1 260 260 Total derivative liabilities $ 8,220 $ 1,396 $ 1,599 $ 5,225 (b) $ 87 $ 5,138 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 (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 September 30, 2023, cash and debt securities (primarily agency mortgage-backed securities) totaling $2.5 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 $2.6 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 instruments with credit-risk-related contingent features, the associated collateral posted in the normal course of business and the maximum amount of collateral we would be required to post if the credit-risk-related contingent features underlying these agreements had been triggered on September 30, 2023 and December 31, 2022. Table 78: Credit-Risk Contingent Features In billions September 30, 2023 December 31, 2022 Net derivative liabilities with credit-risk contingent features $ 6.5 $ 5.8 Collateral posted 1.7 1.7 Maximum additional amount of collateral exposure $ 4.8 $ 4.1 |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2023 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | L EGAL P ROCEEDINGS We establish accruals for legal proceedings, including litigation and regulatory and governmental investigations and inquiries, when information related to the loss contingencies represented by those matters indicates both that a loss is probable and that the amount of loss can be reasonably estimated. Any such accruals are adjusted thereafter as appropriate to reflect changed circumstances. When we are able to do so, we also determine estimates of reasonably possible losses or ranges of reasonably possible losses, whether in excess of any related accrued liability or where there is no accrued liability, for disclosed legal proceedings (“Disclosed Matters,” which are those matters disclosed in this Note 13 as well as those matters disclosed in Note 21 Legal Proceedings in our 2022 Form 10-K, in Note 13 Legal Proceedings in our first quarter 2023 Form 10-Q and in Note 13 Legal Proceedings in our second quarter 2023 Form 10-Q (such prior disclosure referred to as “Prior Disclosure”)). For Disclosed Matters where we are able to estimate such possible losses or ranges of possible losses, as of September 30, 2023, we estimate that it is reasonably possible that we could incur losses in excess of related accrued liabilities, if any, in an aggregate amount less than $300 million. The estimates included in this amount are based on our analysis of currently available information and are subject to significant judgment and a variety of assumptions and uncertainties. As 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. As a result of the types of factors described in Note 21 Legal Proceedings in our 2022 Form 10-K, 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 Disclosed Matters, 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 would 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 In September 2023, Visa announced proposed amendments to its Certificate of Incorporation to institute, if approved by stockholders, an exchange offer program that would initially convert Visa’s Class B common stock to Class B-1 common stock and release transfer restrictions on up to 50% of the Class B-1 common stock. By participating in the program, a holder of Class B-1 common stock would have the ability to exchange up to half of its Class B-1 common stock into Visa’s Class C common stock. Subject to certain restrictions, the Class C shares could then be converted into Visa’s Class A shares at the then-applicable conversion rate, which, subject to lock-up periods, could be sold on the open market. The exchanges would be subject to the applicable stockholder agreeing to make-whole agreements that would subject them to the same indemnity obligations to Visa as are currently present. Three additional such exchanges taking place no less than one year apart, and permitting a holder of Visa’s Class B-1 common stock to exchange up to half of its then held Class B-1 common stock into Visa’s Class C common stock, would be possible but not guaranteed. USAA Patent Infringement Litigation In July 2023, both PNC and USAA appealed the Final Written Decision of the Patent Trial and Appeal Board that held unpatentable many of the claims of the patent presented to the jury in United Services Automobile Association v. PNC Bank N.A. (Case No. 2:21-cv-246) (the “third Texas case”). It held that other claims of that patent were patentable. With respect to the other patent originally at issue in the third Texas case and subject to inter partes review by the Patent Trial and Appeal Board, in August 2023, USAA appealed the Final Written Decision of the Patent Trial and Appeal Board that held all of the claims unpatentable. This second patent was not 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 in Prior Disclosure, 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. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2023 | |
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. Total business segment financial results differ from total consolidated net income. These differences are reflected in the “Other” category in Table 79. “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. The declines in earnings for the three months ended and nine months ended September 30, 2023 when compared to the same periods in 2022 for the “Other” category were primarily due to internal funds transfer pricing impacts between business segments. 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. Business Segment Results Table 79: Results of Businesses Three months ended September 30 Retail Banking Corporate & Asset Other Consolidated (a) 2023 Income Statement Net interest income $ 2,576 $ 1,390 $ 139 $ (687) $ 3,418 Noninterest income 784 835 223 (27) 1,815 Total revenue 3,360 2,225 362 (714) 5,233 Provision for (recapture of) credit losses 42 102 (4) (11) 129 Depreciation and amortization 80 52 9 144 285 Other noninterest expense 1,796 843 262 59 2,960 Income (loss) before income taxes (benefit) and noncontrolling interests 1,442 1,228 95 (906) 1,859 Income taxes (benefit) 337 263 22 (333) 289 Net income (loss) 1,105 965 73 (573) 1,570 Less: Net income attributable to noncontrolling interests 11 5 16 Net income (loss) excluding noncontrolling interests $ 1,094 $ 960 $ 73 $ (573) $ 1,554 Average Assets $ 114,724 $ 230,082 $ 16,161 $ 193,996 $ 554,963 2022 Income Statement Net interest income $ 2,017 $ 1,345 $ 165 $ (52) $ 3,475 Noninterest income 725 887 231 231 2,074 Total revenue 2,742 2,232 396 179 5,549 Provision for (recapture of) credit losses 92 150 4 (5) 241 Depreciation and amortization 76 50 6 145 277 Other noninterest expense 1,825 840 268 70 3,003 Income (loss) before income taxes (benefit) and noncontrolling interests 749 1,192 118 (31) 2,028 Income taxes (benefit) 175 258 28 (73) 388 Net income 574 934 90 42 1,640 Less: Net income (loss) attributable to noncontrolling interests 14 5 (3) 16 Net income excluding noncontrolling interests $ 560 $ 929 $ 90 $ 45 $ 1,624 Average Assets $ 114,619 $ 224,984 $ 14,820 $ 192,674 $ 547,097 (Continued from previous page) Nine months ended September 30 Retail Corporate & Asset Other Consolidated (a) 2023 Income Statement Net interest income $ 7,305 $ 4,122 $ 391 $ (1,305) $ 10,513 Noninterest income 2,229 2,542 681 164 5,616 Total revenue 9,534 6,664 1,072 (1,141) 16,129 Provision for (recapture of) credit losses 266 283 (5) (34) 510 Depreciation and amortization 239 159 22 430 850 Other noninterest expense 5,468 2,596 809 215 9,088 Income (loss) before income taxes (benefit) and noncontrolling interests 3,561 3,626 246 (1,752) 5,681 Income taxes (benefit) 834 775 58 (750) 917 Net income (loss) 2,727 2,851 188 (1,002) 4,764 Less: Net income attributable to noncontrolling interests 32 15 3 50 Net income (loss) excluding noncontrolling interests $ 2,695 $ 2,836 $ 188 $ (1,005) $ 4,714 Average Assets $ 114,975 $ 232,914 $ 15,578 $ 194,107 $ 557,574 2022 Income Statement Net interest income $ 5,210 $ 3,720 $ 456 $ (56) $ 9,330 Noninterest income 2,218 2,659 713 437 6,027 Total revenue 7,428 6,379 1,169 381 15,357 Provision for (recapture of) credit losses 66 15 11 (23) 69 Depreciation and amortization 233 153 20 437 843 Other noninterest expense 5,473 2,508 775 97 8,853 Income (loss) before income taxes (benefit) and noncontrolling interests 1,656 3,703 363 (130) 5,592 Income taxes (benefit) 389 803 85 (250) 1,027 Net income 1,267 2,900 278 120 4,565 Less: Net income (loss) attributable to noncontrolling interests 45 12 (5) 52 Net income excluding noncontrolling interests $ 1,222 $ 2,888 $ 278 $ 125 $ 4,513 Average Assets $ 113,157 $ 215,163 $ 14,360 $ 205,763 $ 548,443 (a) There were no material intersegment revenues for the three and nine months ended September 30, 2023 and 2022. 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 who are serviced through our coast-to-coast branch network, digital channels, ATMs, or through our phone-based customer contact centers. Deposit products include checking, savings and money market accounts and time deposits. 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 acquisitions 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 | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Fee-Based Revenue from Contracts with Customers | F EE - BASED R EVENUE FROM C ONTRACTS WITH C USTOMERS As more fully described in Note 24 Fee-based Revenue from Contracts with Customers in our 2022 Form 10-K, 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). 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. 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 in our 2022 Form 10-K. Table 80 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. For a description of the fee-based revenue and how it is recognized for each segment’s principal products and services, see Note 24 Fee-based Revenue from Contracts with Customers in our 2022 Form 10-K. Table 80: Noninterest Income by Business Segment and Reconciliation to Consolidated Noninterest Income Three Months Ended Three Months Ended Retail Banking Corporate & Asset Management Group Retail Banking Corporate & Asset Management Group Asset management and brokerage Asset management fees $ 217 $ 224 Brokerage fees $ 129 2 $ 131 2 Total asset management and brokerage 129 219 131 226 Card and cash management Treasury management fees 10 $ 351 11 $ 328 Debit card fees 175 175 Net credit card fees (a) 54 60 Merchant services 42 20 48 16 Other 24 23 Total card and cash management 305 371 317 344 Lending and deposit services Deposit account fees 170 146 Other 18 8 16 8 Total lending and deposit services 188 8 162 8 Residential and commercial mortgage (b) 32 36 Capital markets and advisory 124 155 Other 22 11 Total in-scope noninterest income 622 557 219 610 554 226 Out-of-scope noninterest income (c) 162 278 4 115 333 5 Noninterest income by business segment $ 784 $ 835 $ 223 $ 725 $ 887 $ 231 Reconciliation to consolidated noninterest income Total in-scope business segment noninterest income $ 1,398 $ 1,390 Out-of-scope business segment noninterest income (c) 444 453 Noninterest income from other segments (27) 231 Noninterest income as shown on the Consolidated Income Statement $ 1,815 $ 2,074 (Continued from previous page) Nine Months Ended Nine Months Ended Retail Banking Corporate & Asset Retail Banking Corporate & Asset Asset management and brokerage Asset management fees $ 663 $ 693 Brokerage fees $ 383 6 $ 400 6 Total asset management and brokerage 383 669 400 699 Card and cash management Treasury management fees 31 $ 1,024 30 $ 957 Debit card fees 518 513 Net credit card fees (a) 173 178 Merchant services 126 58 141 47 Other 73 73 Total card and cash management 921 1,082 935 1,004 Lending and deposit services Deposit account fees 476 433 Other 54 24 50 25 Total lending and deposit services 530 24 483 25 Residential and commercial mortgage (b) 114 100 Capital markets and advisory 410 564 Other 44 33 Total in-scope noninterest income 1,834 1,674 669 1,818 1,726 699 Out-of-scope noninterest income (c) 395 868 12 400 933 14 Noninterest income by business segment $ 2,229 $ 2,542 $ 681 $ 2,218 $ 2,659 $ 713 Reconciliation to consolidated noninterest income Total in-scope business segment noninterest income $ 4,177 $ 4,243 Out-of-scope business segment noninterest income (c) 1,275 1,347 Noninterest income from other segments 164 437 Noninterest income as shown on the Consolidated Income Statement $ 5,616 $ 6,027 (a) Net credit card fees consists of interchange fees of $169 million for both the three months ended September 30, 2023 and 2022. Credit card reward costs totaled $115 million and $109 million for the three months ended September 30, 2023 and 2022, respectively. Net credit card fees consists of interchange fees of $502 million and $489 million and credit card reward costs of $329 million and $311 million for the nine months ended September 30, 2023 and 2022, 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. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2023 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | R EGULATORY M ATTERS FDIC Special Assessment Pursuant to Systemic Risk Determination In May 2023, the FDIC proposed a rule to implement a special assessment, in connection with the systemic risk determination announced in March 2023, to recover the cost associated with protecting uninsured depositors following the closures of Silicon Valley Bank and Signature Bank. Under the proposal, the FDIC would collect from PNC, along with other BHCs and insured depository institutions, special assessments at an annual rate of 12.5 basis points of PNC’s uninsured deposits reported as of December 31, 2022 (adjusted to exclude the first $5.0 billion), over eight quarterly assessment periods, beginning after the first quarter 2024. We expect the FDIC will enact a special deposit insurance assessment that will significantly increase our FDIC deposit insurance costs. The total cost and timing is subject to the pending finalization of the assessment. Proposed Expanded Risk-Based Capital Rules On July 27, 2023, the Federal Reserve, OCC, and FDIC proposed for public comment an interagency rule to implement the final components of the Basel III framework that would significantly revise the capital requirements for large banking organizations, including PNC and PNC Bank. The proposed rule will apply an expanded risk-based approach which leverages the Basel rules, including the calculation of risk-weighted assets, in addition to the current U.S. standardized approach. In addition, this proposal would align the regulatory capital elements and required deductions for Category III banking organizations such as PNC and PNC Bank with those currently applicable to Category I and II banking organizations. PNC and PNC Bank would be required to recognize most elements of AOCI in regulatory capital and deduct from CET1 capital, among other items, mortgage servicing assets and deferred tax assets that individually exceed 10% of CET1 capital or in the aggregate with other threshold items that exceed 15% of CET1 capital . PNC and PNC Bank would be required to calculate their risk-based capital ratios under the existing standardized approach and the expanded risk-based approach and would be subject to the lower of the two resulting ratios for their risk-based capital minimums and buffer requirements, including the SCB. The proposed effective date is July 1, 2025, with certain provisions— |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | S UBSEQUENT E VENTS On October 2, 2023, PNC acquired a portfolio of capital commitments facilities from Signature Bridge Bank, N.A. through an agreement with the FDIC as receiver of the former Signature Bank, New York. The acquired portfolio represents approximately $16 billion in total commitments, including approximately $9 billion of funded loans. The transaction did not have a material impact to PNC’s total assets, capital ratios or tangible book value per share. PNC purchased these commitments and loans without any funding, guarantees or loss-sharing agreements from the FDIC. The facilities acquired are primarily comprised of fund subscription lines to private equity sponsors to help them manage liquidity and bridge financing for investments. On October 6, 2023, PNC committed to a workforce reduction that is expected to reduce our workforce by approximately 4%. PNC has incurred one-time expenses of approximately $150 million primarily related to cash severance, benefits and related termination costs. On October 20, 2023, the parent company issued $1.25 billion of senior fixed-to-floating rate notes with a maturity date of October 20, 2027 (the “2027 Senior Notes”) and $2.25 billion of senior fixed-to-floating rate notes with a maturity date of October 20, 2034 (the “2034 Senior Notes”). Interest is payable on the 2027 Senior Notes semi-annually at a fixed rate of 6.615% per annum, on April 20 and October 20 of each year, beginning on April 20, 2024. Beginning on October 20, 2026, interest is payable on the 2027 Senior Notes quarterly in arrears at a floating rate per annum equal to Compounded SOFR (determined with respect to each quarterly interest period using the SOFR Index as described in the Prospectus Supplement), plus 1.730%, on January 20, 2027, April 20, 2027, July 20, 2027 and at the maturity date. Interest is payable on the 2034 Senior Notes semi-annually in arrears at a fixed rate of 6.875% per annum, on April 20 and October 20 of each year, beginning on April 20, 2024. Beginning on October 20, 2033, interest is payable on the 2034 Senior Notes quarterly in arrears at a floating rate per annum equal to Compounded SOFR (determined with respect to each quarterly interest period using the SOFR Index as described in the Prospectus Supplement), plus 2.284%, on January 20, 2034, April 20, 2034, July 20, 2034 and at the maturity date . |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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. 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. We prepared these consolidated financial statements in accordance with GAAP. We have eliminated intercompany accounts and transactions. In our opinion, the unaudited interim consolidated financial statements reflect all normal, recurring adjustments needed to state fairly our results for the interim periods. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. We have also considered the impact of subsequent events on these consolidated financial statements. When preparing these unaudited interim consolidated financial statements, we have assumed that you have read the audited consolidated financial statements included in our 2022 Form 10-K. These interim consolidated financial statements serve to update our 2022 Form 10-K and may not include all information and Notes necessary to constitute a complete set of financial statements. There have been changes to certain of our accounting policies as disclosed in our 2022 Form 10-K due to the adoption of ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (ASU 2022-02) in the first quarter of 2023 and the adoption of ASU 2023-02 Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method |
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. Actual results may differ from the estimates and the differences may be material to the consolidated financial statements. |
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. The CARES Act credit reporting rules, which required exceptions to this policy, expired in the third quarter of 2023. As such, delinquency status at September 30, 2023 is being reported for all loans based on the contractual terms of each loan. Prior period amounts continue to be presented in accordance with the credit reporting rules under the CARES Act, which required certain loans modified due to pandemic-related hardships to not be reported as past due based on the contractual terms of the loan, even when borrowers may not have made payments on their loans during the modification period. 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 the 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 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. Collateral dependent designation is removed when a loan no longer meets these conditions. On January 1, 2023, we adopted ASU 2022-02, which eliminates the accounting guidance for TDRs. See Note 1 Accounting Policies in our 2022 Form 10-K for a description of our accounting policies for TDRs that were in effect prior to adoption. Loan modifications to borrowers experiencing financial difficulty, or FDMs, result from our loss mitigation activities and include principal forgiveness, interest rate reductions, term extensions, payment delays, repayment plans or combinations thereof. FDMs continue to be subject to our existing nonaccrual policies. Expected losses or recoveries on FDMs have been factored into the ALLL estimates for each loan class under the methodologies described in this Note. Refer to Note 3 Loans and Related Allowance for Credit Losses for more information on FDMs. 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, • Note 3 Loans and Related Allowance for Credit Losses in this Report, and • Note 4 Loans and Related Allowance for Credit Losses in our 2022 Form 10-K. 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, and it is not probable the borrower will be able to repay contractual payments due under the loan, • 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 or guaranteed loans where substantially all principal and interest is insured. • Commercial purchasing card assets that 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 due to a borrower experiencing financial difficulty and is not government insured or guaranteed, – 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 or guaranteed 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 generally charged off in full after 180 days for loans and 120 days for leases. 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 the fair value is lower than the amortized cost basis of the loan outstanding and the delinquency of the loan, combined with other risk factors such as bankruptcy or lien position, indicates that the loan (or a portion thereof) is uncollectible as per our historical experience. These nonperforming loans would also be charged off when 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 a 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 the 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 loans modified due to a borrower experiencing financial difficulty, payments are applied based upon their contractual terms unless the related loan is deemed nonperforming. Loans modified due to a borrower experiencing financial difficulty are generally included in nonperforming and nonaccrual loans if they are not government insured or guaranteed. However, after a reasonable period of time, generally six months, in which the loan performs under modified terms and meets other performance indicators, it is returned to accruing status. This return to accruing status demonstrates that the bank expects to collect all of the loan’s remaining contractual principal and interest. Loan modifications granted to borrowers experiencing financial difficulty 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 modified terms are not returned to accrual status. Other nonaccrual loans are generally not returned to accruing status until the borrower has performed in accordance with the loan’s contractual terms and other performance indicators for at least six months, the period of time which was determined to demonstrate the expected collectability of the loan’s remaining contractual principal and interest. Nonaccrual loans with partially charged-off principal may return to accruing status if the loan performs after a reasonable period of time, generally six months, and the loan meets other performance indicators. Nonaccrual loans with fully charged-off principal are prohibited from returning to accruing status. When a nonperforming loan is returned to accruing 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 residential and commercial 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 3 Loans and Related Allowance for Credit Losses for additional information on FDMs, nonperforming assets and credit quality indicators related to our loan portfolio. |
Allowance for Loan and Lease Losses | Allowance for Credit Losses Our ACL 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 remaining 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 contractually 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 currently 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 one to three 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 loans and leases and unfunded lending related commitments for details about specific reserve methodologies. 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, LTV, 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 (CRE) • 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 type, LTV, market, risk pool and costs to sell for the forecast period • For the long-run average period, internal ratings based on collateral performance • 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 • Modeled using either discrete risk parameters or analytical approaches based on net charge-offs and pay-down rates 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) • 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, disposable personal income and Manheim used car index • Straight-line over 1 year • Average parameters determined based on internal 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 • Modeled using either discrete risk parameters or analytical approaches based net charge-offs and pay-down rates 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 Prior to January 1, 2023, we used a discounted cash flow methodology for our home equity and residential real estate loan classes. Effective January 1, 2023, we discontinued our use of a discounted cash flow methodology, and we now use a pooled expected loss methodology based upon the quantification of risk parameters, such as PD, LGD and EAD for a loan or loan segment. See Note 1 Accounting Policies in our 2022 Form 10-K for a description of our use of a discounted cash flow methodology prior to January 1, 2023. 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 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 expected credit risk factors, the ACL also accounts for 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, and • Timing of available information. Purchased Credit Deteriorated Loans or Securities The allowance for PCD loans or securities is determined at the time of acquisition, 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. |
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 section of Note 1 Accounting Policies in our 2022 Form 10-K and the Nonperforming Loans and Leases section of this Note 1 for additional information on our nonaccrual and charge-off policies. |
Income Taxes | Income TaxesWe have elected to apply the proportional amortization method to our qualifying LIHTC and NMTC equity investments. Investment tax credits and investment impairment are recognized in tax expense for any individual LIHTC and NMTC equity investment for which we can demonstrate that the investment was made primarily for the purpose of receiving income tax credits and other income tax benefits. 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. |
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 is 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. • Refer to Note 1 Accounting Policies in our 2022 Form 10-K for more information on elections of optional expedients that occurred in 2020, 2021 and 2022. We applied these optional expedients consistently to all eligible LIBOR cessation-related contract modifications and hedging relationships since election. • During the second quarter of 2023, we elected and applied certain optional expedients for contract modifications and hedging relationships impacted by the central clearing counterparties conversion processes for LIBOR-indexed derivative instruments. These optional expedients remove the requirement to remeasure contract modifications or dedesignate hedging relationships due to reference rate reform. The elections made apply only to derivatives instruments impacted by the central clearinghouse conversion process. • During the second quarter of 2023, we applied certain optional expedients for investment security, debt and preferred stock instrument contract modifications impacted by LIBOR cessation. These optional expedients remove the requirement to remeasure contract modifications. • We may elect additional 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 Troubled Debt Restructurings and Vintage Disclosures - ASU 2022-02 Issued March 2022 • 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. • Adopted January 1, 2023 using a modified retrospective transition approach for the amendments related to the recognition and measurement of TDRs. • The impact of adoption resulted in a decrease to the beginning period ALLL of $35 million, resulting in an increase to Retained Earnings of $26 million, net of tax, as of January 1, 2023. • The presentation of our loan modification disclosures have been updated to reflect information on loan modifications given to borrowers experiencing financial difficulty and can be found within Note 3 Loans and Related Allowance for Credit Losses. TDR disclosures are presented for comparative periods only and are not required to be updated in current periods. Additionally, our vintage disclosure has been updated to reflect gross charge-offs by year of origination. Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method – ASU 2023-02 Issued March 2023 • Permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. • A reporting entity makes an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. • Adopted September 30, 2023, using a modified retrospective transition approach for the amendments related to our tax credit programs that are eligible to apply proportional amortization. The cumulative effect to Retained earnings as of January 1, 2023 was immaterial. • At adoption, we elected to apply the proportional amortization method to all qualifying investments in the NMTC program. PNC historically applied proportional amortization to LIHTC investments since applying ASU 2014-01. • See Note 4 for the impact of adoption. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
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 is 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. • Refer to Note 1 Accounting Policies in our 2022 Form 10-K for more information on elections of optional expedients that occurred in 2020, 2021 and 2022. We applied these optional expedients consistently to all eligible LIBOR cessation-related contract modifications and hedging relationships since election. • During the second quarter of 2023, we elected and applied certain optional expedients for contract modifications and hedging relationships impacted by the central clearing counterparties conversion processes for LIBOR-indexed derivative instruments. These optional expedients remove the requirement to remeasure contract modifications or dedesignate hedging relationships due to reference rate reform. The elections made apply only to derivatives instruments impacted by the central clearinghouse conversion process. • During the second quarter of 2023, we applied certain optional expedients for investment security, debt and preferred stock instrument contract modifications impacted by LIBOR cessation. These optional expedients remove the requirement to remeasure contract modifications. • We may elect additional 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 Troubled Debt Restructurings and Vintage Disclosures - ASU 2022-02 Issued March 2022 • 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. • Adopted January 1, 2023 using a modified retrospective transition approach for the amendments related to the recognition and measurement of TDRs. • The impact of adoption resulted in a decrease to the beginning period ALLL of $35 million, resulting in an increase to Retained Earnings of $26 million, net of tax, as of January 1, 2023. • The presentation of our loan modification disclosures have been updated to reflect information on loan modifications given to borrowers experiencing financial difficulty and can be found within Note 3 Loans and Related Allowance for Credit Losses. TDR disclosures are presented for comparative periods only and are not required to be updated in current periods. Additionally, our vintage disclosure has been updated to reflect gross charge-offs by year of origination. Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method – ASU 2023-02 Issued March 2023 • Permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. • A reporting entity makes an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. • Adopted September 30, 2023, using a modified retrospective transition approach for the amendments related to our tax credit programs that are eligible to apply proportional amortization. The cumulative effect to Retained earnings as of January 1, 2023 was immaterial. • At adoption, we elected to apply the proportional amortization method to all qualifying investments in the NMTC program. PNC historically applied proportional amortization to LIHTC investments since applying ASU 2014-01. • See Note 4 for the impact of adoption. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 36: Investment Securities Summary (a)(b) September 30, 2023 December 31, 2022 In millions Amortized Unrealized Fair Amortized Unrealized Fair Gains Losses Gains Losses Securities Available for Sale U.S. Treasury and government agencies $ 7,494 $ 4 $ (781) $ 6,717 $ 9,196 $ 10 $ (836) $ 8,370 Residential mortgage-backed Agency 31,177 (4,278) 26,899 32,114 13 (3,304) 28,823 Non-agency 607 115 (9) 713 697 131 (9) 819 Commercial mortgage-backed Agency 1,738 (194) 1,544 1,845 (170) 1,675 Non-agency 982 (59) 923 1,325 (69) 1,256 Asset-backed 1,084 18 (7) 1,095 103 27 (1) 129 Other 2,908 42 (251) 2,699 3,288 44 (245) 3,087 Total securities available for sale $ 45,990 $ 179 $ (5,579) $ 40,590 $ 48,568 $ 225 $ (4,634) $ 44,159 Securities Held to Maturity U.S. Treasury and government agencies $ 36,385 $ (1,946) $ 34,439 $ 36,571 $ 6 $ (1,617) $ 34,960 Residential mortgage-backed Agency 43,390 (5,056) 38,334 45,271 74 (3,095) 42,250 Non-agency 263 (35) 228 276 (21) 255 Commercial mortgage-backed Agency 910 (53) 857 848 4 (26) 826 Non-agency 1,456 $ 1 (28) 1,429 1,667 (40) 1,627 Asset-backed 6,214 3 (97) 6,120 7,188 6 (140) 7,054 Other 3,179 4 (143) 3,040 3,354 25 (72) 3,307 Total securities held to maturity (d) $ 91,797 $ 8 $ (7,358) $ 84,447 $ 95,175 $ 115 $ (5,011) $ 90,279 (a) At September 30, 2023, the accrued interest associated with our held to maturity and available for sale portfolios totaled $255 million and $134 million, respectively. The comparable amounts at December 31, 2022 were $282 million and $144 million, respectively. These amounts are included in Other assets on the Consolidated Balance Sheet. (b) Credit ratings represent a primary credit quality indicator used to monitor and manage credit risk. Of our total securities portfolio, 97% were rated AAA/AA at both September 30, 2023 and December 31, 2022. (c) Amortized cost is presented net of allowance of $92 million for securities available for sale, primarily related to non-agency commercial mortgage-backed securities, and $6 million for securities held to maturity at September 30, 2023. The comparable amounts at December 31, 2022 were $142 million and $7 million, respectively. |
Gross Unrealized Loss and Fair Value of Securities Available for Sale Without an Allowance for Credit Losses | Table 37: 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 September 30, 2023 U.S. Treasury and government agencies $ (3) $ 374 $ (778) $ 6,013 $ (781) $ 6,387 Residential mortgage-backed Agency (107) 3,294 (4,171) 23,547 (4,278) 26,841 Non-agency (1) 51 (6) 71 (7) 122 Commercial mortgage-backed Agency (1) 42 (193) 1,493 (194) 1,535 Non-agency (55) 793 (55) 793 Asset-backed (6) 687 (1) 10 (7) 697 Other (8) 205 (208) 2,152 (216) 2,357 Total securities available for sale $ (126) $ 4,653 $ (5,412) $ 34,079 $ (5,538) $ 38,732 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 |
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 38: Gains (Losses) on Sales of Securities Available for Sale Nine months ended September 30 Gross Gains Gross Losses Net Gains (Losses) Tax Expense (Benefit) 2023 $ (2) $ (2) 2022 $ 11 $ (15) $ (4) $ (1) |
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 September 30, 2023: Table 39: Contractual Maturity of Debt Securities September 30, 2023 1 Year or Less After 1 Year After 5 Years After 10 Total Securities Available for Sale U.S. Treasury and government agencies $ 1,912 $ 2,958 $ 800 $ 1,824 $ 7,494 Residential mortgage-backed Agency 1 185 3,811 27,180 31,177 Non-agency 9 598 607 Commercial mortgage-backed Agency 46 444 865 383 1,738 Non-agency 1 103 118 760 982 Asset-backed 249 171 664 1,084 Other 286 2,055 416 151 2,908 Total securities available for sale at amortized cost $ 2,246 $ 5,994 $ 6,190 $ 31,560 $ 45,990 Fair value $ 2,179 $ 5,487 $ 5,603 $ 27,321 $ 40,590 Weighted-average yield, GAAP basis (a) 1.25 % 2.25 % 2.77 % 3.08 % 2.84 % Securities Held to Maturity U.S. Treasury and government agencies $ 3,087 $ 30,686 $ 1,705 $ 907 $ 36,385 Residential mortgage-backed Agency 6 321 43,063 43,390 Non-agency 263 263 Commercial mortgage-backed Agency 136 490 284 910 Non-agency 42 49 1,365 1,456 Asset-backed 7 1,886 1,949 2,372 6,214 Other 181 1,053 600 1,345 3,179 Total securities held to maturity at amortized cost $ 3,317 $ 33,816 $ 5,065 $ 49,599 $ 91,797 Fair value $ 3,253 $ 32,192 $ 4,753 $ 44,249 $ 84,447 Weighted-average yield, GAAP basis (a) 0.93 % 1.44 % 4.10 % 2.93 % 2.38 % (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 40: Fair Value of Securities Pledged and Accepted as Collateral In millions September 30, 2023 December 31, 2022 Pledged to others $ 27,462 $ 24,708 Accepted from others: Permitted by contract or custom to sell or repledge $ 946 $ 1,266 Permitted amount repledged to others $ 946 $ 1,266 |
Loans and Related Allowance f_2
Loans and Related Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 41 presents the composition and delinquency status of our loan portfolio at September 30, 2023 and December 31, 2022. Loan delinquencies include government insured or guaranteed loans and loans accounted for under the fair value option. Table 41: Analysis of Loan Portfolio (a) (b) (c) Accruing Dollars in millions Current or Less 30-59 60-89 90 Days Total Nonperforming Fair Value Total Loans September 30, 2023 Commercial Commercial and industrial $ 173,487 $ 84 $ 32 $ 102 $ 218 $ 458 $ 174,163 Commercial real estate 35,049 2 2 4 723 35,776 Equipment lease financing 6,432 25 6 31 30 6,493 Total commercial 214,968 111 40 102 253 1,211 216,432 Consumer Residential real estate 45,958 257 103 182 542 (d) 330 $ 529 47,359 Home equity 25,562 59 22 81 446 70 26,159 Automobile 14,718 83 19 6 108 114 14,940 Credit card 6,881 50 38 80 168 11 7,060 Education 1,918 32 22 48 102 (d) 2,020 Other consumer 4,402 15 9 9 33 11 4,446 Total consumer 99,439 496 213 325 1,034 912 599 101,984 Total $ 314,407 $ 607 $ 253 $ 427 $ 1,287 $ 2,123 $ 599 $ 318,416 Percentage of total loans 98.74 % 0.19 % 0.08 % 0.13 % 0.40 % 0.67 % 0.19 % 100.00 % 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 (d) 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 (d) 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 % (a) Amounts in table represent loans held for investment and do not include any associated ALLL. (b) The CARES Act credit reporting rules expired in the third quarter of 2023 and as such, delinquency status at September 30, 2023 is being reported for all loans based on the contractual terms of the loan. Amounts as of December 31, 2022 continue to be presented in accordance with the credit reporting rules under the CARES Act, which required certain loans modified due to pandemic related hardships to not be reported as past due based on the contractual terms of the loan, even when borrowers may not have made payments on their loans during the modification period. (c) The accrued interest associated with our loan portfolio totaled $1.4 billion and $1.2 billion at September 30, 2023 and December 31, 2022, respectively. These amounts are included in Other assets on the Consolidated Balance Sheet. (d) 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 both September 30, 2023 and December 31, 2022. (e) 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, they have been excluded from the nonperforming loan population. (f) Includes unearned income, unamortized deferred fees and costs on originated loans and premiums or discounts on purchased loans totaling $0.8 billion and $0.9 billion at September 30, 2023 and December 31, 2022, respectively. (g) Collateral dependent loans totaled $1.1 billion and $1.3 billion at September 30, 2023 and December 31, 2022, respectively. |
Nonperforming Assets | The following table presents our nonperforming assets as of September 30, 2023 and December 31, 2022, respectively: Table 42: Nonperforming Assets Dollars in millions September 30, 2023 December 31, 2022 Nonperforming loans (a) Commercial $ 1,211 $ 858 Consumer (b) 912 1,127 Total nonperforming loans (c) 2,123 1,985 OREO and foreclosed assets 35 34 Total nonperforming assets $ 2,158 $ 2,019 Nonperforming loans to total loans 0.67 % 0.61 % Nonperforming assets to total loans, OREO and foreclosed assets 0.68 % 0.62 % Nonperforming assets to total assets 0.39 % 0.36 % (a) In connection with the adoption of ASU 2022-02, nonperforming loans as of September 30, 2023 include certain loans where terms were modified as a result of a borrower’s financial difficulty. Prior period amounts included nonperforming TDRs, for which accounting guidance was eliminated effective January 1, 2023. See Note 1 Accounting Policies and the Loan Modifications to Borrowers Experiencing Financial Difficulty section of this Note 3 for more information on our adoption of this ASU. (b) 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. (c) Nonperforming loans for which there is no related ALLL totaled $0.5 billion at September 30, 2023 and primarily include loans with a fair value of collateral that exceeds the amortized cost basis. The comparable amount at December 31, 2022 was $0.7 billion. |
Credit Quality Indicators By Loan Class | The following table presents credit quality indicators for our commercial loan classes: Table 43: Commercial Credit Quality Indicators (a) Term Loans by Origination Year September 30, 2023 In millions 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and industrial Pass Rated $ 18,791 $ 29,249 $ 8,476 $ 6,061 $ 4,654 $ 12,952 $ 84,123 $ 603 $ 164,909 Criticized 537 1,916 743 355 249 710 4,705 39 9,254 Total commercial and industrial loans $ 19,328 $ 31,165 $ 9,219 $ 6,416 $ 4,903 $ 13,662 $ 88,828 $ 642 $ 174,163 Gross charge-offs (b) $ 17 (c) $ 19 $ 27 $ 7 $ 2 $ 19 $ 90 $ 11 $ 192 Commercial real estate Pass Rated $ 3,592 $ 9,008 $ 3,282 $ 2,376 $ 4,918 $ 8,062 $ 342 $ 31,580 Criticized 109 685 470 370 664 1,880 18 4,196 Total commercial real estate loans $ 3,701 $ 9,693 $ 3,752 $ 2,746 $ 5,582 $ 9,942 $ 360 $ 35,776 Gross charge-offs (b) $ 29 $ 95 $ 124 Equipment lease financing Pass Rated $ 1,126 $ 1,507 $ 779 $ 761 $ 506 $ 1,469 $ 6,148 Criticized 68 79 56 50 38 54 345 Total equipment lease financing loans $ 1,194 $ 1,586 $ 835 $ 811 $ 544 $ 1,523 $ 6,493 Gross charge-offs (b) $ 1 $ 2 $ 2 $ 4 $ 1 $ 1 $ 11 Total commercial loans $ 24,223 $ 42,444 $ 13,806 $ 9,973 $ 11,029 $ 25,127 $ 89,188 $ 642 $ 216,432 Total commercial gross charge-offs $ 18 $ 21 $ 29 $ 11 $ 32 $ 115 $ 90 $ 11 $ 327 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 (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 September 30, 2023 and December 31, 2022. (b) Gross charge-offs are presented on a year-to-date basis, as of the reporting date. (c) Includes charge-offs of deposit overdrafts. Residential Real Estate and Home Equity The following table presents credit quality indicators for our residential real estate and home equity loan classes: Table 44: Credit Quality Indicators for Residential Real Estate and Home Equity Loan Classes Term Loans by Origination Year September 30, 2023 In millions 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Total Residential real estate Current estimated LTV ratios Greater than 100% $ 34 $ 141 $ 103 $ 33 $ 8 $ 34 $ 353 Greater than or equal to 80% to 100% 1,770 3,372 1,044 207 69 105 6,567 Less than 80% 2,577 6,661 14,517 6,639 2,196 7,129 39,719 No LTV available 52 13 3 68 Government insured or guaranteed loans 9 18 18 66 37 504 652 Total residential real estate loans $ 4,442 $ 10,192 $ 15,695 $ 6,945 $ 2,310 $ 7,775 $ 47,359 Updated FICO scores Greater than or equal to 780 $ 2,418 $ 7,728 $ 12,239 $ 5,060 $ 1,538 $ 4,099 $ 33,082 720 to 779 1,495 1,857 2,547 1,214 414 1,439 8,966 660 to 719 302 514 670 322 176 782 2,766 Less than 660 86 64 129 110 87 676 1,152 No FICO score available 132 11 92 173 58 275 741 Government insured or guaranteed loans 9 18 18 66 37 504 652 Total residential real estate loans $ 4,442 $ 10,192 $ 15,695 $ 6,945 $ 2,310 $ 7,775 $ 47,359 Gross charge-offs (a) $ 1 $ 1 $ 4 $ 6 Home equity Current estimated LTV ratios Greater than 100% $ 2 $ 10 $ 5 $ 13 $ 294 $ 285 $ 609 Greater than or equal to 80% to 100% 5 39 21 27 1,266 1,949 3,307 Less than 80% 161 1,922 871 2,683 6,901 9,705 22,243 Total home equity loans $ 168 $ 1,971 $ 897 $ 2,723 $ 8,461 $ 11,939 $ 26,159 Updated FICO scores Greater than or equal to 780 $ 107 $ 1,283 $ 503 $ 1,685 $ 4,700 $ 6,039 $ 14,317 720 to 779 38 443 223 525 2,203 3,193 6,625 660 to 719 18 185 117 286 1,210 1,756 3,572 Less than 660 5 58 53 219 338 895 1,568 No FICO score available 2 1 8 10 56 77 Total home equity loans $ 168 $ 1,971 $ 897 $ 2,723 $ 8,461 $ 11,939 $ 26,159 Gross charge-offs (a) $ 2 $ 4 $ 9 $ 15 (Continued from previous page) 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 (a) Gross charge-offs are presented on a year-to-date basis, as of the reporting date. Automobile, Credit Card, Education and Other Consumer The following table presents credit quality indicators for our automobile, credit card, education and other consumer loan classes: Table 45: Credit Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loan Classes Term Loans by Origination Year September 30, 2023 In millions 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Total Automobile Updated FICO scores Greater than or equal to 780 $ 2,221 $ 1,776 $ 1,653 $ 624 $ 456 $ 127 $ 6,857 720 to 779 1,454 1,266 892 356 309 115 4,392 660 to 719 804 677 456 218 228 100 2,483 Less than 660 168 261 248 165 230 136 1,208 Total automobile loans $ 4,647 $ 3,980 $ 3,249 $ 1,363 $ 1,223 $ 478 $ 14,940 Gross charge-offs (a) $ 18 $ 18 $ 13 $ 23 $ 19 $ 91 Credit card Updated FICO scores Greater than or equal to 780 $ 1,920 $ 1 $ 1,921 720 to 779 1,967 5 1,972 660 to 719 1,982 13 1,995 Less than 660 1,016 44 1,060 No FICO score available or required (b) 109 3 112 Total credit card loans $ 6,994 $ 66 $ 7,060 Gross charge-offs (a) $ 212 $ 20 $ 232 Education Updated FICO scores Greater than or equal to 780 $ 7 $ 25 $ 8 $ 11 $ 19 $ 133 $ 203 720 to 779 20 45 25 25 32 182 329 660 to 719 19 45 27 23 29 156 299 Less than 660 9 37 16 8 7 94 171 No FICO score available or required (b) 20 13 10 7 2 5 57 Total loans using FICO credit metric 75 165 86 74 89 570 1,059 Other internal credit metrics 961 961 Total education loans $ 75 $ 165 $ 86 $ 74 $ 89 $ 1,531 $ 2,020 Gross charge-offs (a) $ 1 $ 1 $ 1 $ 10 $ 13 Other consumer Updated FICO scores Greater than or equal to 780 $ 195 $ 151 $ 57 $ 27 $ 20 $ 14 $ 40 $ 2 $ 506 720 to 779 244 189 68 32 25 14 81 1 654 660 to 719 117 155 68 35 29 14 88 2 508 Less than 660 11 51 34 21 19 10 43 1 190 Total loans using FICO credit metric 567 546 227 115 93 52 252 6 1,858 Other internal credit metrics 32 107 32 73 72 23 2,239 10 2,588 Total other consumer loans $ 599 $ 653 $ 259 $ 188 $ 165 $ 75 $ 2,491 $ 16 $ 4,446 Gross charge-offs (a) $ 54 (c) $ 16 $ 14 $ 12 $ 12 $ 7 $ 8 $ 1 $ 124 (Continued from previous page) 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 (b) 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 (b) 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 (a) Gross charge-offs are presented on a year-to-date basis, as of the reporting date. (b) 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. (c) Includes charge-offs of deposit overdrafts. Loan Modifications to Borrowers Experiencing Financial Difficulty On January 1, 2023, we adopted ASU 2022-02, which eliminates the accounting guidance for TDRs and enhances the disclosure requirements for certain loan modifications when a borrower is experiencing financial difficulty (FDMs). FDMs occur as a result of our loss mitigation activities. A variety of solutions are offered to borrowers, including loan modifications that may result in principal forgiveness, interest rate reductions, term extensions, payment delays, repayment plans or combinations thereof: • Principal forgiveness includes principal and accrued interest forgiveness. • Interest rate reductions include modifications where the interest rate is reduced and/or interest is deferred. • Term extensions extend the original contractual maturity date of the loan. • Payment delays consist of modifications where we expect to collect contractual amounts due but that result in a delay in the receipt of payments specified under the original loan terms. We generally consider payment delays to be insignificant when the delay is three months or less. • Repayment plans are offered for some of our credit card and unsecured line of credit products, which provide for a reduced payment and interest rate for a specific period of time. Additionally, modifications to borrowers experiencing financial difficulty also result from borrowers that have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their obligations to us, and those that enter into trial modifications. FDMs exclude loans held for sale and loans accounted for under the fair value option. Our disclosed FDM population also excludes government insured or guaranteed education loans as loss mitigation activities for these loans are either required by law or they are considered separate from PNC’s loss mitigation treatments. Commercial loans with an appraised value of collateral that exceeds the loan value, loans with guarantor support, and residential mortgage government insured or guaranteed loans are included in our disclosed population of FDMs when those loan modifications are granted to a borrower experiencing financial difficulty. Refer to Note 1 Accounting Policies for additional information around our adoption of ASU 2022-02. |
Financing Receivable, Modified | The following table presents the amortized cost basis, as of September 30, 2023, of FDMs granted during the three and nine months ended September 30, 2023: Table 46: Loan Modifications Granted to Borrowers Experiencing Financial Difficulty (a) (b) Three months ended September 30, 2023 Dollars in millions Interest Rate Reduction Term Extension Payment Delay Repayment Plan Interest Rate Reduction and Term Extension Payment Delay and Term Extension Other (c) Total % of Loan Class Commercial Commercial and industrial $ 15 $ 356 $ 37 $ 7 $ 83 $ 498 0.29 % Commercial real estate 307 16 323 0.90 % Total commercial 15 663 53 7 83 821 0.38 % Consumer Residential real estate 1 50 3 54 0.11 % Home equity 2 5 7 0.03 % Credit card $ 20 20 0.28 % Education 1 1 0.05 % Other consumer 1 1 0.02 % Total consumer 1 1 52 21 8 83 0.08 % Total $ 16 $ 664 $ 105 $ 21 $ 7 $ 91 $ 904 0.28 % Nine months ended September 30, 2023 Dollars in millions Commercial Commercial and industrial $ 15 $ 704 $ 91 $ 20 $ 130 $ 960 0.55 % Commercial real estate 745 16 61 822 2.30 % Total commercial 15 1,449 107 20 191 1,782 0.82 % Consumer Residential real estate 1 83 $ 3 6 93 0.20 % Home equity 6 7 9 22 0.08 % Credit card $ 45 45 0.64 % Education 3 3 0.15 % Other consumer 1 1 0.02 % Total consumer 1 3 89 46 10 15 164 0.16 % Total $ 16 $ 1,452 $ 196 $ 46 $ 10 $ 20 $ 206 $ 1,946 0.61 % (a) At September 30, 2023, there were $0.3 billion of unfunded lending related commitments associated with FDMs. (b) Excludes the amortized cost basis of modified loans that were paid off, charged off or otherwise liquidated as of period end. (c) Includes loans where we have received notification that a borrower has filed for Chapter 7 bankruptcy relief, but specific instructions as to the terms of the relief have not been formally ruled upon by the court. Amounts also include trial modifications. Table 47 presents the financial effect of FDMs granted during the three and nine months ended September 30, 2023: Table 47: Financial Effect of FDMs (a) Three months ended September 30, 2023 Dollars in millions Weighted-Average Interest Rate Reduction Weighted-Average Term Extension Weighted-Average Payment Delay Commercial Commercial and industrial 0.25 % 13 6 Commercial real estate 13 8 Consumer Residential real estate 0.72 % 10 Home equity 5 Education 15 Nine months ended September 30, 2023 Dollars in millions Commercial Commercial and industrial 0.25 % 12 6 Commercial real estate 16 8 Consumer Residential real estate 1.13 % 118 9 Home equity 1.17 % 53 4 Education 16 (a) Excludes the financial effects of modifications for loans that were paid off, charged off or otherwise liquidated as of period end. Table 48: Delinquency Status of FDMs (a) Nine months ended September 30, 2023 Dollars in millions Current or Less Than 30 Days Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days Nonperforming Total Commercial Commercial and industrial $ 801 $ 3 $ 156 $ 960 Commercial real estate 755 67 822 Total commercial 1,556 3 223 1,782 Consumer Residential real estate 4 $ 1 88 93 Home equity 1 21 22 Credit card 31 4 $ 3 6 1 45 Education 3 3 Other consumer 1 1 Total consumer 39 5 3 6 111 164 Total $ 1,595 $ 5 $ 3 $ 9 $ 334 $ 1,946 |
Financial Impact and TDRs by Concession Type | Table 49 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 the three and nine months ended September 30, 2022. Additionally, the table provides information about the types of TDR concessions. See Note 1 Accounting Policies and Note 4 Loans and Related Allowance for Credit Losses in our 2022 Form 10-K for additional discussion of TDRs. Table 49: Financial Impact and TDRs by Concession Type (a) Pre-TDR Post-TDR Amortized Cost Basis (c) During the three months ended September 30, 2022 Number Principal Rate Other Total Commercial 15 $ 96 $ 10 $ 67 $ 77 Consumer 2,232 40 29 6 35 Total TDRs 2,247 $ 136 $ 39 $ 73 $ 112 During the nine months ended September 30, 2022 Commercial 42 $ 184 $ 9 $ 10 $ 135 $ 154 Consumer 8,152 126 $ 95 18 113 Total TDRs 8,194 $ 310 $ 9 $ 105 $ 153 $ 267 (a) Impact of partial charge-offs at TDR date is 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 occurred. |
Rollforward of 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 50: Rollforward of Allowance for Credit Losses Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 In millions Commercial Consumer Total Commercial Consumer Total Commercial Consumer Total Commercial Consumer Total Allowance for loan and lease losses Beginning balance $ 3,142 $ 1,595 $ 4,737 $ 2,937 $ 1,525 $ 4,462 $ 3,114 $ 1,627 $ 4,741 $ 3,185 $ 1,683 $ 4,868 Adoption of ASU 2022-02 (a) (35) (35) Beginning balance, adjusted 3,142 1,595 4,737 2,937 1,525 4,462 3,114 1,592 4,706 3,185 1,683 4,868 Charge-offs (72) (161) (233) (73) (149) (222) (327) (481) (808) (162) (506) (668) Recoveries 49 63 112 25 78 103 110 188 298 78 251 329 Net (charge-offs) (23) (98) (121) (48) (71) (119) (217) (293) (510) (84) (255) (339) Provision for (recapture of) credit losses 105 48 153 174 67 241 325 246 571 (34) 93 59 Other (2) (2) (2) (1) (3) (6) (1) (7) Ending balance $ 3,222 $ 1,545 $ 4,767 $ 3,061 $ 1,520 $ 4,581 $ 3,222 $ 1,545 $ 4,767 $ 3,061 $ 1,520 $ 4,581 Allowance for unfunded lending related commitments (b) Beginning balance $ 555 $ 108 $ 663 $ 630 $ 51 $ 681 $ 613 $ 81 $ 694 $ 564 $ 98 $ 662 Provision for (recapture of) credit losses (22) (1) (23) (22) 23 1 (80) 26 (54) 44 (24) 20 Ending balance $ 533 $ 107 $ 640 $ 608 $ 74 $ 682 $ 533 $ 107 $ 640 $ 608 $ 74 $ 682 Allowance for credit losses at September 30 (c) $ 3,755 $ 1,652 $ 5,407 $ 3,669 $ 1,594 $ 5,263 $ 3,755 $ 1,652 $ 5,407 $ 3,669 $ 1,594 $ 5,263 (a) Represents the impact of adopting ASU 2022-02 on January 1, 2023. As a result of adoption, we eliminated the accounting guidance for TDRs, including the use of a discounted cash flow approach to measure the allowance for TDRs. (b) See Note 8 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 $131 million and $162 million at September 30, 2023 and 2022, respectively. |
Loan Sale and Servicing Activ_2
Loan Sale and Servicing Activities and Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Loan Sale and Servicing Activities and Variable Interest Entities [Abstract] | |
Loan Sale and Servicing Activities | The following table provides our loan sale and servicing activities: Table 51: Loan Sale and Servicing Activities In millions Residential Mortgages Commercial Mortgages (a) Cash Flows - Three months ended September 30, 2023 Sales of loans and related securitization activity (b) $ 873 $ 398 Repurchases of previously transferred loans (c) $ 16 $ (9) Servicing fees (d) $ 129 $ 51 Servicing advances recovered/(funded), net $ 5 $ (22) Cash flows on mortgage-backed securities held (e) $ 710 $ 19 Cash Flows - Three months ended September 30, 2022 Sales of loans and related securitization activity (b) $ 1,019 $ 863 Repurchases of previously transferred loans (c) $ 49 Servicing fees (d) $ 99 $ 51 Servicing advances recovered/(funded), net $ 11 $ 11 Cash flows on mortgage-backed securities held (e) $ 797 $ 15 Cash Flows - Nine months ended September 30, 2023 Sales of loans and related securitization activity (b) $ 2,044 $ 2,554 Repurchases of previously transferred loans (c) $ 67 Servicing fees (d) $ 384 $ 146 Servicing advances recovered/(funded), net $ 44 $ (86) Cash flows on mortgage-backed securities held (e) $ 2,008 $ 49 Cash Flows - Nine months ended September 30, 2022 Sales of loans and related securitization activity (b) $ 4,367 $ 2,702 Repurchases of previously transferred loans (c) $ 154 $ 27 Servicing fees (d) $ 283 $ 140 Servicing advances recovered/(funded), net $ 44 $ 15 Cash flows on mortgage-backed securities held (e) $ 3,122 $ 43 (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 52: Principal Balance, Delinquent Loans and Net Charge-offs Related to Serviced Loans For Others In millions Residential Mortgages Commercial Mortgages (a) September 30, 2023 Total principal balance $ 39,542 $ 58,761 Delinquent loans (b) $ 324 December 31, 2022 Total principal balance $ 41,031 $ 57,974 Delinquent loans (b) $ 346 Three months ended September 30, 2023 Net charge-offs (c) $ 14 Three months ended September 30, 2022 Net charge-offs (c) $ 1 $ 9 Nine months ended September 30, 2023 Net charge-offs (c) $ 2 $ 18 Nine months ended September 30, 2022 Net charge-offs (c) $ 3 $ 12 (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 | 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 53 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 course of business with entities that could be VIEs, we have excluded these transactions with non-consolidated entities from the balances presented in Table 53. These loans are included as part of the credit quality disclosures that we make in Note 3 Loans and Related Allowance for Credit Losses. Table 53: Non-Consolidated VIEs In millions PNC Risk of Loss (a) Carrying Value of Assets Carrying Value of Liabilities September 30, 2023 Mortgage-backed securitizations (b) $ 21,511 $ 21,522 (c) Tax credit investments and other 4,639 4,586 (d) (e) $ 2,264 (f) (g) Total $ 26,150 $ 26,108 $ 2,264 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 (f) Total $ 27,077 $ 26,910 $ 2,064 (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) Amount includes $2.9 billion of LIHTCs and $0.2 billion of NMTCs, which are included in Equity investments on our Consolidated Balance Sheet. (f) Included in Deposits and Other liabilities on our Consolidated Balance Sheet. (g) Amount includes $1.6 billion of LIHTCs and $0.2 billion of NMTCs, which are included in Other liabilities on our Consolidated Balance Sheet. |
Goodwill and Mortgage Servici_2
Goodwill and Mortgage Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Mortgage Servicing Rights | Changes in the commercial and residential MSRs follow: Table 54: Mortgage Servicing Rights Commercial MSRs Residential MSRs In millions 2023 2022 2023 2022 January 1 $ 1,113 $ 740 $ 2,310 $ 1,078 Additions: From loans sold with servicing retained 38 52 17 49 Purchases 27 32 438 620 Changes in fair value due to: Time and payoffs (a) (247) (130) (176) (178) Other (b) 238 438 248 505 September 30 $ 1,169 $ 1,132 $ 2,837 $ 2,074 Related unpaid principal balance of loans serviced at September 30 $ 282,123 $ 281,931 $ 212,521 $ 169,678 Servicing advances at September 30 $ 507 $ 448 $ 121 $ 132 (a) Represents decrease in MSR value due to passage of time, including the impact from regularly scheduled loan principal payments, prepayments and loans that were paid off during the period. (b) Represents MSR value changes resulting primarily 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 55: Commercial Mortgage Servicing Rights – Key Valuation Assumptions Dollars in millions September 30, 2023 December 31, 2022 Fair value $ 1,169 $ 1,113 Weighted-average life (years) 4.0 4.0 Weighted-average constant prepayment rate 5.42 % 4.28 % Decline in fair value from 10% adverse change $ 9 $ 8 Decline in fair value from 20% adverse change $ 18 $ 15 Effective discount rate 10.22 % 9.77 % Decline in fair value from 10% adverse change $ 36 $ 34 Decline in fair value from 20% adverse change $ 73 $ 68 |
Residential 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 56: Residential Mortgage Servicing Rights – Key Valuation Assumptions Dollars in millions September 30, 2023 December 31, 2022 Fair value $ 2,837 $ 2,310 Weighted-average life (years) 8.4 8.0 Weighted-average constant prepayment rate 5.77 % 6.72 % Decline in fair value from 10% adverse change $ 58 $ 55 Decline in fair value from 20% adverse change $ 112 $ 107 Weighted-average option adjusted spread 765 bps 766 bps Decline in fair value from 10% adverse change $ 89 $ 69 Decline in fair value from 20% adverse change $ 173 $ 134 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Components of Lease Income | Table 57: Lessor Income Three months ended Nine months ended September 30 In millions 2023 2022 2023 2022 Sales-type and direct financing leases (a) $ 76 $ 61 $ 219 $ 177 Operating leases (b) 9 15 40 48 Lease income $ 85 $ 76 $ 259 $ 225 (a) Included in Loans interest income on the Consolidated Income Statement. (b) Included in Lending and deposit services on the Consolidated Income Statement. |
Sales-type Lease, Lease Income | Table 57: Lessor Income Three months ended Nine months ended September 30 In millions 2023 2022 2023 2022 Sales-type and direct financing leases (a) $ 76 $ 61 $ 219 $ 177 Operating leases (b) 9 15 40 48 Lease income $ 85 $ 76 $ 259 $ 225 (a) Included in Loans interest income on the Consolidated Income Statement. (b) Included in Lending and deposit services on the Consolidated Income Statement. |
Direct Financing Lease, Lease Income | Table 57: Lessor Income Three months ended Nine months ended September 30 In millions 2023 2022 2023 2022 Sales-type and direct financing leases (a) $ 76 $ 61 $ 219 $ 177 Operating leases (b) 9 15 40 48 Lease income $ 85 $ 76 $ 259 $ 225 (a) Included in Loans interest income on the Consolidated Income Statement. (b) Included in Lending and deposit services on the Consolidated Income Statement. |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Total Borrowed Funds | The following table shows the carrying value of total borrowed funds at September 30, 2023 (including adjustments related to accounting hedges, purchase accounting and unamortized original issuance discounts) by remaining contractual maturity: Table 58: Borrowed Funds In millions Less than 1 year $ 14,193 1 to 2 years 21,763 2 to 3 years 12,138 3 to 4 years 1,945 4 to 5 years 2,931 Over 5 years 13,197 Total $ 66,167 |
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 September 30, 2023, and the carrying values as of September 30, 2023 and December 31, 2022. Table 59: FHLB Borrowings, Senior Debt and Subordinated Debt Stated Rate Maturity Carrying Value Dollars in millions September 30, 2023 September 30, 2023 September 30, 2023 December 31, 2022 Parent Company Senior debt 1.20% - 6.00% 2024-2034 $ 17,880 $ 11,374 Subordinated debt 3.90% - 4.60% 2024-2033 1,493 1,524 Junior subordinated debt 6.20 % 2028 205 205 Total Parent Company 19,578 13,103 Bank Federal Home Loan Bank borrowings (a) 5.50% - 5.90% 2024-2026 36,000 32,075 Senior debt 2.50% - 6.10% 2024-2043 4,527 5,283 Subordinated debt 2.70% - 5.90% 2025-2029 3,030 4,578 Total Bank 43,557 41,936 Total $ 63,135 $ 55,039 (a) FHLB borrowings are generally collateralized by residential mortgage loans, other mortgage-related loans and investment securities. |
Commitments (Tables)
Commitments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 and December 31, 2022, respectively.Table 60: Commitments to Extend Credit and Other Commitments In millions September 30, 2023 December 31, 2022 Commitments to extend credit Commercial (a) $ 209,397 $ 198,542 Home equity 24,037 22,783 Credit card 34,197 33,066 Other 7,741 7,337 Total commitments to extend credit 275,372 261,728 Net outstanding standby letters of credit (b) 10,326 10,575 Standby bond purchase agreements (c) 1,088 1,208 Other commitments (d) 3,585 3,661 Total commitments to extend credit and other commitments $ 290,371 $ 277,172 (a) September 30, 2023 includes approximately $16 billion of acquired Signature Bridge Bank, N.A capital commitments facilities. (b) Net outstanding standby letters of credit include $3.6 billion at both September 30, 2023 and December 31, 2022, which support remarketing programs. (c) We enter into standby bond purchase agreements to support municipal bond obligations. |
Total Equity and Other Compre_2
Total Equity and Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Comprehensive Income [Abstract] | |
Rollforward of Total Equity | Activity in total equity for the three and nine months ended September 30, 2023 and 2022 is as follows: Table 61: Rollforward of Total Equity Shareholders’ Equity In millions Shares Common Capital Capital Retained Accumulated Treasury Non- Total Equity Three months ended Balance at June 30, 2022 (a) 411 $ 2,714 $ 6,004 $ 12,527 $ 51,841 $ (8,358) $ (17,076) $ 36 $ 47,688 Net income 1,624 16 1,640 Other comprehensive loss, net of tax (2,128) (2,128) Cash dividends declared - Common (622) (622) Cash dividends declared - Preferred (65) (65) Preferred stock discount accretion 1 (1) Preferred stock issuance (b) 1,239 1,239 Treasury stock activity (7) 6 (1,051) (1,045) Other 33 (17) 16 Balance at September 30, 2022 (a) 404 $ 2,714 $ 7,244 $ 12,566 $ 52,777 $ (10,486) $ (18,127) $ 35 $ 46,723 Balance at June 30, 2023 (a) 398 $ 2,715 $ 7,237 $ 12,697 $ 55,346 $ (9,525) $ (19,150) $ 26 $ 49,346 Net income 1,554 16 1,570 Other comprehensive loss, net of tax (736) (736) Cash dividends declared - Common (624) (624) Cash dividends declared - Preferred (104) (104) Preferred stock discount accretion 2 (2) Treasury stock activity 3 9 12 Other 32 (15) 17 Balance at September 30, 2023 (a) 398 $ 2,715 $ 7,239 $ 12,732 $ 56,170 $ (10,261) $ (19,141) $ 27 $ 49,481 Nine months ended Balance at December 31, 2021 (a) 420 $ 2,713 $ 5,009 $ 12,448 $ 50,228 $ 409 $ (15,112) $ 31 $ 55,726 Net income 4,513 52 4,565 Other comprehensive loss, net of tax (10,895) (10,895) Cash dividends declared - Common (1,779) (1,779) Cash dividends declared - Preferred (181) (181) Preferred stock discount accretion 4 (4) Preferred stock issuance (b) (c) 2,231 2,231 Common stock activity 1 14 15 Treasury stock activity (16) 56 (3,015) (2,959) Other 48 (48) Balance at September 30, 2022 (a) 404 $ 2,714 $ 7,244 $ 12,566 $ 52,777 $ (10,486) $ (18,127) $ 35 $ 46,723 Balance at December 31, 2022 (a) 401 $ 2,714 $ 5,746 $ 12,630 $ 53,572 $ (10,172) $ (18,716) $ 38 $ 45,812 Cumulative effect of ASU adoptions (d) 26 26 Balance at January 1, 2023 (a) 401 $ 2,714 $ 5,746 $ 12,630 $ 53,598 $ (10,172) $ (18,716) $ 38 $ 45,838 Net income 4,714 50 4,764 Other comprehensive loss, net of tax (89) (89) Cash dividends declared - Common (1,837) (1,837) Cash dividends declared - Preferred (299) (299) Preferred stock discount accretion 6 (6) Preferred stock issuance (e) 1,487 1,487 Common stock activity 1 16 17 Treasury stock activity (3) 76 (425) (349) Other 10 (61) (51) Balance at September 30, 2023 (a) 398 $ 2,715 $ 7,239 $ 12,732 $ 56,170 $ (10,261) $ (19,141) $ 27 $ 49,481 (a) The par value of our preferred stock outstanding was less than $0.5 million at each date and, therefore, is excluded from this presentation. (b) On August 19, 2022, PNC issued 1,250,000 depositary shares each representing 1/100th ownership in a share of 6.200% fixed-rate reset non-cumulative perpetual preferred stock, Series V, with a par value of $1 per share. (c) On April 26, 2022, PNC issued 1,000,000 depositary shares each representing 1/100th ownership in a share of 6.000% fixed-rate reset non-cumulative perpetual preferred stock, Series U, with a par value of $1 per share. (d) Represents the cumulative effect of adopting ASU 2022-02. (e) On February 7, 2023, PNC issued 1,500,000 depositary shares each representing 1/100th ownership in a share of 6.250% fixed-rate reset non-cumulative perpetual preferred stock, Series W, with a par value of $1 per share. |
Other Comprehensive Income (Loss) | Details of other comprehensive income (loss) are as follows: Table 62: Other Comprehensive Income (Loss) Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 In millions Pre-tax Tax effect After-tax 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 $ (1,171) $ 280 $ (891) $ (1,998) $ 471 $ (1,527) $ (993) $ 238 $ (755) $ (11,245) $ 2,650 $ (8,595) Less: Net realized gains (losses) reclassified to (239) 57 (182) (260) 61 (199) (689) 163 (526) (477) 112 (365) Net change (932) 223 (709) (1,738) 410 (1,328) (304) 75 (229) (10,768) 2,538 (8,230) Cash flow hedge derivatives Net unrealized gains (losses) on cash flow hedge derivatives (461) 122 (339) (1,154) 272 (882) (953) 238 (715) (3,486) 821 (2,665) Less: Net realized gains (losses) reclassified to earnings (a) (426) 112 (314) (129) 30 (99) (1,129) 278 (851) (2) (2) Net change (35) 10 (25) (1,025) 242 (783) 176 (40) 136 (3,484) 821 (2,663) Pension and other postretirement benefit plan adjustments Net pension and other postretirement benefit plan activity and other reclassified to earnings (b) 1 (1) 2 (1) 1 (3) (3) 64 (16) 48 Net change 1 (1) 2 (1) 1 (3) (3) 64 (16) 48 Other Net unrealized gains (losses) on other transactions 1 (3) (2) 4 (22) (18) 8 (1) 7 (3) (47) (50) Net change 1 (3) (2) 4 (22) (18) 8 (1) 7 (3) (47) (50) Total other comprehensive income (loss) $ (965) $ 229 $ (736) $ (2,757) $ 629 $ (2,128) $ (123) $ 34 $ (89) $ (14,191) $ 3,296 $ (10,895) (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 63: Accumulated Other Comprehensive Income (Loss) Components In millions, after-tax Debt securities Cash flow hedge derivatives Pension and other postretirement benefit plan adjustments Other Total Three months ended Balance at June 30, 2022 $ (6,313) $ (2,081) $ 74 $ (38) $ (8,358) Net activity (1,328) (783) 1 (18) (2,128) Balance at September 30, 2022 (a) $ (7,641) $ (2,864) $ 75 $ (56) $ (10,486) Balance at June 30, 2023 $ (6,684) $ (2,544) $ (254) $ (43) $ (9,525) Net activity (709) (25) (2) (736) Balance at September 30, 2023 (a) $ (7,393) $ (2,569) $ (254) $ (45) $ (10,261) Nine months ended Balance at December 31, 2021 $ 589 $ (201) $ 27 $ (6) $ 409 Net activity (8,230) (2,663) 48 (50) (10,895) Balance at September 30, 2022 (a) $ (7,641) $ (2,864) $ 75 $ (56) $ (10,486) Balance at December 31, 2022 $ (7,164) $ (2,705) $ (251) $ (52) $ (10,172) Net activity (229) 136 (3) 7 (89) Balance at September 30, 2023 (a) $ (7,393) $ (2,569) $ (254) $ (45) $ (10,261) |
Dividends Per Share | The following table provides the dividends per share for PNC’s common and preferred stock: Table 64: Dividends Per Share (a) Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 Common Stock $ 1.55 $ 1.50 $ 4.55 $ 4.25 Preferred Stock Series B $ 0.45 $ 0.45 $ 1.35 $ 1.35 Series O $ 2,294 $ 1,269 $ 6,468 $ 3,230 Series P $ 1,368 $ 4,431 Series R (b) $ 2,181 $ 4,606 $ 2,425 Series S $ 2,500 $ 2,500 Series T $ 850 $ 850 $ 2,550 $ 2,550 Series U $ 1,500 $ 1,817 $ 4,500 $ 1,817 Series V $ 1,550 $ 4,650 Series W $ 1,563 $ 3,785 (a) Dividends are payable quarterly, other than Series S preferred stock, which is payable semiannually. (b) Beginning September 1, 2023, Series R preferred stock dividends are payable quarterly. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Common Share | Table 65: Basic and Diluted Earnings Per Common Share Three months ended September 30 Nine months ended September 30 In millions, except per share data 2023 2022 2023 2022 Basic Net income $ 1,570 $ 1,640 $ 4,764 $ 4,565 Less: Net income attributable to noncontrolling interests 16 16 50 52 Preferred stock dividends 104 65 299 181 Preferred stock discount accretion and redemptions 2 1 6 4 Net income attributable to common shareholders 1,448 1,558 4,409 4,328 Less: Dividends and undistributed earnings allocated to nonvested restricted shares 8 8 23 21 Net income attributable to basic common shareholders $ 1,440 $ 1,550 $ 4,386 $ 4,307 Basic weighted-average common shares outstanding 400 410 401 414 Basic earnings per common share (a) $ 3.60 $ 3.78 $ 10.95 $ 10.39 Diluted Net income attributable to diluted common shareholders $ 1,440 $ 1,550 $ 4,386 $ 4,307 Basic weighted-average common shares outstanding 400 410 401 414 Dilutive potential common shares 1 Diluted weighted-average common shares outstanding 400 410 401 415 Diluted earnings per common share (a) $ 3.60 $ 3.78 $ 10.94 $ 10.39 (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) | 9 Months Ended |
Sep. 30, 2023 | |
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 66: Fair Value Measurements – Recurring Basis Summary September 30, 2023 December 31, 2022 In millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Residential mortgage loans held for sale $ 432 $ 97 $ 529 $ 411 $ 243 $ 654 Commercial mortgage loans held for sale 354 25 379 243 33 276 Securities available for sale U.S. Treasury and government agencies $ 6,320 397 6,717 $ 8,108 262 8,370 Residential mortgage-backed Agency 26,899 26,899 28,823 28,823 Non-agency 713 713 819 819 Commercial mortgage-backed Agency 1,544 1,544 1,675 1,675 Non-agency 828 95 923 1,253 3 1,256 Asset-backed 992 103 1,095 5 124 129 Other 2,643 56 2,699 3,032 55 3,087 Total securities available for sale 6,320 33,303 967 40,590 8,108 35,050 1,001 44,159 Loans 506 738 1,244 541 769 1,310 Equity investments (a) 696 1,729 2,618 1,173 1,778 3,147 Residential mortgage servicing rights 2,837 2,837 2,310 2,310 Commercial mortgage servicing rights 1,169 1,169 1,113 1,113 Trading securities (b) 464 2,002 2,466 798 1,168 1,966 Financial derivatives (b) (c) 11 3,821 6 3,838 16 3,747 5 3,768 Other assets 376 67 5 448 352 80 432 Total assets (d) $ 7,867 $ 40,485 $ 7,573 $ 56,118 $ 10,447 $ 41,240 $ 7,252 $ 59,135 Liabilities Other borrowed funds $ 954 $ 81 $ 7 $ 1,042 $ 1,230 $ 232 $ 4 $ 1,466 Financial derivatives (c) (e) 14 8,098 108 8,220 4 7,491 123 7,618 Other liabilities 250 250 294 294 Total liabilities (f) $ 968 $ 8,179 $ 365 $ 9,512 $ 1,234 $ 7,723 $ 421 $ 9,378 (a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. (b) Included in Other assets on the Consolidated Balance Sheet. (c) Amounts at September 30, 2023 and December 31, 2022 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 12 Financial Derivatives for additional information related to derivative offsetting. (d) Total assets at fair value as a percentage of total consolidated assets was 10% and 11% as of September 30, 2023 and December 31, 2022, respectively. Level 3 assets as a percentage of total assets at fair value was 13% and 12% at September 30, 2023 and December 31, 2022, respectively. Level 3 assets as a percentage of total consolidated assets was 1% at both September 30, 2023 and December 31, 2022. (e) Included in Other liabilities on the Consolidated Balance Sheet. |
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 the three and nine months ended September 30, 2023 and 2022 are as follows: Table 67: Reconciliation of Level 3 Assets and Liabilities Three Months Ended September 30, 2023 Total realized / unrealized Unrealized Level 3 Instruments Only Fair Value June 30, 2023 Included in Included Purchases Sales Issuances Settlements Transfers Transfers Fair Assets Residential mortgage $ 191 $ (3) $ 3 $ (89) $ (2) $ 1 $ (4) (e) $ 97 $ (4) Commercial mortgage 25 25 Securities available for sale Residential mortgage- 768 5 $ (20) (40) 713 Commercial mortgage- backed non-agency 3 92 95 Asset-backed 117 (3) (11) 103 Other 54 (1) 1 3 (1) 56 Total securities 942 4 (22) 3 (52) 92 967 Loans 745 5 19 (27) 2 (6) (e) 738 5 Equity investments 1,623 (9) 212 (97) 1,729 (16) Residential mortgage 2,349 215 329 $ 7 (63) 2,837 215 Commercial mortgage 1,106 130 10 6 (83) 1,169 130 Financial derivatives 6 6 (6) 6 7 Other assets 1 4 5 Total assets $ 6,987 $ 348 $ (22) $ 577 $ (186) $ 13 $ (233) $ 99 $ (10) $ 7,573 $ 337 Liabilities Other borrowed funds $ 5 $ 3 $ (1) $ 7 Financial derivatives 140 $ 50 $ 2 (84) 108 $ 51 Other liabilities 239 6 329 (324) 250 Total liabilities $ 384 $ 56 $ 2 $ 332 $ (409) $ 365 $ 51 Net gains (losses) $ 292 (f) $ 286 (g) (Continued from previous page) Three Months Ended September 30, 2022 Total realized / unrealized Unrealized gains/losses for the period on assets and liabilities held on Consolidated Balance Sheet at Sept. 30, 2022 (a) (c) Level 3 Instruments Only Fair Value June 30, 2022 Included in Earnings Included in Other comprehensive income (b) Purchases Sales Issuances Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value Sept. 30, 2022 Assets Residential mortgage $ 83 $ (4) $ 46 $ (1) $ (2) $ 8 $ (14) (e) $ 116 $ (4) Commercial mortgage 38 (3) 35 Securities available for sale Residential mortgage- 925 4 $ (18) (40) 871 Commercial mortgage-backed non-agency 3 3 Asset-backed 138 (5) (6) 127 Other 67 2 69 Total securities 1,133 4 (21) (46) 1,070 Loans 804 (1) 11 (2) (35) (2) (e) 775 Equity investments 1,867 167 69 (308) 1,795 65 Residential mortgage 1,620 135 363 $ 11 (55) 2,074 135 Commercial mortgage 988 176 7 17 (56) 1,132 176 Financial derivatives 13 4 1 (10) 8 7 Total assets $ 6,546 $ 481 $ (21) $ 497 $ (311) $ 28 $ (207) $ 8 $ (16) $ 7,005 $ 379 Liabilities Other borrowed funds $ 3 $ (1) $ 2 Financial derivatives 213 $ (11) $ 4 (86) 120 $ (7) Other liabilities 182 26 $ 32 $ 362 (333) 269 24 Total liabilities $ 398 $ 15 $ 32 $ 4 $ 362 $ (420) $ 391 $ 17 Net gains (losses) $ 466 (f) $ 362 (g) (Continued from previous page) Nine Months Ended September 30, 2023 Total realized / unrealized Unrealized Level 3 Instruments Only Fair Included in Included Purchases Sales Issuances Settlements Transfers Transfers Fair Assets Residential mortgage $ 243 $ (3) $ 12 $ (131) $ (9) $ 4 $ (19) (e) $ 97 $ (3) Commercial mortgage 33 (8) 25 Securities available for sale Residential mortgage- 819 13 $ (16) (103) 713 Commercial mortgage- 3 92 95 Asset-backed 124 1 (3) (19) 103 Other 55 (1) (3) 6 (4) 3 56 Total securities 1,001 13 (22) 6 (126) 95 967 Loans 769 11 39 (1) (77) 17 (20) (e) 738 11 Equity investments 1,778 136 444 (495) (134) (d) 1,729 103 Residential mortgage 2,310 248 438 $ 17 (176) 2,837 248 Commercial mortgage 1,113 238 27 38 (247) 1,169 238 Financial derivatives 5 13 3 (15) 6 16 Other assets 1 4 5 Total assets $ 7,252 $ 656 $ (22) $ 970 $ (627) $ 55 $ (658) $ 120 $ (173) 7,573 $ 613 Liabilities Other borrowed funds $ 4 $ 9 $ (6) $ 7 Financial derivatives 123 $ 168 $ 5 (188) 108 $ 173 Other liabilities 294 61 436 (541) 250 41 Total liabilities $ 421 $ 229 $ 5 $ 445 $ (735) $ 365 $ 214 Net gains (losses) $ 427 (f) $ 399 (g) (Continued from previous page) Nine Months Ended September 30, 2022 Total realized / unrealized Unrealized gains / losses for the period on assets and liabilities held on Consolidated Balance Sheet at Sept. 30, 2022 (a) (c) Level 3 Instruments Only Fair Included in Included Purchases Sales Issuances Settlements Transfers Transfers Fair Value Sept. 30, 2022 Assets Residential mortgage $ 81 $ (6) $ 91 $ (33) $ (11) $ 22 $ (28) (e) $ 116 $ (6) Commercial mortgage 49 (4) (10) 35 (4) Securities available for sale Residential mortgage- 1,097 19 $ (84) (161) 871 Commercial mortgage- 3 3 Asset-backed 163 1 (18) (19) 127 Other 69 3 (3) 69 Total securities 1,332 20 (102) 3 (183) 1,070 Loans 884 20 31 (10) (132) (18) (e) 775 20 Equity investments 1,680 312 185 (382) 1,795 211 Residential mortgage 1,078 505 620 $ 49 (178) 2,074 506 Commercial mortgage 740 438 32 52 (130) 1,132 438 Financial derivatives 38 (2) 4 (32) 8 18 Total assets $ 5,882 $ 1,283 $ (102) $ 966 $ (425) $ 101 $ (676) $ 22 $ (46) $ 7,005 $ 1,183 Liabilities Other borrowed funds $ 3 $ 4 $ (5) $ 2 Financial derivatives 285 $ 12 $ 10 (187) 120 $ 22 Other liabilities 175 47 $ 32 604 (589) 269 39 Total liabilities $ 463 $ 59 $ 32 $ 10 $ 608 $ (781) $ 391 $ 61 Net gains (losses) $ 1,224 (f) $ 1,122 (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) Transfers out of Level 3 during the current period were due to valuation methodology changes for certain private company investments. See Note 1 Accounting Policies in our 2022 Form 10-K for more information on our accounting for private company investments. (e) 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. (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 on the Consolidated Income Statement and the remaining net gains (losses) realized and unrealized were included in Noninterest income on the Consolidated Income Statement. (g) Net unrealized gains (losses) related to assets and liabilities held at the end of the reporting period were included in Noninterest income on the Consolidated Income Statement. |
Fair Value Measurements - Recurring Quantitative Information | Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities follows: Table 68: Fair Value Measurements – Recurring Quantitative Information September 30, 2023 Level 3 Instruments Only Fair Value Valuation Techniques Unobservable Inputs Range (Weighted-Average) (a) Commercial mortgage loans held for sale $ 25 Discounted cash flow Spread over the benchmark curve (b) 585bps - 7,140bps (2,611bps) Residential mortgage-backed 713 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate 1.0% - 27.9% (3.8%) Constant default rate 0.0% - 12.0% (2.8%) Loss severity 10.0% - 71.4% (42.1%) Spread over the benchmark curve (b) 250bps weighted-average Asset-backed securities 103 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate 1.0% - 11.0% (5.3%) Constant default rate 0.0% - 4.3% (1.7%) Loss severity 30.0% - 100.0% (48.8%) Spread over the benchmark curve (b) 256bps weighted-average Loans - Residential real estate - Uninsured 555 Consensus pricing (c) Cumulative default rate 3.6% - 100.0% (59.6%) Loss severity 0.0% - 100.0% (5.4%) Discount rate 5.5% - 7.5% (5.8%) Loans - Residential real estate 75 Discounted cash flow Loss severity 6.0% weighted-average Discount rate 8.4% weighted-average Loans - Home equity - First-lien 19 Consensus pricing (c) Cumulative default rate 3.6% - 100.0% (63.3%) Loss severity 0.0% - 100.0% (15.2%) Discount rate 5.5% - 7.5% (6.3%) Loans - Home equity 89 Consensus pricing (c) Credit and liquidity discount 0.4% - 100.0% (44.7%) Equity investments 1,729 Multiple of adjusted earnings Multiple of earnings 4.5x - 20.0x (9.7x) Residential mortgage servicing rights 2,837 Discounted cash flow Constant prepayment rate 0.0% - 29.7% (5.8%) Spread over the benchmark curve (b) 337bps - 1,650bps (765bps) Commercial mortgage servicing rights 1,169 Discounted cash flow Constant prepayment rate 5.2% - 7.4% (5.4%) Discount rate 8.3% - 10.7% (10.2%) Financial derivatives - Swaps related to (99) Discounted cash flow Estimated conversion factor of Visa Class B shares into Class A shares 1.59 weighted-average Estimated annual growth rate of Visa Class A share price 16.0% Estimated litigation resolution date Q1 2024 Insignificant Level 3 assets, net of (7) Total Level 3 assets, net of liabilities (e) $ 7,208 (Continued from previous page) 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 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 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 1.61 weighted-average Estimated annual growth rate of Visa Class A share price 16.0% Estimated litigation resolution date Q2 2023 Insignificant Level 3 assets, net of (8) Total Level 3 assets, net of liabilities (e) $ 6,831 (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. |
Fair Value Measurements - Nonrecurring | Assets measured at fair value on a nonrecurring basis follow: Table 69: Fair Value Measurements – Nonrecurring (a) (b) (c) Fair Value Gains (Losses) Gains (Losses) In millions September 30 December 31 September 30 September 30 September 30 September 30 Assets Nonaccrual loans $ 361 $ 280 $ (84) $ (111) $ (260) $ (145) Equity investments 57 135 (15) (19) OREO and foreclosed assets 11 10 (1) (1) Long-lived assets 4 23 (3) (1) (17) (5) Total assets $ 433 $ 448 $ (103) $ (112) $ (297) $ (150) (a) All Level 3 for the periods presented, except for $28 million and $42 million included in Equity investments which were categorized as Level 1 as of September 30, 2023 and December 31, 2022, respectively. (b) Valuation techniques applied were discounted cash flow and 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 | Fair values and aggregate unpaid principal balances of items for which we elected the fair value option are as follows: Table 70: Fair Value Option – Fair Value and Principal Balances September 30, 2023 December 31, 2022 In millions Fair Value Aggregate Unpaid Difference Fair Value Aggregate Unpaid Difference Assets Residential mortgage loans held for sale Accruing loans less than 90 days past due $ 486 $ 496 $ (10) $ 609 $ 633 $ (24) Accruing loans 90 days or more past due 10 10 5 5 Nonaccrual loans 33 40 (7) 40 49 (9) Total $ 529 $ 546 $ (17) $ 654 $ 687 $ (33) Commercial mortgage loans held for sale (a) Accruing loans less than 90 days past due $ 365 $ 368 $ (3) $ 261 $ 256 $ 5 Nonaccrual loans 14 43 (29) 15 44 (29) Total $ 379 $ 411 $ (32) $ 276 $ 300 $ (24) Loans Accruing loans less than 90 days past due $ 505 $ 518 $ (13) $ 509 $ 521 $ (12) Accruing loans 90 days or more past due 140 152 (12) 155 167 (12) Nonaccrual loans 599 815 (216) 646 880 (234) Total $ 1,244 $ 1,485 $ (241) $ 1,310 $ 1,568 $ (258) Other assets $ 68 $ 75 $ (7) $ 80 $ 80 Liabilities Other borrowed funds $ 37 $ 38 $ (1) $ 31 $ 32 $ (1) Other liabilities $ 141 $ 141 $ 196 $ 196 |
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 71: Fair Value Option – Changes in Fair Value (a) Gains (Losses) Gains (Losses) Three months ended Nine months ended September 30 September 30 September 30 September 30 In millions 2023 2022 2023 2022 Assets Residential mortgage loans held for sale $ (3) $ (29) $ 14 $ (92) Commercial mortgage loans held for sale $ 6 $ 14 $ 29 $ 34 Loans $ 8 $ 1 $ 17 $ 37 Other assets $ (3) $ (12) $ (21) Liabilities Other liabilities $ (24) $ (41) $ (40) (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 | The following table presents the carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of all other financial instruments that are not recorded on our Consolidated Balance Sheet at fair value as of September 30, 2023 and December 31, 2022. For more information regarding the methods and assumptions used to estimate the fair values of financial instruments included in Table 72, see Note 15 Fair Value in our 2022 Form 10-K. Table 72: Additional Fair Value Information Related to Other Financial Instruments Carrying Fair Value In millions Amount Total Level 1 Level 2 Level 3 September 30, 2023 Assets Cash and due from banks $ 5,300 $ 5,300 $ 5,300 Interest-earning deposits with banks 41,484 41,484 $ 41,484 Securities held to maturity 91,803 84,447 30,110 54,189 $ 148 Net loans (excludes leases) 305,911 295,609 295,609 Other assets 5,916 5,916 5,915 1 Total assets $ 450,414 $ 432,756 $ 35,410 $ 101,588 $ 295,758 Liabilities Time deposits $ 27,209 $ 27,142 $ 27,142 Borrowed funds 65,052 65,127 63,943 $ 1,184 Unfunded lending related commitments 640 640 640 Other liabilities 1,106 1,106 1,106 Total liabilities $ 94,007 $ 94,015 $ 92,191 $ 1,824 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 |
Financial Derivatives (Tables)
Financial Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Total Gross Derivatives | Table 73 presents the notional and gross fair value amounts of all derivative assets and liabilities held by us. During the second quarter, in anticipation of LIBOR’s cessation on June 30, 2023, LIBOR-indexed interest-rate swap contracts with central clearing counterparties were subject to a conversion process whereby an individual LIBOR swap contract was exchanged for a SOFR replacement swap contract, along with one or more overlay swap contracts replicating the final LIBOR cash flows on the original swap contract. The swap contracts exchanged were substantially economically equivalent. Conversion-related valuation differences were settled in cash on the conversion dates and were not material. The SOFR replacement and overlay swaps are considered separate contracts, and the overlay swaps will result in a gross-up of the notional amounts presented until those swaps mature upon settlement of the final LIBOR payment. The majority of overlay swaps matured during the third quarter of 2023. Table 73: Total Gross Derivatives (a) September 30, 2023 December 31, 2022 In millions Notional / Asset Fair Liability Fair Notional / Asset Fair Liability Fair Derivatives used for hedging Interest rate contracts: Fair value hedges (d) $ 29,523 $ 24,231 Cash flow hedges (d) 35,241 $ 2 40,310 $ 1 Cash flow hedges - other (e) 25,000 $ 222 281 Foreign exchange contracts: Net investment hedges 1,168 22 1,120 $ 24 Total derivatives designated for hedging $ 90,932 $ 244 $ 283 $ 65,661 $ 24 $ 1 Derivatives not used for hedging Derivatives used for mortgage banking activities (f): Interest rate contracts: Swaps (g) $ 45,056 $ 4 $ 47,908 $ 7 $ 1 Futures (h) 8,860 5,537 Mortgage-backed commitments 4,750 $ 77 73 4,516 85 89 Other 16,588 51 21 18,017 90 14 Total interest rate contracts 75,254 128 98 75,978 182 104 Derivatives used for customer-related activities: Interest rate contracts: Swaps (g) 420,301 2,170 6,579 354,150 1,597 5,397 Futures (h) 41 32 Mortgage-backed commitments 3,675 27 11 2,799 10 6 Other 28,734 292 285 29,071 334 321 Total interest rate contracts 452,751 2,489 6,875 386,052 1,941 5,724 Commodity contracts: Swaps 6,558 477 504 5,792 1,003 1,067 Other 2,894 71 73 4,488 205 202 Total commodity contracts 9,452 548 577 10,280 1,208 1,269 Foreign exchange contracts and other 31,358 312 277 30,512 366 293 Total derivatives for customer-related activities 493,561 3,349 7,729 426,844 3,515 7,286 Derivatives used for other risk management activities: Foreign exchange contracts and other 17,427 117 110 12,785 47 227 Total derivatives not designated for hedging $ 586,242 $ 3,594 $ 7,937 $ 515,607 $ 3,744 $ 7,617 Total gross derivatives $ 677,174 $ 3,838 $ 8,220 $ 581,268 $ 3,768 $ 7,618 Less: Impact of legally enforceable master netting agreements 1,396 1,396 1,523 1,523 Less: Cash collateral received/paid 1,593 1,599 714 1,571 Total derivatives $ 849 $ 5,225 $ 1,531 $ 4,524 (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) Represents caps and floors. (f) Includes both residential and commercial mortgage banking activities. (g) At September 30, 2023, the gross-up of the notional amounts due to overlay swap contracts used for mortgage banking and customer-related activities were $0.4 billion and $22.6 billion, respectively |
Schedule of Fair Value and Cash Flow Hedges | Further detail regarding gains (losses) related to our fair value and cash flow hedge derivatives is presented in the following table: Table 74: 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 For the three months ended September 30, 2023 Total amounts in the Consolidated Income Statement $ 4,643 $ 892 $ 993 $ 94 Gains (losses) on fair value hedges recognized on: Hedged items (c) $ (156) $ 416 Derivatives $ 158 $ (421) Amounts related to interest settlements on derivatives $ 8 $ (167) Gains (losses) on cash flow hedges (d): Amount of derivative gains (losses) reclassified from accumulated $ (418) $ (8) For the three months ended September 30, 2022 Total amounts in the Consolidated Income Statement $ 3,138 $ 715 $ 317 $ 317 Gains (losses) on fair value hedges recognized on: Hedged items (c) $ (85) $ 696 Derivatives $ 86 $ (706) Amounts related to interest settlements on derivatives $ (1) $ 1 Gains (losses) on cash flow hedges (d): Amount of derivative gains (losses) reclassified from accumulated $ (122) $ (7) For the nine months ended September 30, 2023 Total amounts on the Consolidated Income Statement $ 13,424 $ 2,660 $ 2,679 $ 481 Gains (losses) on fair value hedges recognized on: Hedged items (c) $ (157) $ 551 Derivatives $ 163 $ (569) Amounts related to interest settlements on derivatives $ 20 $ (427) Gains (losses) on cash flow hedges (d): Amount of derivative gains (losses) reclassified from accumulated $ (1,108) $ (21) For the nine months ended September 30, 2022 Total amounts on the Consolidated Income Statement $ 7,935 $ 1,890 $ 542 $ 705 Gains (losses) on fair value hedges recognized on: Hedged items (c) $ (131) $ 2,073 Derivatives $ 135 $ (2,101) Amounts related to interest settlements on derivatives $ (4) $ 185 Gains (losses) on cash flow hedges (d): Amount of derivative gains (losses) reclassified from accumulated $ (5) $ 3 (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. |
Schedule of 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 75: Hedged Items - Fair Value Hedges September 30, 2023 December 31, 2022 In millions Carrying Value of the Hedged Items Cumulative Fair Carrying Value of the Hedged Items Cumulative Fair Value Investment securities - available for sale (b) $ 1,874 $ (282) $ 2,376 $ (121) Borrowed funds $ 25,959 $ (1,834) $ 21,781 $ (1,283) (a) Includes less than $(0.1) billion of fair value hedge adjustments primarily related to discontinued borrowed funds hedge relationships at both September 30, 2023 and December 31, 2022. (b) Carrying value shown represents amortized cost. |
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 76: Gains (Losses) on Derivatives Not Designated for Hedging Three months ended Nine months ended In millions 2023 2022 2023 2022 Derivatives used for mortgage banking activities: Interest rate contracts (a) $ (224) $ (245) $ (301) $ (700) Derivatives used for customer-related activities: Interest rate contracts 11 65 46 231 Foreign exchange contracts and other 31 (2) 145 22 Gains from customer-related activities (b) 42 63 191 253 Derivatives used for other risk management activities: Foreign exchange contracts and other (b) 129 309 (85) 572 Total gains (losses) from derivatives not designated as hedging instruments $ (53) $ 127 $ (195) $ 125 (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 77: Derivative Assets and Liabilities Offsetting In millions Amounts Offset on the Securities Collateral Held/Pledged Under Master Netting Agreements Gross Fair Value Cash Net Net Amounts September 30, 2023 Derivative assets Interest rate contracts: Over-the-counter cleared $ 43 $ 43 $ 43 Over-the-counter 2,796 $ 1,014 $ 1,318 464 $ 116 348 Commodity contracts 548 250 71 227 2 225 Foreign exchange and other contracts 451 132 204 115 115 Total derivative assets $ 3,838 $ 1,396 $ 1,593 $ 849 (a) $ 118 $ 731 Derivative liabilities Interest rate contracts: Over-the-counter cleared $ 30 $ 30 $ 30 Over-the-counter 7,226 $ 811 $ 1,567 4,848 $ 87 4,761 Commodity contracts 577 459 31 87 87 Foreign exchange and other contracts 387 126 1 260 260 Total derivative liabilities $ 8,220 $ 1,396 $ 1,599 $ 5,225 (b) $ 87 $ 5,138 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 (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 78: Credit-Risk Contingent Features In billions September 30, 2023 December 31, 2022 Net derivative liabilities with credit-risk contingent features $ 6.5 $ 5.8 Collateral posted 1.7 1.7 Maximum additional amount of collateral exposure $ 4.8 $ 4.1 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Results of Businesses | Table 79: Results of Businesses Three months ended September 30 Retail Banking Corporate & Asset Other Consolidated (a) 2023 Income Statement Net interest income $ 2,576 $ 1,390 $ 139 $ (687) $ 3,418 Noninterest income 784 835 223 (27) 1,815 Total revenue 3,360 2,225 362 (714) 5,233 Provision for (recapture of) credit losses 42 102 (4) (11) 129 Depreciation and amortization 80 52 9 144 285 Other noninterest expense 1,796 843 262 59 2,960 Income (loss) before income taxes (benefit) and noncontrolling interests 1,442 1,228 95 (906) 1,859 Income taxes (benefit) 337 263 22 (333) 289 Net income (loss) 1,105 965 73 (573) 1,570 Less: Net income attributable to noncontrolling interests 11 5 16 Net income (loss) excluding noncontrolling interests $ 1,094 $ 960 $ 73 $ (573) $ 1,554 Average Assets $ 114,724 $ 230,082 $ 16,161 $ 193,996 $ 554,963 2022 Income Statement Net interest income $ 2,017 $ 1,345 $ 165 $ (52) $ 3,475 Noninterest income 725 887 231 231 2,074 Total revenue 2,742 2,232 396 179 5,549 Provision for (recapture of) credit losses 92 150 4 (5) 241 Depreciation and amortization 76 50 6 145 277 Other noninterest expense 1,825 840 268 70 3,003 Income (loss) before income taxes (benefit) and noncontrolling interests 749 1,192 118 (31) 2,028 Income taxes (benefit) 175 258 28 (73) 388 Net income 574 934 90 42 1,640 Less: Net income (loss) attributable to noncontrolling interests 14 5 (3) 16 Net income excluding noncontrolling interests $ 560 $ 929 $ 90 $ 45 $ 1,624 Average Assets $ 114,619 $ 224,984 $ 14,820 $ 192,674 $ 547,097 (Continued from previous page) Nine months ended September 30 Retail Corporate & Asset Other Consolidated (a) 2023 Income Statement Net interest income $ 7,305 $ 4,122 $ 391 $ (1,305) $ 10,513 Noninterest income 2,229 2,542 681 164 5,616 Total revenue 9,534 6,664 1,072 (1,141) 16,129 Provision for (recapture of) credit losses 266 283 (5) (34) 510 Depreciation and amortization 239 159 22 430 850 Other noninterest expense 5,468 2,596 809 215 9,088 Income (loss) before income taxes (benefit) and noncontrolling interests 3,561 3,626 246 (1,752) 5,681 Income taxes (benefit) 834 775 58 (750) 917 Net income (loss) 2,727 2,851 188 (1,002) 4,764 Less: Net income attributable to noncontrolling interests 32 15 3 50 Net income (loss) excluding noncontrolling interests $ 2,695 $ 2,836 $ 188 $ (1,005) $ 4,714 Average Assets $ 114,975 $ 232,914 $ 15,578 $ 194,107 $ 557,574 2022 Income Statement Net interest income $ 5,210 $ 3,720 $ 456 $ (56) $ 9,330 Noninterest income 2,218 2,659 713 437 6,027 Total revenue 7,428 6,379 1,169 381 15,357 Provision for (recapture of) credit losses 66 15 11 (23) 69 Depreciation and amortization 233 153 20 437 843 Other noninterest expense 5,473 2,508 775 97 8,853 Income (loss) before income taxes (benefit) and noncontrolling interests 1,656 3,703 363 (130) 5,592 Income taxes (benefit) 389 803 85 (250) 1,027 Net income 1,267 2,900 278 120 4,565 Less: Net income (loss) attributable to noncontrolling interests 45 12 (5) 52 Net income excluding noncontrolling interests $ 1,222 $ 2,888 $ 278 $ 125 $ 4,513 Average Assets $ 113,157 $ 215,163 $ 14,360 $ 205,763 $ 548,443 (a) There were no material intersegment revenues for the three and nine months ended September 30, 2023 and 2022. |
Fee-Based Revenue from Contra_2
Fee-Based Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Noninterest Income by Business Segment and Reconciliation to Consolidated Noninterest Income | Table 80 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. For a description of the fee-based revenue and how it is recognized for each segment’s principal products and services, see Note 24 Fee-based Revenue from Contracts with Customers in our 2022 Form 10-K. Table 80: Noninterest Income by Business Segment and Reconciliation to Consolidated Noninterest Income Three Months Ended Three Months Ended Retail Banking Corporate & Asset Management Group Retail Banking Corporate & Asset Management Group Asset management and brokerage Asset management fees $ 217 $ 224 Brokerage fees $ 129 2 $ 131 2 Total asset management and brokerage 129 219 131 226 Card and cash management Treasury management fees 10 $ 351 11 $ 328 Debit card fees 175 175 Net credit card fees (a) 54 60 Merchant services 42 20 48 16 Other 24 23 Total card and cash management 305 371 317 344 Lending and deposit services Deposit account fees 170 146 Other 18 8 16 8 Total lending and deposit services 188 8 162 8 Residential and commercial mortgage (b) 32 36 Capital markets and advisory 124 155 Other 22 11 Total in-scope noninterest income 622 557 219 610 554 226 Out-of-scope noninterest income (c) 162 278 4 115 333 5 Noninterest income by business segment $ 784 $ 835 $ 223 $ 725 $ 887 $ 231 Reconciliation to consolidated noninterest income Total in-scope business segment noninterest income $ 1,398 $ 1,390 Out-of-scope business segment noninterest income (c) 444 453 Noninterest income from other segments (27) 231 Noninterest income as shown on the Consolidated Income Statement $ 1,815 $ 2,074 (Continued from previous page) Nine Months Ended Nine Months Ended Retail Banking Corporate & Asset Retail Banking Corporate & Asset Asset management and brokerage Asset management fees $ 663 $ 693 Brokerage fees $ 383 6 $ 400 6 Total asset management and brokerage 383 669 400 699 Card and cash management Treasury management fees 31 $ 1,024 30 $ 957 Debit card fees 518 513 Net credit card fees (a) 173 178 Merchant services 126 58 141 47 Other 73 73 Total card and cash management 921 1,082 935 1,004 Lending and deposit services Deposit account fees 476 433 Other 54 24 50 25 Total lending and deposit services 530 24 483 25 Residential and commercial mortgage (b) 114 100 Capital markets and advisory 410 564 Other 44 33 Total in-scope noninterest income 1,834 1,674 669 1,818 1,726 699 Out-of-scope noninterest income (c) 395 868 12 400 933 14 Noninterest income by business segment $ 2,229 $ 2,542 $ 681 $ 2,218 $ 2,659 $ 713 Reconciliation to consolidated noninterest income Total in-scope business segment noninterest income $ 4,177 $ 4,243 Out-of-scope business segment noninterest income (c) 1,275 1,347 Noninterest income from other segments 164 437 Noninterest income as shown on the Consolidated Income Statement $ 5,616 $ 6,027 (a) Net credit card fees consists of interchange fees of $169 million for both the three months ended September 30, 2023 and 2022. Credit card reward costs totaled $115 million and $109 million for the three months ended September 30, 2023 and 2022, respectively. Net credit card fees consists of interchange fees of $502 million and $489 million and credit card reward costs of $329 million and $311 million for the nine months ended September 30, 2023 and 2022, 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) $ in Millions | 9 Months Ended | |||||
Sep. 30, 2023 USD ($) country | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Number of countries outside the US where strategic international offices are held | country | 4 | |||||
Allowance for loan and lease losses | $ (4,767) | $ (4,737) | $ (4,741) | $ (4,581) | $ (4,462) | $ (4,868) |
Retained earnings | $ 56,170 | 53,572 | ||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Allowance for loan and lease losses | 35 | |||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2022-02 | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Allowance for loan and lease losses | 35 | |||||
Retained earnings | $ 26 |
Investment Securities (Summary)
Investment Securities (Summary) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Securities available for sale debt securities, amortized cost | $ 45,990 | $ 48,568 |
Securities available for sale debt securities, unrealized gains | 179 | 225 |
Securities available for sale debt securities, unrealized losses | (5,579) | (4,634) |
Securities available for sale debt securities, fair value | 40,590 | 44,159 |
Held to maturity securities, amortized cost | 91,797 | 95,175 |
Held-to-maturity securities, unrealized gains | 8 | 115 |
Held-to-maturity securities, unrealized losses | (7,358) | (5,011) |
Held-to-maturity securities, fair value | 84,447 | 90,279 |
Accrued interest, held-to-maturity | 255 | 282 |
Accrued interest, available-for-sale | 134 | $ 144 |
Net unrealized losses, related to securities transferred at fair value to held to maturity at a point in time | $ 4,400 | |
Fitch, AAA OR AA Rating | Credit Concentration Risk | Investments | ||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Concentration risk, percentage | 97% | 97% |
U.S. Treasury and government agencies | ||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Securities available for sale debt securities, amortized cost | $ 7,494 | $ 9,196 |
Securities available for sale debt securities, unrealized gains | 4 | 10 |
Securities available for sale debt securities, unrealized losses | (781) | (836) |
Securities available for sale debt securities, fair value | 6,717 | 8,370 |
Held to maturity securities, amortized cost | 36,385 | 36,571 |
Held-to-maturity securities, unrealized gains | 6 | |
Held-to-maturity securities, unrealized losses | (1,946) | (1,617) |
Held-to-maturity securities, fair value | 34,439 | 34,960 |
Agency | ||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Securities available for sale debt securities, amortized cost | 31,177 | 32,114 |
Securities available for sale debt securities, unrealized gains | 13 | |
Securities available for sale debt securities, unrealized losses | (4,278) | (3,304) |
Securities available for sale debt securities, fair value | 26,899 | 28,823 |
Held to maturity securities, amortized cost | 43,390 | 45,271 |
Held-to-maturity securities, unrealized gains | 74 | |
Held-to-maturity securities, unrealized losses | (5,056) | (3,095) |
Held-to-maturity securities, fair value | 38,334 | 42,250 |
Non-agency | ||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Securities available for sale debt securities, amortized cost | 607 | 697 |
Securities available for sale debt securities, unrealized gains | 115 | 131 |
Securities available for sale debt securities, unrealized losses | (9) | (9) |
Securities available for sale debt securities, fair value | 713 | 819 |
Held to maturity securities, amortized cost | 263 | 276 |
Held-to-maturity securities, unrealized gains | ||
Held-to-maturity securities, unrealized losses | (35) | (21) |
Held-to-maturity securities, fair value | 228 | 255 |
Agency | ||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Securities available for sale debt securities, amortized cost | 1,738 | 1,845 |
Securities available for sale debt securities, unrealized gains | ||
Securities available for sale debt securities, unrealized losses | (194) | (170) |
Securities available for sale debt securities, fair value | 1,544 | 1,675 |
Held to maturity securities, amortized cost | 910 | 848 |
Held-to-maturity securities, unrealized gains | 4 | |
Held-to-maturity securities, unrealized losses | (53) | (26) |
Held-to-maturity securities, fair value | 857 | 826 |
Non-agency | ||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Securities available for sale debt securities, amortized cost | 982 | 1,325 |
Securities available for sale debt securities, unrealized gains | ||
Securities available for sale debt securities, unrealized losses | (59) | (69) |
Securities available for sale debt securities, fair value | 923 | 1,256 |
Held to maturity securities, amortized cost | 1,456 | 1,667 |
Held-to-maturity securities, unrealized gains | 1 | |
Held-to-maturity securities, unrealized losses | (28) | (40) |
Held-to-maturity securities, fair value | 1,429 | 1,627 |
Debt securities, available for sale, amortized cost | 92 | 142 |
Debt securities, held to maturity, amortized cost | 6 | 7 |
Other | ||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Securities available for sale debt securities, amortized cost | 2,908 | 3,288 |
Securities available for sale debt securities, unrealized gains | 42 | 44 |
Securities available for sale debt securities, unrealized losses | (251) | (245) |
Securities available for sale debt securities, fair value | 2,699 | 3,087 |
Held to maturity securities, amortized cost | 3,179 | 3,354 |
Held-to-maturity securities, unrealized gains | 4 | 25 |
Held-to-maturity securities, unrealized losses | (143) | (72) |
Held-to-maturity securities, fair value | 3,040 | 3,307 |
Asset-backed | ||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Securities available for sale debt securities, amortized cost | 1,084 | 103 |
Securities available for sale debt securities, unrealized gains | 18 | 27 |
Securities available for sale debt securities, unrealized losses | (7) | (1) |
Securities available for sale debt securities, fair value | 1,095 | 129 |
Held to maturity securities, amortized cost | 6,214 | 7,188 |
Held-to-maturity securities, unrealized gains | 3 | 6 |
Held-to-maturity securities, unrealized losses | (97) | (140) |
Held-to-maturity securities, fair value | $ 6,120 | $ 7,054 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Schedule of Investments [Line Items] | |||
Net unsettled investment purchases (less than $0.1 billion for 9/30/23) | $ 100 | $ 2,000 | |
Investment securities, allowance for credit loss | 98 | $ 149 | |
Pretax loss included in AOCI from derivatives | (297) | $ (132) | |
Federal National Mortgage Association Certificates and Obligations (FNMA) | |||
Schedule of Investments [Line Items] | |||
Debt securities amortized cost amount of debt securities exceeds 10 percent of shareholders equity | 38,100 | ||
Fair value of debt securities of a single issuer that exceeds 10 percent of shareholders equity | 33,400 | ||
Federal Home Loan Mortgage Corporation (FHLMC) Insured Loans | |||
Schedule of Investments [Line Items] | |||
Debt securities amortized cost amount of debt securities exceeds 10 percent of shareholders equity | 32,400 | ||
Fair value of debt securities of a single issuer that exceeds 10 percent of shareholders equity | $ 28,700 |
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 | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, unrealized loss | $ (126) | $ (2,616) |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months - fair value | 4,653 | 28,467 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, unrealized loss | (5,412) | (1,973) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer - fair value | 34,079 | 13,111 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (5,538) | (4,589) |
Debt securities, available-for-sale, unrealized loss position, fair value | 38,732 | 41,578 |
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, unrealized loss | (3) | (601) |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months - fair value | 374 | 5,868 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, unrealized loss | (778) | (235) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer - fair value | 6,013 | 2,208 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (781) | (836) |
Debt securities, available-for-sale, unrealized loss position, fair value | 6,387 | 8,076 |
Residential mortgage-backed | Mortgage-backed Securities Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, unrealized loss | (107) | (1,744) |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months - fair value | 3,294 | 19,036 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, unrealized loss | (4,171) | (1,560) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer - fair value | 23,547 | 8,971 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (4,278) | (3,304) |
Debt securities, available-for-sale, unrealized loss position, fair value | 26,841 | 28,007 |
Residential mortgage-backed | 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, unrealized loss | (1) | (6) |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months - fair value | 51 | 112 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, unrealized loss | (6) | (2) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer - fair value | 71 | 17 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (7) | (8) |
Debt securities, available-for-sale, unrealized loss position, fair value | 122 | 129 |
Commercial mortgage servicing rights | Mortgage-backed Securities Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, unrealized loss | (1) | (125) |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months - fair value | 42 | 1,283 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, unrealized loss | (193) | (45) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer - fair value | 1,493 | 372 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (194) | (170) |
Debt securities, available-for-sale, unrealized loss position, fair value | 1,535 | 1,655 |
Commercial mortgage servicing rights | 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, unrealized loss | (44) | |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months - fair value | 750 | |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, unrealized loss | (55) | (18) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer - fair value | 793 | 394 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (55) | (62) |
Debt securities, available-for-sale, unrealized loss position, fair value | 793 | 1,144 |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, unrealized loss | (6) | |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months - fair value | 687 | |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, unrealized loss | (1) | (1) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer - fair value | 10 | 5 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (7) | (1) |
Debt securities, available-for-sale, unrealized loss position, fair value | 697 | 5 |
Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, unrealized loss | (8) | (96) |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months - fair value | 205 | 1,418 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, unrealized loss | (208) | (112) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer - fair value | 2,152 | 1,144 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (216) | (208) |
Debt securities, available-for-sale, unrealized loss position, fair value | $ 2,357 | $ 2,562 |
Investment Securities (Gains (L
Investment Securities (Gains (Losses) on Sales of Securities Available for Sale) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross Gains | $ 11 | |
Gross Losses | (2) | (15) |
Net Gains (Losses) | (2) | (4) |
Tax Expense (Benefit) | $ (1) |
Investment Securities (Contract
Investment Securities (Contractual Maturity of Securities) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities [Line Items] | ||
Available for sale securities, amortized cost, 1 year or less | $ 2,246 | |
Available for sale securities, amortized cost, after 1 year through 5 years | 5,994 | |
Available for sale securities, amortized cost, after 5 years through 10 years | 6,190 | |
Available for sale securities, amortized cost, after 10 years | 31,560 | |
Securities available for sale debt securities, amortized cost | 45,990 | $ 48,568 |
Available-for-sale securities, fair value, 1 year or less | 2,179 | |
Available-for-sale securities, fair value, after 1 year through 5 years | 5,487 | |
Available-for-sale securities, fair value, after 5 years through 10 years | 5,603 | |
Available-for-sale securities, fair value, after 10 years | 27,321 | |
Available-for-sale securities, fair value | $ 40,590 | 44,159 |
Weighted-average yield, GAAP basis, available for sale securities | 2.84% | |
Held to maturity securities, amortized cost, 1 year or less | $ 3,317 | |
Held to maturity securities, amortized cost, after 1 year through 5 years | 33,816 | |
Held to maturity securities, amortized cost, after 5 years through 10 years | 5,065 | |
Held to maturity securities, amortized cost, after 10 years | 49,599 | |
Held to maturity securities, amortized cost | 91,797 | 95,175 |
Held-to-maturity securities, fair value, 1 year or less | 3,253 | |
Held-to-maturity securities, fair value, after 1 year through 5 years | 32,192 | |
Held-to-maturity securities, fair value, after 5 years through 10 years | 4,753 | |
Held-to-maturity securities, fair value, after 10 years | 44,249 | |
Held-to-maturity securities, fair value | $ 84,447 | 90,279 |
Weighted-average yield, GAAP basis, held to maturity securities | 2.38% | |
1 Year or Less | ||
Debt Securities [Line Items] | ||
Weighted-average yield, GAAP basis, available for sale securities | 1.25% | |
Weighted-average yield, GAAP basis, held to maturity securities | 0.93% | |
After 1 Year through 5 Years | ||
Debt Securities [Line Items] | ||
Weighted-average yield, GAAP basis, available for sale securities | 2.25% | |
Weighted-average yield, GAAP basis, held to maturity securities | 1.44% | |
After 5 Years through 10 Years | ||
Debt Securities [Line Items] | ||
Weighted-average yield, GAAP basis, available for sale securities | 2.77% | |
Weighted-average yield, GAAP basis, held to maturity securities | 4.10% | |
After 10 Years | ||
Debt Securities [Line Items] | ||
Weighted-average yield, GAAP basis, available for sale securities | 3.08% | |
Weighted-average yield, GAAP basis, held to maturity securities | 2.93% | |
U.S. Treasury and government agencies | ||
Debt Securities [Line Items] | ||
Available for sale securities, amortized cost, 1 year or less | $ 1,912 | |
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 | 800 | |
Available for sale securities, amortized cost, after 10 years | 1,824 | |
Securities available for sale debt securities, amortized cost | 7,494 | 9,196 |
Available-for-sale securities, fair value | 6,717 | 8,370 |
Held to maturity securities, amortized cost, 1 year or less | 3,087 | |
Held to maturity securities, amortized cost, after 1 year through 5 years | 30,686 | |
Held to maturity securities, amortized cost, after 5 years through 10 years | 1,705 | |
Held to maturity securities, amortized cost, after 10 years | 907 | |
Held to maturity securities, amortized cost | 36,385 | 36,571 |
Held-to-maturity securities, fair value | 34,439 | 34,960 |
Residential mortgage-backed | Mortgage-backed Securities Agency | ||
Debt Securities [Line Items] | ||
Available for sale securities, amortized cost, 1 year or less | 1 | |
Available for sale securities, amortized cost, after 1 year through 5 years | 185 | |
Available for sale securities, amortized cost, after 5 years through 10 years | 3,811 | |
Available for sale securities, amortized cost, after 10 years | 27,180 | |
Securities available for sale debt securities, amortized cost | 31,177 | |
Held to maturity securities, amortized cost, after 1 year through 5 years | 6 | |
Held to maturity securities, amortized cost, after 5 years through 10 years | 321 | |
Held to maturity securities, amortized cost, after 10 years | 43,063 | |
Held to maturity securities, amortized cost | 43,390 | |
Residential mortgage-backed | Mortgage-backed Securities Non-agency | ||
Debt Securities [Line Items] | ||
Available for sale securities, amortized cost, after 5 years through 10 years | 9 | |
Available for sale securities, amortized cost, after 10 years | 598 | |
Securities available for sale debt securities, amortized cost | 607 | |
Held to maturity securities, amortized cost, after 10 years | 263 | |
Held to maturity securities, amortized cost | 263 | |
Commercial mortgage servicing rights | Mortgage-backed Securities Agency | ||
Debt Securities [Line Items] | ||
Available for sale securities, amortized cost, 1 year or less | 46 | |
Available for sale securities, amortized cost, after 1 year through 5 years | 444 | |
Available for sale securities, amortized cost, after 5 years through 10 years | 865 | |
Available for sale securities, amortized cost, after 10 years | 383 | |
Securities available for sale debt securities, amortized cost | 1,738 | |
Held to maturity securities, amortized cost, after 1 year through 5 years | 136 | |
Held to maturity securities, amortized cost, after 5 years through 10 years | 490 | |
Held to maturity securities, amortized cost, after 10 years | 284 | |
Held to maturity securities, amortized cost | 910 | |
Commercial mortgage servicing rights | Mortgage-backed Securities Non-agency | ||
Debt Securities [Line Items] | ||
Available for sale securities, amortized cost, 1 year or less | 1 | |
Available for sale securities, amortized cost, after 1 year through 5 years | 103 | |
Available for sale securities, amortized cost, after 5 years through 10 years | 118 | |
Available for sale securities, amortized cost, after 10 years | 760 | |
Securities available for sale debt securities, amortized cost | 982 | |
Held to maturity securities, amortized cost, 1 year or less | 42 | |
Held to maturity securities, amortized cost, after 1 year through 5 years | 49 | |
Held to maturity securities, amortized cost, after 10 years | 1,365 | |
Held to maturity securities, amortized cost | 1,456 | |
Asset-backed | ||
Debt Securities [Line Items] | ||
Available for sale securities, amortized cost, after 1 year through 5 years | 249 | |
Available for sale securities, amortized cost, after 5 years through 10 years | 171 | |
Available for sale securities, amortized cost, after 10 years | 664 | |
Securities available for sale debt securities, amortized cost | 1,084 | |
Held to maturity securities, amortized cost, 1 year or less | 7 | |
Held to maturity securities, amortized cost, after 1 year through 5 years | 1,886 | |
Held to maturity securities, amortized cost, after 5 years through 10 years | 1,949 | |
Held to maturity securities, amortized cost, after 10 years | 2,372 | |
Held to maturity securities, amortized cost | 6,214 | |
Other | ||
Debt Securities [Line Items] | ||
Available for sale securities, amortized cost, 1 year or less | 286 | |
Available for sale securities, amortized cost, after 1 year through 5 years | 2,055 | |
Available for sale securities, amortized cost, after 5 years through 10 years | 416 | |
Available for sale securities, amortized cost, after 10 years | 151 | |
Securities available for sale debt securities, amortized cost | 2,908 | 3,288 |
Available-for-sale securities, fair value | 2,699 | 3,087 |
Held to maturity securities, amortized cost, 1 year or less | 181 | |
Held to maturity securities, amortized cost, after 1 year through 5 years | 1,053 | |
Held to maturity securities, amortized cost, after 5 years through 10 years | 600 | |
Held to maturity securities, amortized cost, after 10 years | 1,345 | |
Held to maturity securities, amortized cost | 3,179 | 3,354 |
Held-to-maturity securities, fair value | $ 3,040 | $ 3,307 |
Investment Securities (Fair Val
Investment Securities (Fair Value of Securities Pledged and Accepted as Collateral) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Summary of Investment Holdings [Line Items] | ||
Permitted by contract or custom to sell or repledge | $ 946 | $ 1,266 |
Permitted amount repledged to others | 946 | 1,266 |
Asset Pledged as Collateral | ||
Summary of Investment Holdings [Line Items] | ||
Debt securities, pledged to others | $ 27,462 | $ 24,708 |
Loans and Related Allowance f_3
Loans and Related Allowance for Credit Losses (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) portfolio_segment | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) portfolio_segment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Number of portfolio segments | portfolio_segment | 2 | 2 | |||
Financing Receivable, After Allowance for Credit Loss | $ 313,649 | $ 313,649 | $ 321,284 | ||
Subsequently defaulted FDM/ TDR | 36 | $ 23 | 84 | $ 45 | |
Allowance for credit loss | 5,407 | $ 5,263 | $ 5,407 | $ 5,263 | 5,400 |
Short-Term Repayment Plan | |||||
Weighted average interest rate reduction | 4.99% | ||||
Short-Term Repayment Plan | Minimum | |||||
Repayment plan term | 6 months | ||||
Minimum payment percentage | 1.90% | ||||
Short-Term Repayment Plan | Maximum | |||||
Repayment plan term | 12 months | ||||
Fully-amortized Repayment Plans | |||||
Repayment plan term | 60 months | ||||
Weighted average interest rate reduction | 4.99% | ||||
Fully-amortized Repayment Plans | Minimum | |||||
Minimum payment percentage | 1.90% | ||||
Federal Reserve Bank | Asset Pledged as Collateral without Right | |||||
Financing Receivable, After Allowance for Credit Loss | 50,400 | $ 50,400 | 28,100 | ||
Federal Home Loan Bank | Asset Pledged as Collateral without Right | |||||
Financing Receivable, After Allowance for Credit Loss | $ 91,400 | $ 91,400 | $ 90,400 |
Loans and Related Allowance f_4
Loans and Related Allowance for Credit Losses (Analysis of Loan Portfolio) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Past Due [Line Items] | |||
Total loans | [1] | $ 318,416 | $ 326,025 |
Percentage of total loans, past due | 100% | 100% | |
Accrued interest on loan portfolio | $ 1,400 | $ 1,200 | |
Unearned income, unamortized deferred fees and costs on originated loans, and premiums or discounts on purchased loans | 800 | 900 | |
Collateral Dependent | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,100 | 1,300 | |
Financial Asset, Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | $ 1,287 | $ 1,490 | |
Percentage of total loans, past due | 0.40% | 0.46% | |
Current or Less Than 30 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | $ 314,407 | $ 321,904 | |
Percentage of total loans, past due | 98.74% | 98.73% | |
30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | $ 607 | $ 747 | |
Percentage of total loans, past due | 0.19% | 0.23% | |
60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | $ 253 | $ 261 | |
Percentage of total loans, past due | 0.08% | 0.08% | |
90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | $ 427 | $ 482 | |
Percentage of total loans, past due | 0.13% | 0.15% | |
Nonperforming Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | $ 2,123 | $ 1,985 | |
Percentage of total loans, past due | 0.67% | 0.61% | |
Fair Value Option Nonaccrual Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual loans | $ 599 | $ 646 | |
Percentage of total loans, nonaccrual, past due | 0.19% | 0.20% | |
Total commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | $ 216,432 | $ 225,049 | |
Total commercial | Financial Asset, Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 253 | 380 | |
Total commercial | Current or Less Than 30 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 214,968 | 223,811 | |
Total commercial | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 111 | 208 | |
Total commercial | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 40 | 35 | |
Total commercial | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 102 | 137 | |
Total commercial | Nonperforming Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,211 | 858 | |
Total consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 101,984 | 100,976 | |
Total consumer | Financial Asset, Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,034 | 1,110 | |
Total consumer | Current or Less Than 30 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 99,439 | 98,093 | |
Total consumer | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 496 | 539 | |
Total consumer | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 213 | 226 | |
Total consumer | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 325 | 345 | |
Total consumer | Nonperforming Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 912 | 1,127 | |
Total consumer | Fair Value Option Nonaccrual Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual loans | 599 | 646 | |
Commercial and industrial | Total commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 174,163 | 182,219 | |
Commercial and industrial | Total commercial | Financial Asset, Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 218 | 333 | |
Commercial and industrial | Total commercial | Current or Less Than 30 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 173,487 | 181,223 | |
Commercial and industrial | Total commercial | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 84 | 169 | |
Commercial and industrial | Total commercial | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 32 | 27 | |
Commercial and industrial | Total commercial | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 102 | 137 | |
Commercial and industrial | Total commercial | Nonperforming Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 458 | 663 | |
Commercial real estate | Total commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 35,776 | 36,316 | |
Commercial real estate | Total commercial | Financial Asset, Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 4 | 23 | |
Commercial real estate | Total commercial | Current or Less Than 30 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 35,049 | 36,104 | |
Commercial real estate | Total commercial | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 2 | 19 | |
Commercial real estate | Total commercial | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 2 | 4 | |
Commercial real estate | Total commercial | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | |||
Commercial real estate | Total commercial | Nonperforming Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 723 | 189 | |
Equipment lease financing | Total commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 6,493 | 6,514 | |
Equipment lease financing | Total commercial | Financial Asset, Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 31 | 24 | |
Equipment lease financing | Total commercial | Current or Less Than 30 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 6,432 | 6,484 | |
Equipment lease financing | Total commercial | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 25 | 20 | |
Equipment lease financing | Total commercial | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 6 | 4 | |
Equipment lease financing | Total commercial | Nonperforming Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 30 | 6 | |
Residential real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 47,359 | 45,889 | |
Residential real estate | Government insured or guaranteed loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 652 | 693 | |
Residential real estate | Total consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 47,359 | 45,889 | |
Residential real estate | Total consumer | Financial Asset, Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 542 | 592 | |
Residential real estate | Total consumer | Financial Asset, Past Due | Government insured or guaranteed loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 300 | 300 | |
Residential real estate | Total consumer | Current or Less Than 30 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 45,958 | 44,306 | |
Residential real estate | Total consumer | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 257 | 281 | |
Residential real estate | Total consumer | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 103 | 112 | |
Residential real estate | Total consumer | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 182 | 199 | |
Residential real estate | Total consumer | Nonperforming Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 330 | 424 | |
Residential real estate | Total consumer | Fair Value Option Nonaccrual Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual loans | 529 | 567 | |
Home equity | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 26,159 | 25,983 | |
Home equity | Total consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 26,159 | 25,983 | |
Home equity | Total consumer | Financial Asset, Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 81 | 73 | |
Home equity | Total consumer | Current or Less Than 30 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 25,562 | 25,305 | |
Home equity | Total consumer | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 59 | 53 | |
Home equity | Total consumer | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 22 | 20 | |
Home equity | Total consumer | Nonperforming Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 446 | 526 | |
Home equity | Total consumer | Fair Value Option Nonaccrual Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual loans | 70 | 79 | |
Automobile | Total consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 14,940 | 14,836 | |
Automobile | Total consumer | Financial Asset, Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 108 | 138 | |
Automobile | Total consumer | Current or Less Than 30 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 14,718 | 14,543 | |
Automobile | Total consumer | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 83 | 106 | |
Automobile | Total consumer | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 19 | 25 | |
Automobile | Total consumer | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 6 | 7 | |
Automobile | Total consumer | Nonperforming Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 114 | 155 | |
Credit card | Total consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 7,060 | 7,069 | |
Credit card | Total consumer | Financial Asset, Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 168 | 155 | |
Credit card | Total consumer | Current or Less Than 30 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 6,881 | 6,906 | |
Credit card | Total consumer | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 50 | 50 | |
Credit card | Total consumer | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 38 | 35 | |
Credit card | Total consumer | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 80 | 70 | |
Credit card | Total consumer | Nonperforming Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 11 | 8 | |
Education | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 2,020 | 2,173 | |
Education | Total consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 2,020 | 2,173 | |
Education | Total consumer | Financial Asset, Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 102 | 115 | |
Education | Total consumer | Financial Asset, Past Due | Government insured or guaranteed loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 100 | 100 | |
Education | Total consumer | Current or Less Than 30 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,918 | 2,058 | |
Education | Total consumer | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 32 | 34 | |
Education | Total consumer | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 22 | 22 | |
Education | Total consumer | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 48 | 59 | |
Other consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 4,446 | 5,026 | |
Other consumer | Total consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 4,446 | 5,026 | |
Other consumer | Total consumer | Financial Asset, Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 33 | 37 | |
Other consumer | Total consumer | Current or Less Than 30 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 4,402 | 4,975 | |
Other consumer | Total consumer | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 15 | 15 | |
Other consumer | Total consumer | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 9 | 12 | |
Other consumer | Total consumer | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 9 | 10 | |
Other consumer | Total consumer | Nonperforming Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | $ 11 | $ 14 | |
[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 held for investment of $1.2 billion and Other assets of $0.1 billion at September 30, 2023. Comparable amounts at December 31, 2022 were $0.9 billion, $1.3 billion and $0.1 billion, respectively. |
Loans and Related Allowance f_5
Loans and Related Allowance for Credit Losses (Nonperforming Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Nonperforming loans, without allowance for credit losses | $ 500 | $ 700 |
Nonperforming Loans | ||
Nonperforming loans | 2,123 | 1,985 |
OREO and foreclosed assets | 35 | 34 |
Total nonperforming assets | $ 2,158 | $ 2,019 |
Nonperforming loans to total loans | 0.67% | 0.61% |
Nonperforming assets to total loans, OREO and foreclosed assets | 0.68% | 0.62% |
Nonperforming assets to total assets | 0.39% | 0.36% |
Total commercial | Nonperforming Loans | ||
Nonperforming loans | $ 1,211 | $ 858 |
Total consumer | Nonperforming Loans | ||
Nonperforming loans | $ 912 | $ 1,127 |
Unsecured Consumer Loans | Minimum | ||
Threshold period of financing receivable past due, writeoff | 120 days | |
Unsecured Consumer Loans | Maximum | ||
Threshold period of financing receivable past due, writeoff | 180 days |
Loans and Related Allowance f_6
Loans and Related Allowance for Credit Losses (Commercial Lending Asset Quality Indicators) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Total loans, net | [1] | $ 318,416 | $ 318,416 | $ 326,025 | ||
Gross charge-offs | ||||||
Total | 233 | $ 222 | 808 | $ 668 | ||
Commercial | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 24,223 | 24,223 | 53,984 | |||
Year two | 42,444 | 42,444 | 18,123 | |||
Year three | 13,806 | 13,806 | 12,997 | |||
Year four | 9,973 | 9,973 | 13,538 | |||
Year five | 11,029 | 11,029 | 8,745 | |||
Prior | 25,127 | 25,127 | 24,043 | |||
Revolving Loans | 89,188 | 89,188 | 93,519 | |||
Revolving Loans Converted to Term | 642 | 642 | 100 | |||
Total loans, net | 216,432 | 216,432 | 225,049 | |||
Gross charge-offs | ||||||
Year one | 18 | |||||
Year two | 21 | |||||
Year three | 29 | |||||
Year four | 11 | |||||
Year five | 32 | |||||
Prior | 115 | |||||
Revolving Loans | 90 | |||||
Revolving Loans Converted to Term | 11 | |||||
Total | 72 | $ 73 | 327 | $ 162 | ||
Commercial | Commercial and industrial | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 19,328 | 19,328 | 42,944 | |||
Year two | 31,165 | 31,165 | 12,916 | |||
Year three | 9,219 | 9,219 | 8,411 | |||
Year four | 6,416 | 6,416 | 6,560 | |||
Year five | 4,903 | 4,903 | 4,506 | |||
Prior | 13,662 | 13,662 | 13,716 | |||
Revolving Loans | 88,828 | 88,828 | 93,066 | |||
Revolving Loans Converted to Term | 642 | 642 | 100 | |||
Total loans, net | 174,163 | 174,163 | 182,219 | |||
Gross charge-offs | ||||||
Year one | 17 | |||||
Year two | 19 | |||||
Year three | 27 | |||||
Year four | 7 | |||||
Year five | 2 | |||||
Prior | 19 | |||||
Revolving Loans | 90 | |||||
Revolving Loans Converted to Term | 11 | |||||
Total | 192 | |||||
Commercial | Commercial real estate | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 3,701 | 3,701 | 9,183 | |||
Year two | 9,693 | 9,693 | 4,190 | |||
Year three | 3,752 | 3,752 | 3,588 | |||
Year four | 2,746 | 2,746 | 6,269 | |||
Year five | 5,582 | 5,582 | 3,812 | |||
Prior | 9,942 | 9,942 | 8,821 | |||
Revolving Loans | 360 | 360 | 453 | |||
Total loans, net | 35,776 | 35,776 | 36,316 | |||
Gross charge-offs | ||||||
Year five | 29 | |||||
Prior | 95 | |||||
Total | 124 | |||||
Commercial | Equipment lease financing | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 1,194 | 1,194 | 1,857 | |||
Year two | 1,586 | 1,586 | 1,017 | |||
Year three | 835 | 835 | 998 | |||
Year four | 811 | 811 | 709 | |||
Year five | 544 | 544 | 427 | |||
Prior | 1,523 | 1,523 | 1,506 | |||
Total loans, net | 6,493 | 6,493 | 6,514 | |||
Gross charge-offs | ||||||
Year one | 1 | |||||
Year two | 2 | |||||
Year three | 2 | |||||
Year four | 4 | |||||
Year five | 1 | |||||
Prior | 1 | |||||
Total | 11 | |||||
Pass Rated | Commercial | Commercial and industrial | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 18,791 | 18,791 | 41,685 | |||
Year two | 29,249 | 29,249 | 12,493 | |||
Year three | 8,476 | 8,476 | 8,134 | |||
Year four | 6,061 | 6,061 | 6,261 | |||
Year five | 4,654 | 4,654 | 4,209 | |||
Prior | 12,952 | 12,952 | 13,165 | |||
Revolving Loans | 84,123 | 84,123 | 89,384 | |||
Revolving Loans Converted to Term | 603 | 603 | 69 | |||
Total loans, net | 164,909 | 164,909 | 175,400 | |||
Pass Rated | Commercial | Commercial real estate | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 3,592 | 3,592 | 8,835 | |||
Year two | 9,008 | 9,008 | 4,153 | |||
Year three | 3,282 | 3,282 | 3,266 | |||
Year four | 2,376 | 2,376 | 5,511 | |||
Year five | 4,918 | 4,918 | 3,005 | |||
Prior | 8,062 | 8,062 | 7,454 | |||
Revolving Loans | 342 | 342 | 450 | |||
Total loans, net | 31,580 | 31,580 | 32,674 | |||
Pass Rated | Commercial | Equipment lease financing | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 1,126 | 1,126 | 1,797 | |||
Year two | 1,507 | 1,507 | 962 | |||
Year three | 779 | 779 | 942 | |||
Year four | 761 | 761 | 670 | |||
Year five | 506 | 506 | 410 | |||
Prior | 1,469 | 1,469 | 1,495 | |||
Total loans, net | 6,148 | 6,148 | 6,276 | |||
Criticized | Commercial | Commercial and industrial | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 537 | 537 | 1,259 | |||
Year two | 1,916 | 1,916 | 423 | |||
Year three | 743 | 743 | 277 | |||
Year four | 355 | 355 | 299 | |||
Year five | 249 | 249 | 297 | |||
Prior | 710 | 710 | 551 | |||
Revolving Loans | 4,705 | 4,705 | 3,682 | |||
Revolving Loans Converted to Term | 39 | 39 | 31 | |||
Total loans, net | 9,254 | 9,254 | 6,819 | |||
Criticized | Commercial | Commercial real estate | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 109 | 109 | 348 | |||
Year two | 685 | 685 | 37 | |||
Year three | 470 | 470 | 322 | |||
Year four | 370 | 370 | 758 | |||
Year five | 664 | 664 | 807 | |||
Prior | 1,880 | 1,880 | 1,367 | |||
Revolving Loans | 18 | 18 | 3 | |||
Total loans, net | 4,196 | 4,196 | 3,642 | |||
Criticized | Commercial | Equipment lease financing | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 68 | 68 | 60 | |||
Year two | 79 | 79 | 55 | |||
Year three | 56 | 56 | 56 | |||
Year four | 50 | 50 | 39 | |||
Year five | 38 | 38 | 17 | |||
Prior | 54 | 54 | 11 | |||
Total loans, net | $ 345 | $ 345 | $ 238 | |||
[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 held for investment of $1.2 billion and Other assets of $0.1 billion at September 30, 2023. Comparable amounts at December 31, 2022 were $0.9 billion, $1.3 billion and $0.1 billion, respectively. |
Loans and Related Allowance f_7
Loans and Related Allowance for Credit Losses (Home Equity and Residential Real Estate Credit Quality Indicators) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Total loans, net | [1] | $ 318,416 | $ 318,416 | $ 326,025 | ||
Gross charge-offs | ||||||
Total | 233 | $ 222 | 808 | $ 668 | ||
Residential real estate | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 4,442 | 4,442 | 10,594 | |||
Year two | 10,192 | 10,192 | 16,650 | |||
Year three | 15,695 | 15,695 | 7,392 | |||
Year four | 6,945 | 6,945 | 2,482 | |||
Year five | 2,310 | 2,310 | 878 | |||
Prior | 7,775 | 7,775 | 7,893 | |||
Total loans, net | 47,359 | 47,359 | 45,889 | |||
Gross charge-offs | ||||||
Year two | 1 | |||||
Year four | 1 | |||||
Prior | 4 | |||||
Total | 6 | |||||
Home equity | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year two | 180 | |||||
Year three | 168 | 168 | 2,143 | |||
Year four | 1,971 | 1,971 | 997 | |||
Year five | 897 | 897 | 291 | |||
Prior | 2,723 | 2,723 | 2,897 | |||
Revolving Loans | 8,461 | 8,461 | 8,902 | |||
Revolving Loans Converted to Term | 11,939 | 11,939 | 10,573 | |||
Total loans, net | 26,159 | 26,159 | 25,983 | |||
Gross charge-offs | ||||||
Prior | 2 | |||||
Revolving Loans | 4 | |||||
Revolving Loans Converted to Term | 9 | |||||
Total | 15 | |||||
Greater than or equal to 780 | Residential real estate | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 2,418 | 2,418 | 6,825 | |||
Year two | 7,728 | 7,728 | 12,596 | |||
Year three | 12,239 | 12,239 | 5,276 | |||
Year four | 5,060 | 5,060 | 1,623 | |||
Year five | 1,538 | 1,538 | 463 | |||
Prior | 4,099 | 4,099 | 4,027 | |||
Total loans, net | 33,082 | 33,082 | 30,810 | |||
Greater than or equal to 780 | Home equity | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year two | 110 | |||||
Year three | 107 | 107 | 1,357 | |||
Year four | 1,283 | 1,283 | 554 | |||
Year five | 503 | 503 | 155 | |||
Prior | 1,685 | 1,685 | 1,791 | |||
Revolving Loans | 4,700 | 4,700 | 5,093 | |||
Revolving Loans Converted to Term | 6,039 | 6,039 | 5,545 | |||
Total loans, net | 14,317 | 14,317 | 14,605 | |||
720 to 779 | Residential real estate | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 1,495 | 1,495 | 3,172 | |||
Year two | 1,857 | 1,857 | 3,024 | |||
Year three | 2,547 | 2,547 | 1,369 | |||
Year four | 1,214 | 1,214 | 476 | |||
Year five | 414 | 414 | 180 | |||
Prior | 1,439 | 1,439 | 1,457 | |||
Total loans, net | 8,966 | 8,966 | 9,678 | |||
720 to 779 | Home equity | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year two | 47 | |||||
Year three | 38 | 38 | 515 | |||
Year four | 443 | 443 | 248 | |||
Year five | 223 | 223 | 64 | |||
Prior | 525 | 525 | 567 | |||
Revolving Loans | 2,203 | 2,203 | 2,305 | |||
Revolving Loans Converted to Term | 3,193 | 3,193 | 2,843 | |||
Total loans, net | 6,625 | 6,625 | 6,589 | |||
660 to 719 | Residential real estate | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 302 | 302 | 514 | |||
Year two | 514 | 514 | 744 | |||
Year three | 670 | 670 | 378 | |||
Year four | 322 | 322 | 189 | |||
Year five | 176 | 176 | 98 | |||
Prior | 782 | 782 | 796 | |||
Total loans, net | 2,766 | 2,766 | 2,719 | |||
660 to 719 | Home equity | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year two | 19 | |||||
Year three | 18 | 18 | 211 | |||
Year four | 185 | 185 | 140 | |||
Year five | 117 | 117 | 42 | |||
Prior | 286 | 286 | 288 | |||
Revolving Loans | 1,210 | 1,210 | 1,146 | |||
Revolving Loans Converted to Term | 1,756 | 1,756 | 1,449 | |||
Total loans, net | 3,572 | 3,572 | 3,295 | |||
Less than 660 | Residential real estate | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 86 | 86 | 63 | |||
Year two | 64 | 64 | 108 | |||
Year three | 129 | 129 | 110 | |||
Year four | 110 | 110 | 88 | |||
Year five | 87 | 87 | 71 | |||
Prior | 676 | 676 | 740 | |||
Total loans, net | 1,152 | 1,152 | 1,180 | |||
Less than 660 | Home equity | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year two | 4 | |||||
Year three | 5 | 5 | 57 | |||
Year four | 58 | 58 | 54 | |||
Year five | 53 | 53 | 29 | |||
Prior | 219 | 219 | 242 | |||
Revolving Loans | 338 | 338 | 342 | |||
Revolving Loans Converted to Term | 895 | 895 | 671 | |||
Total loans, net | 1,568 | 1,568 | 1,399 | |||
No FICO score available | Residential real estate | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 132 | 132 | 11 | |||
Year two | 11 | 11 | 163 | |||
Year three | 92 | 92 | 193 | |||
Year four | 173 | 173 | 67 | |||
Year five | 58 | 58 | 38 | |||
Prior | 275 | 275 | 337 | |||
Total loans, net | 741 | 741 | 809 | |||
No FICO score available | Home equity | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year three | 3 | |||||
Year four | 2 | 2 | 1 | |||
Year five | 1 | 1 | 1 | |||
Prior | 8 | 8 | 9 | |||
Revolving Loans | 10 | 10 | 16 | |||
Revolving Loans Converted to Term | 56 | 56 | 65 | |||
Total loans, net | 77 | 77 | 95 | |||
Government insured or guaranteed loans | Residential real estate | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 9 | 9 | 9 | |||
Year two | 18 | 18 | 15 | |||
Year three | 18 | 18 | 66 | |||
Year four | 66 | 66 | 39 | |||
Year five | 37 | 37 | 28 | |||
Prior | 504 | 504 | 536 | |||
Total loans, net | 652 | 652 | 693 | |||
Greater than 100% | Residential real estate | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 34 | 34 | 4 | |||
Year two | 141 | 141 | 52 | |||
Year three | 103 | 103 | 20 | |||
Year four | 33 | 33 | 10 | |||
Year five | 8 | 8 | 4 | |||
Prior | 34 | 34 | 41 | |||
Total loans, net | 353 | 353 | 131 | |||
Greater than 100% | Home equity | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year two | 4 | |||||
Year three | 2 | 2 | 14 | |||
Year four | 10 | 10 | 9 | |||
Year five | 5 | 5 | 2 | |||
Prior | 13 | 13 | 15 | |||
Revolving Loans | 294 | 294 | 268 | |||
Revolving Loans Converted to Term | 285 | 285 | 137 | |||
Total loans, net | 609 | 609 | 449 | |||
Greater than or equal to 80% to 100% | Residential real estate | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 1,770 | 1,770 | 1,185 | |||
Year two | 3,372 | 3,372 | 678 | |||
Year three | 1,044 | 1,044 | 232 | |||
Year four | 207 | 207 | 84 | |||
Year five | 69 | 69 | 24 | |||
Prior | 105 | 105 | 92 | |||
Total loans, net | 6,567 | 6,567 | 2,295 | |||
Greater than or equal to 80% to 100% | Home equity | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year two | 4 | |||||
Year three | 5 | 5 | 51 | |||
Year four | 39 | 39 | 27 | |||
Year five | 21 | 21 | 4 | |||
Prior | 27 | 27 | 31 | |||
Revolving Loans | 1,266 | 1,266 | 854 | |||
Revolving Loans Converted to Term | 1,949 | 1,949 | 1,149 | |||
Total loans, net | 3,307 | 3,307 | 2,120 | |||
Less than 80% | Residential real estate | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 2,577 | 2,577 | 9,396 | |||
Year two | 6,661 | 6,661 | 15,844 | |||
Year three | 14,517 | 14,517 | 7,074 | |||
Year four | 6,639 | 6,639 | 2,346 | |||
Year five | 2,196 | 2,196 | 822 | |||
Prior | 7,129 | 7,129 | 7,220 | |||
Total loans, net | 39,719 | 39,719 | 42,702 | |||
Less than 80% | Home equity | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year two | 172 | |||||
Year three | 161 | 161 | 2,078 | |||
Year four | 1,922 | 1,922 | 961 | |||
Year five | 871 | 871 | 285 | |||
Prior | 2,683 | 2,683 | 2,851 | |||
Revolving Loans | 6,901 | 6,901 | 7,780 | |||
Revolving Loans Converted to Term | 9,705 | 9,705 | 9,287 | |||
Total loans, net | 22,243 | 22,243 | 23,414 | |||
No LTV available | Residential real estate | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 52 | 52 | ||||
Year two | 61 | |||||
Year three | 13 | 13 | ||||
Year four | 3 | |||||
Prior | 3 | 3 | 4 | |||
Total loans, net | $ 68 | $ 68 | $ 68 | |||
[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 held for investment of $1.2 billion and Other assets of $0.1 billion at September 30, 2023. Comparable amounts at December 31, 2022 were $0.9 billion, $1.3 billion and $0.1 billion, respectively. |
Loans and Related Allowance f_8
Loans and Related Allowance for Credit Losses (Credit Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loan Classes) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Total loans, net | [1] | $ 318,416 | $ 318,416 | $ 326,025 | ||
Gross charge-offs | ||||||
Total | 233 | $ 222 | 808 | $ 668 | ||
Updated FICO scores | ||||||
Gross charge-offs | ||||||
Year two | 18 | |||||
Year three | 18 | |||||
Year four | 13 | |||||
Year five | 23 | |||||
Prior | 19 | |||||
Total | 91 | |||||
Updated FICO scores | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 4,647 | 4,647 | 5,139 | |||
Year two | 3,980 | 3,980 | 4,424 | |||
Year three | 3,249 | 3,249 | 2,054 | |||
Year four | 1,363 | 1,363 | 2,067 | |||
Year five | 1,223 | 1,223 | 878 | |||
Prior | 478 | 478 | 274 | |||
Total loans, net | 14,940 | 14,940 | 14,836 | |||
Updated FICO scores | Greater than or equal to 780 | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 2,221 | 2,221 | 2,390 | |||
Year two | 1,776 | 1,776 | 2,162 | |||
Year three | 1,653 | 1,653 | 922 | |||
Year four | 624 | 624 | 760 | |||
Year five | 456 | 456 | 241 | |||
Prior | 127 | 127 | 75 | |||
Total loans, net | 6,857 | 6,857 | 6,550 | |||
Updated FICO scores | 720 to 779 | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 1,454 | 1,454 | 1,702 | |||
Year two | 1,266 | 1,266 | 1,312 | |||
Year three | 892 | 892 | 561 | |||
Year four | 356 | 356 | 538 | |||
Year five | 309 | 309 | 222 | |||
Prior | 115 | 115 | 69 | |||
Total loans, net | 4,392 | 4,392 | 4,404 | |||
Updated FICO scores | 660 to 719 | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 804 | 804 | 854 | |||
Year two | 677 | 677 | 660 | |||
Year three | 456 | 456 | 341 | |||
Year four | 218 | 218 | 401 | |||
Year five | 228 | 228 | 187 | |||
Prior | 100 | 100 | 56 | |||
Total loans, net | 2,483 | 2,483 | 2,499 | |||
Updated FICO scores | Less than 660 | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 168 | 168 | 193 | |||
Year two | 261 | 261 | 290 | |||
Year three | 248 | 248 | 230 | |||
Year four | 165 | 165 | 368 | |||
Year five | 230 | 230 | 228 | |||
Prior | 136 | 136 | 74 | |||
Total loans, net | 1,208 | 1,208 | 1,383 | |||
Credit card | ||||||
Gross charge-offs | ||||||
Revolving Loans | 212 | |||||
Revolving Loans Converted to Term | 20 | |||||
Total | 232 | |||||
Credit card | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Revolving Loans | 6,994 | 6,994 | 7,010 | |||
Revolving Loans Converted to Term | 66 | 66 | 59 | |||
Total loans, net | 7,060 | 7,060 | 7,069 | |||
Credit card | Greater than or equal to 780 | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Revolving Loans | 1,920 | 1,920 | 1,954 | |||
Revolving Loans Converted to Term | 1 | 1 | 2 | |||
Total loans, net | 1,921 | 1,921 | 1,956 | |||
Credit card | 720 to 779 | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Revolving Loans | 1,967 | 1,967 | 1,994 | |||
Revolving Loans Converted to Term | 5 | 5 | 6 | |||
Total loans, net | 1,972 | 1,972 | 2,000 | |||
Credit card | 660 to 719 | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Revolving Loans | 1,982 | 1,982 | 1,957 | |||
Revolving Loans Converted to Term | 13 | 13 | 13 | |||
Total loans, net | 1,995 | 1,995 | 1,970 | |||
Credit card | Less than 660 | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Revolving Loans | 1,016 | 1,016 | 1,001 | |||
Revolving Loans Converted to Term | 44 | 44 | 35 | |||
Total loans, net | 1,060 | 1,060 | 1,036 | |||
Credit card | No FICO score available or required | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Revolving Loans | 109 | 109 | 104 | |||
Revolving Loans Converted to Term | 3 | 3 | 3 | |||
Total loans, net | 112 | 112 | 107 | |||
Education | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 75 | 75 | 126 | |||
Year two | 165 | 165 | 97 | |||
Year three | 86 | 86 | 88 | |||
Year four | 74 | 74 | 105 | |||
Year five | 89 | 89 | 85 | |||
Prior | 1,531 | 1,531 | 1,672 | |||
Total loans, net | 2,020 | 2,020 | 2,173 | |||
Gross charge-offs | ||||||
Year three | 1 | |||||
Year four | 1 | |||||
Year five | 1 | |||||
Prior | 10 | |||||
Total | 13 | |||||
Education | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 75 | 75 | 126 | |||
Year two | 165 | 165 | 97 | |||
Year three | 86 | 86 | 88 | |||
Year four | 74 | 74 | 105 | |||
Year five | 89 | 89 | 85 | |||
Prior | 570 | 570 | 584 | |||
Total loans, net | 1,059 | 1,059 | 1,085 | |||
Education | Greater than or equal to 780 | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 7 | 7 | 42 | |||
Year two | 25 | 25 | 53 | |||
Year three | 8 | 8 | 48 | |||
Year four | 11 | 11 | 61 | |||
Year five | 19 | 19 | 51 | |||
Prior | 133 | 133 | 357 | |||
Total loans, net | 203 | 203 | 612 | |||
Education | 720 to 779 | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 20 | 20 | 39 | |||
Year two | 45 | 45 | 27 | |||
Year three | 25 | 25 | 24 | |||
Year four | 25 | 25 | 30 | |||
Year five | 32 | 32 | 24 | |||
Prior | 182 | 182 | 143 | |||
Total loans, net | 329 | 329 | 287 | |||
Education | 660 to 719 | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 19 | 19 | 21 | |||
Year two | 45 | 45 | 8 | |||
Year three | 27 | 27 | 8 | |||
Year four | 23 | 23 | 9 | |||
Year five | 29 | 29 | 8 | |||
Prior | 156 | 156 | 59 | |||
Total loans, net | 299 | 299 | 113 | |||
Education | Less than 660 | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 9 | 9 | 4 | |||
Year two | 37 | 37 | 1 | |||
Year three | 16 | 16 | 1 | |||
Year four | 8 | 8 | 2 | |||
Year five | 7 | 7 | 2 | |||
Prior | 94 | 94 | 24 | |||
Total loans, net | 171 | 171 | 34 | |||
Education | No FICO score available or required | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 20 | 20 | 20 | |||
Year two | 13 | 13 | 8 | |||
Year three | 10 | 10 | 7 | |||
Year four | 7 | 7 | 3 | |||
Year five | 2 | 2 | ||||
Prior | 5 | 5 | 1 | |||
Total loans, net | 57 | 57 | 39 | |||
Education | Other internal credit metrics | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Prior | 961 | 961 | 1,088 | |||
Total loans, net | 961 | 961 | 1,088 | |||
Other consumer | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 599 | 599 | 912 | |||
Year two | 653 | 653 | 420 | |||
Year three | 259 | 259 | 266 | |||
Year four | 188 | 188 | 248 | |||
Year five | 165 | 165 | 89 | |||
Prior | 75 | 75 | 76 | |||
Revolving Loans | 2,491 | 2,491 | 2,995 | |||
Revolving Loans Converted to Term | 16 | 16 | 20 | |||
Total loans, net | 4,446 | 4,446 | 5,026 | |||
Gross charge-offs | ||||||
Year one | 54 | |||||
Year two | 16 | |||||
Year three | 14 | |||||
Year four | 12 | |||||
Year five | 12 | |||||
Prior | 7 | |||||
Revolving Loans | 8 | |||||
Revolving Loans Converted to Term | 1 | |||||
Total | 124 | |||||
Other consumer | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 567 | 567 | 787 | |||
Year two | 546 | 546 | 377 | |||
Year three | 227 | 227 | 226 | |||
Year four | 115 | 115 | 214 | |||
Year five | 93 | 93 | 82 | |||
Prior | 52 | 52 | 47 | |||
Revolving Loans | 252 | 252 | 275 | |||
Revolving Loans Converted to Term | 6 | 6 | 8 | |||
Total loans, net | 1,858 | 1,858 | 2,016 | |||
Other consumer | Greater than or equal to 780 | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 195 | 195 | 224 | |||
Year two | 151 | 151 | 97 | |||
Year three | 57 | 57 | 53 | |||
Year four | 27 | 27 | 46 | |||
Year five | 20 | 20 | 14 | |||
Prior | 14 | 14 | 18 | |||
Revolving Loans | 40 | 40 | 47 | |||
Revolving Loans Converted to Term | 2 | 2 | 2 | |||
Total loans, net | 506 | 506 | 501 | |||
Other consumer | 720 to 779 | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 244 | 244 | 302 | |||
Year two | 189 | 189 | 122 | |||
Year three | 68 | 68 | 68 | |||
Year four | 32 | 32 | 62 | |||
Year five | 25 | 25 | 20 | |||
Prior | 14 | 14 | 15 | |||
Revolving Loans | 81 | 81 | 89 | |||
Revolving Loans Converted to Term | 1 | 1 | 2 | |||
Total loans, net | 654 | 654 | 680 | |||
Other consumer | 660 to 719 | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 117 | 117 | 229 | |||
Year two | 155 | 155 | 110 | |||
Year three | 68 | 68 | 68 | |||
Year four | 35 | 35 | 66 | |||
Year five | 29 | 29 | 28 | |||
Prior | 14 | 14 | 8 | |||
Revolving Loans | 88 | 88 | 95 | |||
Revolving Loans Converted to Term | 2 | 2 | 2 | |||
Total loans, net | 508 | 508 | 606 | |||
Other consumer | Less than 660 | Using FICO Credit Metric | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 11 | 11 | 32 | |||
Year two | 51 | 51 | 48 | |||
Year three | 34 | 34 | 37 | |||
Year four | 21 | 21 | 40 | |||
Year five | 19 | 19 | 20 | |||
Prior | 10 | 10 | 6 | |||
Revolving Loans | 43 | 43 | 44 | |||
Revolving Loans Converted to Term | 1 | 1 | 2 | |||
Total loans, net | 190 | 190 | 229 | |||
Other consumer | Other internal credit metrics | ||||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||||||
Year one | 32 | 32 | 125 | |||
Year two | 107 | 107 | 43 | |||
Year three | 32 | 32 | 40 | |||
Year four | 73 | 73 | 34 | |||
Year five | 72 | 72 | 7 | |||
Prior | 23 | 23 | 29 | |||
Revolving Loans | 2,239 | 2,239 | 2,720 | |||
Revolving Loans Converted to Term | 10 | 10 | 12 | |||
Total loans, net | $ 2,588 | $ 2,588 | $ 3,010 | |||
[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 held for investment of $1.2 billion and Other assets of $0.1 billion at September 30, 2023. Comparable amounts at December 31, 2022 were $0.9 billion, $1.3 billion and $0.1 billion, respectively. |
Loans and Related Allowance f_9
Loans and Related Allowance for Credit Losses (Modified, Amortized Cost Basis) (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | $ 904 | $ 1,946 |
% of Loan Class | 0.28% | 0.61% |
Unfunded lending related commitments | $ 300 | $ 300 |
Interest Rate Reduction | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 16 | 16 |
Term Extension | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 664 | 1,452 |
Payment Delay | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 105 | 196 |
Repayment Plan | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 21 | 46 |
Interest Rate Reduction and Term Extension | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 10 | |
Payment Delay and Term Extension | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 7 | 20 |
Other | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 91 | 206 |
Total commercial | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | $ 821 | $ 1,782 |
% of Loan Class | 0.38% | 0.82% |
Total commercial | Interest Rate Reduction | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | $ 15 | $ 15 |
Total commercial | Term Extension | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 663 | 1,449 |
Total commercial | Payment Delay | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 53 | 107 |
Total commercial | Payment Delay and Term Extension | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 7 | 20 |
Total commercial | Other | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 83 | 191 |
Total commercial | Commercial and industrial | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | $ 498 | $ 960 |
% of Loan Class | 0.29% | 0.55% |
Total commercial | Commercial and industrial | Interest Rate Reduction | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | $ 15 | $ 15 |
Total commercial | Commercial and industrial | Term Extension | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 356 | 704 |
Total commercial | Commercial and industrial | Payment Delay | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 37 | 91 |
Total commercial | Commercial and industrial | Payment Delay and Term Extension | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 7 | 20 |
Total commercial | Commercial and industrial | Other | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 83 | 130 |
Total commercial | Commercial real estate | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | $ 323 | $ 822 |
% of Loan Class | 0.90% | 2.30% |
Total commercial | Commercial real estate | Term Extension | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | $ 307 | $ 745 |
Total commercial | Commercial real estate | Payment Delay | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 16 | 16 |
Total commercial | Commercial real estate | Other | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 61 | |
Total consumer | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | $ 83 | $ 164 |
% of Loan Class | 0.08% | 0.16% |
Total consumer | Interest Rate Reduction | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | $ 1 | $ 1 |
Total consumer | Term Extension | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 1 | 3 |
Total consumer | Payment Delay | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 52 | 89 |
Total consumer | Repayment Plan | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 21 | 46 |
Total consumer | Interest Rate Reduction and Term Extension | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 10 | |
Total consumer | Other | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 8 | 15 |
Total consumer | Residential real estate | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | $ 54 | $ 93 |
% of Loan Class | 0.11% | 0.20% |
Total consumer | Residential real estate | Interest Rate Reduction | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | $ 1 | $ 1 |
Total consumer | Residential real estate | Payment Delay | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 50 | 83 |
Total consumer | Residential real estate | Interest Rate Reduction and Term Extension | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 3 | |
Total consumer | Residential real estate | Other | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 3 | 6 |
Total consumer | Home equity | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | $ 7 | $ 22 |
% of Loan Class | 0.03% | 0.08% |
Total consumer | Home equity | Payment Delay | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | $ 2 | $ 6 |
Total consumer | Home equity | Interest Rate Reduction and Term Extension | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 7 | |
Total consumer | Home equity | Other | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | 5 | 9 |
Total consumer | Credit card | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | $ 20 | $ 45 |
% of Loan Class | 0.28% | 0.64% |
Total consumer | Credit card | Repayment Plan | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | $ 20 | $ 45 |
Total consumer | Education | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | $ 1 | $ 3 |
% of Loan Class | 0.05% | 0.15% |
Total consumer | Education | Term Extension | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | $ 1 | $ 3 |
Total consumer | Other consumer | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | $ 1 | $ 1 |
% of Loan Class | 0.02% | 0.02% |
Total consumer | Other consumer | Repayment Plan | ||
Financing Receivable [Line Items] | ||
Amortized cost basis, modified | $ 1 | $ 1 |
Loans and Related Allowance _10
Loans and Related Allowance for Credit Losses (Financial Effect of Loan Modification) (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Total commercial | Commercial and industrial | ||
Financing Receivable [Line Items] | ||
Weighted-Average Interest Rate Reduction | 0.25% | 0.25% |
Weighted-Average Term Extension (in Months) | 13 months | 12 months |
Weighted-Average Payment Delay (in Months) | 6 months | 6 months |
Total commercial | Commercial real estate | ||
Financing Receivable [Line Items] | ||
Weighted-Average Term Extension (in Months) | 13 months | 16 months |
Weighted-Average Payment Delay (in Months) | 8 months | 8 months |
Total consumer | Residential real estate | ||
Financing Receivable [Line Items] | ||
Weighted-Average Interest Rate Reduction | 0.72% | 1.13% |
Weighted-Average Term Extension (in Months) | 118 months | |
Weighted-Average Payment Delay (in Months) | 10 months | 9 months |
Total consumer | Home equity | ||
Financing Receivable [Line Items] | ||
Weighted-Average Interest Rate Reduction | 1.17% | |
Weighted-Average Term Extension (in Months) | 53 months | |
Weighted-Average Payment Delay (in Months) | 5 months | 4 months |
Total consumer | Education | ||
Financing Receivable [Line Items] | ||
Weighted-Average Term Extension (in Months) | 15 months | 16 months |
Loans and Related Allowance _11
Loans and Related Allowance for Credit Losses (Aging Analysis) (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | $ 1,946 |
Current or Less Than 30 Days Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 1,595 |
30-59 Days Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 5 |
60-89 Days Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 3 |
90 Days or More Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 9 |
Nonperforming Loans | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 334 |
Total commercial | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 1,782 |
Total commercial | Current or Less Than 30 Days Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 1,556 |
Total commercial | 60-89 Days Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | |
Total commercial | 90 Days or More Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 3 |
Total commercial | Nonperforming Loans | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 223 |
Total commercial | Commercial and industrial | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 960 |
Total commercial | Commercial and industrial | Current or Less Than 30 Days Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 801 |
Total commercial | Commercial and industrial | 60-89 Days Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | |
Total commercial | Commercial and industrial | 90 Days or More Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 3 |
Total commercial | Commercial and industrial | Nonperforming Loans | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 156 |
Total commercial | Commercial real estate | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 822 |
Total commercial | Commercial real estate | Current or Less Than 30 Days Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 755 |
Total commercial | Commercial real estate | Nonperforming Loans | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 67 |
Total consumer | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 164 |
Total consumer | Current or Less Than 30 Days Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 39 |
Total consumer | 30-59 Days Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 5 |
Total consumer | 60-89 Days Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 3 |
Total consumer | 90 Days or More Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 6 |
Total consumer | Nonperforming Loans | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 111 |
Total consumer | Residential real estate | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 93 |
Total consumer | Residential real estate | Current or Less Than 30 Days Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 4 |
Total consumer | Residential real estate | 30-59 Days Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 1 |
Total consumer | Residential real estate | Nonperforming Loans | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 88 |
Total consumer | Home equity | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 22 |
Total consumer | Home equity | Current or Less Than 30 Days Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 1 |
Total consumer | Home equity | Nonperforming Loans | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 21 |
Total consumer | Credit card | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 45 |
Total consumer | Credit card | Current or Less Than 30 Days Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 31 |
Total consumer | Credit card | 30-59 Days Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 4 |
Total consumer | Credit card | 60-89 Days Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 3 |
Total consumer | Credit card | 90 Days or More Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 6 |
Total consumer | Credit card | Nonperforming Loans | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 1 |
Total consumer | Education | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 3 |
Total consumer | Education | Current or Less Than 30 Days Past Due | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 3 |
Total consumer | Other consumer | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | 1 |
Total consumer | Other consumer | Nonperforming Loans | |
Financing Receivable [Line Items] | |
Financing receivable, aging analysis | $ 1 |
Loans and Related Allowance _12
Loans and Related Allowance for Credit Losses (Financial Impact and TDRs by Concession Type) (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) customer | Sep. 30, 2022 USD ($) customer | |
Financing Receivable [Line Items] | ||
Number of Loans | customer | 2,247 | 8,194 |
Pre-TDR Amortized Cost Basis | $ 136 | $ 310 |
Post-TDR Amortized Cost Basis | 112 | 267 |
Principal Forgiveness | ||
Financing Receivable [Line Items] | ||
Post-TDR Amortized Cost Basis | 9 | |
Interest Rate Reduction | ||
Financing Receivable [Line Items] | ||
Post-TDR Amortized Cost Basis | 39 | 105 |
Other | ||
Financing Receivable [Line Items] | ||
Post-TDR Amortized Cost Basis | $ 73 | $ 153 |
Total commercial | ||
Financing Receivable [Line Items] | ||
Number of Loans | customer | 15 | 42 |
Pre-TDR Amortized Cost Basis | $ 96 | $ 184 |
Post-TDR Amortized Cost Basis | 77 | 154 |
Total commercial | Principal Forgiveness | ||
Financing Receivable [Line Items] | ||
Post-TDR Amortized Cost Basis | 9 | |
Total commercial | Interest Rate Reduction | ||
Financing Receivable [Line Items] | ||
Post-TDR Amortized Cost Basis | 10 | 10 |
Total commercial | Other | ||
Financing Receivable [Line Items] | ||
Post-TDR Amortized Cost Basis | $ 67 | $ 135 |
Total consumer | ||
Financing Receivable [Line Items] | ||
Number of Loans | customer | 2,232 | 8,152 |
Pre-TDR Amortized Cost Basis | $ 40 | $ 126 |
Post-TDR Amortized Cost Basis | 35 | 113 |
Total consumer | Principal Forgiveness | ||
Financing Receivable [Line Items] | ||
Post-TDR Amortized Cost Basis | ||
Total consumer | Interest Rate Reduction | ||
Financing Receivable [Line Items] | ||
Post-TDR Amortized Cost Basis | 29 | 95 |
Total consumer | Other | ||
Financing Receivable [Line Items] | ||
Post-TDR Amortized Cost Basis | $ 6 | $ 18 |
Loans and Related Allowance _13
Loans and Related Allowance for Credit Losses (Rollforward of Allowance for Credit Losses of Loans and Leases) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | $ 4,737 | $ 4,462 | $ 4,741 | $ 4,868 | |
Charge-offs | (233) | (222) | (808) | (668) | |
Recoveries | 112 | 103 | 298 | 329 | |
Net (charge-offs) | (121) | (119) | (510) | (339) | |
Provision for (recapture of) credit losses | 153 | 241 | 571 | 59 | |
Other | (2) | (3) | (7) | ||
Ending balance | 4,767 | 4,581 | 4,767 | 4,581 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Beginning balance | 663 | 681 | 694 | 662 | |
Provision for (recapture of) credit losses | (23) | 1 | (54) | 20 | |
Ending balance | 640 | 682 | 640 | 682 | |
Allowance for credit loss | 5,407 | 5,263 | 5,407 | 5,263 | $ 5,400 |
Allowances for investment securities and other financial assets | 131 | 162 | 131 | 162 | |
Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | (35) | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 4,737 | 4,462 | 4,706 | 4,868 | |
Total commercial | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 3,142 | 2,937 | 3,114 | 3,185 | |
Charge-offs | (72) | (73) | (327) | (162) | |
Recoveries | 49 | 25 | 110 | 78 | |
Net (charge-offs) | (23) | (48) | (217) | (84) | |
Provision for (recapture of) credit losses | 105 | 174 | 325 | (34) | |
Other | (2) | (2) | (6) | ||
Ending balance | 3,222 | 3,061 | 3,222 | 3,061 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Beginning balance | 555 | 630 | 613 | 564 | |
Provision for (recapture of) credit losses | (22) | (22) | (80) | 44 | |
Ending balance | 533 | 608 | 533 | 608 | |
Allowance for credit loss | 3,755 | 3,669 | 3,755 | 3,669 | |
Total commercial | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 3,142 | 2,937 | 3,114 | 3,185 | |
Total consumer | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 1,595 | 1,525 | 1,627 | 1,683 | |
Charge-offs | (161) | (149) | (481) | (506) | |
Recoveries | 63 | 78 | 188 | 251 | |
Net (charge-offs) | (98) | (71) | (293) | (255) | |
Provision for (recapture of) credit losses | 48 | 67 | 246 | 93 | |
Other | (1) | (1) | |||
Ending balance | 1,545 | 1,520 | 1,545 | 1,520 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Beginning balance | 108 | 51 | 81 | 98 | |
Provision for (recapture of) credit losses | (1) | 23 | 26 | (24) | |
Ending balance | 107 | 74 | 107 | 74 | |
Allowance for credit loss | 1,652 | 1,594 | 1,652 | 1,594 | |
Total consumer | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | $ 1,595 | $ 1,525 | $ 1,592 | $ 1,683 |
Loan Sale and Servicing Activ_3
Loan Sale and Servicing Activities and Variable Interest Entities (Loan Sale and Servicing Activities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Residential mortgage loans held for sale | |||||
Sales of loans and related securitization activity | $ 873 | $ 1,019 | $ 2,044 | $ 4,367 | |
Repurchases of previously transferred loans | 16 | 49 | 67 | 154 | |
Cash flows from servicing fees | 129 | 99 | 384 | 283 | |
Cash flows from servicing advances recovered/(funded), net | 5 | 11 | 44 | 44 | |
Cash flows from mortgage-backed securities held | 710 | 797 | 2,008 | 3,122 | |
Cash flows on carrying value of mortgage-backed securities held | 20,500 | 19,100 | 20,500 | 19,100 | $ 21,400 |
Commercial mortgage loans held for sale | |||||
Sales of loans and related securitization activity | 398 | 863 | 2,554 | 2,702 | |
Repurchases of previously transferred loans | (9) | 27 | |||
Cash flows from servicing fees | 51 | 51 | 146 | 140 | |
Cash flows from servicing advances recovered/(funded), net | (22) | 11 | (86) | 15 | |
Cash flows from mortgage-backed securities held | 19 | 15 | 49 | 43 | |
Cash flows on carrying value of mortgage-backed securities held | $ 700 | $ 700 | $ 700 | $ 700 | $ 700 |
Loan Sale and Servicing Activ_4
Loan Sale and Servicing Activities and Variable Interest Entities (Principal Balance, Delinquent Loans (Loans 90 Days or More Past Due), and Net Charge-Offs Related to Serviced Loans) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Residential mortgage loans held for sale | |||||
Total principal balance | $ 39,542 | $ 39,542 | $ 41,031 | ||
Delinquent loans | 324 | 324 | 346 | ||
Net charge-offs | $ 1 | 2 | $ 3 | ||
Commercial mortgage loans held for sale | |||||
Total principal balance | 58,761 | 58,761 | 57,974 | ||
Delinquent loans | |||||
Net charge-offs | $ 14 | $ 9 | $ 18 | $ 12 |
Loan Sale and Servicing Activ_5
Loan Sale and Servicing Activities and Variable Interest Entities (Non-Consolidated VIEs) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
PNC Risk of Loss | $ 26,150 | $ 27,077 |
Carrying Value of Assets | 557,334 | 557,263 |
Carrying Value of Liabilities | 507,853 | 511,451 |
Variable Interest Entity, Primary Beneficiary | ||
Carrying Value of Assets | 26,108 | 26,910 |
Carrying Value of Liabilities | 2,264 | 2,064 |
Variable Interest Entity, Primary Beneficiary | Mortgage-Backed Securitizations | ||
PNC Risk of Loss | 21,511 | 22,666 |
Carrying Value of Assets | 21,522 | 22,670 |
Carrying Value of Liabilities | 1 | |
Variable Interest Entity, Primary Beneficiary | Tax Credit Investments And Other | ||
PNC Risk of Loss | 4,639 | 4,411 |
Carrying Value of Assets | 4,586 | 4,240 |
Carrying Value of Liabilities | 2,264 | $ 2,063 |
Variable Interest Entity, Primary Beneficiary | Low Income Housing Tax Credit Investments | ||
Carrying Value of Assets | 2,900 | |
Carrying Value of Liabilities | 1,600 | |
Variable Interest Entity, Primary Beneficiary | New Market Tax Credit | ||
Carrying Value of Assets | 200 | |
Carrying Value of Liabilities | $ 200 |
Loan Sale and Servicing Activ_6
Loan Sale and Servicing Activities and Variable Interest Entities (Loan Sale and Servicing Activities and Variable Interest Entities) (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Low Income Housing Tax Credit Investments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortization | $ 300 | |
Tax credits | 300 | |
Other tax benefits | $ 100 | |
Low Income Housing Tax Credit And Market Tax Credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortization | $ 300 | |
Tax credits | 300 | |
Other tax benefits | $ 100 |
Goodwill Mortgage Servicing Rig
Goodwill Mortgage Servicing Rights (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Mortgage servicing rights | $ 4,006 | $ 4,006 | $ 3,423 | ||
Fees from mortgage and other loan servicing | $ 100 | $ 100 | $ 500 | $ 400 |
Goodwill and Mortgage Servici_3
Goodwill and Mortgage Servicing Rights (Mortgage Servicing Rights) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Mortgage servicing rights, beginning balance | $ 3,423 | |
Mortgage servicing rights, ending balance | 4,006 | |
Mortgage Servicing Rights | Commercial real estate | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Mortgage servicing rights, beginning balance | 1,113 | $ 740 |
Mortgage servicing rights, ending balance | 1,169 | 1,132 |
Unpaid principal balance of loans serviced for others at end of period | 282,123 | 281,931 |
Servicing advances | 507 | 448 |
Mortgage Servicing Rights | Commercial real estate | Time and Payoffs | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Changes in Fair Value | (247) | (130) |
Mortgage Servicing Rights | Commercial real estate | Other | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Changes in Fair Value | 238 | 438 |
Mortgage Servicing Rights | Commercial real estate | From loans sold with servicing retained | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Additions | 38 | 52 |
Mortgage Servicing Rights | Commercial real estate | Purchases | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Additions | 27 | 32 |
Mortgage Servicing Rights | Residential mortgage loans held for sale | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Mortgage servicing rights, beginning balance | 2,310 | 1,078 |
Mortgage servicing rights, ending balance | 2,837 | 2,074 |
Unpaid principal balance of loans serviced for others at end of period | 212,521 | 169,678 |
Servicing advances | 121 | 132 |
Mortgage Servicing Rights | Residential mortgage loans held for sale | Time and Payoffs | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Changes in Fair Value | (176) | (178) |
Mortgage Servicing Rights | Residential mortgage loans held for sale | Other | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Changes in Fair Value | 248 | 505 |
Mortgage Servicing Rights | Residential mortgage loans held for sale | From loans sold with servicing retained | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Additions | 17 | 49 |
Mortgage Servicing Rights | Residential mortgage loans held for sale | Purchases | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Additions | $ 438 | $ 620 |
Goodwill Mortgage Servicing R_2
Goodwill Mortgage Servicing Rights (Commercial and Residential Mortgage Servicing Rights - Key Valuation Assumptions) (Details) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
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 | $ 4,006 | $ 3,423 | ||
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 | $ 1,169 | $ 1,113 | $ 1,132 | $ 740 |
Weighted-average life (years) | 4 years | 4 years | ||
Decline in fair value from 10% adverse change in prepayment rate | $ 9 | $ 8 | ||
Decline in fair value from 20% adverse change in prepayment rate | 18 | 15 | ||
Decline in fair value from 10% adverse change in interest rate | 36 | 34 | ||
Decline in fair value from 20% adverse change in interest rate | 73 | 68 | ||
Mortgage Servicing Rights | Residential mortgage loans held for sale | ||||
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 | $ 2,837 | $ 2,310 | $ 2,074 | $ 1,078 |
Weighted-average life (years) | 8 years 4 months 24 days | 8 years | ||
Decline in fair value from 10% adverse change in prepayment rate | $ 58 | $ 55 | ||
Decline in fair value from 20% adverse change in prepayment rate | $ 112 | $ 107 | ||
Spread over the benchmark curve | 7.65% | 7.66% | ||
Decline in fair value from 10% adverse change in adjusted spread | $ 89 | $ 69 | ||
Decline in fair value from 20% adverse change in adjusted spread | $ 173 | $ 134 | ||
Mortgage Servicing Rights | 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 | 0.0542 | 0.0428 | ||
Mortgage Servicing Rights | Constant prepayment rate | Residential mortgage loans held for sale | ||||
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 | 0.0577 | 0.0672 | ||
Mortgage Servicing Rights | 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 | 0.1022 | 0.0977 |
Leases (Lessor Income) (Details
Leases (Lessor Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Sales-type and direct financing leases | $ 76 | $ 61 | $ 219 | $ 177 |
Operating leases | 9 | 15 | 40 | 48 |
Lease income | $ 85 | $ 76 | $ 259 | $ 225 |
Borrowed Funds (Narrative) (Det
Borrowed Funds (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Borrowed funds | $ 66,167 | $ 58,713 |
Parent Company | ||
Debt Instrument [Line Items] | ||
Borrowed funds | 19,578 | 13,103 |
Parent Company | Senior debt | ||
Debt Instrument [Line Items] | ||
Borrowed funds | 17,880 | 11,374 |
Basis adjustments - Fair value accounting hedges | (1,214) | |
Parent Company | Subordinated debt | ||
Debt Instrument [Line Items] | ||
Borrowed funds | 1,493 | 1,524 |
Basis adjustments - Fair value accounting hedges | (104) | |
Subsidiaries | ||
Debt Instrument [Line Items] | ||
Borrowed funds | 43,557 | 41,936 |
Subsidiaries | Senior debt | ||
Debt Instrument [Line Items] | ||
Borrowed funds | 4,527 | 5,283 |
Basis adjustments - Fair value accounting hedges | (254) | |
Subsidiaries | Subordinated debt | ||
Debt Instrument [Line Items] | ||
Borrowed funds | 3,030 | $ 4,578 |
Basis adjustments - Fair value accounting hedges | $ (262) |
Borrowed Funds (Remaining Matur
Borrowed Funds (Remaining Maturity) (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Less than 1 year | $ 14,193 |
1 to 2 years | 21,763 |
2 to 3 years | 12,138 |
3 to 4 years | 1,945 |
4 to 5 years | 2,931 |
Over 5 years | 13,197 |
Total | $ 66,167 |
Borrowed Funds (FHLB Borrowings
Borrowed Funds (FHLB Borrowings, Senior Debt and Subordinated Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Borrowed funds | $ 66,167 | $ 58,713 |
Total FHLB, Senior and Sub Debt | 63,135 | 55,039 |
Parent Company | ||
Debt Instrument [Line Items] | ||
Borrowed funds | 19,578 | 13,103 |
Parent Company | Senior debt | ||
Debt Instrument [Line Items] | ||
Borrowed funds | $ 17,880 | 11,374 |
Parent Company | Senior debt | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.20% | |
Parent Company | Senior debt | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 6% | |
Parent Company | Subordinated debt | ||
Debt Instrument [Line Items] | ||
Borrowed funds | $ 1,493 | 1,524 |
Parent Company | Subordinated debt | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.90% | |
Parent Company | Subordinated debt | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.60% | |
Parent Company | Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.20% | |
Borrowed funds | $ 205 | 205 |
Subsidiaries | ||
Debt Instrument [Line Items] | ||
Borrowed funds | 43,557 | 41,936 |
Subsidiaries | Senior debt | ||
Debt Instrument [Line Items] | ||
Borrowed funds | $ 4,527 | 5,283 |
Subsidiaries | Senior debt | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.50% | |
Subsidiaries | Senior debt | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.10% | |
Subsidiaries | Subordinated debt | ||
Debt Instrument [Line Items] | ||
Borrowed funds | $ 3,030 | 4,578 |
Subsidiaries | Subordinated debt | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.70% | |
Subsidiaries | Subordinated debt | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.90% | |
Subsidiaries | FHLB | ||
Debt Instrument [Line Items] | ||
Borrowed funds | $ 36,000 | $ 32,075 |
Subsidiaries | FHLB | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.50% | |
Subsidiaries | FHLB | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.90% |
Commitments (Other Commitments)
Commitments (Other Commitments) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Other Commitments [Line Items] | ||
Commitments | $ 290,371 | $ 277,172 |
Liability Related To Investments In Low Income Housing Tax Credits | 2,100 | 2,200 |
Signature Bridge Bank N.A Capital Commitment | ||
Other Commitments [Line Items] | ||
Commitments | 16,000 | |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Commitments | 275,372 | 261,728 |
Commitments to extend credit | Commercial | ||
Other Commitments [Line Items] | ||
Commitments | 209,397 | 198,542 |
Commitments to extend credit | Home equity | ||
Other Commitments [Line Items] | ||
Commitments | 24,037 | 22,783 |
Commitments to extend credit | Credit card | ||
Other Commitments [Line Items] | ||
Commitments | 34,197 | 33,066 |
Commitments to extend credit | Other | ||
Other Commitments [Line Items] | ||
Commitments | 7,741 | 7,337 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Commitments | 10,326 | 10,575 |
Standby letters of credit | Remarketing Programs | ||
Other Commitments [Line Items] | ||
Commitments | 3,600 | 3,600 |
Standby bond purchase agreements | ||
Other Commitments [Line Items] | ||
Commitments | 1,088 | 1,208 |
Other commitments | ||
Other Commitments [Line Items] | ||
Commitments | $ 3,585 | $ 3,661 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) $ in Billions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Minimum | |
Loss Contingencies [Line Items] | |
Standby letter of credit, term (less than one year) | 1 year |
Maximum | |
Loss Contingencies [Line Items] | |
Standby letter of credit, term (less than one year) | 7 years |
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 | $ 1.2 |
Standby letters of credit and participations in standby letters of credit - Liability carrying amount | $ 0.2 |
Total Equity and Other Compre_3
Total Equity and Other Comprehensive Income (Rollforward of Total Equity) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||||||||
Feb. 07, 2023 $ / shares shares | Aug. 19, 2022 shares | Apr. 26, 2022 shares | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) shares | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) shares | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Common Stock [Abstract] | |||||||||||
Equity, Beginning Balance | $ 47,688 | $ 45,812 | $ 55,726 | ||||||||
Net income | $ 1,570 | 1,640 | 4,764 | 4,565 | |||||||
Other comprehensive income (loss), net of tax | (736) | (2,128) | (89) | (10,895) | |||||||
Dividends, Cash [Abstract] | |||||||||||
Common | (624) | (622) | (1,837) | (1,779) | |||||||
Preferred | (104) | (65) | (299) | (181) | |||||||
Preferred stock discount accretion | |||||||||||
Preferred stock issuance | 1,239 | 1,487 | 2,231 | ||||||||
Treasury stock activity | 12 | (1,045) | (349) | (2,959) | |||||||
Other | 17 | 16 | (51) | ||||||||
Equity, Ending Balance | 49,481 | 46,723 | 49,481 | 46,723 | |||||||
Preferred stock, par value | 0.5 | $ 0.5 | 0.5 | 0.5 | $ 0.5 | $ 0.5 | $ 0.5 | $ 0.5 | |||
Common stock activity | 17 | $ 15 | |||||||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||||||
Common Stock [Abstract] | |||||||||||
Equity, Beginning Balance | 26 | ||||||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||||||
Common Stock [Abstract] | |||||||||||
Equity, Beginning Balance | $ 49,346 | $ 45,838 | |||||||||
Series U | |||||||||||
Dividends, Cash [Abstract] | |||||||||||
Depositary shares conversion ratio | 0.01 | ||||||||||
Common stock activity (shares) | shares | 1,000,000 | ||||||||||
Fixed interest rate | 6% | ||||||||||
Series W | |||||||||||
Dividends, Cash [Abstract] | |||||||||||
Depositary shares conversion ratio | 0.01 | ||||||||||
Common stock activity (shares) | shares | 1,500,000 | ||||||||||
Fixed interest rate | 6.25% | ||||||||||
Preferred stock, par or stated value per share (in dollars per share) | $ / shares | $ 1 | ||||||||||
Series V | |||||||||||
Dividends, Cash [Abstract] | |||||||||||
Depositary shares conversion ratio | 0.01 | ||||||||||
Common stock activity (shares) | shares | 1,250,000 | ||||||||||
Fixed interest rate | 6.20% | ||||||||||
Common Stock | |||||||||||
Common Stock [Abstract] | |||||||||||
Beginning Balance (in shares) | shares | 398,000,000 | 411,000,000 | 401,000,000 | 420,000,000 | |||||||
Treasury stock activity, shares | shares | (7,000,000) | (3,000,000) | (16,000,000) | ||||||||
Ending Balance, (in shares) | shares | 398,000,000 | 404,000,000 | 398,000,000 | 404,000,000 | |||||||
Equity, Beginning Balance | $ 2,715 | $ 2,714 | $ 2,714 | $ 2,713 | |||||||
Dividends, Cash [Abstract] | |||||||||||
Equity, Ending Balance | $ 2,715 | 2,714 | 2,715 | 2,714 | |||||||
Common stock activity | $ 1 | 1 | |||||||||
Common Stock | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||||||
Common Stock [Abstract] | |||||||||||
Beginning Balance (in shares) | shares | 398,000,000 | 401,000,000 | |||||||||
Equity, Beginning Balance | $ 2,715 | $ 2,714 | |||||||||
Capital Surplus - Preferred Stock | |||||||||||
Common Stock [Abstract] | |||||||||||
Equity, Beginning Balance | 7,237 | 6,004 | 5,746 | 5,009 | |||||||
Dividends, Cash [Abstract] | |||||||||||
Preferred stock discount accretion | 2 | 1 | 6 | 4 | |||||||
Preferred stock issuance | 1,239 | 1,487 | 2,231 | ||||||||
Equity, Ending Balance | 7,239 | 7,244 | 7,239 | 7,244 | |||||||
Capital Surplus - Preferred Stock | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||||||
Common Stock [Abstract] | |||||||||||
Equity, Beginning Balance | 7,237 | 5,746 | |||||||||
Capital Surplus - Common Stock and Other | |||||||||||
Common Stock [Abstract] | |||||||||||
Equity, Beginning Balance | 12,697 | 12,527 | 12,630 | 12,448 | |||||||
Dividends, Cash [Abstract] | |||||||||||
Treasury stock activity | 3 | 6 | 76 | 56 | |||||||
Other | 32 | 33 | 10 | 48 | |||||||
Equity, Ending Balance | 12,732 | 12,566 | 12,732 | 12,566 | |||||||
Common stock activity | 16 | 14 | |||||||||
Capital Surplus - Common Stock and Other | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||||||
Common Stock [Abstract] | |||||||||||
Equity, Beginning Balance | 12,697 | 12,630 | |||||||||
Retained Earnings | |||||||||||
Common Stock [Abstract] | |||||||||||
Equity, Beginning Balance | 55,346 | 51,841 | 53,572 | 50,228 | |||||||
Net income | 1,554 | 1,624 | 4,714 | 4,513 | |||||||
Dividends, Cash [Abstract] | |||||||||||
Common | (624) | (622) | (1,837) | (1,779) | |||||||
Preferred | (104) | (65) | (299) | (181) | |||||||
Preferred stock discount accretion | (2) | (1) | (6) | (4) | |||||||
Equity, Ending Balance | 56,170 | 52,777 | 56,170 | 52,777 | |||||||
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | |||||||||||
Common Stock [Abstract] | |||||||||||
Equity, Beginning Balance | 26 | ||||||||||
Retained Earnings | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||||||
Common Stock [Abstract] | |||||||||||
Equity, Beginning Balance | 55,346 | 53,598 | |||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||
Common Stock [Abstract] | |||||||||||
Equity, Beginning Balance | (9,525) | (8,358) | (10,172) | 409 | |||||||
Other comprehensive income (loss), net of tax | (736) | (2,128) | (89) | (10,895) | |||||||
Dividends, Cash [Abstract] | |||||||||||
Equity, Ending Balance | (10,261) | (10,486) | (10,261) | (10,486) | |||||||
Accumulated Other Comprehensive Income (Loss) | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||||||
Common Stock [Abstract] | |||||||||||
Equity, Beginning Balance | (9,525) | (10,172) | |||||||||
Treasury Stock | |||||||||||
Common Stock [Abstract] | |||||||||||
Equity, Beginning Balance | (19,150) | (17,076) | (18,716) | (15,112) | |||||||
Dividends, Cash [Abstract] | |||||||||||
Treasury stock activity | 9 | (1,051) | (425) | (3,015) | |||||||
Equity, Ending Balance | (19,141) | (18,127) | (19,141) | (18,127) | |||||||
Treasury Stock | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||||||
Common Stock [Abstract] | |||||||||||
Equity, Beginning Balance | (19,150) | (18,716) | |||||||||
Non- controlling Interests | |||||||||||
Common Stock [Abstract] | |||||||||||
Equity, Beginning Balance | 26 | 36 | 38 | 31 | |||||||
Net income | 16 | 16 | 50 | 52 | |||||||
Dividends, Cash [Abstract] | |||||||||||
Other | (15) | (17) | (61) | (48) | |||||||
Equity, Ending Balance | 27 | $ 35 | 27 | $ 35 | |||||||
Non- controlling Interests | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||||||
Common Stock [Abstract] | |||||||||||
Equity, Beginning Balance | $ 26 | $ 38 |
Total Equity and Other Compre_4
Total Equity and Other Comprehensive Income (Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pre-tax | ||||
Other comprehensive loss, before tax and net of reclassifications into Net income | $ (965) | $ (2,757) | $ (123) | $ (14,191) |
Tax effect | ||||
Total other comprehensive income (loss) | 229 | 629 | 34 | 3,296 |
After-tax | ||||
Other comprehensive income loss, after tax and net of reclassifications into Net income | (736) | (2,128) | (89) | (10,895) |
Debt securities | ||||
Pre-tax | ||||
Net unrealized gains (losses) | (1,171) | (1,998) | (993) | (11,245) |
Less: Net realized gains (losses) reclassified to earnings | (239) | (260) | (689) | (477) |
Other comprehensive loss, before tax and net of reclassifications into Net income | (932) | (1,738) | (304) | (10,768) |
Tax effect | ||||
Net unrealized gains (losses) | 280 | 471 | 238 | 2,650 |
Less: Net realized gains (losses) reclassified to earnings | 57 | 61 | 163 | 112 |
Total other comprehensive income (loss) | 223 | 410 | 75 | 2,538 |
After-tax | ||||
Net unrealized gains (losses) | (891) | (1,527) | (755) | (8,595) |
Less: Net realized gains (losses) reclassified to earnings | (182) | (199) | (526) | (365) |
Other comprehensive income loss, after tax and net of reclassifications into Net income | (709) | (1,328) | (229) | (8,230) |
Cash flow hedge derivatives | ||||
Pre-tax | ||||
Net unrealized gains (losses) | (461) | (1,154) | (953) | (3,486) |
Less: Net realized gains (losses) reclassified to earnings | (426) | (129) | (1,129) | (2) |
Other comprehensive loss, before tax and net of reclassifications into Net income | (35) | (1,025) | 176 | (3,484) |
Tax effect | ||||
Net unrealized gains (losses) | 122 | 272 | 238 | 821 |
Less: Net realized gains (losses) reclassified to earnings | 112 | 30 | 278 | |
Total other comprehensive income (loss) | 10 | 242 | (40) | 821 |
After-tax | ||||
Net unrealized gains (losses) | (339) | (882) | (715) | (2,665) |
Less: Net realized gains (losses) reclassified to earnings | (314) | (99) | (851) | (2) |
Other comprehensive income loss, after tax and net of reclassifications into Net income | (25) | (783) | 136 | (2,663) |
Pension and other postretirement benefit plan adjustments | ||||
Pre-tax | ||||
Less: Net realized gains (losses) reclassified to earnings | 1 | 2 | (3) | 64 |
Other comprehensive loss, before tax and net of reclassifications into Net income | 1 | 2 | (3) | 64 |
Tax effect | ||||
Less: Net realized gains (losses) reclassified to earnings | (1) | (1) | (16) | |
Total other comprehensive income (loss) | (1) | (1) | (16) | |
After-tax | ||||
Less: Net realized gains (losses) reclassified to earnings | 1 | (3) | 48 | |
Other comprehensive income loss, after tax and net of reclassifications into Net income | 1 | (3) | 48 | |
Other | ||||
Pre-tax | ||||
Less: Net realized gains (losses) reclassified to earnings | 1 | 4 | 8 | (3) |
Other comprehensive loss, before tax and net of reclassifications into Net income | 1 | 4 | 8 | (3) |
Tax effect | ||||
Less: Net realized gains (losses) reclassified to earnings | (3) | (22) | (1) | (47) |
Total other comprehensive income (loss) | (3) | (22) | (1) | (47) |
After-tax | ||||
Less: Net realized gains (losses) reclassified to earnings | (2) | (18) | 7 | (50) |
Other comprehensive income loss, after tax and net of reclassifications into Net income | $ (2) | $ (18) | $ 7 | $ (50) |
Total Equity and Other Compre_5
Total Equity and Other Comprehensive Income (Accumulated Other Comprehensive Income (Loss) Components) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Equity, Beginning Balance | $ 47,688 | $ 45,812 | $ 55,726 | |
Other comprehensive income (loss), net of tax | $ (736) | (2,128) | (89) | (10,895) |
Equity, Ending Balance | 49,481 | 46,723 | 49,481 | 46,723 |
Total | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Equity, Beginning Balance | (9,525) | (8,358) | (10,172) | 409 |
Other comprehensive income (loss), net of tax | (736) | (2,128) | (89) | (10,895) |
Equity, Ending Balance | (10,261) | (10,486) | (10,261) | (10,486) |
Debt securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Equity, Beginning Balance | (6,684) | (6,313) | (7,164) | 589 |
Other comprehensive income (loss), net of tax | (709) | (1,328) | (229) | (8,230) |
Equity, Ending Balance | (7,393) | (7,641) | (7,393) | (7,641) |
Cash flow hedge derivatives | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Equity, Beginning Balance | (2,544) | (2,081) | (2,705) | (201) |
Other comprehensive income (loss), net of tax | (25) | (783) | 136 | (2,663) |
Equity, Ending Balance | (2,569) | (2,864) | (2,569) | (2,864) |
Pension and other postretirement benefit plan adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Equity, Beginning Balance | (254) | 74 | (251) | 27 |
Other comprehensive income (loss), net of tax | 1 | (3) | 48 | |
Equity, Ending Balance | (254) | 75 | (254) | 75 |
Other | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Equity, Beginning Balance | (43) | (38) | (52) | (6) |
Other comprehensive income (loss), net of tax | (2) | (18) | 7 | (50) |
Equity, Ending Balance | $ (45) | $ (56) | $ (45) | $ (56) |
Total Equity and Other Compre_6
Total Equity and Other Comprehensive Income (Dividends Per Share) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Class of Stock [Line Items] | |||||
Cash dividends declared, common, per share (in dollars per share) | $ 1.55 | $ 1.50 | $ 4.55 | $ 4.25 | |
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Increase in cash dividends, common declared (in USD per share) | $ 1.55 | ||||
Series B | |||||
Class of Stock [Line Items] | |||||
Cash dividends declared, preferred, per share (in dollars per share) | 0.45 | 0.45 | 1.35 | 1.35 | |
Series O | |||||
Class of Stock [Line Items] | |||||
Cash dividends declared, preferred, per share (in dollars per share) | 2,294 | 1,269 | 6,468 | 3,230 | |
Series P | |||||
Class of Stock [Line Items] | |||||
Cash dividends declared, preferred, per share (in dollars per share) | 1,368 | 4,431 | |||
Series R | |||||
Class of Stock [Line Items] | |||||
Cash dividends declared, preferred, per share (in dollars per share) | 2,181 | 4,606 | 2,425 | ||
Series S | |||||
Class of Stock [Line Items] | |||||
Cash dividends declared, preferred, per share (in dollars per share) | 2,500 | 2,500 | |||
Series T | |||||
Class of Stock [Line Items] | |||||
Cash dividends declared, preferred, per share (in dollars per share) | 850 | 850 | 2,550 | 2,550 | |
Series U | |||||
Class of Stock [Line Items] | |||||
Cash dividends declared, preferred, per share (in dollars per share) | 1,500 | 1,817 | 4,500 | $ 1,817 | |
Series V | |||||
Class of Stock [Line Items] | |||||
Cash dividends declared, preferred, per share (in dollars per share) | 1,550 | 4,650 | |||
Series W | |||||
Class of Stock [Line Items] | |||||
Cash dividends declared, preferred, per share (in dollars per share) | $ 1,563 | $ 3,785 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 1,570 | $ 1,640 | $ 4,764 | $ 4,565 |
Less: | ||||
Net income attributable to noncontrolling interests | 16 | 16 | 50 | 52 |
Preferred stock dividends | 104 | 65 | 299 | 181 |
Preferred stock discount accretion and redemptions | 2 | 1 | 6 | 4 |
Net income attributable to common shareholders | 1,448 | 1,558 | 4,409 | 4,328 |
Less: Dividends and undistributed earnings allocated to nonvested restricted shares | 8 | 8 | 23 | 21 |
Net income attributable to basic common shareholders | $ 1,440 | $ 1,550 | $ 4,386 | $ 4,307 |
Basic weighted-average common shares outstanding (in shares) | 400 | 410 | 401 | 414 |
Basic earnings per common share (in dollars per share) | $ 3.60 | $ 3.78 | $ 10.95 | $ 10.39 |
Net income attributable to diluted common shareholders | $ 1,440 | $ 1,550 | $ 4,386 | $ 4,307 |
Dilutive potential common shares (in shares) | 1 | |||
Diluted weighted-average common shares outstanding (in shares) | 400 | 410 | 401 | 415 |
Diluted earnings per common share (in dollars per share) | $ 3.60 | $ 3.78 | $ 10.94 | $ 10.39 |
Fair Value (Recurring Fair Valu
Fair Value (Recurring Fair Value Measurements) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Assets | ||
Investment securities – available for sale | $ 40,590 | $ 44,159 |
Mortgage servicing rights | 4,006 | 3,423 |
Financial derivatives | 849 | 1,531 |
Liabilities | ||
Financial derivatives | $ 5,225 | $ 4,524 |
Assets At Fair Value | Assets, Total | Assets | ||
Liabilities | ||
Concentration risk, percentage | 10% | 11% |
Level 3 Assets | Assets, Total | Assets | ||
Liabilities | ||
Concentration risk, percentage | 13% | 12% |
Level 3 Assets | Assets | Assets | ||
Liabilities | ||
Concentration risk, percentage | 1% | 1% |
Liabilities At Fair Value | Liabilities, Total | Liability | ||
Liabilities | ||
Concentration risk, percentage | 2% | 2% |
Level Three Liabilities | Liabilities, Total | Liability | ||
Liabilities | ||
Concentration risk, percentage | 4% | 4% |
Level Three Liabilities | Liability | Liability | ||
Liabilities | ||
Concentration risk, percentage | 1% | 1% |
Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | $ 40,590 | $ 44,159 |
Loans | 1,244 | 1,310 |
Equity investments | 2,618 | 3,147 |
Trading securities | 2,466 | 1,966 |
Financial derivatives | 3,838 | 3,768 |
Other assets | 448 | 432 |
Total Assets | 56,118 | 59,135 |
Liabilities | ||
Other borrowed funds | 1,042 | 1,466 |
Financial derivatives | 8,220 | 7,618 |
Other liabilities | 250 | 294 |
Total liabilities | 9,512 | 9,378 |
Level 1 | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 6,320 | 8,108 |
Equity investments | 696 | 1,173 |
Trading securities | 464 | 798 |
Financial derivatives | 11 | 16 |
Other assets | 376 | 352 |
Total Assets | 7,867 | 10,447 |
Liabilities | ||
Other borrowed funds | 954 | 1,230 |
Financial derivatives | 14 | 4 |
Total liabilities | 968 | 1,234 |
Level 2 | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 33,303 | 35,050 |
Loans | 506 | 541 |
Trading securities | 2,002 | 1,168 |
Financial derivatives | 3,821 | 3,747 |
Other assets | 67 | 80 |
Total Assets | 40,485 | 41,240 |
Liabilities | ||
Other borrowed funds | 81 | 232 |
Financial derivatives | 8,098 | 7,491 |
Total liabilities | 8,179 | 7,723 |
Level 3 | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 967 | 1,001 |
Loans | 738 | 769 |
Equity investments | 1,729 | 1,778 |
Financial derivatives | 6 | 5 |
Other assets | 5 | |
Total Assets | 7,573 | 7,252 |
Liabilities | ||
Other borrowed funds | 7 | 4 |
Financial derivatives | 108 | 123 |
Other liabilities | 250 | 294 |
Total liabilities | 365 | 421 |
Residential mortgage loans held for sale | Fair Value, Recurring | ||
Assets | ||
Loans held for sale | 529 | 654 |
Residential mortgage loans held for sale | Level 2 | Fair Value, Recurring | ||
Assets | ||
Loans held for sale | 432 | 411 |
Residential mortgage loans held for sale | Level 3 | Fair Value, Recurring | ||
Assets | ||
Loans held for sale | 97 | 243 |
Commercial mortgage loans held for sale | Fair Value, Recurring | ||
Assets | ||
Loans held for sale | 379 | 276 |
Commercial mortgage loans held for sale | Level 2 | Fair Value, Recurring | ||
Assets | ||
Loans held for sale | 354 | 243 |
Commercial mortgage loans held for sale | Level 3 | Fair Value, Recurring | ||
Assets | ||
Loans held for sale | 25 | 33 |
U.S. Treasury and government agencies | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 6,717 | 8,370 |
U.S. Treasury and government agencies | Level 1 | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 6,320 | 8,108 |
U.S. Treasury and government agencies | Level 2 | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 397 | 262 |
Residential mortgage-backed | Mortgage-backed Securities Agency | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 26,899 | 28,823 |
Residential mortgage-backed | Mortgage-backed Securities Non-agency | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 713 | 819 |
Residential mortgage-backed | Level 2 | Mortgage-backed Securities Agency | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 26,899 | 28,823 |
Residential mortgage-backed | Level 2 | Mortgage-backed Securities Non-agency | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | ||
Residential mortgage-backed | Level 3 | Mortgage-backed Securities Non-agency | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 713 | 819 |
Commercial mortgage servicing rights | Mortgage-backed Securities Agency | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 1,544 | 1,675 |
Commercial mortgage servicing rights | Mortgage-backed Securities Non-agency | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 923 | 1,256 |
Commercial mortgage servicing rights | Level 2 | Mortgage-backed Securities Agency | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 1,544 | 1,675 |
Commercial mortgage servicing rights | Level 2 | Mortgage-backed Securities Non-agency | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 828 | 1,253 |
Commercial mortgage servicing rights | Level 3 | Mortgage-backed Securities Non-agency | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 95 | 3 |
Asset-backed | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 1,095 | 129 |
Asset-backed | Level 2 | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 992 | 5 |
Asset-backed | Level 3 | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 103 | 124 |
Other | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 2,699 | 3,087 |
Other | Level 2 | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 2,643 | 3,032 |
Other | Level 3 | Fair Value, Recurring | ||
Assets | ||
Investment securities – available for sale | 56 | 55 |
Residential mortgage servicing rights | Fair Value, Recurring | ||
Assets | ||
Mortgage servicing rights | 2,837 | 2,310 |
Residential mortgage servicing rights | Level 3 | Fair Value, Recurring | ||
Assets | ||
Mortgage servicing rights | 2,837 | 2,310 |
Commercial mortgage servicing rights | Fair Value, Recurring | ||
Assets | ||
Mortgage servicing rights | 1,169 | 1,113 |
Commercial mortgage servicing rights | Level 3 | Fair Value, Recurring | ||
Assets | ||
Mortgage servicing rights | $ 1,169 | $ 1,113 |
Fair Value (Reconciliation of R
Fair Value (Reconciliation of Recurring Fair Value Measurements) (Details) - Fair Value, Recurring - Level 3 - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | $ 6,987 | $ 6,546 | $ 7,252 | $ 5,882 |
Included in Earnings | 348 | 481 | 656 | 1,283 |
Included in other comprehensive income | (22) | (21) | (22) | (102) |
Purchases | 577 | 497 | 970 | 966 |
Sales | (186) | (311) | (627) | (425) |
Issuances | 13 | 28 | 55 | 101 |
Settlements | (233) | (207) | (658) | (676) |
Transfers into Level 3 | 99 | 8 | 120 | 22 |
Transfers out of Level 3 | (10) | (16) | (173) | (46) |
Ending Balance | 7,573 | 7,005 | 7,573 | 7,005 |
Unrealized gains/losses on assets held on Consolidated Balance Sheet | 337 | 379 | 613 | 1,183 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 384 | 398 | 421 | 463 |
Included in Earnings | 56 | 15 | 229 | 59 |
Purchases | 32 | 32 | ||
Sales | 2 | 4 | 5 | 10 |
Issuances | 332 | 362 | 445 | 608 |
Settlements | (409) | (420) | (735) | (781) |
Ending Balance | 365 | 391 | 365 | 391 |
Unrealized gains/losses on liabilities held on Consolidated Balance Sheet | 51 | 17 | 214 | 61 |
Fair Value Additional Information [Abstract] | ||||
Net gains (losses) included in earnings (realized and unrealized) relating to Level 3 assets and liabilities | 292 | 466 | 427 | 1,224 |
Net unrealized gains (losses) relating to Level 3 assets and liabilities | 286 | 362 | 399 | 1,122 |
Loans held for sale | Residential mortgage loans held for sale | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 191 | 83 | 243 | 81 |
Included in Earnings | (3) | (4) | (3) | (6) |
Purchases | 3 | 46 | 12 | 91 |
Sales | (89) | (1) | (131) | (33) |
Settlements | (2) | (2) | (9) | (11) |
Transfers into Level 3 | 1 | 8 | 4 | 22 |
Transfers out of Level 3 | (4) | (14) | (19) | (28) |
Ending Balance | 97 | 116 | 97 | 116 |
Unrealized gains/losses on assets held on Consolidated Balance Sheet | (4) | (4) | (3) | (6) |
Loans held for sale | Commercial mortgage loans held for sale | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 25 | 38 | 33 | 49 |
Included in Earnings | (4) | |||
Settlements | (3) | (8) | (10) | |
Ending Balance | 25 | 35 | 25 | 35 |
Unrealized gains/losses on assets held on Consolidated Balance Sheet | (4) | |||
Non-agency | Residential mortgage-backed | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 768 | 819 | ||
Included in Earnings | 5 | 13 | ||
Included in other comprehensive income | (20) | (16) | ||
Settlements | (40) | (103) | ||
Ending Balance | 713 | 713 | ||
Non-agency | Commercial mortgage-backed | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 3 | 3 | ||
Transfers into Level 3 | 92 | 92 | ||
Ending Balance | 95 | 95 | ||
Securities available for sale | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 942 | 1,133 | 1,001 | 1,332 |
Included in Earnings | 4 | 4 | 13 | 20 |
Included in other comprehensive income | (22) | (21) | (22) | (102) |
Purchases | 3 | 6 | 3 | |
Sales | ||||
Settlements | (52) | (46) | (126) | (183) |
Transfers into Level 3 | 92 | 95 | ||
Ending Balance | 967 | 1,070 | 967 | 1,070 |
Securities available for sale | Residential mortgage-backed | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 925 | 1,097 | ||
Included in Earnings | 4 | 19 | ||
Included in other comprehensive income | (18) | (84) | ||
Settlements | (40) | (161) | ||
Ending Balance | 871 | 871 | ||
Securities available for sale | Commercial mortgage-backed | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 3 | 3 | ||
Included in other comprehensive income | ||||
Ending Balance | 3 | 3 | ||
Securities available for sale | Asset-backed | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 117 | 138 | 124 | 163 |
Included in Earnings | 1 | 1 | ||
Included in other comprehensive income | (3) | (5) | (3) | (18) |
Settlements | (11) | (6) | (19) | (19) |
Ending Balance | 103 | 127 | 103 | 127 |
Securities available for sale | Other | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 54 | 67 | 55 | 69 |
Included in Earnings | (1) | (1) | ||
Included in other comprehensive income | 1 | 2 | (3) | |
Purchases | 3 | 6 | 3 | |
Settlements | (1) | (4) | (3) | |
Transfers into Level 3 | 3 | |||
Ending Balance | 56 | 69 | 56 | 69 |
Loans | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 745 | 804 | 769 | 884 |
Included in Earnings | 5 | (1) | 11 | 20 |
Purchases | 19 | 11 | 39 | 31 |
Sales | (2) | (1) | (10) | |
Settlements | (27) | (35) | (77) | (132) |
Transfers into Level 3 | 2 | 17 | ||
Transfers out of Level 3 | (6) | (2) | (20) | (18) |
Ending Balance | 738 | 775 | 738 | 775 |
Unrealized gains/losses on assets held on Consolidated Balance Sheet | 5 | 11 | 20 | |
Equity investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 1,623 | 1,867 | 1,778 | 1,680 |
Included in Earnings | (9) | 167 | 136 | 312 |
Purchases | 212 | 69 | 444 | 185 |
Sales | (97) | (308) | (495) | (382) |
Transfers out of Level 3 | (134) | |||
Ending Balance | 1,729 | 1,795 | 1,729 | 1,795 |
Unrealized gains/losses on assets held on Consolidated Balance Sheet | (16) | 65 | 103 | 211 |
Mortgage Servicing Rights | Residential mortgage loans held for sale | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 2,349 | 1,620 | 2,310 | 1,078 |
Included in Earnings | 215 | 135 | 248 | 505 |
Purchases | 329 | 363 | 438 | 620 |
Issuances | 7 | 11 | 17 | 49 |
Settlements | (63) | (55) | (176) | (178) |
Ending Balance | 2,837 | 2,074 | 2,837 | 2,074 |
Unrealized gains/losses on assets held on Consolidated Balance Sheet | 215 | 135 | 248 | 506 |
Mortgage Servicing Rights | Commercial mortgage loans held for sale | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 1,106 | 988 | 1,113 | 740 |
Included in Earnings | 130 | 176 | 238 | 438 |
Purchases | 10 | 7 | 27 | 32 |
Issuances | 6 | 17 | 38 | 52 |
Settlements | (83) | (56) | (247) | (130) |
Ending Balance | 1,169 | 1,132 | 1,169 | 1,132 |
Unrealized gains/losses on assets held on Consolidated Balance Sheet | 130 | 176 | 238 | 438 |
Financial derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 6 | 13 | 5 | 38 |
Included in Earnings | 6 | 4 | 13 | (2) |
Purchases | 1 | 3 | 4 | |
Settlements | (6) | (10) | (15) | (32) |
Ending Balance | 6 | 8 | 6 | 8 |
Unrealized gains/losses on assets held on Consolidated Balance Sheet | 7 | 7 | 16 | 18 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 140 | 213 | 123 | 285 |
Included in Earnings | 50 | (11) | 168 | 12 |
Sales | 2 | 4 | 5 | 10 |
Settlements | (84) | (86) | (188) | (187) |
Ending Balance | 108 | 120 | 108 | 120 |
Unrealized gains/losses on liabilities held on Consolidated Balance Sheet | 51 | (7) | 173 | 22 |
Other assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Purchases | 1 | 1 | ||
Transfers into Level 3 | 4 | 4 | ||
Ending Balance | 5 | 5 | ||
Other borrowed funds | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 5 | 3 | 4 | 3 |
Issuances | 3 | 9 | 4 | |
Settlements | (1) | (1) | (6) | (5) |
Ending Balance | 7 | 2 | 7 | 2 |
Other liabilities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 239 | 182 | 294 | 175 |
Included in Earnings | 6 | 26 | 61 | 47 |
Purchases | (32) | 32 | ||
Issuances | 329 | 362 | 436 | 604 |
Settlements | (324) | (333) | (541) | (589) |
Ending Balance | $ 250 | 269 | 250 | 269 |
Unrealized gains/losses on liabilities held on Consolidated Balance Sheet | $ 24 | $ 41 | $ 39 |
Fair Value (Fair Value Measurem
Fair Value (Fair Value Measurements - Recurring Quantitative Information) (Details) $ in Millions | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities – available for sale | $ 40,590 | $ 44,159 |
Fair value | 4,006 | 3,423 |
Derivative Liability | (5,225) | (4,524) |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities – available for sale | 40,590 | 44,159 |
Loans, fair value | 1,244 | 1,310 |
Equity investments | 2,618 | 3,147 |
Derivative Liability | (8,220) | (7,618) |
Recurring assets - fair value | 56,118 | 59,135 |
Residential mortgage-backed non-agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities – available for sale | 713 | 819 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total recurring assets net of recurring liabilities - fair value | 7,208 | 6,831 |
Level 3 | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities – available for sale | 967 | 1,001 |
Loans, fair value | 738 | 769 |
Equity investments | 1,729 | 1,778 |
Derivative Liability | (108) | (123) |
Recurring assets - fair value | 7,573 | 7,252 |
Level 3 | Commercial mortgage loans held for sale | Discounted cash flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale, fair value | 25 | 33 |
Level 3 | Residential mortgage-backed non-agency securities | Priced by a third-party vendor using a discounted cash flow pricing model | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities – available for sale | 713 | 819 |
Level 3 | Asset-backed | Priced by a third-party vendor using a discounted cash flow pricing model | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities – available for sale | 103 | 124 |
Level 3 | Loans - Residential real estate - Uninsured | Consensus pricing | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, fair value | 555 | 570 |
Level 3 | Loans - Residential real estate | Discounted cash flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, fair value | 75 | 76 |
Level 3 | Loans - Home equity - First-lien | Consensus pricing | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, fair value | 19 | 25 |
Level 3 | Loans - Home equity | Consensus pricing | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, fair value | 89 | 98 |
Level 3 | Equity investments | Multiple of adjusted earnings | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments | 1,729 | 1,778 |
Level 3 | Residential mortgage servicing rights | Discounted cash flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 2,837 | 2,310 |
Level 3 | Commercial mortgage servicing rights | Discounted cash flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 1,169 | 1,113 |
Level 3 | Financial derivatives | Discounted cash flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | (99) | (107) |
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 | $ (7) | $ (8) |
Spread over the benchmark curve | Level 3 | Commercial mortgage loans held for sale | Discounted cash flow | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 0.0585 | 0.0585 |
Spread over the benchmark curve | Level 3 | Commercial mortgage loans held for sale | Discounted cash flow | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 0.7140 | 0.2465 |
Spread over the benchmark curve | Level 3 | Commercial mortgage loans held for sale | Discounted cash flow | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 0.2611 | 0.0959 |
Spread over the benchmark curve | Level 3 | Residential mortgage-backed non-agency securities | Priced by a third-party vendor using a discounted cash flow pricing model | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.0250 | 0.0289 |
Spread over the benchmark curve | Level 3 | Asset-backed | Priced by a third-party vendor using a discounted cash flow pricing model | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.0256 | 0.0296 |
Spread over the benchmark curve | Level 3 | Residential mortgage servicing rights | Discounted cash flow | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.0337 | 0.0254 |
Spread over the benchmark curve | Level 3 | Residential mortgage servicing rights | Discounted cash flow | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.1650 | 0.1653 |
Spread over the benchmark curve | Level 3 | Residential 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 | 0.0765 | 0.0766 |
Constant prepayment rate | Level 3 | Residential mortgage-backed non-agency securities | Priced by a third-party vendor using a 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 |
Constant prepayment rate | Level 3 | Residential mortgage-backed non-agency securities | Priced by a third-party vendor using a 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 | 0.279 |
Constant prepayment rate | Level 3 | Residential mortgage-backed non-agency securities | Priced by a third-party vendor using a discounted cash flow pricing model | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.038 | 0.099 |
Constant prepayment rate | Level 3 | Asset-backed | Priced by a third-party vendor using a 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 |
Constant prepayment rate | Level 3 | Asset-backed | Priced by a third-party vendor using a discounted cash flow pricing model | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.110 | 0.400 |
Constant prepayment rate | Level 3 | Asset-backed | Priced by a third-party vendor using a discounted cash flow pricing model | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.053 | 0.075 |
Constant prepayment rate | Level 3 | Residential 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 |
Constant prepayment rate | Level 3 | Residential mortgage servicing rights | Discounted cash flow | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.297 | 0.345 |
Constant prepayment rate | Level 3 | Residential 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 | 0.058 | 0.067 |
Constant prepayment rate | Level 3 | Commercial mortgage servicing rights | Discounted cash flow | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.052 | 0.039 |
Constant prepayment rate | Level 3 | Commercial mortgage servicing rights | Discounted cash flow | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.074 | 0.098 |
Constant prepayment rate | Level 3 | Commercial 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 | 0.054 | 0.043 |
Constant default rate | Level 3 | Residential mortgage-backed non-agency securities | Priced by a third-party vendor using a 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 |
Constant default rate | Level 3 | Residential mortgage-backed non-agency securities | Priced by a third-party vendor using a discounted cash flow pricing model | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.120 | 0.130 |
Constant default rate | Level 3 | Residential mortgage-backed non-agency securities | Priced by a third-party vendor using a discounted cash flow pricing model | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.028 | 0.040 |
Constant default rate | Level 3 | Asset-backed | Priced by a third-party vendor using a 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 |
Constant default rate | Level 3 | Asset-backed | Priced by a third-party vendor using a discounted cash flow pricing model | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.043 | 0.073 |
Constant default rate | Level 3 | Asset-backed | Priced by a third-party vendor using a discounted cash flow pricing model | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.017 | 0.021 |
Loss severity | Level 3 | Residential mortgage-backed non-agency securities | Priced by a third-party vendor using a discounted cash flow pricing model | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.100 | 0.150 |
Loss severity | Level 3 | Residential mortgage-backed non-agency securities | Priced by a third-party vendor using a discounted cash flow pricing model | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.714 | 0.800 |
Loss severity | Level 3 | Residential mortgage-backed non-agency securities | Priced by a third-party vendor using a discounted cash flow pricing model | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.421 | 0.461 |
Loss severity | Level 3 | Asset-backed | Priced by a third-party vendor using a discounted cash flow pricing model | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.300 | 0.200 |
Loss severity | Level 3 | Asset-backed | Priced by a third-party vendor using a 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 |
Loss severity | Level 3 | Asset-backed | Priced by a third-party vendor using a discounted cash flow pricing model | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, measurement input | 0.488 | 0.490 |
Loss severity | Level 3 | Loans - Residential real estate - Uninsured | Consensus pricing | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 0 | 0 |
Loss severity | Level 3 | Loans - Residential real estate - Uninsured | Consensus pricing | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 1 | 1 |
Loss severity | Level 3 | Loans - Residential real estate - Uninsured | Consensus pricing | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 0.054 | 0.062 |
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] | ||
Financing receivable, measurement input | 0.060 | 0.060 |
Loss severity | Level 3 | Loans - Home equity - First-lien | Consensus pricing | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 0 | 0 |
Loss severity | Level 3 | Loans - Home equity - First-lien | Consensus pricing | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 1 | 1 |
Loss severity | Level 3 | Loans - Home equity - First-lien | Consensus pricing | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 0.152 | 0.153 |
Cumulative default rate | Level 3 | Loans - Residential real estate - Uninsured | Consensus pricing | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 0.036 | 0.036 |
Cumulative default rate | Level 3 | Loans - Residential real estate - Uninsured | Consensus pricing | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 1 | 1 |
Cumulative default rate | Level 3 | Loans - Residential real estate - Uninsured | Consensus pricing | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 0.596 | 0.662 |
Cumulative default rate | Level 3 | Loans - Home equity - First-lien | Consensus pricing | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 0.036 | 0.036 |
Cumulative default rate | Level 3 | Loans - Home equity - First-lien | Consensus pricing | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 1 | 1 |
Cumulative default rate | Level 3 | Loans - Home equity - First-lien | Consensus pricing | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 0.633 | 0.725 |
Discount rate | Level 3 | Loans - Residential real estate - Uninsured | Consensus pricing | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 0.055 | 0.055 |
Discount rate | Level 3 | Loans - Residential real estate - Uninsured | Consensus pricing | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 0.075 | 0.075 |
Discount rate | Level 3 | Loans - Residential real estate - Uninsured | Consensus pricing | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 0.058 | 0.059 |
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] | ||
Financing receivable, measurement input | 0.084 | 0.079 |
Discount rate | Level 3 | Loans - Home equity - First-lien | Consensus pricing | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 0.055 | 0.055 |
Discount rate | Level 3 | Loans - Home equity - First-lien | Consensus pricing | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 0.075 | 0.075 |
Discount rate | Level 3 | Loans - Home equity - First-lien | Consensus pricing | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 0.063 | 0.065 |
Discount rate | Level 3 | Commercial mortgage servicing rights | Discounted cash flow | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.083 | 0.078 |
Discount rate | Level 3 | Commercial mortgage servicing rights | Discounted cash flow | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.107 | 0.101 |
Discount rate | Level 3 | Commercial 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 | 0.102 | 0.098 |
Credit and liquidity discount | Level 3 | Loans - Home equity | Consensus pricing | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 0.004 | 0.004 |
Credit and liquidity discount | Level 3 | Loans - Home equity | Consensus pricing | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 1 | 1 |
Credit and liquidity discount | Level 3 | Loans - Home equity | Consensus pricing | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivable, measurement input | 0.447 | 0.462 |
Multiple of earnings | Level 3 | Equity investments | Multiple of adjusted earnings | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, measurement input | 0.045 | 0.045 |
Multiple of earnings | Level 3 | Equity investments | Multiple of adjusted earnings | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, measurement input | 0.200 | 0.250 |
Multiple of earnings | Level 3 | Equity investments | Multiple of adjusted earnings | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, measurement input | 0.097 | 0.091 |
Estimated Conversion Factor | Level 3 | Financial derivatives | Discounted cash flow | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, measurement input | 1.59 | 1.61 |
Estimated Annual Growth Rate | Level 3 | Financial derivatives | Discounted cash flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, measurement input | 0.160 | 0.160 |
Fair Value (Nonrecurring Fair V
Fair Value (Nonrecurring Fair Value Measurements) (Details) - Fair Value, Nonrecurring - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Nonrecurring Assets - Fair Value | $ 433 | $ 433 | $ 448 | ||
Nonrecurring Assets - Gains (Losses) | (103) | $ (112) | (297) | $ (150) | |
Level 3 | Nonaccrual loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Nonrecurring Assets - Fair Value | 361 | 361 | 280 | ||
Nonrecurring Assets - Gains (Losses) | (84) | (111) | (260) | (145) | |
Level 3 | Equity investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Nonrecurring Assets - Fair Value | 57 | 57 | 135 | ||
Nonrecurring Assets - Gains (Losses) | (15) | (19) | |||
Level 3 | OREO and foreclosed assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Nonrecurring Assets - Fair Value | 11 | 11 | 10 | ||
Nonrecurring Assets - Gains (Losses) | (1) | (1) | |||
Level 3 | Long-lived assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Nonrecurring Assets - Fair Value | 4 | 4 | 23 | ||
Nonrecurring Assets - Gains (Losses) | (3) | $ (1) | (17) | $ (5) | |
Level 1 | Equity investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Nonrecurring Assets - Fair Value | $ 28 | $ 28 | $ 42 |
Fair Value (Fair Value Option -
Fair Value (Fair Value Option - Fair Value and Principal Balances) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value - assets | $ 1,244 | $ 1,310 |
Aggregate unpaid principal balance of assets for which fair value option was elected | 1,485 | 1,568 |
Fair value option aggregate difference assets | (241) | (258) |
Other assets | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value - assets | 68 | 80 |
Aggregate unpaid principal balance of assets for which fair value option was elected | 75 | 80 |
Fair value option aggregate difference assets | (7) | |
Other borrowed funds | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value of liabilities for which fair value option was elected | 37 | 31 |
Aggregate unpaid principal balance, other borrowed funds | 38 | 32 |
Difference, Other borrowed funds | (1) | (1) |
Other liabilities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value of liabilities for which fair value option was elected | 141 | 196 |
Difference, Other borrowed funds | 141 | 196 |
Accruing loans less than 90 days past due | Loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value - assets | 505 | 509 |
Aggregate unpaid principal balance of assets for which fair value option was elected | 518 | 521 |
Fair value option aggregate difference assets | (13) | (12) |
Accruing loans 90 days or more past due | Loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value - assets | 140 | 155 |
Aggregate unpaid principal balance of assets for which fair value option was elected | 152 | 167 |
Fair value option aggregate difference assets | (12) | (12) |
Nonaccrual loans | Loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value - assets | 599 | 646 |
Aggregate unpaid principal balance of assets for which fair value option was elected | 815 | 880 |
Fair value option aggregate difference assets | (216) | (234) |
Residential mortgage loans held for sale | Loans held for sale | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value - assets | 529 | 654 |
Aggregate unpaid principal balance of assets for which fair value option was elected | 546 | 687 |
Fair value option aggregate difference assets | (17) | (33) |
Residential mortgage loans held for sale | Accruing loans less than 90 days past due | Loans held for sale | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value - assets | 486 | 609 |
Aggregate unpaid principal balance of assets for which fair value option was elected | 496 | 633 |
Fair value option aggregate difference assets | (10) | (24) |
Residential mortgage loans held for sale | Accruing loans 90 days or more past due | Loans held for sale | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value - assets | 10 | 5 |
Aggregate unpaid principal balance of assets for which fair value option was elected | 10 | 5 |
Residential mortgage loans held for sale | Nonaccrual loans | Loans held for sale | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value - assets | 33 | 40 |
Aggregate unpaid principal balance of assets for which fair value option was elected | 40 | 49 |
Fair value option aggregate difference assets | (7) | (9) |
Commercial mortgage loans held for sale | Loans held for sale | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value - assets | 379 | 276 |
Aggregate unpaid principal balance of assets for which fair value option was elected | 411 | 300 |
Fair value option aggregate difference assets | (32) | (24) |
Commercial mortgage loans held for sale | Accruing loans less than 90 days past due | Loans held for sale | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value - assets | 365 | 261 |
Aggregate unpaid principal balance of assets for which fair value option was elected | 368 | 256 |
Fair value option aggregate difference assets | (3) | 5 |
Commercial mortgage loans held for sale | Nonaccrual loans | Loans held for sale | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value - assets | 14 | 15 |
Aggregate unpaid principal balance of assets for which fair value option was elected | 43 | 44 |
Fair value option aggregate difference assets | $ (29) | $ (29) |
Fair Value (Fair Value Option_2
Fair Value (Fair Value Option - Changes in Fair Value) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Loans held for sale | Residential mortgage loans held for sale | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Gains (losses) - FVO: changes in fair value | $ (3) | $ (29) | $ 14 | $ (92) |
Loans held for sale | Commercial mortgage loans held for sale | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Gains (losses) - FVO: changes in fair value | 6 | 14 | 29 | 34 |
Loans | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Gains (losses) - FVO: changes in fair value | 8 | 1 | 17 | 37 |
Other assets | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Gains (losses) - FVO: changes in fair value | (3) | (12) | (21) | |
Other liabilities | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Gains (losses) - FVO: changes in fair value | $ (24) | $ (41) | $ (40) |
Fair Value (Additional Fair Val
Fair Value (Additional Fair Value Information Related To Financial Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Financial Instruments, Financial Assets, Balance Sheet Groupings | ||
Securities held to maturity | $ 84,447 | $ 90,279 |
Carrying Amount | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings | ||
Cash and due from banks | 5,300 | 7,043 |
Interest-earning deposits with banks | 41,484 | 27,320 |
Securities held to maturity | 91,803 | 95,183 |
Net loans (excludes leases) | 305,911 | 313,460 |
Other assets | 5,916 | 6,022 |
Total assets | 450,414 | 449,028 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings | ||
Time deposits | 27,209 | 18,470 |
Borrowed funds | 65,052 | 57,182 |
Unfunded lending related commitments | 640 | 694 |
Other liabilities | 1,106 | 660 |
Total liabilities | 94,007 | 77,006 |
Fair Value | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings | ||
Cash and due from banks | 5,300 | 7,043 |
Interest-earning deposits with banks | 41,484 | 27,320 |
Securities held to maturity | 84,447 | 90,279 |
Net loans (excludes leases) | 295,609 | 310,864 |
Other assets | 5,916 | 6,022 |
Total assets | 432,756 | 441,528 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings | ||
Time deposits | 27,142 | 18,298 |
Borrowed funds | 65,127 | 57,557 |
Unfunded lending related commitments | 640 | 694 |
Other liabilities | 1,106 | 660 |
Total liabilities | 94,015 | 77,209 |
Fair Value | Level 1 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings | ||
Cash and due from banks | 5,300 | 7,043 |
Securities held to maturity | 30,110 | 30,748 |
Total assets | 35,410 | 37,791 |
Fair Value | Level 2 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings | ||
Interest-earning deposits with banks | 41,484 | 27,320 |
Securities held to maturity | 54,189 | 59,377 |
Other assets | 5,915 | 6,020 |
Total assets | 101,588 | 92,717 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings | ||
Time deposits | 27,142 | 18,298 |
Borrowed funds | 63,943 | 55,922 |
Other liabilities | 1,106 | 660 |
Total liabilities | 92,191 | 74,880 |
Fair Value | Level 3 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings | ||
Securities held to maturity | 148 | 154 |
Net loans (excludes leases) | 295,609 | 310,864 |
Other assets | 1 | 2 |
Total assets | 295,758 | 311,020 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings | ||
Borrowed funds | 1,184 | 1,635 |
Unfunded lending related commitments | 640 | 694 |
Total liabilities | $ 1,824 | $ 2,329 |
Financial Derivatives (Total De
Financial Derivatives (Total Derivatives) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Derivative, notional amount | $ 677,174 | $ 581,268 |
Derivative asset, fair value | 3,838 | 3,768 |
Derivative liability, fair value | 8,220 | 7,618 |
Derivative asset, fair value offset amount | 1,396 | 1,523 |
Derivative liability, fair value offset amount | 1,396 | 1,523 |
Derivative asset, cash collateral | 1,593 | 714 |
Derivative liability, cash collateral | 1,599 | 1,571 |
Derivative Asset, Net | 849 | 1,531 |
Derivative liability, net | 5,225 | 4,524 |
Commodity contracts: | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 548 | 1,208 |
Derivative liability, fair value | 577 | 1,269 |
Derivative asset, cash collateral | 71 | 2 |
Derivative liability, cash collateral | 31 | 520 |
Derivative Asset, Net | 227 | 871 |
Derivative liability, net | 87 | 70 |
Foreign exchange contracts and other | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 451 | 437 |
Derivative liability, fair value | 387 | 520 |
Derivative asset, cash collateral | 204 | 82 |
Derivative liability, cash collateral | 1 | 10 |
Derivative Asset, Net | 115 | 141 |
Derivative liability, net | 260 | 291 |
Mortgage Banking | Overlay Swap | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 400 | |
Customer Contracts | Overlay Swap | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 22,600 | |
Designated as Hedging Instruments under GAAP | ||
Derivative [Line Items] | ||
Derivative, notional amount | 90,932 | 65,661 |
Derivative asset, fair value | 244 | 24 |
Derivative liability, fair value | 283 | 1 |
Designated as Hedging Instruments under GAAP | Fair value hedges | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 29,523 | 24,231 |
Designated as Hedging Instruments under GAAP | Cash flow hedges | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 35,241 | 40,310 |
Derivative liability, fair value | 2 | 1 |
Designated as Hedging Instruments under GAAP | Cash flow hedges | Other | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 25,000 | |
Derivative asset, fair value | 222 | |
Derivative liability, fair value | 281 | |
Designated as Hedging Instruments under GAAP | Net investment hedges | Foreign exchange contracts: | ||
Derivative [Line Items] | ||
Derivative, notional amount | 1,168 | 1,120 |
Derivative asset, fair value | 22 | 24 |
Derivative liability, fair value | ||
Not Designated as Hedging Instrument under GAAP | ||
Derivative [Line Items] | ||
Derivative, notional amount | 586,242 | 515,607 |
Derivative asset, fair value | 3,594 | 3,744 |
Derivative liability, fair value | 7,937 | 7,617 |
Not Designated as Hedging Instrument under GAAP | Mortgage Banking | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 75,254 | 75,978 |
Derivative asset, fair value | 128 | 182 |
Derivative liability, fair value | 98 | 104 |
Not Designated as Hedging Instrument under GAAP | Mortgage Banking | Swaps | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 45,056 | 47,908 |
Derivative asset, fair value | 7 | |
Derivative liability, fair value | 4 | 1 |
Not Designated as Hedging Instrument under GAAP | Mortgage Banking | Futures | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 8,860 | 5,537 |
Not Designated as Hedging Instrument under GAAP | Mortgage Banking | Mortgage-backed commitments | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 4,750 | 4,516 |
Derivative asset, fair value | 77 | 85 |
Derivative liability, fair value | 73 | 89 |
Not Designated as Hedging Instrument under GAAP | Mortgage Banking | Other | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 16,588 | 18,017 |
Derivative asset, fair value | 51 | 90 |
Derivative liability, fair value | 21 | 14 |
Not Designated as Hedging Instrument under GAAP | Customer Contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 493,561 | 426,844 |
Derivative asset, fair value | 3,349 | 3,515 |
Derivative liability, fair value | 7,729 | 7,286 |
Not Designated as Hedging Instrument under GAAP | Customer Contracts | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 452,751 | 386,052 |
Derivative asset, fair value | 2,489 | 1,941 |
Derivative liability, fair value | 6,875 | 5,724 |
Not Designated as Hedging Instrument under GAAP | Customer Contracts | Commodity contracts: | ||
Derivative [Line Items] | ||
Derivative, notional amount | 9,452 | 10,280 |
Derivative asset, fair value | 548 | 1,208 |
Derivative liability, fair value | 577 | 1,269 |
Not Designated as Hedging Instrument under GAAP | Customer Contracts | Foreign exchange contracts and other | ||
Derivative [Line Items] | ||
Derivative, notional amount | 31,358 | 30,512 |
Derivative asset, fair value | 312 | 366 |
Derivative liability, fair value | 277 | 293 |
Not Designated as Hedging Instrument under GAAP | Customer Contracts | Swaps | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 420,301 | 354,150 |
Derivative asset, fair value | 2,170 | 1,597 |
Derivative liability, fair value | 6,579 | 5,397 |
Not Designated as Hedging Instrument under GAAP | Customer Contracts | Swaps | Commodity contracts: | ||
Derivative [Line Items] | ||
Derivative, notional amount | 6,558 | 5,792 |
Derivative asset, fair value | 477 | 1,003 |
Derivative liability, fair value | 504 | 1,067 |
Not Designated as Hedging Instrument under GAAP | Customer Contracts | Futures | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 41 | 32 |
Not Designated as Hedging Instrument under GAAP | Customer Contracts | Mortgage-backed commitments | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 3,675 | 2,799 |
Derivative asset, fair value | 27 | 10 |
Derivative liability, fair value | 11 | 6 |
Not Designated as Hedging Instrument under GAAP | Customer Contracts | Other | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 28,734 | 29,071 |
Derivative asset, fair value | 292 | 334 |
Derivative liability, fair value | 285 | 321 |
Not Designated as Hedging Instrument under GAAP | Customer Contracts | Other | Commodity contracts: | ||
Derivative [Line Items] | ||
Derivative, notional amount | 2,894 | 4,488 |
Derivative asset, fair value | 71 | 205 |
Derivative liability, fair value | 73 | 202 |
Not Designated as Hedging Instrument under GAAP | Other Risk Management Activity | Foreign exchange contracts and other | ||
Derivative [Line Items] | ||
Derivative, notional amount | 17,427 | 12,785 |
Derivative asset, fair value | 117 | 47 |
Derivative liability, fair value | $ 110 | $ 227 |
Financial Derivatives (Narrativ
Financial Derivatives (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative [Line Items] | ||||
Gain (loss) from components excluded from assessment of net investment hedge effectiveness net | $ 0 | |||
Gain (loss) on net investment hedge derivatives | $ 44,000,000 | $ 0 | (2,000,000) | $ 0 |
Cash and securities held to collateralize net derivative assets | 2,500,000,000 | 2,500,000,000 | ||
Cash and securities pledged to collateralize net derivative liabilities | $ 2,600,000,000 | 2,600,000,000 | ||
Cash flow hedges | Interest Rate Contracts | ||||
Derivative [Line Items] | ||||
Cash flow hedge loss to be reclassified within twelve months | 1,500,000,000 | |||
Cash flow hedge loss to be reclassified within twelve months, net of tax | $ 1,100,000,000 | |||
Maximum length of time hedged in cash flow hedge | 8 years |
Financial Derivatives (Gains (L
Financial Derivatives (Gains (Losses) Recognized on Fair Value and Cash Flow Hedges in the Consolidated Income Statement) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loans | $ 4,643 | $ 3,138 | $ 13,424 | $ 7,935 |
Investment Securities | 892 | 715 | 2,660 | 1,890 |
Borrowed Funds | 993 | 317 | 2,679 | 542 |
Noninterest income | $ 1,815 | $ 2,074 | $ 5,616 | $ 6,027 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Investment Securities, Interest Expense | Investment Securities, Interest Expense | Investment Securities, Interest Expense | Investment Securities, Interest Expense |
Other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Noninterest income | $ 94 | $ 317 | $ 481 | $ 705 |
Fair value hedges | Designated as Hedging Instrument | Investment Securities | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives | 158 | 86 | 163 | 135 |
Fair value hedges | Designated as Hedging Instrument | Investment Securities | Interest Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedged items | (156) | (85) | (157) | (131) |
Amounts related to interest settlements on derivatives | 8 | (1) | 20 | (4) |
Fair value hedges | Designated as Hedging Instrument | Borrowed Funds | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives | (421) | (706) | (569) | (2,101) |
Fair value hedges | Designated as Hedging Instrument | Borrowed Funds | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedged items | 416 | 696 | 551 | 2,073 |
Amounts related to interest settlements on derivatives | (167) | 1 | (427) | 185 |
Cash flow hedges | Designated as Hedging Instrument | Loans | Interest Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of derivative gains (losses) reclassified from accumulated other comprehensive income | (418) | (122) | (1,108) | (5) |
Cash flow hedges | Designated as Hedging Instrument | Investment Securities | Interest Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of derivative gains (losses) reclassified from accumulated other comprehensive income | $ (8) | (7) | $ (21) | 3 |
Cash flow hedges | Designated as Hedging Instrument | Other | Noninterest Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of derivative gains (losses) reclassified from accumulated other comprehensive income |
Financial Derivatives (Impact o
Financial Derivatives (Impact of Fair Value Hedge Accounting on the Carrying Value of Hedged Items) (Details) - Fair value hedges - Designated as Hedging Instruments under GAAP - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Investment Securities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Carrying Value of the Hedged Items | $ 1,874 | $ 2,376 |
Cumulative Fair Value Hedge Adjustment included in the Carrying Value of Hedged Items | (282) | (121) |
Borrowed Funds | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Carrying Value of the Hedged Items | 25,959 | 21,781 |
Cumulative Fair Value Hedge Adjustment included in the Carrying Value of Hedged Items | (1,834) | (1,283) |
Borrowed Funds Discontinued Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cumulative fair value hedge adjustment included in carrying value of hedged items | $ (100) | $ (100) |
Financial Derivatives (Gains _2
Financial Derivatives (Gains (Losses) on Derivatives Not Designated As Hedging Instruments under GAAP) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative [Line Items] | ||||
Derivative instruments not designated as hedging instruments gain (loss), net | $ (53) | $ 127 | $ (195) | $ 125 |
Mortgage Banking | Interest Rate Contracts | ||||
Derivative [Line Items] | ||||
Derivative instruments not designated as hedging instruments gain (loss), net | (224) | (245) | (301) | (700) |
Customer Contracts | ||||
Derivative [Line Items] | ||||
Derivative instruments not designated as hedging instruments gain (loss), net | 42 | 63 | 191 | 253 |
Customer Contracts | Interest Rate Contracts | ||||
Derivative [Line Items] | ||||
Derivative instruments not designated as hedging instruments gain (loss), net | 11 | 65 | 46 | 231 |
Customer Contracts | Foreign exchange contracts and other | ||||
Derivative [Line Items] | ||||
Derivative instruments not designated as hedging instruments gain (loss), net | 31 | (2) | 145 | 22 |
Other Risk Management Activity | Foreign exchange contracts and other | ||||
Derivative [Line Items] | ||||
Derivative instruments not designated as hedging instruments gain (loss), net | $ 129 | $ 309 | $ (85) | $ 572 |
Financial Derivatives (Derivati
Financial Derivatives (Derivative Assets and Liabilities Offsetting) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Offsetting Derivative Assets [Abstract] | ||
Derivative asset, gross fair value | $ 3,838 | $ 3,768 |
Derivative Asset, Fair Value Offset Amount | 1,396 | 1,523 |
Derivative asset, cash collateral | 1,593 | 714 |
Derivative Asset, Net | 849 | 1,531 |
Derivative Asset, Securities Collateral Held Under Master Netting Agreements | 118 | 34 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 731 | 1,497 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative liability, gross fair value | 8,220 | 7,618 |
Derivative liability, fair value offset amount | 1,396 | 1,523 |
Derivative liability, cash collateral | 1,599 | 1,571 |
Derivative liability, net | 5,225 | 4,524 |
Derivative liability, fair value of collateral | 87 | 82 |
Derivative liability, fair value, amount offset against collateral | 5,138 | 4,442 |
Interest Rate Contracts | Over-the-counter cleared | ||
Offsetting Derivative Assets [Abstract] | ||
Derivative asset, gross fair value | 43 | 23 |
Derivative Asset, Net | 43 | 23 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 43 | 23 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative liability, gross fair value | 30 | 28 |
Derivative liability, net | 30 | 28 |
Derivative liability, fair value, amount offset against collateral | 30 | 28 |
Interest Rate Contracts | Over-the-counter | ||
Offsetting Derivative Assets [Abstract] | ||
Derivative asset, gross fair value | 2,796 | 2,100 |
Derivative Asset, Fair Value Offset Amount | 1,014 | 974 |
Derivative asset, cash collateral | 1,318 | 630 |
Derivative Asset, Net | 464 | 496 |
Derivative Asset, Securities Collateral Held Under Master Netting Agreements | 116 | 34 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 348 | 462 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative liability, gross fair value | 7,226 | 5,801 |
Derivative liability, fair value offset amount | 811 | 625 |
Derivative liability, cash collateral | 1,567 | 1,041 |
Derivative liability, net | 4,848 | 4,135 |
Derivative liability, fair value of collateral | 87 | 78 |
Derivative liability, fair value, amount offset against collateral | 4,761 | 4,057 |
Commodity contracts: | ||
Offsetting Derivative Assets [Abstract] | ||
Derivative asset, gross fair value | 548 | 1,208 |
Derivative Asset, Fair Value Offset Amount | 250 | 335 |
Derivative asset, cash collateral | 71 | 2 |
Derivative Asset, Net | 227 | 871 |
Derivative Asset, Securities Collateral Held Under Master Netting Agreements | 2 | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 225 | 871 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative liability, gross fair value | 577 | 1,269 |
Derivative liability, fair value offset amount | 459 | 679 |
Derivative liability, cash collateral | 31 | 520 |
Derivative liability, net | 87 | 70 |
Derivative liability, fair value of collateral | 4 | |
Derivative liability, fair value, amount offset against collateral | 87 | 66 |
Foreign exchange contracts and other | ||
Offsetting Derivative Assets [Abstract] | ||
Derivative asset, gross fair value | 451 | 437 |
Derivative Asset, Fair Value Offset Amount | 132 | 214 |
Derivative asset, cash collateral | 204 | 82 |
Derivative Asset, Net | 115 | 141 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 115 | 141 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative liability, gross fair value | 387 | 520 |
Derivative liability, fair value offset amount | 126 | 219 |
Derivative liability, cash collateral | 1 | 10 |
Derivative liability, net | 260 | 291 |
Derivative liability, fair value, amount offset against collateral | $ 260 | $ 291 |
Financial Derivatives (Credit-R
Financial Derivatives (Credit-Risk Contingent Features) (Details) - USD ($) $ in Billions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative, net liability position, aggregate fair value | $ 6.5 | $ 5.8 |
Collateral already posted, aggregate fair value | 1.7 | 1.7 |
Maximum amount of collateral PNC would have been required to post if the credit-risk-related contingent features underlying these agreements had been triggered | $ 4.8 | $ 4.1 |
Legal Proceedings (Narrative) (
Legal Proceedings (Narrative) (Details) $ in Millions | 1 Months Ended |
Sep. 30, 2023 USD ($) | |
Loss Contingencies [Line Items] | |
Interchange litigation, restrictions up to percentage | 50% |
SEC Schedule, 12-09, Reserve, Legal | Maximum | |
Loss Contingencies [Line Items] | |
Range of possible loss not accrued | $ 300 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2023 segment operating_unit | |
Segment Reporting [Abstract] | |
Segment reporting, number of segments | segment | 3 |
Number of distinct operating units | operating_unit | 2 |
Segment Reporting (Segment Repo
Segment Reporting (Segment Reporting Table) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net interest income | $ 3,418 | $ 3,475 | $ 10,513 | $ 9,330 |
Noninterest income | 1,815 | 2,074 | 5,616 | 6,027 |
Total revenue | 5,233 | 5,549 | 16,129 | 15,357 |
Provision for (recapture of) credit losses | 129 | 241 | 510 | 69 |
Depreciation and amortization | 285 | 277 | 850 | 843 |
Other noninterest expense | 2,960 | 3,003 | 9,088 | 8,853 |
Income (loss) before income taxes (benefit) and noncontrolling interests | 1,859 | 2,028 | 5,681 | 5,592 |
Income taxes (benefit) | 289 | 388 | 917 | 1,027 |
Net income (loss) | 1,570 | 1,640 | 4,764 | 4,565 |
Less: Net income (loss) attributable to noncontrolling interests | 16 | 16 | 50 | 52 |
Net income (loss) excluding noncontrolling interests | 1,554 | 1,624 | 4,714 | 4,513 |
Average Assets | 554,963 | 547,097 | 557,574 | 548,443 |
Retail Banking | ||||
Segment Reporting Information [Line Items] | ||||
Noninterest income | 784 | 725 | 2,229 | 2,218 |
Retail Banking | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 2,576 | 2,017 | 7,305 | 5,210 |
Noninterest income | 784 | 725 | 2,229 | 2,218 |
Total revenue | 3,360 | 2,742 | 9,534 | 7,428 |
Provision for (recapture of) credit losses | 42 | 92 | 266 | 66 |
Depreciation and amortization | 80 | 76 | 239 | 233 |
Other noninterest expense | 1,796 | 1,825 | 5,468 | 5,473 |
Income (loss) before income taxes (benefit) and noncontrolling interests | 1,442 | 749 | 3,561 | 1,656 |
Income taxes (benefit) | 337 | 175 | 834 | 389 |
Net income (loss) | 1,105 | 574 | 2,727 | 1,267 |
Less: Net income (loss) attributable to noncontrolling interests | 11 | 14 | 32 | 45 |
Net income (loss) excluding noncontrolling interests | 1,094 | 560 | 2,695 | 1,222 |
Average Assets | 114,724 | 114,619 | 114,975 | 113,157 |
Corporate & Institutional Banking | ||||
Segment Reporting Information [Line Items] | ||||
Noninterest income | 835 | 887 | 2,542 | 2,659 |
Corporate & Institutional Banking | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 1,390 | 1,345 | 4,122 | 3,720 |
Noninterest income | 835 | 887 | 2,542 | 2,659 |
Total revenue | 2,225 | 2,232 | 6,664 | 6,379 |
Provision for (recapture of) credit losses | 102 | 150 | 283 | 15 |
Depreciation and amortization | 52 | 50 | 159 | 153 |
Other noninterest expense | 843 | 840 | 2,596 | 2,508 |
Income (loss) before income taxes (benefit) and noncontrolling interests | 1,228 | 1,192 | 3,626 | 3,703 |
Income taxes (benefit) | 263 | 258 | 775 | 803 |
Net income (loss) | 965 | 934 | 2,851 | 2,900 |
Less: Net income (loss) attributable to noncontrolling interests | 5 | 5 | 15 | 12 |
Net income (loss) excluding noncontrolling interests | 960 | 929 | 2,836 | 2,888 |
Average Assets | 230,082 | 224,984 | 232,914 | 215,163 |
Asset Management Group | ||||
Segment Reporting Information [Line Items] | ||||
Noninterest income | 223 | 231 | 681 | 713 |
Asset Management Group | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 139 | 165 | 391 | 456 |
Noninterest income | 223 | 231 | 681 | 713 |
Total revenue | 362 | 396 | 1,072 | 1,169 |
Provision for (recapture of) credit losses | (4) | 4 | (5) | 11 |
Depreciation and amortization | 9 | 6 | 22 | 20 |
Other noninterest expense | 262 | 268 | 809 | 775 |
Income (loss) before income taxes (benefit) and noncontrolling interests | 95 | 118 | 246 | 363 |
Income taxes (benefit) | 22 | 28 | 58 | 85 |
Net income (loss) | 73 | 90 | 188 | 278 |
Less: Net income (loss) attributable to noncontrolling interests | ||||
Net income (loss) excluding noncontrolling interests | 73 | 90 | 188 | 278 |
Average Assets | 16,161 | 14,820 | 15,578 | 14,360 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | (687) | (52) | (1,305) | (56) |
Noninterest income | (27) | 231 | 164 | 437 |
Total revenue | (714) | 179 | (1,141) | 381 |
Provision for (recapture of) credit losses | (11) | (5) | (34) | (23) |
Depreciation and amortization | 144 | 145 | 430 | 437 |
Other noninterest expense | 59 | 70 | 215 | 97 |
Income (loss) before income taxes (benefit) and noncontrolling interests | (906) | (31) | (1,752) | (130) |
Income taxes (benefit) | (333) | (73) | (750) | (250) |
Net income (loss) | (573) | 42 | (1,002) | 120 |
Less: Net income (loss) attributable to noncontrolling interests | (3) | 3 | (5) | |
Net income (loss) excluding noncontrolling interests | (573) | 45 | (1,005) | 125 |
Average Assets | $ 193,996 | $ 192,674 | $ 194,107 | $ 205,763 |
Fee-Based Revenue from Contra_3
Fee-Based Revenue from Contracts with Customers (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Revenue from Contract with Customer [Abstract] | |
Segment reporting, number of segments | 3 |
Fee-Based Revenue from Contra_4
Fee-Based Revenue from Contracts with Customers (Noninterest Income by Business Segment and Reconciliation to Consolidated Noninterest Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | $ 1,815 | $ 2,074 | $ 5,616 | $ 6,027 |
Total in-scope noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 1,398 | 1,390 | 4,177 | 4,243 |
Out-of-Scope | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 444 | 453 | 1,275 | 1,347 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 94 | 317 | 481 | 705 |
Retail Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 784 | 725 | 2,229 | 2,218 |
Retail Banking | Asset management and brokerage | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 129 | 131 | 383 | 400 |
Retail Banking | Card and cash management | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 305 | 317 | 921 | 935 |
Retail Banking | Lending and deposit services | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 188 | 162 | 530 | 483 |
Retail Banking | Total in-scope noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 622 | 610 | 1,834 | 1,818 |
Retail Banking | Out-of-Scope | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 162 | 115 | 395 | 400 |
Retail Banking | Brokerage fees | Asset management and brokerage | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 129 | 131 | 383 | 400 |
Retail Banking | Treasury management fees | Card and cash management | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 10 | 11 | 31 | 30 |
Retail Banking | Debit card fees | Card and cash management | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 175 | 175 | 518 | 513 |
Retail Banking | Net credit card fees | Card and cash management | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 54 | 60 | 173 | 178 |
Retail Banking | Merchant services | Card and cash management | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 42 | 48 | 126 | 141 |
Retail Banking | Other | Card and cash management | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 24 | 23 | 73 | 73 |
Retail Banking | Deposit account fees | Lending and deposit services | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 170 | 146 | 476 | 433 |
Retail Banking | Other | Lending and deposit services | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 18 | 16 | 54 | 50 |
Retail Banking | Net credit card fees | In-Scope | ||||
Disaggregation of Revenue [Line Items] | ||||
Interchange fees | 169 | 169 | 502 | 489 |
Credit card reward costs | 115 | 109 | 329 | 311 |
Corporate & Institutional Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 835 | 887 | 2,542 | 2,659 |
Corporate & Institutional Banking | Card and cash management | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 371 | 344 | 1,082 | 1,004 |
Corporate & Institutional Banking | Lending and deposit services | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 8 | 8 | 24 | 25 |
Corporate & Institutional Banking | Total in-scope noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 557 | 554 | 1,674 | 1,726 |
Corporate & Institutional Banking | Out-of-Scope | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 278 | 333 | 868 | 933 |
Corporate & Institutional Banking | Treasury management fees | Card and cash management | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 351 | 328 | 1,024 | 957 |
Corporate & Institutional Banking | Merchant services | Card and cash management | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 20 | 16 | 58 | 47 |
Corporate & Institutional Banking | Other | Lending and deposit services | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 8 | 8 | 24 | 25 |
Corporate & Institutional Banking | Residential and commercial mortgage | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 32 | 36 | 114 | 100 |
Corporate & Institutional Banking | Capital markets and advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 124 | 155 | 410 | 564 |
Corporate & Institutional Banking | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 22 | 11 | 44 | 33 |
Asset Management Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 223 | 231 | 681 | 713 |
Asset Management Group | Asset management and brokerage | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 219 | 226 | 669 | 699 |
Asset Management Group | Total in-scope noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 219 | 226 | 669 | 699 |
Asset Management Group | Out-of-Scope | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 4 | 5 | 12 | 14 |
Asset Management Group | Asset management fees | Asset management and brokerage | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 217 | 224 | 663 | 693 |
Asset Management Group | Brokerage fees | Asset management and brokerage | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 2 | 2 | 6 | 6 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | $ (27) | $ 231 | $ 164 | $ 437 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Millions | 3 Months Ended | |||||
Nov. 01, 2023 $ / shares shares | Oct. 20, 2023 USD ($) | Oct. 02, 2023 USD ($) | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Subsequent Event [Line Items] | ||||||
Commitments | $ 290,371 | $ 277,172 | ||||
Signature Bridge Bank N.A Capital Commitment | ||||||
Subsequent Event [Line Items] | ||||||
Commitments | $ 16,000 | |||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Funded loans | $ 9,000 | |||||
Depository shares redeemed (in shares) | shares | 1,000,000,000 | |||||
Subsequent Event | Forecast | ||||||
Subsequent Event [Line Items] | ||||||
Workforce reduction percentage | 4% | |||||
One-time expenses | $ 150 | |||||
Subsequent Event | Signature Bridge Bank N.A Capital Commitment | ||||||
Subsequent Event [Line Items] | ||||||
Commitments | $ 16,000 | |||||
Subsequent Event | 2027 Senior Notes | Senior debt | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, face amount | $ 1,250 | |||||
Interest rate | 6.615% | |||||
Subsequent Event | 2027 Senior Notes | Senior debt | Secured Overnight Financing Rate (SOFR) | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.73% | |||||
Subsequent Event | 2034 Senior Notes | Senior debt | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, face amount | $ 2,250 | |||||
Interest rate | 6.875% | |||||
Subsequent Event | 2034 Senior Notes | Senior debt | Secured Overnight Financing Rate (SOFR) | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 2.284% | |||||
Subsequent Event | Series O | ||||||
Subsequent Event [Line Items] | ||||||
Depository shares redeemed (in shares) | shares | 1,000,000,000,000 | |||||
Preferred stock, redemption price per share (in dollars per share) | $ / shares | $ 1,000 | |||||
Depositary shares conversion ratio | 0.01 |