Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 30, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-36636 | |
Entity Registrant Name | CITIZENS FINANCIAL GROUP INC/RI | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 05-0412693 | |
Entity Address, Address Line One | One Citizens Plaza | |
Entity Address, City or Town | Providence | |
Entity Address, State or Province | RI | |
Entity Address, Postal Zip Code | 02903 | |
City Area Code | 401 | |
Local Phone Number | 456-7000 | |
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 | 434,718,941 | |
Entity Central Index Key | 0000759944 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | CFG | |
Security Exchange Name | NYSE | |
Series D Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, representing 6.350% Non-Cumulative Perpetual Preferred Stock, Series D | |
Trading Symbol | CFG PrD | |
Security Exchange Name | NYSE | |
Series E Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, representing 5.000% Non-Cumulative Perpetual Preferred Stock, Series E | |
Trading Symbol | CFG PrE | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
ASSETS: | |||
Cash and due from banks | $ 1,638 | $ 1,081 | |
Interest-bearing cash and due from banks | 2,204 | 2,993 | |
Interest-bearing deposits in banks | 158 | 148 | |
Debt securities available for sale, at fair value (including $233 and $363 pledged to creditors, respectively) | [1] | 21,502 | 19,895 |
Debt securities held to maturity (fair value of $3,362 and $4,041, respectively) | 3,319 | 4,165 | |
Equity securities, at fair value | 47 | 181 | |
Equity securities, at cost | 734 | 834 | |
Loans held for sale, at fair value | 1,993 | 1,219 | |
Other loans held for sale | 22 | 101 | |
Loans and leases | 117,880 | 116,660 | |
Less: Allowance for loan and lease losses | (1,263) | (1,242) | |
Net loans and leases | 116,617 | 115,418 | |
Derivative assets | 1,027 | 317 | |
Premises and equipment, net | 747 | 791 | |
Bank-owned life insurance | 1,720 | 1,698 | |
Goodwill | 7,044 | 6,923 | |
Due from broker | 257 | 0 | |
Other assets | 5,333 | 4,754 | |
TOTAL ASSETS | 164,362 | 160,518 | |
Deposits: | |||
Noninterest-bearing | 29,939 | 29,458 | |
Interest-bearing | 94,775 | 90,117 | |
Total deposits | 124,714 | 119,575 | |
Federal funds purchased and securities sold under agreements to repurchase | 867 | 1,156 | |
Other short-term borrowed funds | 210 | 161 | |
Derivative liabilities | 161 | 292 | |
Deferred taxes, net | 752 | 573 | |
Long-term borrowed funds | 12,806 | 15,925 | |
Due to broker | 206 | 0 | |
Other liabilities | 2,795 | 2,019 | |
TOTAL LIABILITIES | 142,511 | 139,701 | |
Contingencies (refer to Note 12) | |||
Preferred stock, $25.00 par value, authorized 100,000,000 shares: | |||
Preferred stock, $25.00 par value, 100,000,000 shares authorized | 1,133 | 840 | |
Common stock: | |||
$0.01 par value, 1,000,000,000 shares authorized; 568,125,065 shares issued and 443,913,525 shares outstanding at September 30, 2019 and 566,819,863 shares issued and 466,007,984 shares outstanding at December 31, 2018 | 6 | 6 | |
Additional paid-in capital | 18,876 | 18,815 | |
Retained earnings | 6,229 | 5,385 | |
Treasury stock, at cost, 124,211,540 and 100,811,879 shares at September 30, 2019 and December 31, 2018, respectively | (3,953) | (3,133) | |
Accumulated other comprehensive loss | (440) | (1,096) | |
TOTAL STOCKHOLDERS’ EQUITY | 21,851 | 20,817 | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 164,362 | $ 160,518 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS: | ||
Securities held-to-maturity, fair value | $ 3,362 | $ 4,041 |
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, issued (in shares) | 568,125,065 | 566,819,863 |
Common stock, outstanding (in shares) | 443,913,525 | 466,007,984 |
Treasury stock (in shares) | 124,211,540 | 100,811,879 |
Available-for-sale Securities | ||
ASSETS: | ||
Securities, pledged to creditors | $ 233 | $ 363 |
Held-to-maturity Securities | ||
ASSETS: | ||
Securities held-to-maturity, fair value | $ 3,362 | $ 4,041 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
INTEREST INCOME: | ||||
Interest and fees on loans and leases | $ 1,356 | $ 1,287 | $ 4,129 | $ 3,663 |
Interest and fees on loans held for sale, at fair value | 19 | 14 | 45 | 23 |
Interest and fees on other loans held for sale | 2 | 2 | 8 | 9 |
Investment securities | 153 | 167 | 483 | 500 |
Interest-bearing deposits in banks | 8 | 7 | 23 | 21 |
Total interest income | 1,538 | 1,477 | 4,688 | 4,216 |
INTEREST EXPENSE: | ||||
Deposits | 297 | 214 | 892 | 540 |
Federal funds purchased and securities sold under agreements to repurchase | 2 | 2 | 7 | 4 |
Other short-term borrowed funds | 0 | 4 | 1 | 7 |
Long-term borrowed funds | 94 | 109 | 317 | 305 |
Total interest expense | 393 | 329 | 1,217 | 856 |
Net interest income | 1,145 | 1,148 | 3,471 | 3,360 |
Provision for credit losses | 101 | 78 | 283 | 241 |
Net interest income after provision for credit losses | 1,044 | 1,070 | 3,188 | 3,119 |
NONINTEREST INCOME: | ||||
Service charges and fees | 128 | 131 | 377 | 382 |
Card fees | 67 | 61 | 190 | 182 |
Capital markets fees | 39 | 47 | 150 | 134 |
Trust and investment services fees | 50 | 45 | 150 | 128 |
Mortgage banking fees | 117 | 49 | 222 | 101 |
Letter of credit and loan fees | 34 | 32 | 100 | 94 |
Foreign exchange and interest rate products | 35 | 31 | 106 | 92 |
Securities gains, net | 3 | 3 | 15 | 13 |
Net impairment losses recognized in earnings on debt securities | (1) | (1) | (2) | (3) |
Other income | 21 | 18 | 75 | 52 |
Total noninterest income | 493 | 416 | 1,383 | 1,175 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 508 | 474 | 1,524 | 1,397 |
Equipment and software expense | 130 | 117 | 381 | 340 |
Outside services | 128 | 107 | 356 | 312 |
Occupancy | 80 | 81 | 245 | 241 |
Other operating expense | 127 | 131 | 355 | 378 |
Total noninterest expense | 973 | 910 | 2,861 | 2,668 |
Income before income tax expense | 564 | 576 | 1,710 | 1,626 |
Income tax expense | 115 | 133 | 369 | 370 |
NET INCOME | 449 | 443 | 1,341 | 1,256 |
Net income available to common stockholders | $ 432 | $ 436 | $ 1,291 | $ 1,242 |
Weighted-average common shares outstanding: | ||||
Basic (in Shares) | 445,703,987 | 475,957,526 | 454,802,186 | 482,691,884 |
Diluted (in Shares) | 447,134,595 | 477,599,917 | 456,218,755 | 484,250,843 |
Per common share information: | ||||
Basic earnings (in dollars per share) | $ 0.97 | $ 0.92 | $ 2.84 | $ 2.57 |
Diluted earnings (in Dollars per Share) | $ 0.97 | $ 0.91 | $ 2.83 | $ 2.57 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 449 | $ 443 | $ 1,341 | $ 1,256 |
Other comprehensive income (loss): | ||||
Net unrealized derivative instruments (losses) gains arising during the periods, net of income taxes of ($1), ($9), $35 and ($31), respectively | (4) | 103 | ||
Net unrealized derivative instrument gains (losses) arising during the periods, net of income taxes of ($1), ($9), $35 and ($31), respectively, before 2017-12 adoption | (26) | (91) | ||
Reclassification adjustment for net derivative losses included in net income, net of income taxes of $4, $3, $13 and $6, respectively | 10 | 40 | ||
Reclassification adjustment for net derivative losses, included in net income, net of income taxes of $4, $3, $13, and $6, respectively, before 2017-12 adoption | 11 | 19 | ||
Net unrealized debt securities gains (losses) arising during the periods, net of income taxes of $13, ($34), $165 and ($139), respectively | 42 | (95) | 509 | (427) |
Other-than-temporary impairment not recognized in earnings on debt securities, net of income taxes of $0, ($1), $0 and ($1), respectively | (1) | 0 | 0 | (1) |
Reclassification of net debt securities gains to net income, net of income taxes of $0, $0, ($3) and ($2), respectively | (2) | (2) | (10) | (8) |
Amortization of actuarial loss, net of income taxes of $2, $1, $5 and $3, respectively | 3 | 4 | 9 | 10 |
Net other comprehensive (loss) income | 48 | (108) | 651 | (498) |
Total comprehensive income | $ 497 | $ 335 | $ 1,992 | $ 758 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net unrealized derivative instrument gains (losses) arising during the periods, tax | $ (1) | $ 35 | ||
Net unrealized derivative instrument gains (losses) arising during the periods, tax, before 2017-12 adoption | $ (9) | $ (31) | ||
Reclassification adjustment for net derivative losses included in net income, tax | 4 | 13 | ||
Reclassification adjustment for net derivative losses included in net income, tax, before 2017-12 adoption | 3 | 6 | ||
Net unrealized debt securities gains (losses) arising during the periods, tax | 13 | (34) | 165 | (139) |
Other-than-temporary impairment not recognized in earnings on debt securities, tax | 0 | (1) | 0 | (1) |
Reclassification of net debt securities gains to net income, tax | 0 | 0 | (3) | (2) |
Amortization of actuarial loss, tax | $ 2 | $ 1 | $ 5 | $ 3 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at Cost | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2017 | 0 | 491,000,000 | |||||
Beginning balance at Dec. 31, 2017 | $ 20,270 | $ 247 | $ 6 | $ 18,781 | $ 4,164 | $ (2,108) | $ (820) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to common stockholders | (344) | (344) | |||||
Dividends to preferred stockholders | (14) | (14) | |||||
Preferred stock issued (in shares) | 1,000,000 | ||||||
Preferred stock issued | 296 | $ 296 | |||||
Treasury stock purchased (in shares) | (18,000,000) | ||||||
Treasury stock purchased | (725) | (725) | |||||
Share-based compensation plans (in shares) | 1,000,000 | ||||||
Share-based compensation plans | 24 | 24 | 0 | ||||
Employee stock purchase plan shares purchased | 11 | 11 | |||||
Total comprehensive income: | |||||||
Net income | 1,256 | 1,256 | |||||
Other comprehensive income | (498) | (498) | |||||
Total comprehensive income | 758 | 1,256 | (498) | ||||
Ending balance (in shares) at Sep. 30, 2018 | 1,000,000 | 474,000,000 | |||||
Ending balance at Sep. 30, 2018 | 20,276 | $ 543 | $ 6 | 18,816 | 5,062 | (2,833) | (1,318) |
Beginning balance (in shares) at Jun. 30, 2018 | 1,000,000 | 484,000,000 | |||||
Beginning balance at Jun. 30, 2018 | 20,467 | $ 543 | $ 6 | 18,806 | 4,755 | (2,433) | (1,210) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to common stockholders | (129) | (129) | |||||
Dividends to preferred stockholders | (7) | (7) | |||||
Preferred stock issued (in shares) | 0 | ||||||
Preferred stock issued | $ 0 | ||||||
Treasury stock purchased (in shares) | (10,000,000) | ||||||
Treasury stock purchased | (400) | (400) | |||||
Share-based compensation plans (in shares) | 0 | ||||||
Share-based compensation plans | 6 | 6 | 0 | ||||
Employee stock purchase plan shares purchased | 4 | 4 | |||||
Total comprehensive income: | |||||||
Net income | 443 | 443 | |||||
Other comprehensive income | (108) | (108) | |||||
Total comprehensive income | 335 | 443 | (108) | ||||
Ending balance (in shares) at Sep. 30, 2018 | 1,000,000 | 474,000,000 | |||||
Ending balance at Sep. 30, 2018 | 20,276 | $ 543 | $ 6 | 18,816 | 5,062 | (2,833) | (1,318) |
Beginning balance (in shares) at Dec. 31, 2018 | 1,000,000 | 466,000,000 | |||||
Beginning balance at Dec. 31, 2018 | 20,817 | $ 840 | $ 6 | 18,815 | 5,385 | (3,133) | (1,096) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to common stockholders | (459) | (459) | |||||
Dividends to preferred stockholders | (50) | (50) | |||||
Preferred stock issued (in shares) | 0 | ||||||
Preferred stock issued | $ 293 | $ 293 | |||||
Treasury stock purchased (in shares) | (23,399,661) | (23,000,000) | |||||
Treasury stock purchased | $ (820) | (820) | |||||
Share-based compensation plans (in shares) | 1,000,000 | ||||||
Share-based compensation plans | 48 | 48 | |||||
Employee stock purchase plan shares purchased | 13 | 13 | |||||
Total comprehensive income: | |||||||
Net income | 1,341 | 1,341 | |||||
Other comprehensive income | 651 | 651 | |||||
Total comprehensive income | 1,992 | 1,341 | 651 | ||||
Ending balance (in shares) at Sep. 30, 2019 | 1,000,000 | 444,000,000 | |||||
Ending balance at Sep. 30, 2019 | 21,851 | $ 1,133 | $ 6 | 18,876 | 6,229 | (3,953) | (440) |
Beginning balance (in shares) at Jun. 30, 2019 | 1,000,000 | 458,000,000 | |||||
Beginning balance at Jun. 30, 2019 | 22,017 | $ 1,133 | $ 6 | 18,860 | 5,959 | (3,453) | (488) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to common stockholders | (162) | (162) | |||||
Dividends to preferred stockholders | (17) | (17) | |||||
Treasury stock purchased (in shares) | (14,000,000) | ||||||
Treasury stock purchased | (500) | (500) | |||||
Share-based compensation plans (in shares) | 0 | ||||||
Share-based compensation plans | 11 | 11 | 0 | ||||
Employee stock purchase plan shares purchased | 5 | 5 | |||||
Total comprehensive income: | |||||||
Net income | 449 | 449 | |||||
Other comprehensive income | 48 | 48 | |||||
Total comprehensive income | 497 | 449 | 48 | ||||
Ending balance (in shares) at Sep. 30, 2019 | 1,000,000 | 444,000,000 | |||||
Ending balance at Sep. 30, 2019 | $ 21,851 | $ 1,133 | $ 6 | $ 18,876 | $ 6,229 | $ (3,953) | $ (440) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
OPERATING ACTIVITIES | |||
Net income | $ 1,341 | $ 1,256 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 283 | 241 | |
Originations of mortgage loans held for sale | (14,047) | (4,384) | |
Proceeds from sales of mortgage loans held for sale | 13,265 | 4,259 | |
Purchases of commercial loans held for sale | (1,507) | (1,450) | |
Proceeds from sales of commercial loans held for sale | 1,592 | 1,457 | |
Depreciation, amortization and accretion | 440 | 357 | |
Mortgage servicing rights valuation charge-off (recovery) | 15 | (3) | |
Debt securities impairment | 2 | 3 | |
Deferred income taxes | (41) | 23 | |
Share-based compensation | 44 | 40 | |
Net gain on sales of: | |||
Debt securities | (21) | (13) | |
Premises and equipment | (6) | 0 | |
Increase in other assets | (523) | (918) | |
Increase in other liabilities | 133 | 339 | |
Net cash provided by operating activities | 970 | 1,207 | |
Investment securities: | |||
Purchases of debt securities available for sale | (4,633) | (3,084) | |
Proceeds from maturities and paydowns of debt securities available for sale | 2,728 | 2,512 | |
Proceeds from sales of debt securities available for sale | 1,495 | 405 | |
Proceeds from maturities and paydowns of debt securities held to maturity | 280 | 402 | |
Other, net | 136 | (6) | |
Purchases of equity securities, at cost | (328) | (568) | |
Proceeds from sales of equity securities, at cost | 428 | 416 | |
Net (increase) decrease in interest-bearing deposits in banks | (10) | 50 | |
Purchases of mortgage servicing rights | 0 | (16) | |
Acquisitions, net of cash acquired | (129) | (533) | |
Net increase in loans and leases | (1,534) | (4,278) | |
Net increase in bank-owned life insurance | (22) | (31) | |
Premises and equipment: | |||
Purchases | (78) | (157) | |
Proceeds from sales | 31 | 0 | |
Capitalization of software | (150) | (175) | |
Net cash used in investing activities | (1,786) | (5,063) | |
FINANCING ACTIVITIES | |||
Net increase in deposits | 5,139 | 1,986 | |
Net decrease in federal funds purchased and securities sold under agreements to repurchase | (289) | (441) | |
Net increase (decrease) in other short-term borrowed funds | 45 | (3,107) | |
Proceeds from issuance of long-term borrowed funds | 7,300 | 17,503 | |
Repayments of long-term borrowed funds | (10,556) | (10,333) | |
Treasury stock purchased | (820) | (725) | |
Net proceeds from issuance of preferred stock | 293 | 296 | |
Dividends declared and paid to common stockholders | (459) | (344) | |
Dividends declared and paid to preferred stockholders | (48) | (7) | |
Payments of employee tax withholding for share-based compensation | (21) | (13) | |
Net cash provided by financing activities | 584 | 4,815 | |
(Decrease) increase in cash and cash equivalents | [1] | (232) | 959 |
Cash and cash equivalents at beginning of period | [1] | 4,074 | 3,032 |
Cash and cash equivalents at end of period | [1] | $ 3,842 | $ 3,991 |
[1] | Cash and cash equivalents includes cash and due from banks and interest-bearing cash and due from banks as reflected on the Consolidated Balance Sheets. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 - BASIS OF PRESENTATION Basis of Presentation The unaudited interim Consolidated Financial Statements, including the Notes thereto of Citizens Financial Group, Inc., have been prepared in accordance with GAAP interim reporting requirements, and therefore do not include all information and Notes included in the audited Consolidated Financial Statements in conformity with GAAP. These unaudited interim Consolidated Financial Statements and Notes thereto should be read in conjunction with the Company’s audited Consolidated Financial Statements and accompanying Notes included in the Company’s 2018 Form 10-K. The Company’s principal business activity is banking, conducted through its banking subsidiary, Citizens Bank, National Association. The unaudited interim Consolidated Financial Statements include the accounts of the Company and subsidiaries in which the Company has a controlling financial interest. All intercompany transactions and balances have been eliminated. The Company has evaluated its unconsolidated entities and does not believe that any entity in which it has an interest, but does not currently consolidate, meets the requirements to be consolidated as a variable interest entity. The unaudited interim Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the ACL and the fair value of MSRs. Significant Accounting Policies For further information regarding the Company’s significant accounting policies, see Note 1 in the Company’s 2018 Form 10-K. Accounting Pronouncements Adopted in 2019 Pronouncement Summary of Guidance Effects on Financial Statements Derivatives and Hedging Issued August 2017 • Reduces the complexity and operational burdens of the current hedge accounting model and portrays more clearly the effects of hedge accounting in the financial statements. • Modifies current requirements to facilitate the application of hedge accounting to partial-term hedges, hedges of prepayable financial instruments, and other strategies. Adoption of these optional changes would occur on a prospective basis. • Requires the effects of fair value hedges to be classified in the same income statement line as the earnings effect of the hedged item. Adoption of this change will occur on a prospective basis. • Requires all effects of cash flow hedges to be deferred in other comprehensive income until the hedged cash flows affect earnings. Periodic hedge ineffectiveness will no longer be recognized in earnings. Adoption of this change will occur on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. • The Company adopted the new standard on January 1, 2019 under the modified retrospective method. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. • Required disclosures are included in Note 9. Pronouncement Summary of Guidance Effects on Financial Statements Leases Issued February 2016 • Requires lessees to recognize a right-of-use asset and corresponding lease liability for all leases with a lease term of greater than one year. • Requires lessees and lessors to classify most leases using principles similar to existing lease accounting, but eliminates the “bright line” classification tests. • Requires that for finance leases, a lessee recognize interest expense on the lease liability separately from the amortization of the right-of-use asset in the Consolidated Statements of Operations, while for operating leases, such amounts should be recognized as a combined expense. • Requires expanded disclosures about the nature and terms of lease agreements. • Provides the option to adopt using either a modified cumulative-effect approach wherein the guidance is applied to all periods presented, or through a cumulative-effect adjustment beginning in the period of adoption. • Requires companies with land easements to assess whether the easement meets the definition of a lease before applying other accounting guidance. • The Company adopted the new standard under the modified retrospective approach on January 1, 2019, which is applicable to both its leasing finance business as well as property and equipment leases in which Citizens is lessee. • Adoption resulted in a cumulative-effect adjustment of $12 million, net of taxes, to retained earnings related to leases in which Citizens is lessee. • Adoption resulted in the recognition of a right-of-use asset and corresponding lease liability of $734 million and $749 million, respectively in its Consolidated Balance Sheet for non-cancelable operating lease agreements. • Required lessor disclosures are included in Note 3 and required lessee disclosures are included in Note 6. Implementation Costs Incurred in a Cloud Computing Arrangement Issued August 2018 • Requires implementation costs incurred in a cloud computing arrangement that is a service contract be deferred and recognized over the term of the arrangement if those costs would be capitalized in a software licensing arrangement. • Requires amortization expense be presented in the same income statement line item as the related hosting service arrangement expense. • Permits adoption prospectively for all implementation costs incurred after adoption or retrospectively through a cumulative-effect adjustment as of the beginning of the first period presented. • The Company prospectively adopted the new standard on January 1, 2019. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. Accounting Pronouncements Pending Adoption Pronouncement Summary of Guidance Effects on Financial Statements Financial Instruments - Credit Losses Issued June 2016 • Required effective date: January 1, 2020. • Replaces existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost (including securities HTM), which will reflect management’s estimate of credit losses over the full remaining expected life of the financial assets. • Amends existing impairment guidance for securities AFS to incorporate an allowance, which will allow for reversals of impairment losses in the event that the credit of an issuer improves. • Requires a cumulative-effect adjustment to retained earnings, net of taxes, as of the beginning of the reporting period of adoption. • Requires enhanced credit quality disclosures including disaggregation of credit quality indicators by vintage. • The Company plans to adopt the new standard on January 1, 2020. • A company-wide, cross-discipline governance structure is in place to implement the new standard. • The Company is finalizing significant accounting policies and continues to refine and test loss forecasting models, estimation techniques, data, operational processes and financial controls which will be used to calculate the ACL under the standard. • The Company completed limited parallel runs and analytical testing through the nine months ended September 30, 2019. Parallel testing will continue through adoption and we will refine our interpretations, methodology, data and operational processes based upon ongoing reviews and testing results. • To estimate the ACL, we will use models and other estimation techniques that are sensitive to changes in forecasted economic conditions. The estimate is expected to include a two-year reasonable and supportable forecast period, and thereafter a one year reversion to long-run average macroeconomic assumptions derived from historical information. We will also apply qualitative factors related to idiosyncratic risk factors, changes in current economic conditions that may not be adequately reflected in quantitatively derived results, or other relevant factors to ensure the ACL reflects our best estimate of current expected credit losses. • The Company expects the standard will result in earlier recognition of credit losses and an overall increase in the ACL upon adoption of approximately 30% to 35%. This estimated increase in ACL is based on forecasted economic conditions and portfolio balances at August 31, 2019, and primarily related to consumer loans, such as residential mortgage, unsecured and education, due to the requirement to estimate credit losses over the full remaining expected life of the asset. Additionally, adoption of the new standard could produce higher volatility in the quarterly provision for credit losses than our current reserve process and could adversely impact the Company’s ongoing earnings. We estimate that this increase in ACL would reduce the Company’s CET1 capital ratio by approximately 22 to 25 basis points on a fully-phased in basis. This capital impact is expected to be phased in by 25% per year through January 1, 2023, which would impact 2020 by 5 to 6 basis points. • These current estimates of impact to the ACL at the adoption date and the CET1 capital ratio are subject to change based on continuing review and challenge of the models, assumptions, methodologies and judgments, and the final amount will depend upon the loan portfolio composition, as well as economic conditions and forecasts existing at that time. • Based on the credit quality of our existing debt securities portfolio, the Company does not expect the ACL for HTM and AFS debt securities to be significant. Pronouncement Summary of Guidance Effects on Financial Statements Disclosure Requirements - Fair Value Measurements Issued August 2018 • Amends disclosure requirements on fair value measurements. • The guidance eliminates requirements for certain disclosures that are no longer considered relevant or cost beneficial, requires new disclosures and modifies existing disclosures that are expected to enhance the usefulness of the financial statements. • Prospective application is required for new disclosure requirements. • Retrospective application is required for all other amendments for all periods presented. • Required effective date: January 1, 2020. Early adoption is permitted. The Company does not intend to adopt this guidance prior to the required effective date. • Adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | NOTE 2 - SECURITIES The following table presents the major components of securities at amortized cost and fair value: September 30, 2019 December 31, 2018 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury and other $120 $— $— $120 $24 $— $— $24 State and political subdivisions 5 — — 5 5 — — 5 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 20,434 166 (80 ) 20,520 20,211 28 (605 ) 19,634 Other/non-agency 827 34 (4 ) 857 236 3 (7 ) 232 Total mortgage-backed securities, at fair value 21,261 200 (84 ) 21,377 20,447 31 (612 ) 19,866 Total debt securities available for sale, at fair value $21,386 $200 ($84 ) $21,502 $20,476 $31 ($612 ) $19,895 Federal agencies and U.S. government sponsored entities $3,319 $48 ($5 ) $3,362 $3,425 $— ($132 ) $3,293 Other/non-agency — — — — 740 8 — 748 Total mortgage-backed securities, at cost 3,319 48 (5 ) 3,362 4,165 8 (132 ) 4,041 Total debt securities held to maturity $3,319 $48 ($5 ) $3,362 $4,165 $8 ($132 ) $4,041 Money market mutual fund investments $47 $— $— $47 $181 $— $— $181 Total equity securities, at fair value $47 $— $— $47 $181 $— $— $181 Federal Reserve Bank stock $577 $— $— $577 $463 $— $— $463 Federal Home Loan Bank stock 149 — — 149 364 — — 364 Other equity securities 8 — — 8 7 — — 7 Total equity securities, at cost $734 $— $— $734 $834 $— $— $834 The amortized cost and fair value of debt securities by contractual maturity as of September 30, 2019 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without incurring penalties. September 30, 2019 Distribution of Maturities (in millions) 1 Year or Less 1-5 Years 5-10 Years After 10 Years Total Amortized cost: U.S. Treasury and other $120 $— $— $— $120 State and political subdivisions — — — 5 5 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — 193 1,683 18,558 20,434 Other/non-agency 4 2 — 821 827 Total debt securities available for sale 124 195 1,683 19,384 21,386 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 3,319 3,319 Total debt securities held to maturity — — — 3,319 3,319 Total amortized cost of debt securities $124 $195 $1,683 $22,703 $24,705 Fair value: U.S. Treasury and other $120 $— $— $— $120 State and political subdivisions — — — 5 5 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — 193 1,707 18,620 20,520 Other/non-agency 4 2 — 851 857 Total debt securities available for sale 124 195 1,707 19,476 21,502 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 3,362 3,362 Total debt securities held to maturity — — — 3,362 3,362 Total fair value of debt securities $124 $195 $1,707 $22,838 $24,864 Taxable interest income from investment securities as presented on the Consolidated Statements of Operations was $153 million and $167 million for the three months ended September 30, 2019 and 2018 , respectively, and was $483 million and $500 million for the nine months ended September 30, 2019 and 2018 , respectively. Realized gains and losses on securities are presented below: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Gains on sale of debt securities (1) $5 $3 $21 $13 Losses on sale of debt securities — — — — Debt securities gains, net $5 $3 $21 $13 (1) For the three and nine months ended September 30, 2019 , $2 million and $6 million of gains on sale of debt securities were recognized in mortgage banking fees in the Consolidated Statement of Operations, respectively, as they related to AFS securities held as economic hedges of the value of the MSR portfolio recognized using the amortization method. The amortized cost and fair value of debt securities pledged are presented below: September 30, 2019 December 31, 2018 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against repurchase agreements $265 $268 $344 $338 Pledged against FHLB borrowed funds 670 701 745 752 Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law 3,281 3,282 3,592 3,460 Citizens regularly enters into security repurchase agreements with unrelated counterparties, which involve the transfer of a security from one party to another, and a subsequent transfer of substantially the same security back to the original party. The Company’s repurchase agreements are typically short-term in nature and are accounted for as secured borrowed funds on the Company’s Consolidated Balance Sheets. Citizens recognized no offsetting of short-term receivables or payables as of September 30, 2019 or December 31, 2018 . Citizens offsets certain derivative assets and derivative liabilities on the Consolidated Balance Sheets. For further information, see Note 9. Securitizations of mortgage loans retained in the investment portfolio were $28 million and $32 million for the three months ended September 30, 2019 and 2018 , respectively, and $72 million and $87 million for the nine months ended September 30, 2019 and 2018 , respectively. These securitizations include a substantive guarantee by a third party. In 2019 and 2018 the guarantors were FNMA, FHLMC, and GNMA. The debt securities received from the guarantors are classified as AFS. The following tables present mortgage-backed debt securities whose fair values are below carrying values, separated by the duration the securities have been in a continuous unrealized loss position: September 30, 2019 Less than 12 Months 12 Months or Longer Total (dollars in millions) Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Federal agencies and U.S. government sponsored entities 156 $3,180 ($16 ) 175 $4,907 ($69 ) 331 $8,087 ($85 ) Other/non-agency — — — 5 32 (4 ) 5 32 (4 ) Total 156 $3,180 ($16 ) 180 $4,939 ($73 ) 336 $8,119 ($89 ) December 31, 2018 Less than 12 Months 12 Months or Longer Total (dollars in millions) Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Federal agencies and U.S. government sponsored entities 166 $4,881 ($89 ) 429 $15,124 ($648 ) 595 $20,005 ($737 ) Other/non-agency 10 139 (1 ) 11 72 (6 ) 21 211 (7 ) Total 176 $5,020 ($90 ) 440 $15,196 ($654 ) 616 $20,216 ($744 ) Citizens does not currently have the intent to sell these impaired debt securities, and it is not more likely than not that the Company will be required to sell these debt securities prior to recovery of their amortized cost bases. Citizens has determined that credit losses are not expected to be incurred on the remaining agency and non-agency MBS identified with unrealized losses as of September 30, 2019 . The unrealized losses on these debt securities reflect non-credit-related factors such as changing interest rates and market liquidity. Therefore, Citizens has determined that these debt securities are not other-than-temporarily impaired. Any subsequent increases in the valuation of impaired debt securities will not impact their recorded cost bases. The following table presents the cumulative credit-related losses recognized in earnings on the Company’s debt securities: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Cumulative balance at beginning of period $57 $81 $81 $80 Credit impairments recognized in earnings on debt securities that have been previously impaired 1 1 2 3 Reductions due to increases in cash flow expectations on impaired debt securities (1) — (1 ) — (2 ) Reductions for securities sold or matured during the period (1 ) — (26 ) — Cumulative balance at end of period $57 $81 $57 $81 (1) Reported in interest income from investment securities on the Consolidated Statements of Operations. Cumulative credit losses recognized in earnings for impaired AFS debt securities held as of September 30, 2019 and September 30, 2018 were $57 million and $81 million respectively. There were no credit losses recognized in earnings for the Company’s HTM portfolio as of September 30, 2019 and 2018 . For the three months ended September 30, 2019 and 2018 , the Company incurred non-agency MBS credit-related other-than-temporary impairment losses in earnings of $1 million . For the nine months ended September 30, 2019 and 2018 , the Company incurred non-agency MBS credit-related other-than-temporary impairment losses in earnings of $2 million and $3 million , respectively. |
LOANS AND LEASES
LOANS AND LEASES | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
LOANS AND LEASES | NOTE 3 - LOANS AND LEASES The Company’s loans and leases are disclosed in portfolio segments and classes as reflected below. (in millions) September 30, 2019 December 31, 2018 Commercial (1) $41,356 $40,857 Commercial real estate 12,820 13,023 Leases 2,557 2,903 Total commercial loans and leases 56,733 56,783 Residential mortgages 19,699 18,978 Home equity loans 876 1,073 Home equity lines of credit 12,148 12,710 Home equity loans serviced by others 318 399 Home equity lines of credit serviced by others 81 104 Automobile 12,070 12,106 Education 9,729 8,900 Credit cards 2,133 1,991 Other retail 4,093 3,616 Total retail loans (2) 61,147 59,877 Total loans and leases (3) $117,880 $116,660 (1) SBA loans we service for others of $27 million are not included above. These loans represent the government guaranteed portion of SBA loans sold to outside investors as of September 30, 2019 . There were no SBA loans serviced for others as of December 31, 2018 . (2) Mortgage loans we service for others of $74.6 billion and $69.6 billion at September 30, 2019 and December 31, 2018 , respectively, are not included above. (3) LHFS totaling $2.0 billion and $1.3 billion at September 30, 2019 and December 31, 2018, respectively, are not included above. The following table shows the composition of LHFS. September 30, 2019 December 31, 2018 (in millions) Residential Mortgages (1) Commercial (2) Total Residential Mortgages (1) Commercial (2) Total Loans held for sale at fair value $1,824 $169 $1,993 $967 $252 $1,219 Other loans held for sale — 22 22 — 101 101 (1) Originated for sale. (2) LHFS at fair value consist of loans managed by the Company’s commercial secondary loan desk. Other LHFS generally consist of commercial loans associated with the Company’s syndication business. Loans pledged as collateral for FHLB borrowed funds, primarily residential mortgages and home equity loans, totaled $25.3 billion and $25.6 billion at September 30, 2019 and December 31, 2018 , respectively. Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window, if necessary, were primarily comprised of auto, commercial and commercial real estate loans, and totaled $18.0 billion and $16.8 billion at September 30, 2019 and December 31, 2018 , respectively. During the three months ended September 30, 2019 , the Company purchased $164 million of education loans and $66 million of other retail loans. During the three months ended September 30, 2018 , the Company purchased $98 million of education loans. During the nine months ended September 30, 2019 , the Company purchased $464 million of education loans and $66 million of other retail loans. During the nine months ended September 30, 2018 , the Company purchased $321 million of education loans. The Company sold $109 million of commercial loans during the three months ended September 30, 2019 . During the nine months ended September 30, 2019 , the Company sold $291 million of commercial loans and $628 million of retail loans, including $22 million of TDR sales. During the three months ended September 30, 2018, the Company did not have loan portfolio sales. During the nine months ended September 30, 2018 the Company had $553 million of commercial loan sales. Citizens is engaged in the leasing of equipment for commercial use, primarily focused on Fortune 1000 companies for large capital equipment acquisitions including aircraft and railcars, among other equipment. The Company determines if an arrangement is a lease and the related lease classification at inception. Lease terms predominantly range from three years to seven years and may include options to terminate the lease early or purchase the leased property prior to the end of the lease term. Certain lease agreements include rental payments based on an index or are adjusted periodically for inflation. The Company does not have lease agreements which contain lease and nonlease components. A lessee is evaluated from a credit perspective using the same underwriting standards and procedures as for a loan borrower. A lessee is expected to make rental payments based on its cash flows and the viability of its operations. Leases are usually not evaluated as collateral-based transactions, and therefore the lessee’s overall financial strength is the most important credit evaluation factor. The components of the net investment in direct finance leases, before ALLL, are presented below: (in millions) September 30, 2019 Total future minimum lease rentals $1,670 Estimated residual value of leased equipment (non-guaranteed) 1,072 Initial direct costs 10 Unearned income (232 ) Total leases $2,520 Interest income on direct financing leases for the three months and nine months ended September 30, 2019 was $18 million and $58 million , respectively, and is reported within interest and fees on loans and leases in the Consolidated Statements of Operations. A maturity analysis of direct financing lease receivables at September 30, 2019 is presented below: (in millions) 2019 $123 2020 460 2021 343 2022 265 2023 188 Thereafter 291 Total undiscounted future minimum lease rentals $1,670 |
ALLOWANCE FOR CREDIT LOSSES, NO
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK | NOTE 4 - ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK The ACL consists of the ALLL and the reserve for unfunded commitments. It is adjusted through a provision for credit losses that is charged to earnings, based on the Company’s quarterly evaluation of the loan and lease portfolio and related commitments, and is reduced by net charge-offs and the ALLL associated with sold loans. See Note 5 in the Company’s 2018 Form 10-K for a detailed discussion of the ALLL reserve methodology and estimation techniques. On a quarterly basis, the Company reviews and refines its estimate of the ACL, taking into consideration changes in portfolio size and composition, historical loss experience, internal risk ratings, current economic conditions, industry performance trends and other pertinent information. As of September 30, 2019 , there were no material changes in assumptions or estimation techniques compared with prior periods that impacted the determination of the current period’s ALLL and the reserve for unfunded lending commitments. A summary of changes in the ACL is presented below: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 (in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $680 $547 $1,227 $690 $552 $1,242 Charge-offs (35 ) (124 ) (159 ) (106 ) (347 ) (453 ) Recoveries 3 43 46 17 128 145 Net charge-offs (32 ) (81 ) (113 ) (89 ) (219 ) (308 ) Provision charged to income 64 85 149 111 218 329 Allowance for loan and lease losses, end of period 712 551 1,263 712 551 1,263 Reserve for unfunded lending commitments, beginning of period 93 — 93 91 — 91 Provision for unfunded lending commitments (48 ) — (48 ) (46 ) — (46 ) Reserve for unfunded lending commitments, end of period 45 — 45 45 — 45 Total allowance for credit losses, end of period $757 $551 $1,308 $757 $551 $1,308 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $715 $538 $1,253 $685 $551 $1,236 Charge-offs (18 ) (109 ) (127 ) (35 ) (328 ) (363 ) Recoveries 2 39 41 10 121 131 Net charge-offs (16 ) (70 ) (86 ) (25 ) (207 ) (232 ) Provision charged to income 8 67 75 47 191 238 Allowance for loan and lease losses, end of period 707 535 1,242 707 535 1,242 Reserve for unfunded lending commitments, beginning of period 88 — 88 88 — 88 Provision for unfunded lending commitments 3 — 3 3 — 3 Reserve for unfunded lending commitments, end of period 91 — 91 91 — 91 Total allowance for credit losses, end of period $798 $535 $1,333 $798 $535 $1,333 The recorded investment in loans and leases based on the Company’s evaluation methodology is presented below: September 30, 2019 December 31, 2018 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $387 $675 $1,062 $391 $723 $1,114 Formula-based evaluation 56,346 60,472 116,818 56,392 59,154 115,546 Total loans and leases $56,733 $61,147 $117,880 $56,783 $59,877 $116,660 A summary of the ACL by evaluation methodology is presented below: September 30, 2019 December 31, 2018 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $74 $25 $99 $38 $26 $64 Formula-based evaluation 683 526 1,209 743 526 1,269 Allowance for credit losses $757 $551 $1,308 $781 $552 $1,333 For commercial loans and leases, Citizens utilizes regulatory classification ratings to monitor credit quality. For additional information on regulatory classification ratings, see Note 5 in the Company’s 2018 Form 10-K. The recorded investment in commercial loans and leases based on regulatory classification ratings is presented below: September 30, 2019 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $38,997 $1,369 $761 $229 $41,356 Commercial real estate 12,437 297 36 50 12,820 Leases 2,466 39 49 3 2,557 Total commercial loans and leases $53,900 $1,705 $846 $282 $56,733 December 31, 2018 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $38,600 $1,231 $828 $198 $40,857 Commercial real estate 12,523 412 82 6 13,023 Leases 2,823 39 41 — 2,903 Total commercial loans and leases $53,946 $1,682 $951 $204 $56,783 The recorded investment in classes of retail loans, categorized by delinquency status is presented below: September 30, 2019 Days Past Due (in millions) Current 1-29 30-59 60-89 90 or More Total Residential mortgages $19,375 $129 $28 $78 $89 $19,699 Home equity loans 772 62 10 25 7 876 Home equity lines of credit 11,593 331 52 27 145 12,148 Home equity loans serviced by others 275 23 5 3 12 318 Home equity lines of credit serviced by others 56 11 2 1 11 81 Automobile 10,849 932 194 71 24 12,070 Education 9,513 162 27 16 11 9,729 Credit cards 2,028 53 20 11 21 2,133 Other retail 3,942 80 30 21 20 4,093 Total retail loans $58,403 $1,783 $368 $253 $340 $61,147 December 31, 2018 Days Past Due (in millions) Current 1-29 30-59 60-89 90 or More Total Residential mortgages $18,664 $131 $37 $13 $133 $18,978 Home equity loans 945 75 12 3 38 1,073 Home equity lines of credit 12,042 386 65 22 195 12,710 Home equity loans serviced by others 355 21 7 3 13 399 Home equity lines of credit serviced by others 79 15 2 1 7 104 Automobile 10,729 1,039 207 59 72 12,106 Education 8,694 159 23 13 11 8,900 Credit cards 1,894 53 14 10 20 1,991 Other retail 3,481 76 26 18 15 3,616 Total retail loans $56,883 $1,955 $393 $142 $504 $59,877 Nonperforming Assets The following table presents nonperforming loans and leases and loans accruing and 90 days or more past due: Nonperforming Accruing and 90 days or more past due (in millions) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Commercial $228 $194 $1 $1 Commercial real estate 49 7 — — Leases 4 — 1 — Total commercial loans and leases 281 201 2 1 Residential mortgages (1)(2) 147 136 15 15 Home equity loans 36 50 — — Home equity lines of credit 184 231 — — Home equity loans serviced by others 14 17 — — Home equity lines of credit serviced by others 13 15 — — Automobile 69 81 — — Education 17 38 3 2 Credit card 21 20 — — Other retail 11 8 10 7 Total retail loans 512 596 28 24 Total $793 $797 $30 $25 (1) Nonperforming balances exclude first lien residential mortgage loans which are accruing and 90 days or more past due that are 100% guaranteed by the Federal Housing Administration. These loans totaled $12 million as of September 30, 2019 and December 31, 2018 . (2) Nonperforming balances exclude guaranteed residential mortgage loans sold to GNMA for which the Company has the right, but not the obligation, to repurchase. These loans totaled $195 million and $133 million as of September 30, 2019 and December 31, 2018 , respectively, and are included in the Company’s Consolidated Balance Sheets. Other nonperforming assets primarily consist of other real estate owned and are presented in other assets on the Consolidated Balance Sheets. Other real estate owned, net of valuation allowance, was $40 million and $34 million as of September 30, 2019 and December 31, 2018 , respectively. A summary of nonperforming loan and lease key performance indicators is presented below: September 30, 2019 December 31, 2018 Nonperforming commercial loans and leases as a percentage of total loans and leases 0.24 % 0.17 % Nonperforming retail loans as a percentage of total loans and leases 0.43 0.51 Nonperforming loans and leases as a percentage of total loans and leases 0.67 % 0.68 % Nonperforming commercial assets as a percentage of total assets 0.17 % 0.13 % Nonperforming retail assets as a percentage of total assets 0.34 0.39 Nonperforming assets as a percentage of total assets 0.51 % 0.52 % The recorded investment in mortgage loans collateralized by residential real estate property for which formal foreclosure proceedings were in process was $164 million and $172 million as of September 30, 2019 and December 31, 2018 , respectively. The aging of both accruing and nonaccruing loan and lease past due amounts is presented below: September 30, 2019 December 31, 2018 Days Past Due Days Past Due (in millions) 30-59 60-89 90 or More Total 30-59 60-89 90 or More Total Commercial $17 $4 $76 $97 $85 $3 $78 $166 Commercial real estate 7 16 1 24 8 32 5 45 Leases — — 1 1 7 — — 7 Total commercial loans and leases 24 20 78 122 100 35 83 218 Residential mortgages 28 78 89 195 37 13 133 183 Home equity loans 10 25 7 42 12 3 38 53 Home equity lines of credit 52 27 145 224 65 22 195 282 Home equity loans serviced by others 5 3 12 20 7 3 13 23 Home equity lines of credit serviced by others 2 1 11 14 2 1 7 10 Automobile 194 71 24 289 207 59 72 338 Education 27 16 11 54 23 13 11 47 Credit cards 20 11 21 52 14 10 20 44 Other retail 30 21 20 71 26 18 15 59 Total retail loans 368 253 340 961 393 142 504 1,039 Total $392 $273 $418 $1,083 $493 $177 $587 $1,257 Impaired Loans Impaired loans include nonaccruing larger balance (greater than $3 million carrying value), non-homogeneous commercial and commercial real estate loans, and restructured loans that are deemed TDRs. A summary of impaired loans by class is presented below: September 30, 2019 (in millions) Impaired Loans With a Related Allowance Allowance on Impaired Loans Impaired Loans Without a Related Allowance Unpaid Contractual Balance Total Recorded Investment in Impaired Loans Commercial $194 $62 $127 $376 $321 Commercial real estate 47 12 19 76 66 Total commercial loans 241 74 146 452 387 Residential mortgages 25 2 122 191 147 Home equity loans 23 1 69 126 92 Home equity lines of credit 26 2 176 243 202 Home equity loans serviced by others 18 1 16 44 34 Home equity lines of credit serviced by others 1 — 6 10 7 Automobile 1 — 20 30 21 Education 117 9 22 139 139 Credit cards 27 9 1 29 28 Other retail 3 1 2 7 5 Total retail loans 241 25 434 819 675 Total $482 $99 $580 $1,271 $1,062 December 31, 2018 (in millions) Impaired Loans With a Related Allowance Allowance on Impaired Loans Impaired Loans Without a Related Allowance Unpaid Contractual Balance Total Recorded Investment in Impaired Loans Commercial $186 $31 $167 $450 $353 Commercial real estate 32 7 6 38 38 Total commercial loans 218 38 173 488 391 Residential mortgages 28 2 127 201 155 Home equity loans 34 3 76 148 110 Home equity lines of credit 21 1 181 244 202 Home equity loans serviced by others 22 1 19 54 41 Home equity lines of credit serviced by others 1 — 7 11 8 Automobile 1 — 22 31 23 Education 130 11 23 153 153 Credit cards 24 7 1 25 25 Other retail 4 1 2 8 6 Total retail loans 265 26 458 875 723 Total $483 $64 $631 $1,363 $1,114 Additional information on impaired loans is presented below: Three Months Ended September 30, 2019 2018 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $2 $293 $3 $334 Commercial real estate — 35 — 34 Total commercial loans 2 328 3 368 Residential mortgages 1 145 1 154 Home equity loans 1 94 1 107 Home equity lines of credit 2 199 2 202 Home equity loans serviced by others 1 34 1 43 Home equity lines of credit serviced by others — 7 — 9 Automobile 1 21 — 23 Education 2 141 3 160 Credit cards — 26 — 24 Other retail — 5 — 7 Total retail loans 8 672 8 729 Total $10 $1,000 $11 $1,097 Nine Months Ended September 30, 2019 2018 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $7 $300 $7 $318 Commercial real estate 1 30 — 33 Total commercial loans 8 330 7 351 Residential mortgages 4 128 4 148 Home equity loans 4 86 4 107 Home equity lines of credit 6 173 6 189 Home equity loans serviced by others 2 31 2 44 Home equity lines of credit serviced by others — 6 — 9 Automobile 1 18 — 21 Education 6 128 7 159 Credit cards 1 21 1 22 Other retail — 5 — 7 Total retail loans 24 596 24 706 Total $32 $926 $31 $1,057 Troubled Debt Restructurings TDR is the classification given to a loan that has been restructured in a manner that grants a concession to a borrower experiencing financial hardship that we would not otherwise make. For additional information on regulatory classification ratings, see Note 5 in the Company’s 2018 Form 10-K. The table below summarizes TDRs by class and total unfunded commitments: (in millions) September 30, 2019 December 31, 2018 Commercial $235 $304 Retail 675 723 Unfunded commitments related to TDRs 35 30 The table below summarizes how loans were modified during the three months and nine months ended September 30, 2019 and 2018 . The reported balances represent the post-modification outstanding recorded investment and can include loans that became TDRs during the period and were paid off in full, charged off, or sold prior to period end. Pre-modification balances for modified loans approximate the post-modification balances shown. Three Months Ended September 30, 2019 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Commercial 2 $— 6 $1 6 $15 Commercial real estate — — — — — — Total commercial loans 2 — 6 1 6 15 Residential mortgages 12 2 8 2 25 4 Home equity loans 11 — — — 19 1 Home equity lines of credit 51 6 16 1 95 5 Home equity loans serviced by others 1 — — — 4 — Home equity lines of credit serviced by others — — — — 2 — Automobile 46 1 4 — 309 4 Education — — — — 131 2 Credit cards 805 5 — — 163 — Other retail — — — — 55 — Total retail loans 926 14 28 3 803 16 Total 928 $14 34 $4 809 $31 Three Months Ended September 30, 2018 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Commercial 1 $— 13 $1 1 $— Commercial real estate — — — — — — Total commercial loans 1 — 13 1 1 — Residential mortgages 9 1 17 2 31 3 Home equity loans 10 1 — — 40 2 Home equity lines of credit 27 3 58 10 104 7 Home equity loans serviced by others 2 — — — 5 1 Home equity lines of credit serviced by others 1 — — — 8 — Automobile 45 — 9 — 315 4 Education — — — — 45 1 Credit cards 623 4 — — — — Other retail — — — — — — Total retail loans 717 9 84 12 548 18 Total 718 $9 97 $13 549 $18 Nine Months Ended September 30, 2019 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Commercial 3 $— 18 $2 24 $102 Commercial real estate — — 1 — — — Total commercial loans 3 — 19 2 24 102 Residential mortgages 25 6 29 5 87 13 Home equity loans 24 1 — — 64 3 Home equity lines of credit 123 14 66 10 277 17 Home equity loans serviced by others 1 — — — 11 1 Home equity lines of credit serviced by others — — — — 6 — Automobile 111 2 16 — 933 13 Education — — — — 211 5 Credit cards 2,362 14 — — 304 — Other retail — — — — 58 — Total retail loans 2,646 37 111 15 1,951 52 Total 2,649 $37 130 $17 1,975 $154 Nine Months Ended September 30, 2018 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Commercial 6 $1 23 $2 40 $156 Commercial real estate — — 1 — 2 31 Total commercial loans 6 1 24 2 42 187 Residential mortgages 32 4 47 6 117 14 Home equity loans 32 3 1 — 106 5 Home equity lines of credit 55 5 147 21 310 21 Home equity loans serviced by others 3 — — — 20 1 Home equity lines of credit serviced by others 5 — 1 — 13 — Automobile 122 2 42 1 893 13 Education — — — — 296 5 Credit cards 1,776 10 — — — — Other retail 1 — — — 4 — Total retail loans 2,026 24 238 28 1,759 59 Total 2,032 $25 262 $30 1,801 $246 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, and capitalizing arrearages. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. The net change to ALLL resulting from modifications of loans for the three months ended September 30, 2019 and 2018 was $3 million and $1 million , respectively. The net change to ALLL resulting from modifications of loans for the nine months ended September 30, 2019 and 2018 was $7 million and $3 million , respectively. Charge-offs may also be recorded on TDRs. Citizens recorded $1 million and $2 million of charge-offs resulting from the modification of loans in the three months ended September 30, 2019 and 2018 , respectively, and $3 million for the nine months ended September 30, 2019 and 2018 . A payment default refers to a loan that becomes 90 days or more past due under the modified terms. Loan data includes loans meeting the criteria that were paid off in full, charged off, or sold prior to September 30, 2019 and 2018 . For commercial loans, recorded investment in TDRs that defaulted within 12 months of their modification date for the three months ended September 30, 2018 was $32 million . There were none for the three months ended September 30, 2019 . There were $1 million and $52 million of TDRs that defaulted within 12 months of their modification date for commercial loans during the nine months ended September 30, 2019 and 2018 , respectively. For retail loans, there were $9 million and $10 million of loans which defaulted within 12 months of their restructuring date for the three months ended September 30, 2019 and 2018 , respectively, and there were $28 million and $30 million of loans which defaulted within 12 months of their restructuring date for the nine months ended September 30, 2019 and 2018 , respectively. Concentrations of Credit Risk Most of the Company’s lending activity is with customers located in the New England, Mid-Atlantic and Midwest regions. Generally, loans are collateralized by assets including real estate, inventory, accounts receivable, other personal property and investment securities. As of September 30, 2019 and December 31, 2018 , Citizens had a significant amount of loans collateralized by residential and commercial real estate. There were no significant concentration risks within the commercial loan or retail loan portfolios. Exposure to credit losses arising from lending transactions may fluctuate with fair values of collateral supporting loans, which may not perform according to contractual agreements. The Company’s policy is to collateralize loans to the extent necessary; however, unsecured loans are also granted on the basis of the financial strength of the applicant and the facts surrounding the transaction. Certain loan products, including residential mortgages, home equity loans and lines of credit, and credit cards, have contractual features that may increase credit exposure to the Company in the event of an increase in interest rates or a decline in housing values. These products include loans that exceed 90% of the value of the underlying collateral (high LTV loans), interest-only and negative amortization residential mortgages, and loans with low introductory rates. Certain loans have more than one of these characteristics. The following tables present balances of loans with these characteristics: September 30, 2019 (in millions) Residential Mortgages Home Equity Loans and Lines of Credit Home Equity Products Serviced by Others Credit Cards Total High loan-to-value $421 $68 $107 $— $596 Interest-only/negative amortization 1,862 — — — 1,862 Low introductory rate — — — 224 224 Multiple characteristics and other 3 — — — 3 Total $2,286 $68 $107 $224 $2,685 December 31, 2018 (in millions) Residential Mortgages Home Equity Loans and Lines of Credit Home Equity Products Serviced by Others Credit Cards Education Total High loan-to-value $318 $87 $148 $— $— $553 Interest-only/negative amortization 1,794 — — — 1 1,795 Low introductory rate — — — 217 — 217 Multiple characteristics and other 1 — — — — 1 Total $2,113 $87 $148 $217 $1 $2,566 |
MORTGAGE BANKING
MORTGAGE BANKING | 9 Months Ended |
Sep. 30, 2019 | |
Mortgage Banking [Abstract] | |
MORTGAGE BANKING | NOTE 5 - MORTGAGE BANKING The Company sells residential mortgages to GSEs and other parties, who may issue securities backed by pools of such loans. The Company retains no beneficial interests in these sales, but may retain the servicing rights for the loans sold. The Company is obligated to subsequently repurchase a loan if the purchaser discovers a representation or warranty violation such as noncompliance with eligibility or servicing requirements, or customer fraud that should have been identified in a loan file review. The Company recognizes the right to service residential mortgage loans for others, or MSRs, as separate assets, which are presented in other assets on the Consolidated Balance Sheets, when purchased or when servicing is contractually separated from the underlying mortgage loans by sale with servicing rights retained. The following table summarizes activity related to residential mortgage loans sold with servicing rights retained: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Residential mortgage loans sold with servicing retained $6,117 $1,848 $13,265 $3,173 Gain on sales (1) 88 29 180 59 Contractually specified servicing, late and other ancillary fees (1) 53 38 152 69 (1) Reported in mortgage banking fees on the Consolidated Statements of Operations. In connection with the August 1, 2018 acquisition of FAMC, the Company began maintaining two separate classes of MSRs which, at the time of initial capitalization, were differentiated by how the risk associated with valuation changes of the MSRs was being managed. The acquired FAMC portfolio is accounted for under the fair value method while the Company’s MSR portfolio held before the FAMC acquisition is accounted for under the amortization method. Beginning January 1, 2019, all of the Company’s newly originated MSRs are accounted for under the fair value method. The Company implemented an active hedging strategy to manage the risk associated with changes in the value of the MSR portfolio accounted for under the fair value method, which includes the purchase of freestanding derivatives. Depending on the interest rate environment, economic hedges may be used to protect the market value of MSRs accounted for under the amortization method. Any changes in fair value during the period for MSRs carried under the fair value method, as well as amortization and impairment of MSRs under the amortization method, are recorded in mortgage banking fees in the Consolidated Statements of Operations. The following table summarizes changes in MSRs recorded using the amortization method: As of and for the Three Months Ended September 30, As of and for the Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Mortgage servicing rights: Balance as of beginning of period $203 $217 $221 $201 Amount capitalized — 11 — 26 Purchases — — — 16 Amortization (11 ) (9 ) (29 ) (24 ) Carrying amount before valuation allowance 192 219 192 219 Valuation allowance for servicing assets: Balance as of beginning of period 14 — — 3 Valuation charge-offs (recoveries) 1 — 15 (3 ) Balance at end of period 15 — 15 — Net carrying value of MSRs $177 $219 $177 $219 The following table summarizes changes in MSRs recorded using the fair value method: As of and for the Three Months Ended September 30, As of and for the Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Fair value as of beginning of the period $531 $— $600 $— Acquired MSRs — 590 — 590 Amounts capitalized 78 29 170 29 Changes in unpaid principal balance during the period (1) (31 ) (12 ) (88 ) (12 ) Changes in fair value during the period (2) (68 ) 5 (172 ) 5 Fair value at end of the period $510 $612 $510 $612 (1) Represents changes in value due to i) passage of time including the impact from both regularly scheduled loan principal payments and partial paydowns, and ii) loans that paid off during the period. (2) Represents changes in value primarily due to market driven changes in interest rates and prepayment speeds. The fair value of MSRs is estimated by using the present value of estimated future net servicing cash flows, taking into consideration actual and expected mortgage loan prepayment rates, discount rates, contractual servicing fee income, servicing costs, default rates, ancillary income, and other economic factors, which are determined based on current market interest rates. The valuation does not attempt to forecast or predict the future direction of interest rates. The sensitivity analyses below present the impact to current fair value of an immediate 50 basis point and 100 basis point adverse change in key economic assumptions and the decline in fair value if the respective adverse change was realized. These sensitivities are hypothetical, with the effect of a variation in a particular assumption on the fair value of the MSRs calculated independently without changing any other assumption. In reality, changes in one factor may result in changes in another (e.g., changes in interest rates, which drive changes in prepayment rates, could result in changes in the discount rates), which may amplify or counteract the sensitivities. The primary risk inherent in the Company’s MSRs is an increase in prepayments of the underlying mortgage loans serviced, which is dependent upon movements in market interest rates. For MSRs under the amortization method, key economic assumptions used to estimate the fair value are presented below: September 30, 2019 December 31, 2018 Actual Decline in fair value due to Actual Decline in fair value due to (dollars in millions) Fair value $178 50 bps adverse change 100 bps adverse change $243 50 bps adverse change 100 bps adverse change Weighted average life (in years) 5.6 6.5 Weighted average constant prepayment rate 11.6% $25 $45 8.5% $24 $56 Weighted average discount rate 9.3% 3 6 9.3% 5 9 For MSRs under the fair value method, key economic assumptions used to estimate the fair value are presented below: September 30, 2019 December 31, 2018 Actual Decline in fair value due to Actual Decline in fair value due to (dollars in millions) Fair value $510 50 bps adverse change 100 bps adverse change $600 50 bps adverse change 100 bps adverse change Weighted average life (in years) 4.8 8.0 Weighted average constant prepayment rate 17.6% $133 $263 8.2% $68 $148 Weighted average option adjusted spread 325 bps 9 19 609 bps 13 26 Citizens accounts for derivatives in its mortgage banking operations at fair value on the Consolidated Balance Sheets as derivative assets or derivative liabilities, depending on whether the derivative had a positive (asset) or negative (liability) fair value as of the balance sheet date. The Company’s mortgage banking derivatives include commitments to originate mortgages held for sale, certain loan sale agreements, and other financial instruments that meet the definition of a derivative. Refer to Note 9 for additional information. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | NOTE 6 - LEASES The Company determines if an arrangement is a lease at inception and records a right-of-use asset and a corresponding lease liability. A right-of-use asset represents the value of the Company’s contractual right to use an underlying leased asset and a lease liability represents the Company’s contractual obligation to make payments on the same underlying leased asset. Operating and finance lease right-of-use assets and liabilities are recognized at commencement date based on the present value of the lease payments over the non-cancelable lease term. As most of the Company’s leases do not specify an implicit rate, the Company uses an incremental borrowing rate based on information available at the lease commencement date to determine the present value of the lease payments. The Company evaluates right-of-use assets for impairment when events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. In its normal course of business, the Company leases both equipment and real estate, including office and branch space. Lease terms predominantly range from one year to ten years and may include options to extend the lease, terminate the lease, or purchase the underlying asset at the end of the lease. Certain lease agreements include rental payments based on an index or are adjusted periodically for inflation. The Company has lease agreements that contain lease and non-lease components and for certain real estate leases, these components are accounted for as a single lease component. Leases with an initial term of 12 months or less are not recorded on the Company’s Consolidated Balance Sheets and are recognized in occupancy expense in the Company’s Consolidated Statements of Operations on a straight-line basis over the remaining lease term. The Company may also enter into subleases with third parties for certain leased real estate properties that are no longer occupied. The components of operating lease cost are presented below: (in millions) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $42 $123 Short-term lease cost 2 8 Variable lease cost 2 6 Sublease income (1 ) (3 ) Total $45 $134 Operating lease cost is recognized on a straight line basis over the lease term and recorded in occupancy expense on the Consolidated Statements of Operations. Supplemental Consolidated Balance Sheet information related to the Company’s operating lease arrangements is presented below: (in millions) September 30, 2019 Affected Line Item in Consolidated Balance Sheets Operating lease right-of-use assets $712 Other assets Operating lease liabilities 733 Other liabilities Supplemental information related to the Company’s operating lease arrangements is presented below: (in millions) Nine Months Ended September 30, 2019 Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $122 Right-of-use assets in exchange for new operating lease liabilities 91 The weighted average remaining lease term and weighted average discount rate for operating leases is seven years and 3.20% , respectively. At September 30, 2019 , lease liabilities maturing under non-cancelable operating leases are presented below for the years ended December 31: (in millions) Operating Leases 2019 $29 2020 162 2021 146 2022 121 2023 96 Thereafter 269 Total lease payments 823 Less: Interest 90 Present value of lease liabilities $733 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 7 - VARIABLE INTEREST ENTITIES Citizens is involved in various entities that are considered VIEs, including investments in limited partnerships that sponsor affordable housing projects, limited liability companies that sponsor renewable energy projects and lending to special purpose entities. Citizens’ maximum exposure to loss as a result of its involvement with these entities is limited to the balance sheet carrying amount of its equity investment and outstanding principal balance of loans to special purpose entities. A summary of these investments is presented below: (in millions) September 30, 2019 December 31, 2018 LIHTC investment included in other assets $1,324 $1,236 LIHTC unfunded commitments included in other liabilities 664 673 Lending to special purpose entities included in loans and leases 1,058 613 Renewable energy investments included in other assets 308 319 Low Income Housing Tax Credit Partnerships The purpose of the Company’s equity investments is to assist in achieving the goals of the Community Reinvestment Act and to earn an adequate return of capital. LIHTC partnerships are managed by unrelated general partners that have the power to direct the activities which most significantly affect the performance of the partnerships. Citizens is therefore not the primary beneficiary of any LIHTC partnerships. Accordingly, Citizens does not consolidate these VIEs and accounts for these investments in other assets on the Consolidated Balance Sheets. Citizens applies the proportional amortization method to account for its LIHTC investments. Under the proportional amortization method, the Company applies a practical expedient and amortizes the initial cost of the investment in proportion to the tax credits received in the current period as compared to the total tax credits expected to be received over the life of the investment. The amortization and tax benefits are included as a component of income tax expense. The tax credits received are reported as a reduction of income tax expense (or an increase to income tax benefit) related to these transactions. The following table presents information related to the Company’s affordable housing tax credit investments: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Tax credits included in income tax expense $30 $28 $99 $79 Amortization expense included in income tax expense 33 31 105 86 Other tax benefits included in income tax expense 8 7 24 19 No LIHTC investment impairment losses were recognized during the three and nine months ended September 30, 2019 and 2018 , respectively. Lending to Special Purpose Entities Citizens provides lending facilities to third-party sponsored special purpose entities. Because the sponsor for each respective entity has the power to direct how proceeds from the Company are utilized, as well as maintains responsibility for any associated servicing commitments, Citizens is not the primary beneficiary of these entities. Accordingly, Citizens does not consolidate these VIEs on the Consolidated Balance Sheets. As of September 30, 2019 and December 31, 2018 , the lending facilities had aggregate unpaid principal balances of $1.1 billion and $613 million , respectively, and undrawn commitments to extend credit of $889 million and $584 million , respectively. Renewable Energy Entities The Company’s investments in renewable energy entities provide benefits from a return generated by government incentives plus other tax attributes that are associated with tax ownership (e.g., tax depreciation). As a tax equity investor, Citizens does not have the power to direct the activities which most significantly affect the performance of these entities and therefore is not the primary beneficiary of any renewable energy entities. Accordingly, Citizens does not consolidate these VIEs and accounts for these investments in other assets on the Consolidated Balance Sheets. |
BORROWED FUNDS
BORROWED FUNDS | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | NOTE 8 - BORROWED FUNDS A summary of the Company’s short-term borrowed funds is presented below: (in millions) September 30, 2019 December 31, 2018 Federal funds purchased $600 $820 Securities sold under agreements to repurchase 267 336 Other short-term borrowed funds 210 161 Total short-term borrowed funds $1,077 $1,317 Key data related to short-term borrowed funds is presented below: As of and for the Three Months Ended September 30, As of and for the Nine Months Ended September 30, As of and for the Year Ended December 31, (dollars in millions) 2019 2018 2019 2018 2018 Weighted-average interest rate at period-end: (1) Federal funds purchased and securities sold under agreements to repurchase 1.47 % — % 1.47 % — % 1.72 % Other short-term borrowed funds 2.15 2.43 2.15 2.43 2.73 Maximum amount outstanding at any month-end during the period: Federal funds purchased and securities sold under agreements to repurchase (2) $867 $382 $1,499 $1,045 $1,282 Other short-term borrowed funds 338 1,010 511 1,110 1,110 Average amount outstanding during the period: Federal funds purchased and securities sold under agreements to repurchase (2) $487 $643 $648 $598 $654 Other short-term borrowed funds 113 748 72 509 467 Weighted-average interest rate during the period: (1) Federal funds purchased and securities sold under agreements to repurchase 1.19 % 0.91 % 1.45 % 0.76 % 0.92 % Other short-term borrowed funds 2.46 2.27 2.58 2.00 2.10 (1) Rates exclude certain hedging costs. (2) Balances are net of certain short-term receivables associated with reverse repurchase agreements, as applicable. A summary of the Company’s long-term borrowed funds is presented below: (in millions) September 30, 2019 December 31, 2018 Parent Company: 2.375% fixed-rate senior unsecured debt, due July 2021 $349 $349 4.150% fixed-rate subordinated debt, due September 2022 348 348 3.750% fixed-rate subordinated debt, due July 2024 250 250 4.023% fixed-rate subordinated debt, due October 2024 42 42 4.350% fixed-rate subordinated debt, due August 2025 249 249 4.300% fixed-rate subordinated debt, due December 2025 750 749 2.850% fixed-rate senior unsecured notes, due July 2026 496 — Banking and Other Subsidiaries: 2.500% senior unsecured notes, due March 2019 (1) — 748 2.450% senior unsecured notes, due December 2019 (1) 749 744 2.250% senior unsecured notes, due March 2020 (1) 699 691 2.678% floating-rate senior unsecured notes, due March 2020 (1) (2) 300 300 2.714% floating-rate senior unsecured notes, due May 2020 (1) (2) 250 250 2.200% senior unsecured notes, due May 2020 (1) 500 499 2.250% senior unsecured notes, due October 2020 (1) 749 738 2.550% senior unsecured notes, due May 2021 (1) 990 964 3.250% senior unsecured notes, due February 2022 (1) 713 — 2.895% floating-rate senior unsecured notes, due February 2022 (1) (2) 299 — 2.954% floating-rate senior unsecured notes, due May 2022 (1) (2) 250 249 2.650% senior unsecured notes, due May 2022 (1) 502 487 3.700% senior unsecured notes, due March 2023 (1) 518 502 3.054% floating-rate senior unsecured notes, due March 2023 (1) (2) 250 249 3.750% senior unsecured notes, due February 2026 (1) 529 — Federal Home Loan Bank advances, 2.425% weighted average rate, due through 2038 3,007 7,508 Other 17 9 Total long-term borrowed funds $12,806 $15,925 (1) Issued under CBNA’s Global Bank Note Program. (2) Rate disclosed reflects the floating rate as of September 30, 2019 . The Parent Company’s long-term borrowed funds as of September 30, 2019 and December 31, 2018 included principal balances of $2.5 billion and $2.0 billion , respectively, and unamortized deferred issuance costs and/or discounts of ($7) million and ($5) million , respectively. The banking and other subsidiaries’ long-term borrowed funds as of September 30, 2019 and December 31, 2018 included principal balances of $10.3 billion and $14.0 billion , respectively, with unamortized deferred issuance costs and/or discounts of ($15) million and ($14) million , respectively, and hedging basis adjustments of $62 million and ($66) million , respectively. See Note 9 for further information about the Company’s hedging of certain long-term borrowed funds. Advances, lines of credit, and letters of credit from the FHLB are collateralized by pledged mortgages and pledged securities at least sufficient to satisfy the collateral maintenance level established by the FHLB. The utilized borrowing capacity for FHLB advances and letters of credit was $8.4 billion and $13.0 billion at September 30, 2019 and December 31, 2018 , respectively. The Company’s available FHLB borrowing capacity was $9.3 billion and $4.8 billion at September 30, 2019 and December 31, 2018 , respectively. Citizens can also borrow from the FRB discount window to meet short-term liquidity requirements. Collateral, including certain loans, is pledged to support this borrowing capacity. At September 30, 2019 , the Company’s unused secured borrowing capacity was approximately $42.8 billion , which includes unencumbered securities, FHLB borrowing capacity, and FRB discount window capacity. A summary of maturities for the Company’s long-term borrowed funds at September 30, 2019 is presented below: (in millions) Parent Company Banking and Other Subsidiaries Consolidated Year 2019 $— $749 $749 2020 — 3,201 3,201 2021 349 3,295 3,644 2022 348 1,771 2,119 2023 — 769 769 2024 and thereafter 1,787 537 2,324 Total $2,484 $10,322 $12,806 |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | NOTE 9 - DERIVATIVES In the normal course of business, Citizens enters into a variety of derivative transactions in order to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates and foreign currency exchange rates. These transactions include interest rate swap contracts, interest rate options, foreign exchange contracts, residential loan commitment rate locks, interest rate future contracts, swaptions, forward commitments to sell to-be-announced mortgage securities (“TBAs”), forward sale contracts and purchase options. During the three months ended September 30, 2019, Citizens executed a last-of-layer hedge utilizing pay-fixed interest rate swap agreements to manage the interest rate exposure on mortgage-backed securities held in its available for sale debt securities. The Company monitors the results of each transaction to ensure that management’s intent is satisfied. The Company does not use derivatives for speculative purposes. The Company’s derivative instruments are recognized on the Consolidated Balance Sheets at fair value. Information regarding the valuation methodology and inputs used to estimate the fair value of the Company’s derivative instruments is described in Note 13 in the Company’s Form 10-Q for the period ended March 31, 2019 and Note 19 in the Company’s 2018 Form 10-K. The following table presents derivative instruments included on the Consolidated Balance Sheets in derivative assets and derivative liabilities: September 30, 2019 December 31, 2018 (in millions) Notional Amount (1) Derivative Assets Derivative Liabilities Notional Amount (1) Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate contracts $31,596 $— $3 $12,050 $5 $— Derivatives not designated as hedging instruments: Interest rate contracts 140,652 993 172 117,076 301 277 Foreign exchange contracts 12,905 224 195 9,866 129 113 Other contracts 9,382 49 24 3,555 14 25 Total derivatives not designated as hedging instruments 1,266 391 444 415 Gross derivative fair values 1,266 394 449 415 Less: Gross amounts offset in the Consolidated Balance Sheets (2) (122 ) (122 ) (87 ) (87 ) Less: Cash collateral applied (2) (117 ) (111 ) (45 ) (36 ) Total net derivative fair values presented in the Consolidated Balance Sheets $1,027 $161 $317 $292 (1) The notional or contractual amount of interest rate derivatives and foreign exchange contracts is the amount upon which interest and other payments under the contract are based. For interest rate contracts, the notional amount is typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they do not measure the true economic risk of these contracts. (2) Amounts represent the impact of enforceable master netting agreements that allow the Company to net settle positive and negative positions. The Company’s derivative transactions are internally divided into three sub-groups: institutional, customer and residential loan. Citizens has certain derivative transactions which are designated as fair value or cash flow hedges, described as follows: Derivatives Designated As Hedging Instruments The Company’s institutional derivatives portfolio qualifies for hedge accounting treatment. This includes interest rate swaps that are designated as highly effective fair value and cash flow hedging relationships. The Company formally documents at inception all hedging relationships, as well as risk management objectives and strategies for undertaking various accounting hedges. Additionally, Citizens monitors the effectiveness of its hedge relationships during the duration of the hedge period. The methods utilized to assess hedge effectiveness vary based on the type of item being hedged. The Company discontinues hedge accounting treatment when it is determined that a derivative is not expected to be, or has ceased to be, effective as a hedge and then reflects changes in fair value in earnings after termination of the hedge relationship. Fair Value Hedges Citizens has outstanding interest rate swap agreements to manage the interest rate exposure on its medium-term borrowings, certain fixed rate residential mortgages and debt securities available for sale. The changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability attributable to the hedged risk are recorded in the same income statement line in the Consolidated Statements of Operations. The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Consolidated Statements of Operations: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Affected Line Item in the Consolidated Statements of Operations Change in fair value of interest rate swaps hedging borrowed funds $18 ($6 ) $122 ($32 ) Interest expense - borrowed funds Change in fair value of hedged long-term debt attributable to the risk being hedged (18 ) 7 (121 ) 31 Interest expense - borrowed funds Change in fair value of interest rate swaps hedging fixed rate loans (10 ) — (26 ) — Interest and fees on loans and leases Change in fair value of hedged fixed rate loans attributable to the risk being hedged 10 — 26 — Interest and fees on loans and leases Change in fair value of interest rate swaps hedging debt securities available for sale (13 ) — (13 ) — Interest income - investment securities Change in fair value of hedged debt securities available for sale attributable to risk being hedged 13 — 13 — Interest income - investment securities The following table reflects amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges: September 30, 2019 (in millions) Debt securities available for sale (2) Residential mortgages Long-term borrowed funds Carrying amount of the hedged assets $19,872 $985 $— Carrying amount of the hedged liabilities (1) — — 5,450 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items 13 26 62 (1) The balance reported for long-term borrowed funds includes ($1) million of cumulative hedging adjustments recorded on discontinued fair value hedging relationships. (2) The Company designated $2.0 billion as the hedged amount (from a closed portfolio of prepayable financial assets with a carrying value of $20 billion as of September 30, 2019) in a last-of-layer hedging relationship, which commenced in the third quarter of 2019. Cash Flow Hedges Citizens has outstanding interest rate swap agreements designed to hedge a portion of the Company’s floating rate assets and liabilities. All of these swaps have been deemed as highly effective cash flow hedges. The entire change in the fair value of the interest rate swap included in the assessment of hedge effectiveness is recorded in OCI and reclassified from OCI to current period earnings (interest income or interest expense) in the same period that the hedged item affects earnings. During the next 12 months, there are $10 million in pre-tax net losses on derivative instruments included in OCI expected to be reclassified to net interest income in the Consolidated Statements of Operations. This 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, 2019 . During the three and nine months ended September 30, 2019 and 2018 , there were no gains or losses reclassified from OCI to current period earnings (other income) associated with the discontinuance of the Company’s cash flow hedges because it was probable that the original forecasted transaction would no longer occur by the end of the originally specified time period. The following table presents the pre-tax net gains (losses) recorded in the Consolidated Statements of Operations and in the Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 (1) 2019 2018 (1) Amount of pre-tax net (losses) gains recognized in OCI ($5 ) ($35 ) $138 ($122 ) Amount of pre-tax net losses reclassified from OCI into interest income (22 ) (17 ) (62 ) (36 ) Amount of pre-tax net gains reclassified from OCI into interest expense 8 3 9 11 (1) For the three and nine months ended September 30, 2018 , the amount of pre-tax net gains (losses) recognized in OCI represented the effective portion of the cumulative gains or losses on cash flow hedges and ineffectiveness was reported within noninterest income. Derivatives Not Designated As Hedging Instruments Economic Hedges The Company’s customer derivatives are recorded on the Consolidated Balance Sheets at fair value. These include interest rate and foreign exchange derivative contracts that are designed to meet the hedging and financing needs of the Company’s customers. The mark-to-market gains and losses associated with the customer derivatives are mitigated by mark-to-market gains and losses on interest rate and foreign exchange derivative contracts transacted. The Company’s residential loan derivatives (including residential loan commitments and forward sales contracts) are recorded on the Consolidated Balance Sheets at fair value. Citizens also uses derivatives to hedge the risk of changes in the fair value of its residential MSR portfolio. Certain residential MSRs are accounted for at fair value with changes in the fair value influenced primarily by changes in interest rates. Derivatives used to hedge the value of residential MSRs include TBAs, interest rate swaptions, interest rate futures and interest rate swaps. The following table presents the effect of economic hedges on noninterest income: Amounts Recognized in Noninterest Income for the Three Months Ended September 30, Nine Months Ended September 30, Affected Line Item in the Consolidated Statements of Operations (in millions) 2019 2018 2019 2018 Economic hedge type: Customer interest rate contracts $196 ($84 ) $850 ($363 ) Foreign exchange and interest rate products Customer foreign exchange contracts (81 ) 30 (162 ) (27 ) Foreign exchange and interest rate products Derivatives transactions to hedge interest rate risk (182 ) 97 (809 ) 403 Foreign exchange and interest rate products Derivatives transactions to hedge foreign exchange risk 130 24 224 99 Foreign exchange and interest rate products Residential loan commitments 6 6 22 6 Mortgage banking fees Forward sale contracts 29 (13 ) 24 (15 ) Mortgage banking fees Interest rate derivative contracts used to hedge residential MSRs 92 (3 ) 208 (3 ) Mortgage banking fees Total $190 $57 $357 $100 |
RECLASSIFICATIONS OUT OF ACCUMU
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 10 - RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables present the changes in the balances, net of income taxes, of each component of AOCI: As of and for the Three Months Ended September 30, (in millions) Net Unrealized (Losses) Gains on Derivatives Net Unrealized (Losses) Gains on Debt Securities Employee Benefit Plans Total AOCI Balance at July 1, 2018 ($200 ) ($575 ) ($435 ) ($1,210 ) Other comprehensive loss before reclassifications (26 ) (95 ) — (121 ) Other-than-temporary impairment not recognized in earnings on debt securities — — — — Amounts reclassified to the Consolidated Statements of Operations 11 (2 ) 4 13 Net other comprehensive (loss) income (15 ) (97 ) 4 (108 ) Balance at September 30, 2018 ($215 ) ($672 ) ($431 ) ($1,318 ) Balance at July 1, 2019 ($6 ) ($25 ) ($457 ) ($488 ) Other comprehensive (loss) income before reclassifications (4 ) 42 — 38 Other-than-temporary impairment not recognized in earnings on debt securities — (1 ) — (1 ) Amounts reclassified to the Consolidated Statements of Operations 10 (2 ) 3 11 Net other comprehensive income 6 39 3 48 Balance at September 30, 2019 $— $14 ($454 ) ($440 ) As of and for the Nine Months Ended September 30, (in millions) Net Unrealized (Losses) Gains on Derivatives Net Unrealized (Losses) Gains on Debt Securities Employee Benefit Plans Total AOCI Balance at January 1, 2018 ($143 ) ($236 ) ($441 ) ($820 ) Other comprehensive loss before reclassifications (91 ) (427 ) — (518 ) Other-than-temporary impairment not recognized in earnings on debt securities — (1 ) — (1 ) Amounts reclassified to the Consolidated Statements of Operations 19 (8 ) 10 21 Net other comprehensive (loss) income (72 ) (436 ) 10 (498 ) Balance at September 30, 2018 ($215 ) ($672 ) ($431 ) ($1,318 ) Balance at January 1, 2019 ($143 ) ($490 ) ($463 ) ($1,096 ) Other comprehensive income before reclassifications 103 509 — 612 Other-than-temporary impairment not recognized in earnings on debt securities — — — — Amounts reclassified to the Consolidated Statements of Operations 40 (10 ) 9 39 Net other comprehensive income 143 499 9 651 Cumulative effect of change in accounting standards — 5 — 5 Balance at September 30, 2019 $— $14 ($454 ) ($440 ) The following table presents the amounts reclassified out of each component of AOCI and into the Consolidated Statements of Operations: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Details about AOCI Components Affected Line Item in the Consolidated Statements of Operations Reclassification adjustment for net derivative losses included in net income: ($22 ) ($17 ) ($62 ) ($36 ) Interest income 8 3 9 11 Interest expense (14 ) (14 ) (53 ) (25 ) Income before income tax expense (4 ) (3 ) (13 ) (6 ) Income tax expense ($10 ) ($11 ) ($40 ) ($19 ) Net income Reclassification of net debt securities gains to net income: $3 $3 $15 $13 Securities gains, net (1 ) (1 ) (2 ) (3 ) Net debt securities impairment losses recognized in earnings 2 2 13 10 Income before income tax expense — — 3 2 Income tax expense $2 $2 $10 $8 Net income Reclassification of changes related to the employee benefit plan: ($5 ) ($5 ) ($14 ) ($13 ) Other operating expense (5 ) (5 ) (14 ) (13 ) Income before income tax expense (2 ) (1 ) (5 ) (3 ) Income tax expense ($3 ) ($4 ) ($9 ) ($10 ) Net income Total reclassification losses ($11 ) ($13 ) ($39 ) ($21 ) Net income The following table presents the effects on net income of the amounts reclassified out of AOCI: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Net interest income (includes ($14),($14), ($53) and ($25) of AOCI reclassifications, respectively) $1,145 $1,148 $3,471 $3,360 Provision for credit losses 101 78 283 241 Noninterest income (includes $2, $2, $13 and $10 of AOCI reclassifications, respectively) 493 416 1,383 1,175 Noninterest expense (includes $5, $5, $14 and $13 of AOCI reclassifications, respectively) 973 910 2,861 2,668 Income before income tax expense 564 576 1,710 1,626 Income tax expense (includes ($6), ($4), ($15) and ($7) income tax net expense from reclassification items, respectively) 115 133 369 370 Net income $449 $443 $1,341 $1,256 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 11 - STOCKHOLDERS’ EQUITY Preferred Stock The following table summarizes the Company’s preferred stock: September 30, 2019 December 31, 2018 (in millions, except per share and share data) Liquidation value per share Preferred Shares Carrying Amount Preferred Shares Carrying Amount Authorized ($25 par value) 100,000,000 100,000,000 Issued and outstanding: Series A $1,000 250,000 $247 250,000 $247 Series B 1,000 300,000 296 300,000 296 Series C 1,000 300,000 297 300,000 297 Series D 1,000 (1) 300,000 (2) 293 — — Total 1,150,000 $1,133 850,000 $840 (1) Equivalent to $25 per depositary share. (2) Represented by 12,000,000 depositary shares each representing a 1/40th interest in the Series D Preferred Stock. The following table provides information related to the Company’s preferred stock outstanding as of September 30, 2019 : (in millions, except share data) Preferred Stock (1) Issue Date Number of Shares Outstanding Dividend Dates (2) Annual Per Share Dividend Rate Optional Redemption Date (3) Series A April 6, 2015 250,000 Semi-annually beginning October 6, 2015 until April 6, 2020 5.500% until April 6, 2020 April 6, 2020 Quarterly beginning July 6, 2020 3 Mo. LIBOR plus 3.960% beginning April 6, 2020 Series B May 24, 2018 300,000 Semi-annually beginning January 6, 2019 until July 6, 2023 6.000% until July 6, 2023 July 6, 2023 Quarterly beginning October 6, 2023 3 Mo. LIBOR plus 3.003% beginning July 6, 2023 Series C October 25, 2018 300,000 Quarterly beginning January 6, 2019 until April 6, 2024 6.375% until April 6, 2024 April 6, 2024 Quarterly beginning July 6, 2024 3 Mo. LIBOR plus 3.157% beginning April 6, 2024 Series D January 29, 2019 300,000 (4) Quarterly beginning April 6, 2019 until April 6, 2024 6.350% until April 6, 2024 April 6, 2024 Quarterly beginning July 6, 2024 3 Mo. LIBOR plus 3.642% beginning April 6, 2024 (1) All outstanding series are non-cumulative fixed-to-floating rate perpetual preferred stock. Except in limited circumstances, the preferred stock does not have voting rights. (2) Dividends are payable when, and if, declared by the Company’s Board of Directors or an authorized committee thereof. (3) Redeemable at the Company’s option, in whole or in part, on any dividend payment date on or after the date stated, or in whole but not in part, at any time within 90 days following a regulatory capital treatment event a as defined in the applicable certificate of designations, in each case at a redemption price equal to $1,000 per share (equivalent to $25 per depositary share for the Series D Preferred Stock), plus any declared and unpaid dividends, without accumulation of any undeclared dividends. Under current rules, any redemption is subject to approval by the FRB. (4) Represented by 12,000,000 depositary shares each representing a 1/40th interest in the Series D Preferred Stock. On October 28, 2019, the Company issued $450 million , or 18,000,000 depositary shares, each representing a 1/40th interest in a share of its 5.000% fixed-rate non-cumulative perpetual Series E Preferred Stock, liquidation preference of $1,000 per share (equivalent to $25 per depositary share) (the “Series E Preferred Stock”). The Company received net proceeds of $437 million after the underwriting discount and other expenses. The Series E Preferred Stock has no stated maturity and will not be subject to any sinking fund or other obligation of the Company. Dividends, if declared, will accrue and be payable quarterly, in arrears, beginning January 6, 2020, at a rate equal to 5.000% per annum. The Series E Preferred Stock is redeemable at the Company’s option, in whole or in part, on any dividend payment date, on or after January 6, 2025, or in whole but not in part, at any time within the 90 days following a regulatory capital treatment event, in each case at a redemption price equal to $1,000 per share (equivalent to $25 per depositary share), plus any declared and unpaid dividends. The Company may not redeem shares of the Series E Preferred Stock without obtaining the prior approval of the FRB if then required under applicable capital guidelines. Except in certain limited circumstances, the Series E Preferred Stock does not have any voting rights. Dividends The following table provides information related to dividends per share and in the aggregate, declared and paid, for each type of stock issued and outstanding: Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 (in millions, except per share data) Dividends Declared per Share Dividends Declared Dividends Paid Dividends Declared per Share Dividends Declared Dividends Paid Common stock $0.36 $162 $162 $0.27 $129 $129 Preferred stock Series A $27.50 $7 $— $27.50 $7 $— Series B — — 9 — — — Series C 15.94 5 4 — — — Series D 15.88 5 5 — — — Total preferred stock $17 $18 $7 $— Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 (in millions, except per share data) Dividends Declared per Share Dividends Declared Dividends Paid Dividends Declared per Share Dividends Declared Dividends Paid Common stock $1.00 $459 $459 $0.71 $344 $344 Preferred stock Series A $55.00 $14 $7 $55.00 $14 $7 Series B 30.00 9 20 — — — Series C 47.81 14 13 — — — Series D 43.57 13 8 — — — Total preferred stock $50 $48 $14 $7 Treasury Stock During the nine months ended September 30, 2019 , the Company repurchased $820 million , or 23,399,661 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 12 - COMMITMENTS AND CONTINGENCIES A summary of outstanding off-balance sheet arrangements is presented below. For more information on these arrangements, see Note 18 in the Company’s 2018 Form 10-K. (in millions) September 30, 2019 December 31, 2018 Commitments to extend credit $70,825 $69,553 Letters of credit 2,148 2,125 Marketing rights 33 37 Risk participation agreements 47 19 Loans sold with recourse 32 5 Total $73,085 $71,739 Commitments to Extend Credit Commitments to extend credit are agreements to lend to customers in accordance with conditions contractually agreed upon in advance. Generally, the commitments have fixed expiration dates or termination clauses and may require payment of a fee. Since many of these commitments are expected to expire without being drawn upon, the contract amounts are not necessarily indicative of future cash requirements. The Company’s commercial loan trading desk provides ongoing secondary market support and liquidity to its clients. Unsettled loan trades (i.e., loan purchase contracts) represent firm commitments to purchase loans from a third party at an agreed-upon price. Principal amounts associated with unsettled commercial loan trades are off-balance sheet commitments until delivery of the loans has taken place. The principal balances of unsettled commercial loan trade purchases and sales were $121 million and $196 million , respectively, at September 30, 2019 and $ 68 million and $161 million , respectively, at December 31, 2018 . Letters of Credit Letters of credit in the table above reflect commercial, standby financial and standby performance letters of credit. Standby letters of credit, both financial and performance, are issued by the Company for its customers. They are used as conditional guarantees of payment to a third party in the event the customer either fails to make specific payments (financial) or fails to complete a specific project (performance). The Company’s exposure to credit loss in the event of counterparty nonperformance in connection with the above instruments is represented by the contractual amount of those instruments, net of the value of collateral held. Generally, letters of credit are collateralized by cash, accounts receivable, inventory or investment securities. Credit risk associated with letters of credit is considered in determining the appropriate amounts of reserves for unfunded commitments. Standby letters of credit and commercial letters of credit are issued for terms of up to ten years and one year , respectively. Other Commitments Citizens has additional off-balance sheet arrangements that are summarized below: • Marketing Rights - During 2003, Citizens entered into a 25 -year agreement to acquire the naming and marketing rights of a baseball stadium in Pennsylvania. • Loans sold with recourse - Citizens is an originator and servicer of residential mortgages and routinely sells such mortgage loans in the secondary market and to GSEs. In the context of such sales, the Company makes certain representations and warranties regarding the characteristics of the underlying loans and, as a result, may be contractually required to repurchase such loans or indemnify certain parties against losses for certain breaches of those representations and warranties. The Company also sells the government guaranteed portion of certain SBA loans to outside investors, for which it retains the servicing rights. • Risk Participation Agreements - RPAs are guarantees issued by the Company to other parties for a fee, whereby the Company agrees to participate in the credit risk of a derivative customer of the other party. The current amount of credit exposure is spread out over 88 counterparties. RPAs generally have terms ranging from one year to five years ; however, certain outstanding agreements have terms as long as ten years . Contingencies The Company operates in a legal and regulatory environment that exposes it to potentially significant risks. A certain amount of litigation ordinarily results from the nature of the Company’s banking and other businesses. The Company is a party to legal proceedings, including class actions. The Company is also the subject of investigations, reviews, subpoenas, and regulatory matters arising out of its normal business operations, which, in some instances, relate to concerns about fair lending, unfair and/or deceptive practices, mortgage-related issues, and mis-selling of certain products. In addition, the Company engages in discussions with relevant governmental and regulatory authorities on a regular and ongoing basis regarding various issues, and any issues discussed or identified may result in investigatory or other action being taken. Litigation and regulatory matters may result in settlements, damages, fines, penalties, public or private censure, increased costs, required remediation, restrictions on business activities, or other impacts on the Company. In these disputes and proceedings, the Company contests liability and the amount of damages as appropriate. Given their complex nature, and based on the Company's experience, it may be years before some of these matters are finally resolved. Moreover, before liability can be reasonably estimated for a claim, numerous legal and factual issues may need to be examined, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal issues relevant to the proceedings in question. The Company cannot predict with certainty if, how, or when such claims will be resolved or what the eventual settlement, fine, penalty or other relief, if any, may be, particularly for claims that are at an early stage in their development or where claimants seek substantial or indeterminate damages. The Company recognizes a provision for a claim when, in the opinion of management after seeking legal advice, it is probable that a liability exists and the amount of loss can be reasonably estimated. In many proceedings, however, it is not possible to determine whether any loss is probable or to estimate the amount of any loss. Based on information currently available, the advice of legal counsel and other advisers, and established reserves, management believes that the aggregate liabilities, if any, potentially arising from these proceedings will not have a materially adverse effect on the Company’s unaudited interim Consolidated Financial Statements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 13 - FAIR VALUE MEASUREMENTS Citizens measures or monitors many of its assets and liabilities on a fair value basis. Fair value is used on a recurring basis for assets and liabilities for which fair value is the required or elected measurement basis of accounting. Additionally, fair value is used on a nonrecurring basis to evaluate assets for impairment or for disclosure purposes. Nonrecurring fair value adjustments typically involve the application of lower of cost or market accounting or write-downs of individual assets. Citizens also applies the fair value measurement guidance to determine amounts reported for certain disclosures in this Note for assets and liabilities that are not required to be reported at fair value in the financial statements. Fair Value Option Citizens elected to account for residential mortgage LHFS and certain commercial and commercial real estate LHFS at fair value. For these LHFS, the aggregate fair value approximates the aggregate unpaid principal balance. For more information on the election of the fair value option for these assets see Note 19 in the Company’s 2018 Form 10-K. The following table presents the changes in fair value for assets where the Company has elected the fair value option: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Affected Line Item in the Consolidated Statements of Operations Residential mortgage loans held for sale, at fair value ($4 ) ($8 ) $5 ($7 ) Mortgage banking fees Commercial and commercial real estate loans held for sale, at fair value — 1 4 1 Other income Recurring Fair Value Measurements Citizens utilizes a variety of valuation techniques to measure its assets and liabilities at fair value on a recurring basis. For more information on the valuation techniques utilized to measure recurring fair value see Note 13 in the Company’s Form 10-Q for the three months ended March 31, 2019 and Note 19 in the Company’s 2018 Form 10-K. The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities on a recurring basis at September 30, 2019 : (in millions) Total Level 1 Level 2 Level 3 Debt securities available for sale: Mortgage-backed securities $21,377 $— $21,377 $— State and political subdivisions 5 — 5 — U.S. Treasury and other 120 120 — — Total debt securities available for sale 21,502 120 21,382 — Loans held for sale, at fair value: Residential loans held for sale 1,824 — 1,824 — Commercial loans held for sale 169 — 169 — Total loans held for sale, at fair value 1,993 — 1,993 — Mortgage servicing rights 510 — — 510 Derivative assets: Interest rate contracts 993 — 993 — Foreign exchange contracts 224 — 224 — Other contracts 49 — 23 26 Total derivative assets 1,266 — 1,240 26 Equity securities, at fair value: Money market mutual fund investments 47 47 — — Total equity securities, at fair value 47 47 — — Total assets $25,318 $167 $24,615 $536 Derivative liabilities: Interest rate contracts $175 $— $175 $— Foreign exchange contracts 195 — 195 — Other contracts 24 — 24 — Total derivative liabilities 394 — 394 — Total liabilities $394 $— $394 $— The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities on a recurring basis at December 31, 2018 : (in millions) Total Level 1 Level 2 Level 3 Debt securities available for sale: Mortgage-backed securities $19,866 $— $19,866 $— State and political subdivisions 5 — 5 — U.S. Treasury and other 24 24 — — Total debt securities available for sale 19,895 24 19,871 — Loans held for sale, at fair value: Residential loans held for sale 967 — 967 — Commercial loans held for sale 252 — 252 — Total loans held for sale, at fair value 1,219 — 1,219 — Mortgage servicing rights 600 — — 600 Derivative assets: Interest rate contracts 306 — 306 — Foreign exchange contracts 129 — 129 — Other contracts 14 — 14 — Total derivative assets 449 — 449 — Equity securities, at fair value: Money market mutual fund investments 181 181 — — Total equity securities, at fair value 181 181 — — Total assets $22,344 $205 $21,539 $600 Derivative liabilities: Interest rate contracts $277 $— $277 $— Foreign exchange contracts 113 — 113 — Other contracts 25 — 25 — Total derivative liabilities 415 — 415 — Total liabilities $415 $— $415 $— The following tables present a rollforward of the balance sheet amounts for assets measured at fair value on a recurring basis and classified as Level 3: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 (in millions) Mortgage Servicing Rights Other Derivative Contracts Mortgage Servicing Rights Other Derivative Contracts Beginning balance $531 $25 $600 $— Issuances 78 61 170 104 Settlements (1) (31 ) (64 ) (88 ) (107 ) Changes in fair value during the period recognized in earnings (2) (68 ) 4 (172 ) 11 Transfers from Level 2 to Level 3 (3) — — — 18 Ending balance $510 $26 $510 $26 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (in millions) Mortgage Servicing Rights Mortgage Servicing Rights Beginning balance $— $— Acquired MSRs 590 590 Issuances 29 29 Settlements (1) (12 ) (12 ) Change in fair value during the period recognized in earnings (2) 5 5 Ending balance $612 $612 (1) Represents changes in value of the MSRs due to i) passage of time including the impact from both regularly scheduled loan principal payments and partial paydowns, and ii) loans that paid off during the period. (2) Represents changes in value primarily driven by market conditions. These changes are recorded in mortgage banking fees in the Consolidated Statements of Operations. (3) Reflects changes in the significance of unobservable inputs on derivative contracts associated with mortgage origination activities. Nonrecurring Fair Value Measurements Fair value is also used on a nonrecurring basis to evaluate certain assets for impairment or for disclosure purposes. Examples of nonrecurring uses of fair value include MSRs accounted for by the amortization method and loan impairments for certain loans and leases. For more information on the valuation techniques utilized to measure nonrecurring fair value see Note 19 in the Company’s 2018 Form 10-K. The following table presents gains (losses) on assets and liabilities measured at fair value on a nonrecurring basis and recorded in earnings: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Impaired collateral-dependent loans ($8 ) ($3 ) ($36 ) ($9 ) MSRs (1 ) — (15 ) 3 The following table presents assets and liabilities measured at fair value on a nonrecurring basis: September 30, 2019 December 31, 2018 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Impaired collateral-dependent loans $332 $— $332 $— $338 $— $338 $— MSRs 178 — — 178 243 — — 243 The following table presents the estimated fair value for financial instruments not recorded at fair value in the unaudited interim Consolidated Financial Statements. The carrying amounts are recorded in the Consolidated Balance Sheets under the indicated captions: September 30, 2019 Total Level 1 Level 2 Level 3 (in millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial assets: Securities held to maturity $3,319 $3,362 $— $— $3,319 $3,362 $— $— Equity securities, at cost 734 734 — — 734 734 — — Other loans held for sale 22 22 — — — — 22 22 Loans and leases 117,880 118,961 — — 332 332 117,548 118,629 Financial liabilities: Deposits 124,714 124,852 — — 124,714 124,852 — — Federal funds purchased and securities sold under agreements to repurchase 867 867 — — 867 867 — — Other short-term borrowed funds 210 210 — — 210 210 — — Long-term borrowed funds 12,806 12,952 — — 12,806 12,952 — — December 31, 2018 Total Level 1 Level 2 Level 3 (in millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial assets: Securities held to maturity $4,165 $4,041 $— $— $4,165 $4,041 $— $— Equity securities, at cost 834 834 — — 834 834 — — Other loans held for sale 101 101 — — — — 101 101 Loans and leases 116,660 116,627 — — 338 338 116,322 116,289 Financial liabilities: Deposits 119,575 119,503 — — 119,575 119,503 — — Federal funds purchased and securities sold under agreements to repurchase 1,156 1,156 — — 1,156 1,156 — — Other short-term borrowed funds 161 161 — — 161 161 — — Long-term borrowed funds 15,925 15,877 — — 15,925 15,877 — — |
NONINTEREST INCOME
NONINTEREST INCOME | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
NONINTEREST INCOME | NOTE 14 - NONINTEREST INCOME Revenues from Contracts with Customers The following table presents the components of revenue from contracts with customers disaggregated by revenue stream and business operating segment: Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 (in millions) Consumer Banking Commercial Banking Consolidated (1) Consumer Banking Commercial Banking Consolidated (1) Service charges and fees $102 $25 $127 $105 $26 $131 Card fees 57 10 67 51 10 61 Capital markets fees — 38 38 — 46 46 Trust and investment services fees 50 — 50 45 — 45 Other banking fees 1 2 3 — 2 2 Total revenue from contracts with customers $210 $75 $285 $201 $84 $285 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 (in millions) Consumer Banking Commercial Banking Consolidated (1) Consumer Banking Commercial Banking Consolidated (1) Service charges and fees $298 $77 $375 $303 $79 $382 Card fees 162 28 190 154 28 182 Capital markets fees — 140 140 — 134 134 Trust and investment services fees 150 — 150 128 — 128 Other banking fees 1 7 8 — 7 7 Total revenue from contracts with customers $611 $252 $863 $585 $248 $833 (1) There is no revenue from contracts with customers included in Other non-segment operations. The Company recognized trailing commissions of $4 million for the three months ended September 30, 2019 and 2018 and $11 million and $12 million for the nine months ended September 30, 2019 and 2018 , respectively, related to services provided in previous reporting periods. Fees from other investment services are recognized at a point in time upon completion of the service. Revenue from Other Sources Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Bank-owned life insurance $14 $14 $41 $42 |
OTHER OPERATING EXPENSE
OTHER OPERATING EXPENSE | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
OTHER OPERATING EXPENSE | NOTE 15 - OTHER OPERATING EXPENSE The following table presents the details of other operating expense: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Deposit insurance $14 $29 $46 $88 Promotional expense 31 36 86 95 Settlements and operating losses 10 11 30 35 Other 72 55 193 160 Other operating expense $127 $131 $355 $378 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 16 - EARNINGS PER SHARE Three Months Ended September 30, Nine Months Ended September 30, (in millions, except share and per share data) 2019 2018 2019 2018 Numerator (basic and diluted): Net income $449 $443 $1,341 $1,256 Less: Preferred stock dividends 17 7 50 14 Net income available to common stockholders $432 $436 $1,291 $1,242 Denominator: Weighted-average common shares outstanding - basic 445,703,987 475,957,526 454,802,186 482,691,884 Dilutive common shares: share-based awards 1,430,608 1,642,391 1,416,569 1,558,959 Weighted-average common shares outstanding - diluted 447,134,595 477,599,917 456,218,755 484,250,843 Earnings per common share: Basic $0.97 $0.92 $2.84 $2.57 Diluted (1) 0.97 0.91 2.83 2.57 (1) Potential dilutive common shares are excluded from the computation of diluted EPS in the periods where the effect would be antidilutive. Excluded from the computation of diluted EPS were weighted average antidilutive shares totaling 772 and 359,952 for the three and nine months ended September 30, 2019 , respectively. There were no weighted average antidilutive shares for the three and nine months ended September 30, 2018 . |
BUSINESS OPERATING SEGMENTS
BUSINESS OPERATING SEGMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
BUSINESS OPERATING SEGMENTS | NOTE 17 - BUSINESS OPERATING SEGMENTS Citizens is managed by its Chief Executive Officer on a segment basis. The Company’s two business operating segments are Consumer Banking and Commercial Banking. The business segments are determined based on the products and services provided, or the type of customer served. Each segment has a segment head who reports directly to the Chief Executive Officer. The Chief Executive Officer has final authority over resource allocation decisions and performance assessment. The business segments reflect this management structure and the manner in which financial information is currently evaluated by the Chief Executive Officer. For more information on our business operating segments, as well as Other non-segment operations, see Note 25 in the Company’s 2018 Form 10-K. As of and for the Three Months Ended September 30, 2019 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $799 $360 ($14 ) $1,145 Noninterest income 336 133 24 493 Total revenue 1,135 493 10 1,638 Noninterest expense 718 213 42 973 Profit (loss) before provision for credit losses 417 280 (32 ) 665 Provision for credit losses 83 27 (9 ) 101 Income (loss) before income tax expense (benefit) 334 253 (23 ) 564 Income tax expense (benefit) 83 57 (25 ) 115 Net income $251 $196 $2 $449 Total average assets $66,365 $55,614 $40,131 $162,110 As of and for the Three Months Ended September 30, 2018 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $776 $380 ($8 ) $1,148 Noninterest income 258 140 18 416 Total revenue 1,034 520 10 1,564 Noninterest expense 686 202 22 910 Profit (loss) before provision for credit losses 348 318 (12 ) 654 Provision for credit losses 71 14 (7 ) 78 Income (loss) before income tax expense (benefit) 277 304 (5 ) 576 Income tax expense (benefit) 70 70 (7 ) 133 Net income $207 $234 $2 $443 Total average assets $62,974 $52,871 $39,779 $155,624 As of and for the Nine Months Ended September 30, 2019 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $2,386 $1,103 ($18 ) $3,471 Noninterest income 860 432 91 1,383 Total revenue 3,246 1,535 73 4,854 Noninterest expense 2,133 639 89 2,861 Profit (loss) before provision for credit losses 1,113 896 (16 ) 1,993 Provision for credit losses 228 73 (18 ) 283 Income before income tax expense (benefit) 885 823 2 1,710 Income tax expense (benefit) 219 184 (34 ) 369 Net income $666 $639 $36 $1,341 Total average assets $65,624 $55,793 $39,927 $161,344 As of and for the Nine Months Ended September 30, 2018 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $2,268 $1,113 ($21 ) $3,360 Noninterest income 708 405 62 1,175 Total revenue 2,976 1,518 41 4,535 Noninterest expense 2,000 610 58 2,668 Profit (loss) before provision for credit losses 976 908 (17 ) 1,867 Provision for credit losses 209 19 13 241 Income (loss) before income tax expense (benefit) 767 889 (30 ) 1,626 Income tax expense (benefit) 193 203 (26 ) 370 Net income (loss) $574 $686 ($4 ) $1,256 Total average assets $61,857 $51,820 $39,805 $153,482 There have been no significant changes in the management accounting practices utilized by the Company regarding the basis of presentation for segment results as discussed in Note 25 in the Company’s 2018 Form 10-K. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The unaudited interim Consolidated Financial Statements, including the Notes thereto of Citizens Financial Group, Inc., have been prepared in accordance with GAAP interim reporting requirements, and therefore do not include all information and Notes included in the audited Consolidated Financial Statements in conformity with GAAP. These unaudited interim Consolidated Financial Statements and Notes thereto should be read in conjunction with the Company’s audited Consolidated Financial Statements and accompanying Notes included in the Company’s 2018 Form 10-K. The Company’s principal business activity is banking, conducted through its banking subsidiary, Citizens Bank, National Association. |
Consolidation | The unaudited interim Consolidated Financial Statements include the accounts of the Company and subsidiaries in which the Company has a controlling financial interest. All intercompany transactions and balances have been eliminated. The Company has evaluated its unconsolidated entities and does not believe that any entity in which it has an interest, but does not currently consolidate, meets the requirements to be consolidated as a variable interest entity. The unaudited interim Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the ACL and the fair value of MSRs. |
Adopted and Pending Accounting Pronouncements | Accounting Pronouncements Adopted in 2019 Pronouncement Summary of Guidance Effects on Financial Statements Derivatives and Hedging Issued August 2017 • Reduces the complexity and operational burdens of the current hedge accounting model and portrays more clearly the effects of hedge accounting in the financial statements. • Modifies current requirements to facilitate the application of hedge accounting to partial-term hedges, hedges of prepayable financial instruments, and other strategies. Adoption of these optional changes would occur on a prospective basis. • Requires the effects of fair value hedges to be classified in the same income statement line as the earnings effect of the hedged item. Adoption of this change will occur on a prospective basis. • Requires all effects of cash flow hedges to be deferred in other comprehensive income until the hedged cash flows affect earnings. Periodic hedge ineffectiveness will no longer be recognized in earnings. Adoption of this change will occur on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. • The Company adopted the new standard on January 1, 2019 under the modified retrospective method. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. • Required disclosures are included in Note 9. Pronouncement Summary of Guidance Effects on Financial Statements Leases Issued February 2016 • Requires lessees to recognize a right-of-use asset and corresponding lease liability for all leases with a lease term of greater than one year. • Requires lessees and lessors to classify most leases using principles similar to existing lease accounting, but eliminates the “bright line” classification tests. • Requires that for finance leases, a lessee recognize interest expense on the lease liability separately from the amortization of the right-of-use asset in the Consolidated Statements of Operations, while for operating leases, such amounts should be recognized as a combined expense. • Requires expanded disclosures about the nature and terms of lease agreements. • Provides the option to adopt using either a modified cumulative-effect approach wherein the guidance is applied to all periods presented, or through a cumulative-effect adjustment beginning in the period of adoption. • Requires companies with land easements to assess whether the easement meets the definition of a lease before applying other accounting guidance. • The Company adopted the new standard under the modified retrospective approach on January 1, 2019, which is applicable to both its leasing finance business as well as property and equipment leases in which Citizens is lessee. • Adoption resulted in a cumulative-effect adjustment of $12 million, net of taxes, to retained earnings related to leases in which Citizens is lessee. • Adoption resulted in the recognition of a right-of-use asset and corresponding lease liability of $734 million and $749 million, respectively in its Consolidated Balance Sheet for non-cancelable operating lease agreements. • Required lessor disclosures are included in Note 3 and required lessee disclosures are included in Note 6. Implementation Costs Incurred in a Cloud Computing Arrangement Issued August 2018 • Requires implementation costs incurred in a cloud computing arrangement that is a service contract be deferred and recognized over the term of the arrangement if those costs would be capitalized in a software licensing arrangement. • Requires amortization expense be presented in the same income statement line item as the related hosting service arrangement expense. • Permits adoption prospectively for all implementation costs incurred after adoption or retrospectively through a cumulative-effect adjustment as of the beginning of the first period presented. • The Company prospectively adopted the new standard on January 1, 2019. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. Accounting Pronouncements Pending Adoption Pronouncement Summary of Guidance Effects on Financial Statements Financial Instruments - Credit Losses Issued June 2016 • Required effective date: January 1, 2020. • Replaces existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost (including securities HTM), which will reflect management’s estimate of credit losses over the full remaining expected life of the financial assets. • Amends existing impairment guidance for securities AFS to incorporate an allowance, which will allow for reversals of impairment losses in the event that the credit of an issuer improves. • Requires a cumulative-effect adjustment to retained earnings, net of taxes, as of the beginning of the reporting period of adoption. • Requires enhanced credit quality disclosures including disaggregation of credit quality indicators by vintage. • The Company plans to adopt the new standard on January 1, 2020. • A company-wide, cross-discipline governance structure is in place to implement the new standard. • The Company is finalizing significant accounting policies and continues to refine and test loss forecasting models, estimation techniques, data, operational processes and financial controls which will be used to calculate the ACL under the standard. • The Company completed limited parallel runs and analytical testing through the nine months ended September 30, 2019. Parallel testing will continue through adoption and we will refine our interpretations, methodology, data and operational processes based upon ongoing reviews and testing results. • To estimate the ACL, we will use models and other estimation techniques that are sensitive to changes in forecasted economic conditions. The estimate is expected to include a two-year reasonable and supportable forecast period, and thereafter a one year reversion to long-run average macroeconomic assumptions derived from historical information. We will also apply qualitative factors related to idiosyncratic risk factors, changes in current economic conditions that may not be adequately reflected in quantitatively derived results, or other relevant factors to ensure the ACL reflects our best estimate of current expected credit losses. • The Company expects the standard will result in earlier recognition of credit losses and an overall increase in the ACL upon adoption of approximately 30% to 35%. This estimated increase in ACL is based on forecasted economic conditions and portfolio balances at August 31, 2019, and primarily related to consumer loans, such as residential mortgage, unsecured and education, due to the requirement to estimate credit losses over the full remaining expected life of the asset. Additionally, adoption of the new standard could produce higher volatility in the quarterly provision for credit losses than our current reserve process and could adversely impact the Company’s ongoing earnings. We estimate that this increase in ACL would reduce the Company’s CET1 capital ratio by approximately 22 to 25 basis points on a fully-phased in basis. This capital impact is expected to be phased in by 25% per year through January 1, 2023, which would impact 2020 by 5 to 6 basis points. • These current estimates of impact to the ACL at the adoption date and the CET1 capital ratio are subject to change based on continuing review and challenge of the models, assumptions, methodologies and judgments, and the final amount will depend upon the loan portfolio composition, as well as economic conditions and forecasts existing at that time. • Based on the credit quality of our existing debt securities portfolio, the Company does not expect the ACL for HTM and AFS debt securities to be significant. Pronouncement Summary of Guidance Effects on Financial Statements Disclosure Requirements - Fair Value Measurements Issued August 2018 • Amends disclosure requirements on fair value measurements. • The guidance eliminates requirements for certain disclosures that are no longer considered relevant or cost beneficial, requires new disclosures and modifies existing disclosures that are expected to enhance the usefulness of the financial statements. • Prospective application is required for new disclosure requirements. • Retrospective application is required for all other amendments for all periods presented. • Required effective date: January 1, 2020. Early adoption is permitted. The Company does not intend to adopt this guidance prior to the required effective date. • Adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Accounting Pronouncements Adopted in 2019 Pronouncement Summary of Guidance Effects on Financial Statements Derivatives and Hedging Issued August 2017 • Reduces the complexity and operational burdens of the current hedge accounting model and portrays more clearly the effects of hedge accounting in the financial statements. • Modifies current requirements to facilitate the application of hedge accounting to partial-term hedges, hedges of prepayable financial instruments, and other strategies. Adoption of these optional changes would occur on a prospective basis. • Requires the effects of fair value hedges to be classified in the same income statement line as the earnings effect of the hedged item. Adoption of this change will occur on a prospective basis. • Requires all effects of cash flow hedges to be deferred in other comprehensive income until the hedged cash flows affect earnings. Periodic hedge ineffectiveness will no longer be recognized in earnings. Adoption of this change will occur on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. • The Company adopted the new standard on January 1, 2019 under the modified retrospective method. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. • Required disclosures are included in Note 9. Pronouncement Summary of Guidance Effects on Financial Statements Leases Issued February 2016 • Requires lessees to recognize a right-of-use asset and corresponding lease liability for all leases with a lease term of greater than one year. • Requires lessees and lessors to classify most leases using principles similar to existing lease accounting, but eliminates the “bright line” classification tests. • Requires that for finance leases, a lessee recognize interest expense on the lease liability separately from the amortization of the right-of-use asset in the Consolidated Statements of Operations, while for operating leases, such amounts should be recognized as a combined expense. • Requires expanded disclosures about the nature and terms of lease agreements. • Provides the option to adopt using either a modified cumulative-effect approach wherein the guidance is applied to all periods presented, or through a cumulative-effect adjustment beginning in the period of adoption. • Requires companies with land easements to assess whether the easement meets the definition of a lease before applying other accounting guidance. • The Company adopted the new standard under the modified retrospective approach on January 1, 2019, which is applicable to both its leasing finance business as well as property and equipment leases in which Citizens is lessee. • Adoption resulted in a cumulative-effect adjustment of $12 million, net of taxes, to retained earnings related to leases in which Citizens is lessee. • Adoption resulted in the recognition of a right-of-use asset and corresponding lease liability of $734 million and $749 million, respectively in its Consolidated Balance Sheet for non-cancelable operating lease agreements. • Required lessor disclosures are included in Note 3 and required lessee disclosures are included in Note 6. Implementation Costs Incurred in a Cloud Computing Arrangement Issued August 2018 • Requires implementation costs incurred in a cloud computing arrangement that is a service contract be deferred and recognized over the term of the arrangement if those costs would be capitalized in a software licensing arrangement. • Requires amortization expense be presented in the same income statement line item as the related hosting service arrangement expense. • Permits adoption prospectively for all implementation costs incurred after adoption or retrospectively through a cumulative-effect adjustment as of the beginning of the first period presented. • The Company prospectively adopted the new standard on January 1, 2019. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. Accounting Pronouncements Pending Adoption Pronouncement Summary of Guidance Effects on Financial Statements Financial Instruments - Credit Losses Issued June 2016 • Required effective date: January 1, 2020. • Replaces existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost (including securities HTM), which will reflect management’s estimate of credit losses over the full remaining expected life of the financial assets. • Amends existing impairment guidance for securities AFS to incorporate an allowance, which will allow for reversals of impairment losses in the event that the credit of an issuer improves. • Requires a cumulative-effect adjustment to retained earnings, net of taxes, as of the beginning of the reporting period of adoption. • Requires enhanced credit quality disclosures including disaggregation of credit quality indicators by vintage. • The Company plans to adopt the new standard on January 1, 2020. • A company-wide, cross-discipline governance structure is in place to implement the new standard. • The Company is finalizing significant accounting policies and continues to refine and test loss forecasting models, estimation techniques, data, operational processes and financial controls which will be used to calculate the ACL under the standard. • The Company completed limited parallel runs and analytical testing through the nine months ended September 30, 2019. Parallel testing will continue through adoption and we will refine our interpretations, methodology, data and operational processes based upon ongoing reviews and testing results. • To estimate the ACL, we will use models and other estimation techniques that are sensitive to changes in forecasted economic conditions. The estimate is expected to include a two-year reasonable and supportable forecast period, and thereafter a one year reversion to long-run average macroeconomic assumptions derived from historical information. We will also apply qualitative factors related to idiosyncratic risk factors, changes in current economic conditions that may not be adequately reflected in quantitatively derived results, or other relevant factors to ensure the ACL reflects our best estimate of current expected credit losses. • The Company expects the standard will result in earlier recognition of credit losses and an overall increase in the ACL upon adoption of approximately 30% to 35%. This estimated increase in ACL is based on forecasted economic conditions and portfolio balances at August 31, 2019, and primarily related to consumer loans, such as residential mortgage, unsecured and education, due to the requirement to estimate credit losses over the full remaining expected life of the asset. Additionally, adoption of the new standard could produce higher volatility in the quarterly provision for credit losses than our current reserve process and could adversely impact the Company’s ongoing earnings. We estimate that this increase in ACL would reduce the Company’s CET1 capital ratio by approximately 22 to 25 basis points on a fully-phased in basis. This capital impact is expected to be phased in by 25% per year through January 1, 2023, which would impact 2020 by 5 to 6 basis points. • These current estimates of impact to the ACL at the adoption date and the CET1 capital ratio are subject to change based on continuing review and challenge of the models, assumptions, methodologies and judgments, and the final amount will depend upon the loan portfolio composition, as well as economic conditions and forecasts existing at that time. • Based on the credit quality of our existing debt securities portfolio, the Company does not expect the ACL for HTM and AFS debt securities to be significant. Pronouncement Summary of Guidance Effects on Financial Statements Disclosure Requirements - Fair Value Measurements Issued August 2018 • Amends disclosure requirements on fair value measurements. • The guidance eliminates requirements for certain disclosures that are no longer considered relevant or cost beneficial, requires new disclosures and modifies existing disclosures that are expected to enhance the usefulness of the financial statements. • Prospective application is required for new disclosure requirements. • Retrospective application is required for all other amendments for all periods presented. • Required effective date: January 1, 2020. Early adoption is permitted. The Company does not intend to adopt this guidance prior to the required effective date. • Adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of securities held | The following table presents the major components of securities at amortized cost and fair value: September 30, 2019 December 31, 2018 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury and other $120 $— $— $120 $24 $— $— $24 State and political subdivisions 5 — — 5 5 — — 5 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 20,434 166 (80 ) 20,520 20,211 28 (605 ) 19,634 Other/non-agency 827 34 (4 ) 857 236 3 (7 ) 232 Total mortgage-backed securities, at fair value 21,261 200 (84 ) 21,377 20,447 31 (612 ) 19,866 Total debt securities available for sale, at fair value $21,386 $200 ($84 ) $21,502 $20,476 $31 ($612 ) $19,895 Federal agencies and U.S. government sponsored entities $3,319 $48 ($5 ) $3,362 $3,425 $— ($132 ) $3,293 Other/non-agency — — — — 740 8 — 748 Total mortgage-backed securities, at cost 3,319 48 (5 ) 3,362 4,165 8 (132 ) 4,041 Total debt securities held to maturity $3,319 $48 ($5 ) $3,362 $4,165 $8 ($132 ) $4,041 Money market mutual fund investments $47 $— $— $47 $181 $— $— $181 Total equity securities, at fair value $47 $— $— $47 $181 $— $— $181 Federal Reserve Bank stock $577 $— $— $577 $463 $— $— $463 Federal Home Loan Bank stock 149 — — 149 364 — — 364 Other equity securities 8 — — 8 7 — — 7 Total equity securities, at cost $734 $— $— $734 $834 $— $— $834 |
Schedule of investments classified by maturity date | The amortized cost and fair value of debt securities by contractual maturity as of September 30, 2019 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without incurring penalties. September 30, 2019 Distribution of Maturities (in millions) 1 Year or Less 1-5 Years 5-10 Years After 10 Years Total Amortized cost: U.S. Treasury and other $120 $— $— $— $120 State and political subdivisions — — — 5 5 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — 193 1,683 18,558 20,434 Other/non-agency 4 2 — 821 827 Total debt securities available for sale 124 195 1,683 19,384 21,386 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 3,319 3,319 Total debt securities held to maturity — — — 3,319 3,319 Total amortized cost of debt securities $124 $195 $1,683 $22,703 $24,705 Fair value: U.S. Treasury and other $120 $— $— $— $120 State and political subdivisions — — — 5 5 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — 193 1,707 18,620 20,520 Other/non-agency 4 2 — 851 857 Total debt securities available for sale 124 195 1,707 19,476 21,502 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 3,362 3,362 Total debt securities held to maturity — — — 3,362 3,362 Total fair value of debt securities $124 $195 $1,707 $22,838 $24,864 |
Schedule of income recognized on investment securities | Realized gains and losses on securities are presented below: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Gains on sale of debt securities (1) $5 $3 $21 $13 Losses on sale of debt securities — — — — Debt securities gains, net $5 $3 $21 $13 (1) For the three and nine months ended September 30, 2019 , $2 million and $6 million of gains on sale of debt securities were recognized in mortgage banking fees in the Consolidated Statement of Operations, respectively, as they related to AFS securities held as economic hedges of the value of the MSR portfolio recognized using the amortization method. |
Schedule of financial instruments owned and pledged as collateral | The amortized cost and fair value of debt securities pledged are presented below: September 30, 2019 December 31, 2018 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against repurchase agreements $265 $268 $344 $338 Pledged against FHLB borrowed funds 670 701 745 752 Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law 3,281 3,282 3,592 3,460 |
Schedule of unrealized loss on investments | The following tables present mortgage-backed debt securities whose fair values are below carrying values, separated by the duration the securities have been in a continuous unrealized loss position: September 30, 2019 Less than 12 Months 12 Months or Longer Total (dollars in millions) Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Federal agencies and U.S. government sponsored entities 156 $3,180 ($16 ) 175 $4,907 ($69 ) 331 $8,087 ($85 ) Other/non-agency — — — 5 32 (4 ) 5 32 (4 ) Total 156 $3,180 ($16 ) 180 $4,939 ($73 ) 336 $8,119 ($89 ) December 31, 2018 Less than 12 Months 12 Months or Longer Total (dollars in millions) Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Federal agencies and U.S. government sponsored entities 166 $4,881 ($89 ) 429 $15,124 ($648 ) 595 $20,005 ($737 ) Other/non-agency 10 139 (1 ) 11 72 (6 ) 21 211 (7 ) Total 176 $5,020 ($90 ) 440 $15,196 ($654 ) 616 $20,216 ($744 ) |
Schedule of credit losses recognized in earnings | The following table presents the cumulative credit-related losses recognized in earnings on the Company’s debt securities: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Cumulative balance at beginning of period $57 $81 $81 $80 Credit impairments recognized in earnings on debt securities that have been previously impaired 1 1 2 3 Reductions due to increases in cash flow expectations on impaired debt securities (1) — (1 ) — (2 ) Reductions for securities sold or matured during the period (1 ) — (26 ) — Cumulative balance at end of period $57 $81 $57 $81 (1) Reported in interest income from investment securities on the Consolidated Statements of Operations. |
LOANS AND LEASES (Tables)
LOANS AND LEASES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of loans and leases | The Company’s loans and leases are disclosed in portfolio segments and classes as reflected below. (in millions) September 30, 2019 December 31, 2018 Commercial (1) $41,356 $40,857 Commercial real estate 12,820 13,023 Leases 2,557 2,903 Total commercial loans and leases 56,733 56,783 Residential mortgages 19,699 18,978 Home equity loans 876 1,073 Home equity lines of credit 12,148 12,710 Home equity loans serviced by others 318 399 Home equity lines of credit serviced by others 81 104 Automobile 12,070 12,106 Education 9,729 8,900 Credit cards 2,133 1,991 Other retail 4,093 3,616 Total retail loans (2) 61,147 59,877 Total loans and leases (3) $117,880 $116,660 (1) SBA loans we service for others of $27 million are not included above. These loans represent the government guaranteed portion of SBA loans sold to outside investors as of September 30, 2019 . There were no SBA loans serviced for others as of December 31, 2018 . (2) Mortgage loans we service for others of $74.6 billion and $69.6 billion at September 30, 2019 and December 31, 2018 , respectively, are not included above. (3) LHFS totaling $2.0 billion and $1.3 billion at September 30, 2019 and December 31, 2018, respectively, are not included above. The following table shows the composition of LHFS. September 30, 2019 December 31, 2018 (in millions) Residential Mortgages (1) Commercial (2) Total Residential Mortgages (1) Commercial (2) Total Loans held for sale at fair value $1,824 $169 $1,993 $967 $252 $1,219 Other loans held for sale — 22 22 — 101 101 (1) Originated for sale. (2) LHFS at fair value consist of loans managed by the Company’s commercial secondary loan desk. Other LHFS generally consist of commercial loans associated with the Company’s syndication business. |
Components of net investments in direct finance leases | The components of the net investment in direct finance leases, before ALLL, are presented below: (in millions) September 30, 2019 Total future minimum lease rentals $1,670 Estimated residual value of leased equipment (non-guaranteed) 1,072 Initial direct costs 10 Unearned income (232 ) Total leases $2,520 |
Maturity analysis of direct financing lease receivables | A maturity analysis of direct financing lease receivables at September 30, 2019 is presented below: (in millions) 2019 $123 2020 460 2021 343 2022 265 2023 188 Thereafter 291 Total undiscounted future minimum lease rentals $1,670 |
ALLOWANCE FOR CREDIT LOSSES, _2
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of changes in the allowance for credit losses | A summary of changes in the ACL is presented below: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 (in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $680 $547 $1,227 $690 $552 $1,242 Charge-offs (35 ) (124 ) (159 ) (106 ) (347 ) (453 ) Recoveries 3 43 46 17 128 145 Net charge-offs (32 ) (81 ) (113 ) (89 ) (219 ) (308 ) Provision charged to income 64 85 149 111 218 329 Allowance for loan and lease losses, end of period 712 551 1,263 712 551 1,263 Reserve for unfunded lending commitments, beginning of period 93 — 93 91 — 91 Provision for unfunded lending commitments (48 ) — (48 ) (46 ) — (46 ) Reserve for unfunded lending commitments, end of period 45 — 45 45 — 45 Total allowance for credit losses, end of period $757 $551 $1,308 $757 $551 $1,308 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $715 $538 $1,253 $685 $551 $1,236 Charge-offs (18 ) (109 ) (127 ) (35 ) (328 ) (363 ) Recoveries 2 39 41 10 121 131 Net charge-offs (16 ) (70 ) (86 ) (25 ) (207 ) (232 ) Provision charged to income 8 67 75 47 191 238 Allowance for loan and lease losses, end of period 707 535 1,242 707 535 1,242 Reserve for unfunded lending commitments, beginning of period 88 — 88 88 — 88 Provision for unfunded lending commitments 3 — 3 3 — 3 Reserve for unfunded lending commitments, end of period 91 — 91 91 — 91 Total allowance for credit losses, end of period $798 $535 $1,333 $798 $535 $1,333 |
Schedule of loans and leases based on evaluation method | The recorded investment in loans and leases based on the Company’s evaluation methodology is presented below: September 30, 2019 December 31, 2018 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $387 $675 $1,062 $391 $723 $1,114 Formula-based evaluation 56,346 60,472 116,818 56,392 59,154 115,546 Total loans and leases $56,733 $61,147 $117,880 $56,783 $59,877 $116,660 |
Schedule of allowance for credit losses by evaluation method | A summary of the ACL by evaluation methodology is presented below: September 30, 2019 December 31, 2018 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $74 $25 $99 $38 $26 $64 Formula-based evaluation 683 526 1,209 743 526 1,269 Allowance for credit losses $757 $551 $1,308 $781 $552 $1,333 |
Schedule of classes of commercial loans and leases based on regulatory classifications | The recorded investment in commercial loans and leases based on regulatory classification ratings is presented below: September 30, 2019 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $38,997 $1,369 $761 $229 $41,356 Commercial real estate 12,437 297 36 50 12,820 Leases 2,466 39 49 3 2,557 Total commercial loans and leases $53,900 $1,705 $846 $282 $56,733 December 31, 2018 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $38,600 $1,231 $828 $198 $40,857 Commercial real estate 12,523 412 82 6 13,023 Leases 2,823 39 41 — 2,903 Total commercial loans and leases $53,946 $1,682 $951 $204 $56,783 |
Schedule of retail loan investments categorized by delinquency status | The recorded investment in classes of retail loans, categorized by delinquency status is presented below: September 30, 2019 Days Past Due (in millions) Current 1-29 30-59 60-89 90 or More Total Residential mortgages $19,375 $129 $28 $78 $89 $19,699 Home equity loans 772 62 10 25 7 876 Home equity lines of credit 11,593 331 52 27 145 12,148 Home equity loans serviced by others 275 23 5 3 12 318 Home equity lines of credit serviced by others 56 11 2 1 11 81 Automobile 10,849 932 194 71 24 12,070 Education 9,513 162 27 16 11 9,729 Credit cards 2,028 53 20 11 21 2,133 Other retail 3,942 80 30 21 20 4,093 Total retail loans $58,403 $1,783 $368 $253 $340 $61,147 December 31, 2018 Days Past Due (in millions) Current 1-29 30-59 60-89 90 or More Total Residential mortgages $18,664 $131 $37 $13 $133 $18,978 Home equity loans 945 75 12 3 38 1,073 Home equity lines of credit 12,042 386 65 22 195 12,710 Home equity loans serviced by others 355 21 7 3 13 399 Home equity lines of credit serviced by others 79 15 2 1 7 104 Automobile 10,729 1,039 207 59 72 12,106 Education 8,694 159 23 13 11 8,900 Credit cards 1,894 53 14 10 20 1,991 Other retail 3,481 76 26 18 15 3,616 Total retail loans $56,883 $1,955 $393 $142 $504 $59,877 |
Schedule of nonperforming loans and leases by class | The following table presents nonperforming loans and leases and loans accruing and 90 days or more past due: Nonperforming Accruing and 90 days or more past due (in millions) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Commercial $228 $194 $1 $1 Commercial real estate 49 7 — — Leases 4 — 1 — Total commercial loans and leases 281 201 2 1 Residential mortgages (1)(2) 147 136 15 15 Home equity loans 36 50 — — Home equity lines of credit 184 231 — — Home equity loans serviced by others 14 17 — — Home equity lines of credit serviced by others 13 15 — — Automobile 69 81 — — Education 17 38 3 2 Credit card 21 20 — — Other retail 11 8 10 7 Total retail loans 512 596 28 24 Total $793 $797 $30 $25 (1) Nonperforming balances exclude first lien residential mortgage loans which are accruing and 90 days or more past due that are 100% guaranteed by the Federal Housing Administration. These loans totaled $12 million as of September 30, 2019 and December 31, 2018 . (2) Nonperforming balances exclude guaranteed residential mortgage loans sold to GNMA for which the Company has the right, but not the obligation, to repurchase. These loans totaled $195 million and $133 million as of September 30, 2019 and December 31, 2018 , respectively, and are included in the Company’s Consolidated Balance Sheets. |
Summary of key performance indicators | A summary of nonperforming loan and lease key performance indicators is presented below: September 30, 2019 December 31, 2018 Nonperforming commercial loans and leases as a percentage of total loans and leases 0.24 % 0.17 % Nonperforming retail loans as a percentage of total loans and leases 0.43 0.51 Nonperforming loans and leases as a percentage of total loans and leases 0.67 % 0.68 % Nonperforming commercial assets as a percentage of total assets 0.17 % 0.13 % Nonperforming retail assets as a percentage of total assets 0.34 0.39 Nonperforming assets as a percentage of total assets 0.51 % 0.52 % |
Analysis of age of past due amounts | The aging of both accruing and nonaccruing loan and lease past due amounts is presented below: September 30, 2019 December 31, 2018 Days Past Due Days Past Due (in millions) 30-59 60-89 90 or More Total 30-59 60-89 90 or More Total Commercial $17 $4 $76 $97 $85 $3 $78 $166 Commercial real estate 7 16 1 24 8 32 5 45 Leases — — 1 1 7 — — 7 Total commercial loans and leases 24 20 78 122 100 35 83 218 Residential mortgages 28 78 89 195 37 13 133 183 Home equity loans 10 25 7 42 12 3 38 53 Home equity lines of credit 52 27 145 224 65 22 195 282 Home equity loans serviced by others 5 3 12 20 7 3 13 23 Home equity lines of credit serviced by others 2 1 11 14 2 1 7 10 Automobile 194 71 24 289 207 59 72 338 Education 27 16 11 54 23 13 11 47 Credit cards 20 11 21 52 14 10 20 44 Other retail 30 21 20 71 26 18 15 59 Total retail loans 368 253 340 961 393 142 504 1,039 Total $392 $273 $418 $1,083 $493 $177 $587 $1,257 |
Schedule of impaired loans by class | A summary of impaired loans by class is presented below: September 30, 2019 (in millions) Impaired Loans With a Related Allowance Allowance on Impaired Loans Impaired Loans Without a Related Allowance Unpaid Contractual Balance Total Recorded Investment in Impaired Loans Commercial $194 $62 $127 $376 $321 Commercial real estate 47 12 19 76 66 Total commercial loans 241 74 146 452 387 Residential mortgages 25 2 122 191 147 Home equity loans 23 1 69 126 92 Home equity lines of credit 26 2 176 243 202 Home equity loans serviced by others 18 1 16 44 34 Home equity lines of credit serviced by others 1 — 6 10 7 Automobile 1 — 20 30 21 Education 117 9 22 139 139 Credit cards 27 9 1 29 28 Other retail 3 1 2 7 5 Total retail loans 241 25 434 819 675 Total $482 $99 $580 $1,271 $1,062 December 31, 2018 (in millions) Impaired Loans With a Related Allowance Allowance on Impaired Loans Impaired Loans Without a Related Allowance Unpaid Contractual Balance Total Recorded Investment in Impaired Loans Commercial $186 $31 $167 $450 $353 Commercial real estate 32 7 6 38 38 Total commercial loans 218 38 173 488 391 Residential mortgages 28 2 127 201 155 Home equity loans 34 3 76 148 110 Home equity lines of credit 21 1 181 244 202 Home equity loans serviced by others 22 1 19 54 41 Home equity lines of credit serviced by others 1 — 7 11 8 Automobile 1 — 22 31 23 Education 130 11 23 153 153 Credit cards 24 7 1 25 25 Other retail 4 1 2 8 6 Total retail loans 265 26 458 875 723 Total $483 $64 $631 $1,363 $1,114 |
Schedule of additional information on impaired loans | Additional information on impaired loans is presented below: Three Months Ended September 30, 2019 2018 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $2 $293 $3 $334 Commercial real estate — 35 — 34 Total commercial loans 2 328 3 368 Residential mortgages 1 145 1 154 Home equity loans 1 94 1 107 Home equity lines of credit 2 199 2 202 Home equity loans serviced by others 1 34 1 43 Home equity lines of credit serviced by others — 7 — 9 Automobile 1 21 — 23 Education 2 141 3 160 Credit cards — 26 — 24 Other retail — 5 — 7 Total retail loans 8 672 8 729 Total $10 $1,000 $11 $1,097 Nine Months Ended September 30, 2019 2018 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $7 $300 $7 $318 Commercial real estate 1 30 — 33 Total commercial loans 8 330 7 351 Residential mortgages 4 128 4 148 Home equity loans 4 86 4 107 Home equity lines of credit 6 173 6 189 Home equity loans serviced by others 2 31 2 44 Home equity lines of credit serviced by others — 6 — 9 Automobile 1 18 — 21 Education 6 128 7 159 Credit cards 1 21 1 22 Other retail — 5 — 7 Total retail loans 24 596 24 706 Total $32 $926 $31 $1,057 |
Troubled debt restructurings on financing receivables | The table below summarizes TDRs by class and total unfunded commitments: (in millions) September 30, 2019 December 31, 2018 Commercial $235 $304 Retail 675 723 Unfunded commitments related to TDRs 35 30 The table below summarizes how loans were modified during the three months and nine months ended September 30, 2019 and 2018 . The reported balances represent the post-modification outstanding recorded investment and can include loans that became TDRs during the period and were paid off in full, charged off, or sold prior to period end. Pre-modification balances for modified loans approximate the post-modification balances shown. Three Months Ended September 30, 2019 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Commercial 2 $— 6 $1 6 $15 Commercial real estate — — — — — — Total commercial loans 2 — 6 1 6 15 Residential mortgages 12 2 8 2 25 4 Home equity loans 11 — — — 19 1 Home equity lines of credit 51 6 16 1 95 5 Home equity loans serviced by others 1 — — — 4 — Home equity lines of credit serviced by others — — — — 2 — Automobile 46 1 4 — 309 4 Education — — — — 131 2 Credit cards 805 5 — — 163 — Other retail — — — — 55 — Total retail loans 926 14 28 3 803 16 Total 928 $14 34 $4 809 $31 Three Months Ended September 30, 2018 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Commercial 1 $— 13 $1 1 $— Commercial real estate — — — — — — Total commercial loans 1 — 13 1 1 — Residential mortgages 9 1 17 2 31 3 Home equity loans 10 1 — — 40 2 Home equity lines of credit 27 3 58 10 104 7 Home equity loans serviced by others 2 — — — 5 1 Home equity lines of credit serviced by others 1 — — — 8 — Automobile 45 — 9 — 315 4 Education — — — — 45 1 Credit cards 623 4 — — — — Other retail — — — — — — Total retail loans 717 9 84 12 548 18 Total 718 $9 97 $13 549 $18 Nine Months Ended September 30, 2019 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Commercial 3 $— 18 $2 24 $102 Commercial real estate — — 1 — — — Total commercial loans 3 — 19 2 24 102 Residential mortgages 25 6 29 5 87 13 Home equity loans 24 1 — — 64 3 Home equity lines of credit 123 14 66 10 277 17 Home equity loans serviced by others 1 — — — 11 1 Home equity lines of credit serviced by others — — — — 6 — Automobile 111 2 16 — 933 13 Education — — — — 211 5 Credit cards 2,362 14 — — 304 — Other retail — — — — 58 — Total retail loans 2,646 37 111 15 1,951 52 Total 2,649 $37 130 $17 1,975 $154 Nine Months Ended September 30, 2018 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Commercial 6 $1 23 $2 40 $156 Commercial real estate — — 1 — 2 31 Total commercial loans 6 1 24 2 42 187 Residential mortgages 32 4 47 6 117 14 Home equity loans 32 3 1 — 106 5 Home equity lines of credit 55 5 147 21 310 21 Home equity loans serviced by others 3 — — — 20 1 Home equity lines of credit serviced by others 5 — 1 — 13 — Automobile 122 2 42 1 893 13 Education — — — — 296 5 Credit cards 1,776 10 — — — — Other retail 1 — — — 4 — Total retail loans 2,026 24 238 28 1,759 59 Total 2,032 $25 262 $30 1,801 $246 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, and capitalizing arrearages. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. |
Schedule of loans that may increase credit exposure | The following tables present balances of loans with these characteristics: September 30, 2019 (in millions) Residential Mortgages Home Equity Loans and Lines of Credit Home Equity Products Serviced by Others Credit Cards Total High loan-to-value $421 $68 $107 $— $596 Interest-only/negative amortization 1,862 — — — 1,862 Low introductory rate — — — 224 224 Multiple characteristics and other 3 — — — 3 Total $2,286 $68 $107 $224 $2,685 December 31, 2018 (in millions) Residential Mortgages Home Equity Loans and Lines of Credit Home Equity Products Serviced by Others Credit Cards Education Total High loan-to-value $318 $87 $148 $— $— $553 Interest-only/negative amortization 1,794 — — — 1 1,795 Low introductory rate — — — 217 — 217 Multiple characteristics and other 1 — — — — 1 Total $2,113 $87 $148 $217 $1 $2,566 |
MORTGAGE BANKING (Tables)
MORTGAGE BANKING (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Mortgage Banking [Abstract] | |
Schedule of mortgage banking activities | The following table summarizes activity related to residential mortgage loans sold with servicing rights retained: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Residential mortgage loans sold with servicing retained $6,117 $1,848 $13,265 $3,173 Gain on sales (1) 88 29 180 59 Contractually specified servicing, late and other ancillary fees (1) 53 38 152 69 (1) Reported in mortgage banking fees on the Consolidated Statements of Operations. |
Schedule of valuation allowance for impairment of recognized servicing assets | The following table summarizes changes in MSRs recorded using the amortization method: As of and for the Three Months Ended September 30, As of and for the Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Mortgage servicing rights: Balance as of beginning of period $203 $217 $221 $201 Amount capitalized — 11 — 26 Purchases — — — 16 Amortization (11 ) (9 ) (29 ) (24 ) Carrying amount before valuation allowance 192 219 192 219 Valuation allowance for servicing assets: Balance as of beginning of period 14 — — 3 Valuation charge-offs (recoveries) 1 — 15 (3 ) Balance at end of period 15 — 15 — Net carrying value of MSRs $177 $219 $177 $219 |
Servicing asset at amortized cost | The following table summarizes changes in MSRs recorded using the amortization method: As of and for the Three Months Ended September 30, As of and for the Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Mortgage servicing rights: Balance as of beginning of period $203 $217 $221 $201 Amount capitalized — 11 — 26 Purchases — — — 16 Amortization (11 ) (9 ) (29 ) (24 ) Carrying amount before valuation allowance 192 219 192 219 Valuation allowance for servicing assets: Balance as of beginning of period 14 — — 3 Valuation charge-offs (recoveries) 1 — 15 (3 ) Balance at end of period 15 — 15 — Net carrying value of MSRs $177 $219 $177 $219 |
Servicing asset at fair value | The following table summarizes changes in MSRs recorded using the fair value method: As of and for the Three Months Ended September 30, As of and for the Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Fair value as of beginning of the period $531 $— $600 $— Acquired MSRs — 590 — 590 Amounts capitalized 78 29 170 29 Changes in unpaid principal balance during the period (1) (31 ) (12 ) (88 ) (12 ) Changes in fair value during the period (2) (68 ) 5 (172 ) 5 Fair value at end of the period $510 $612 $510 $612 (1) Represents changes in value due to i) passage of time including the impact from both regularly scheduled loan principal payments and partial paydowns, and ii) loans that paid off during the period. (2) Represents changes in value primarily due to market driven changes in interest rates and prepayment speeds. |
Schedule of fair value assumptions used to estimate the value of Mortgage Servicing Rights | For MSRs under the amortization method, key economic assumptions used to estimate the fair value are presented below: September 30, 2019 December 31, 2018 Actual Decline in fair value due to Actual Decline in fair value due to (dollars in millions) Fair value $178 50 bps adverse change 100 bps adverse change $243 50 bps adverse change 100 bps adverse change Weighted average life (in years) 5.6 6.5 Weighted average constant prepayment rate 11.6% $25 $45 8.5% $24 $56 Weighted average discount rate 9.3% 3 6 9.3% 5 9 For MSRs under the fair value method, key economic assumptions used to estimate the fair value are presented below: September 30, 2019 December 31, 2018 Actual Decline in fair value due to Actual Decline in fair value due to (dollars in millions) Fair value $510 50 bps adverse change 100 bps adverse change $600 50 bps adverse change 100 bps adverse change Weighted average life (in years) 4.8 8.0 Weighted average constant prepayment rate 17.6% $133 $263 8.2% $68 $148 Weighted average option adjusted spread 325 bps 9 19 609 bps 13 26 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of operating lease cost | The components of operating lease cost are presented below: (in millions) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $42 $123 Short-term lease cost 2 8 Variable lease cost 2 6 Sublease income (1 ) (3 ) Total $45 $134 Supplemental information related to the Company’s operating lease arrangements is presented below: (in millions) Nine Months Ended September 30, 2019 Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $122 Right-of-use assets in exchange for new operating lease liabilities 91 |
Supplemental consolidated balance sheet information | Supplemental Consolidated Balance Sheet information related to the Company’s operating lease arrangements is presented below: (in millions) September 30, 2019 Affected Line Item in Consolidated Balance Sheets Operating lease right-of-use assets $712 Other assets Operating lease liabilities 733 Other liabilities |
Lease liability maturity schedule | At September 30, 2019 , lease liabilities maturing under non-cancelable operating leases are presented below for the years ended December 31: (in millions) Operating Leases 2019 $29 2020 162 2021 146 2022 121 2023 96 Thereafter 269 Total lease payments 823 Less: Interest 90 Present value of lease liabilities $733 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of variable interest entities | A summary of these investments is presented below: (in millions) September 30, 2019 December 31, 2018 LIHTC investment included in other assets $1,324 $1,236 LIHTC unfunded commitments included in other liabilities 664 673 Lending to special purpose entities included in loans and leases 1,058 613 Renewable energy investments included in other assets 308 319 |
Schedule of Affordable Housing Tax Credit investments | The following table presents information related to the Company’s affordable housing tax credit investments: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Tax credits included in income tax expense $30 $28 $99 $79 Amortization expense included in income tax expense 33 31 105 86 Other tax benefits included in income tax expense 8 7 24 19 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of short-term borrowed funds | A summary of the Company’s short-term borrowed funds is presented below: (in millions) September 30, 2019 December 31, 2018 Federal funds purchased $600 $820 Securities sold under agreements to repurchase 267 336 Other short-term borrowed funds 210 161 Total short-term borrowed funds $1,077 $1,317 Key data related to short-term borrowed funds is presented below: As of and for the Three Months Ended September 30, As of and for the Nine Months Ended September 30, As of and for the Year Ended December 31, (dollars in millions) 2019 2018 2019 2018 2018 Weighted-average interest rate at period-end: (1) Federal funds purchased and securities sold under agreements to repurchase 1.47 % — % 1.47 % — % 1.72 % Other short-term borrowed funds 2.15 2.43 2.15 2.43 2.73 Maximum amount outstanding at any month-end during the period: Federal funds purchased and securities sold under agreements to repurchase (2) $867 $382 $1,499 $1,045 $1,282 Other short-term borrowed funds 338 1,010 511 1,110 1,110 Average amount outstanding during the period: Federal funds purchased and securities sold under agreements to repurchase (2) $487 $643 $648 $598 $654 Other short-term borrowed funds 113 748 72 509 467 Weighted-average interest rate during the period: (1) Federal funds purchased and securities sold under agreements to repurchase 1.19 % 0.91 % 1.45 % 0.76 % 0.92 % Other short-term borrowed funds 2.46 2.27 2.58 2.00 2.10 (1) Rates exclude certain hedging costs. (2) Balances are net of certain short-term receivables associated with reverse repurchase agreements, as applicable. |
Schedule of long-term borrowed funds | A summary of the Company’s long-term borrowed funds is presented below: (in millions) September 30, 2019 December 31, 2018 Parent Company: 2.375% fixed-rate senior unsecured debt, due July 2021 $349 $349 4.150% fixed-rate subordinated debt, due September 2022 348 348 3.750% fixed-rate subordinated debt, due July 2024 250 250 4.023% fixed-rate subordinated debt, due October 2024 42 42 4.350% fixed-rate subordinated debt, due August 2025 249 249 4.300% fixed-rate subordinated debt, due December 2025 750 749 2.850% fixed-rate senior unsecured notes, due July 2026 496 — Banking and Other Subsidiaries: 2.500% senior unsecured notes, due March 2019 (1) — 748 2.450% senior unsecured notes, due December 2019 (1) 749 744 2.250% senior unsecured notes, due March 2020 (1) 699 691 2.678% floating-rate senior unsecured notes, due March 2020 (1) (2) 300 300 2.714% floating-rate senior unsecured notes, due May 2020 (1) (2) 250 250 2.200% senior unsecured notes, due May 2020 (1) 500 499 2.250% senior unsecured notes, due October 2020 (1) 749 738 2.550% senior unsecured notes, due May 2021 (1) 990 964 3.250% senior unsecured notes, due February 2022 (1) 713 — 2.895% floating-rate senior unsecured notes, due February 2022 (1) (2) 299 — 2.954% floating-rate senior unsecured notes, due May 2022 (1) (2) 250 249 2.650% senior unsecured notes, due May 2022 (1) 502 487 3.700% senior unsecured notes, due March 2023 (1) 518 502 3.054% floating-rate senior unsecured notes, due March 2023 (1) (2) 250 249 3.750% senior unsecured notes, due February 2026 (1) 529 — Federal Home Loan Bank advances, 2.425% weighted average rate, due through 2038 3,007 7,508 Other 17 9 Total long-term borrowed funds $12,806 $15,925 (1) Issued under CBNA’s Global Bank Note Program. (2) Rate disclosed reflects the floating rate as of September 30, 2019 . |
Schedule of maturities of long-term borrowed funds | A summary of maturities for the Company’s long-term borrowed funds at September 30, 2019 is presented below: (in millions) Parent Company Banking and Other Subsidiaries Consolidated Year 2019 $— $749 $749 2020 — 3,201 3,201 2021 349 3,295 3,644 2022 348 1,771 2,119 2023 — 769 769 2024 and thereafter 1,787 537 2,324 Total $2,484 $10,322 $12,806 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments in consolidated balance sheets | The following table presents derivative instruments included on the Consolidated Balance Sheets in derivative assets and derivative liabilities: September 30, 2019 December 31, 2018 (in millions) Notional Amount (1) Derivative Assets Derivative Liabilities Notional Amount (1) Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate contracts $31,596 $— $3 $12,050 $5 $— Derivatives not designated as hedging instruments: Interest rate contracts 140,652 993 172 117,076 301 277 Foreign exchange contracts 12,905 224 195 9,866 129 113 Other contracts 9,382 49 24 3,555 14 25 Total derivatives not designated as hedging instruments 1,266 391 444 415 Gross derivative fair values 1,266 394 449 415 Less: Gross amounts offset in the Consolidated Balance Sheets (2) (122 ) (122 ) (87 ) (87 ) Less: Cash collateral applied (2) (117 ) (111 ) (45 ) (36 ) Total net derivative fair values presented in the Consolidated Balance Sheets $1,027 $161 $317 $292 (1) The notional or contractual amount of interest rate derivatives and foreign exchange contracts is the amount upon which interest and other payments under the contract are based. For interest rate contracts, the notional amount is typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they do not measure the true economic risk of these contracts. (2) Amounts represent the impact of enforceable master netting agreements that allow the Company to net settle positive and negative positions. |
Schedule of fair value hedges | The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Consolidated Statements of Operations: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Affected Line Item in the Consolidated Statements of Operations Change in fair value of interest rate swaps hedging borrowed funds $18 ($6 ) $122 ($32 ) Interest expense - borrowed funds Change in fair value of hedged long-term debt attributable to the risk being hedged (18 ) 7 (121 ) 31 Interest expense - borrowed funds Change in fair value of interest rate swaps hedging fixed rate loans (10 ) — (26 ) — Interest and fees on loans and leases Change in fair value of hedged fixed rate loans attributable to the risk being hedged 10 — 26 — Interest and fees on loans and leases Change in fair value of interest rate swaps hedging debt securities available for sale (13 ) — (13 ) — Interest income - investment securities Change in fair value of hedged debt securities available for sale attributable to risk being hedged 13 — 13 — Interest income - investment securities The following table reflects amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges: September 30, 2019 (in millions) Debt securities available for sale (2) Residential mortgages Long-term borrowed funds Carrying amount of the hedged assets $19,872 $985 $— Carrying amount of the hedged liabilities (1) — — 5,450 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items 13 26 62 (1) The balance reported for long-term borrowed funds includes ($1) million of cumulative hedging adjustments recorded on discontinued fair value hedging relationships. (2) The Company designated $2.0 billion as the hedged amount (from a closed portfolio of prepayable financial assets with a carrying value of $20 billion as of September 30, 2019) in a last-of-layer hedging relationship, which commenced in the third quarter of 2019. |
Schedule of effect of cash flow hedges on net income and stockholders' equity | The following table presents the pre-tax net gains (losses) recorded in the Consolidated Statements of Operations and in the Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 (1) 2019 2018 (1) Amount of pre-tax net (losses) gains recognized in OCI ($5 ) ($35 ) $138 ($122 ) Amount of pre-tax net losses reclassified from OCI into interest income (22 ) (17 ) (62 ) (36 ) Amount of pre-tax net gains reclassified from OCI into interest expense 8 3 9 11 (1) For the three and nine months ended September 30, 2018 , the amount of pre-tax net gains (losses) recognized in OCI represented the effective portion of the cumulative gains or losses on cash flow hedges and ineffectiveness was reported within noninterest income. |
Schedule of effect of derivative Instruments on net income | The following table presents the effect of economic hedges on noninterest income: Amounts Recognized in Noninterest Income for the Three Months Ended September 30, Nine Months Ended September 30, Affected Line Item in the Consolidated Statements of Operations (in millions) 2019 2018 2019 2018 Economic hedge type: Customer interest rate contracts $196 ($84 ) $850 ($363 ) Foreign exchange and interest rate products Customer foreign exchange contracts (81 ) 30 (162 ) (27 ) Foreign exchange and interest rate products Derivatives transactions to hedge interest rate risk (182 ) 97 (809 ) 403 Foreign exchange and interest rate products Derivatives transactions to hedge foreign exchange risk 130 24 224 99 Foreign exchange and interest rate products Residential loan commitments 6 6 22 6 Mortgage banking fees Forward sale contracts 29 (13 ) 24 (15 ) Mortgage banking fees Interest rate derivative contracts used to hedge residential MSRs 92 (3 ) 208 (3 ) Mortgage banking fees Total $190 $57 $357 $100 |
RECLASSIFICATIONS OUT OF ACCU_2
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of other comprehensive income | The following tables present the changes in the balances, net of income taxes, of each component of AOCI: As of and for the Three Months Ended September 30, (in millions) Net Unrealized (Losses) Gains on Derivatives Net Unrealized (Losses) Gains on Debt Securities Employee Benefit Plans Total AOCI Balance at July 1, 2018 ($200 ) ($575 ) ($435 ) ($1,210 ) Other comprehensive loss before reclassifications (26 ) (95 ) — (121 ) Other-than-temporary impairment not recognized in earnings on debt securities — — — — Amounts reclassified to the Consolidated Statements of Operations 11 (2 ) 4 13 Net other comprehensive (loss) income (15 ) (97 ) 4 (108 ) Balance at September 30, 2018 ($215 ) ($672 ) ($431 ) ($1,318 ) Balance at July 1, 2019 ($6 ) ($25 ) ($457 ) ($488 ) Other comprehensive (loss) income before reclassifications (4 ) 42 — 38 Other-than-temporary impairment not recognized in earnings on debt securities — (1 ) — (1 ) Amounts reclassified to the Consolidated Statements of Operations 10 (2 ) 3 11 Net other comprehensive income 6 39 3 48 Balance at September 30, 2019 $— $14 ($454 ) ($440 ) As of and for the Nine Months Ended September 30, (in millions) Net Unrealized (Losses) Gains on Derivatives Net Unrealized (Losses) Gains on Debt Securities Employee Benefit Plans Total AOCI Balance at January 1, 2018 ($143 ) ($236 ) ($441 ) ($820 ) Other comprehensive loss before reclassifications (91 ) (427 ) — (518 ) Other-than-temporary impairment not recognized in earnings on debt securities — (1 ) — (1 ) Amounts reclassified to the Consolidated Statements of Operations 19 (8 ) 10 21 Net other comprehensive (loss) income (72 ) (436 ) 10 (498 ) Balance at September 30, 2018 ($215 ) ($672 ) ($431 ) ($1,318 ) Balance at January 1, 2019 ($143 ) ($490 ) ($463 ) ($1,096 ) Other comprehensive income before reclassifications 103 509 — 612 Other-than-temporary impairment not recognized in earnings on debt securities — — — — Amounts reclassified to the Consolidated Statements of Operations 40 (10 ) 9 39 Net other comprehensive income 143 499 9 651 Cumulative effect of change in accounting standards — 5 — 5 Balance at September 30, 2019 $— $14 ($454 ) ($440 ) |
Schedule of reclassification out of accumulated other comprehensive income | The following table presents the amounts reclassified out of each component of AOCI and into the Consolidated Statements of Operations: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Details about AOCI Components Affected Line Item in the Consolidated Statements of Operations Reclassification adjustment for net derivative losses included in net income: ($22 ) ($17 ) ($62 ) ($36 ) Interest income 8 3 9 11 Interest expense (14 ) (14 ) (53 ) (25 ) Income before income tax expense (4 ) (3 ) (13 ) (6 ) Income tax expense ($10 ) ($11 ) ($40 ) ($19 ) Net income Reclassification of net debt securities gains to net income: $3 $3 $15 $13 Securities gains, net (1 ) (1 ) (2 ) (3 ) Net debt securities impairment losses recognized in earnings 2 2 13 10 Income before income tax expense — — 3 2 Income tax expense $2 $2 $10 $8 Net income Reclassification of changes related to the employee benefit plan: ($5 ) ($5 ) ($14 ) ($13 ) Other operating expense (5 ) (5 ) (14 ) (13 ) Income before income tax expense (2 ) (1 ) (5 ) (3 ) Income tax expense ($3 ) ($4 ) ($9 ) ($10 ) Net income Total reclassification losses ($11 ) ($13 ) ($39 ) ($21 ) Net income The following table presents the effects on net income of the amounts reclassified out of AOCI: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Net interest income (includes ($14),($14), ($53) and ($25) of AOCI reclassifications, respectively) $1,145 $1,148 $3,471 $3,360 Provision for credit losses 101 78 283 241 Noninterest income (includes $2, $2, $13 and $10 of AOCI reclassifications, respectively) 493 416 1,383 1,175 Noninterest expense (includes $5, $5, $14 and $13 of AOCI reclassifications, respectively) 973 910 2,861 2,668 Income before income tax expense 564 576 1,710 1,626 Income tax expense (includes ($6), ($4), ($15) and ($7) income tax net expense from reclassification items, respectively) 115 133 369 370 Net income $449 $443 $1,341 $1,256 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of preferred stock | The following table summarizes the Company’s preferred stock: September 30, 2019 December 31, 2018 (in millions, except per share and share data) Liquidation value per share Preferred Shares Carrying Amount Preferred Shares Carrying Amount Authorized ($25 par value) 100,000,000 100,000,000 Issued and outstanding: Series A $1,000 250,000 $247 250,000 $247 Series B 1,000 300,000 296 300,000 296 Series C 1,000 300,000 297 300,000 297 Series D 1,000 (1) 300,000 (2) 293 — — Total 1,150,000 $1,133 850,000 $840 (1) Equivalent to $25 per depositary share. (2) Represented by 12,000,000 depositary shares each representing a 1/40th interest in the Series D Preferred Stock. The following table provides information related to the Company’s preferred stock outstanding as of September 30, 2019 : (in millions, except share data) Preferred Stock (1) Issue Date Number of Shares Outstanding Dividend Dates (2) Annual Per Share Dividend Rate Optional Redemption Date (3) Series A April 6, 2015 250,000 Semi-annually beginning October 6, 2015 until April 6, 2020 5.500% until April 6, 2020 April 6, 2020 Quarterly beginning July 6, 2020 3 Mo. LIBOR plus 3.960% beginning April 6, 2020 Series B May 24, 2018 300,000 Semi-annually beginning January 6, 2019 until July 6, 2023 6.000% until July 6, 2023 July 6, 2023 Quarterly beginning October 6, 2023 3 Mo. LIBOR plus 3.003% beginning July 6, 2023 Series C October 25, 2018 300,000 Quarterly beginning January 6, 2019 until April 6, 2024 6.375% until April 6, 2024 April 6, 2024 Quarterly beginning July 6, 2024 3 Mo. LIBOR plus 3.157% beginning April 6, 2024 Series D January 29, 2019 300,000 (4) Quarterly beginning April 6, 2019 until April 6, 2024 6.350% until April 6, 2024 April 6, 2024 Quarterly beginning July 6, 2024 3 Mo. LIBOR plus 3.642% beginning April 6, 2024 (1) All outstanding series are non-cumulative fixed-to-floating rate perpetual preferred stock. Except in limited circumstances, the preferred stock does not have voting rights. (2) Dividends are payable when, and if, declared by the Company’s Board of Directors or an authorized committee thereof. (3) Redeemable at the Company’s option, in whole or in part, on any dividend payment date on or after the date stated, or in whole but not in part, at any time within 90 days following a regulatory capital treatment event a as defined in the applicable certificate of designations, in each case at a redemption price equal to $1,000 per share (equivalent to $25 per depositary share for the Series D Preferred Stock), plus any declared and unpaid dividends, without accumulation of any undeclared dividends. Under current rules, any redemption is subject to approval by the FRB. (4) Represented by 12,000,000 depositary shares each representing a 1/40th interest in the Series D Preferred Stock. |
Schedule of dividends | The following table provides information related to dividends per share and in the aggregate, declared and paid, for each type of stock issued and outstanding: Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 (in millions, except per share data) Dividends Declared per Share Dividends Declared Dividends Paid Dividends Declared per Share Dividends Declared Dividends Paid Common stock $0.36 $162 $162 $0.27 $129 $129 Preferred stock Series A $27.50 $7 $— $27.50 $7 $— Series B — — 9 — — — Series C 15.94 5 4 — — — Series D 15.88 5 5 — — — Total preferred stock $17 $18 $7 $— Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 (in millions, except per share data) Dividends Declared per Share Dividends Declared Dividends Paid Dividends Declared per Share Dividends Declared Dividends Paid Common stock $1.00 $459 $459 $0.71 $344 $344 Preferred stock Series A $55.00 $14 $7 $55.00 $14 $7 Series B 30.00 9 20 — — — Series C 47.81 14 13 — — — Series D 43.57 13 8 — — — Total preferred stock $50 $48 $14 $7 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of outstanding off balance sheet arrangements | A summary of outstanding off-balance sheet arrangements is presented below. For more information on these arrangements, see Note 18 in the Company’s 2018 Form 10-K. (in millions) September 30, 2019 December 31, 2018 Commitments to extend credit $70,825 $69,553 Letters of credit 2,148 2,125 Marketing rights 33 37 Risk participation agreements 47 19 Loans sold with recourse 32 5 Total $73,085 $71,739 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of difference between aggregated fair value and unpaid principal balance of loans held for sale | The following table presents the changes in fair value for assets where the Company has elected the fair value option: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Affected Line Item in the Consolidated Statements of Operations Residential mortgage loans held for sale, at fair value ($4 ) ($8 ) $5 ($7 ) Mortgage banking fees Commercial and commercial real estate loans held for sale, at fair value — 1 4 1 Other income |
Assets and liabilities measured on recurring basis | The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities on a recurring basis at September 30, 2019 : (in millions) Total Level 1 Level 2 Level 3 Debt securities available for sale: Mortgage-backed securities $21,377 $— $21,377 $— State and political subdivisions 5 — 5 — U.S. Treasury and other 120 120 — — Total debt securities available for sale 21,502 120 21,382 — Loans held for sale, at fair value: Residential loans held for sale 1,824 — 1,824 — Commercial loans held for sale 169 — 169 — Total loans held for sale, at fair value 1,993 — 1,993 — Mortgage servicing rights 510 — — 510 Derivative assets: Interest rate contracts 993 — 993 — Foreign exchange contracts 224 — 224 — Other contracts 49 — 23 26 Total derivative assets 1,266 — 1,240 26 Equity securities, at fair value: Money market mutual fund investments 47 47 — — Total equity securities, at fair value 47 47 — — Total assets $25,318 $167 $24,615 $536 Derivative liabilities: Interest rate contracts $175 $— $175 $— Foreign exchange contracts 195 — 195 — Other contracts 24 — 24 — Total derivative liabilities 394 — 394 — Total liabilities $394 $— $394 $— The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities on a recurring basis at December 31, 2018 : (in millions) Total Level 1 Level 2 Level 3 Debt securities available for sale: Mortgage-backed securities $19,866 $— $19,866 $— State and political subdivisions 5 — 5 — U.S. Treasury and other 24 24 — — Total debt securities available for sale 19,895 24 19,871 — Loans held for sale, at fair value: Residential loans held for sale 967 — 967 — Commercial loans held for sale 252 — 252 — Total loans held for sale, at fair value 1,219 — 1,219 — Mortgage servicing rights 600 — — 600 Derivative assets: Interest rate contracts 306 — 306 — Foreign exchange contracts 129 — 129 — Other contracts 14 — 14 — Total derivative assets 449 — 449 — Equity securities, at fair value: Money market mutual fund investments 181 181 — — Total equity securities, at fair value 181 181 — — Total assets $22,344 $205 $21,539 $600 Derivative liabilities: Interest rate contracts $277 $— $277 $— Foreign exchange contracts 113 — 113 — Other contracts 25 — 25 — Total derivative liabilities 415 — 415 — Total liabilities $415 $— $415 $— |
Assets measured at fair value on recurring basis and classified as Level 3 | The following tables present a rollforward of the balance sheet amounts for assets measured at fair value on a recurring basis and classified as Level 3: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 (in millions) Mortgage Servicing Rights Other Derivative Contracts Mortgage Servicing Rights Other Derivative Contracts Beginning balance $531 $25 $600 $— Issuances 78 61 170 104 Settlements (1) (31 ) (64 ) (88 ) (107 ) Changes in fair value during the period recognized in earnings (2) (68 ) 4 (172 ) 11 Transfers from Level 2 to Level 3 (3) — — — 18 Ending balance $510 $26 $510 $26 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (in millions) Mortgage Servicing Rights Mortgage Servicing Rights Beginning balance $— $— Acquired MSRs 590 590 Issuances 29 29 Settlements (1) (12 ) (12 ) Change in fair value during the period recognized in earnings (2) 5 5 Ending balance $612 $612 (1) Represents changes in value of the MSRs due to i) passage of time including the impact from both regularly scheduled loan principal payments and partial paydowns, and ii) loans that paid off during the period. (2) Represents changes in value primarily driven by market conditions. These changes are recorded in mortgage banking fees in the Consolidated Statements of Operations. (3) Reflects changes in the significance of unobservable inputs on derivative contracts associated with mortgage origination activities. |
Gains (losses) on assets and liabilities measured on a nonrecurring basis included in earnings | The following table presents gains (losses) on assets and liabilities measured at fair value on a nonrecurring basis and recorded in earnings: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Impaired collateral-dependent loans ($8 ) ($3 ) ($36 ) ($9 ) MSRs (1 ) — (15 ) 3 |
Fair value of assets and liabilities measured on a nonrecurring basis | The following table presents assets and liabilities measured at fair value on a nonrecurring basis: September 30, 2019 December 31, 2018 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Impaired collateral-dependent loans $332 $— $332 $— $338 $— $338 $— MSRs 178 — — 178 243 — — 243 |
Assets and liabilities measured at fair value | The following table presents the estimated fair value for financial instruments not recorded at fair value in the unaudited interim Consolidated Financial Statements. The carrying amounts are recorded in the Consolidated Balance Sheets under the indicated captions: September 30, 2019 Total Level 1 Level 2 Level 3 (in millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial assets: Securities held to maturity $3,319 $3,362 $— $— $3,319 $3,362 $— $— Equity securities, at cost 734 734 — — 734 734 — — Other loans held for sale 22 22 — — — — 22 22 Loans and leases 117,880 118,961 — — 332 332 117,548 118,629 Financial liabilities: Deposits 124,714 124,852 — — 124,714 124,852 — — Federal funds purchased and securities sold under agreements to repurchase 867 867 — — 867 867 — — Other short-term borrowed funds 210 210 — — 210 210 — — Long-term borrowed funds 12,806 12,952 — — 12,806 12,952 — — December 31, 2018 Total Level 1 Level 2 Level 3 (in millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial assets: Securities held to maturity $4,165 $4,041 $— $— $4,165 $4,041 $— $— Equity securities, at cost 834 834 — — 834 834 — — Other loans held for sale 101 101 — — — — 101 101 Loans and leases 116,660 116,627 — — 338 338 116,322 116,289 Financial liabilities: Deposits 119,575 119,503 — — 119,575 119,503 — — Federal funds purchased and securities sold under agreements to repurchase 1,156 1,156 — — 1,156 1,156 — — Other short-term borrowed funds 161 161 — — 161 161 — — Long-term borrowed funds 15,925 15,877 — — 15,925 15,877 — — |
NONINTEREST INCOME (Tables)
NONINTEREST INCOME (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Components of revenue from contracts with customers | The following table presents the components of revenue from contracts with customers disaggregated by revenue stream and business operating segment: Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 (in millions) Consumer Banking Commercial Banking Consolidated (1) Consumer Banking Commercial Banking Consolidated (1) Service charges and fees $102 $25 $127 $105 $26 $131 Card fees 57 10 67 51 10 61 Capital markets fees — 38 38 — 46 46 Trust and investment services fees 50 — 50 45 — 45 Other banking fees 1 2 3 — 2 2 Total revenue from contracts with customers $210 $75 $285 $201 $84 $285 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 (in millions) Consumer Banking Commercial Banking Consolidated (1) Consumer Banking Commercial Banking Consolidated (1) Service charges and fees $298 $77 $375 $303 $79 $382 Card fees 162 28 190 154 28 182 Capital markets fees — 140 140 — 134 134 Trust and investment services fees 150 — 150 128 — 128 Other banking fees 1 7 8 — 7 7 Total revenue from contracts with customers $611 $252 $863 $585 $248 $833 (1) There is no revenue from contracts with customers included in Other non-segment operations. |
Details of other income | Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Bank-owned life insurance $14 $14 $41 $42 |
OTHER OPERATING EXPENSE (Tables
OTHER OPERATING EXPENSE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of other operating expense | The following table presents the details of other operating expense: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Deposit insurance $14 $29 $46 $88 Promotional expense 31 36 86 95 Settlements and operating losses 10 11 30 35 Other 72 55 193 160 Other operating expense $127 $131 $355 $378 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Three Months Ended September 30, Nine Months Ended September 30, (in millions, except share and per share data) 2019 2018 2019 2018 Numerator (basic and diluted): Net income $449 $443 $1,341 $1,256 Less: Preferred stock dividends 17 7 50 14 Net income available to common stockholders $432 $436 $1,291 $1,242 Denominator: Weighted-average common shares outstanding - basic 445,703,987 475,957,526 454,802,186 482,691,884 Dilutive common shares: share-based awards 1,430,608 1,642,391 1,416,569 1,558,959 Weighted-average common shares outstanding - diluted 447,134,595 477,599,917 456,218,755 484,250,843 Earnings per common share: Basic $0.97 $0.92 $2.84 $2.57 Diluted (1) 0.97 0.91 2.83 2.57 (1) Potential dilutive common shares are excluded from the computation of diluted EPS in the periods where the effect would be antidilutive. Excluded from the computation of diluted EPS were weighted average antidilutive shares totaling 772 and 359,952 for the three and nine months ended September 30, 2019 , respectively. There were no weighted average antidilutive shares for the three and nine months ended September 30, 2018 . |
BUSINESS OPERATING SEGMENTS (Ta
BUSINESS OPERATING SEGMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | As of and for the Three Months Ended September 30, 2019 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $799 $360 ($14 ) $1,145 Noninterest income 336 133 24 493 Total revenue 1,135 493 10 1,638 Noninterest expense 718 213 42 973 Profit (loss) before provision for credit losses 417 280 (32 ) 665 Provision for credit losses 83 27 (9 ) 101 Income (loss) before income tax expense (benefit) 334 253 (23 ) 564 Income tax expense (benefit) 83 57 (25 ) 115 Net income $251 $196 $2 $449 Total average assets $66,365 $55,614 $40,131 $162,110 As of and for the Three Months Ended September 30, 2018 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $776 $380 ($8 ) $1,148 Noninterest income 258 140 18 416 Total revenue 1,034 520 10 1,564 Noninterest expense 686 202 22 910 Profit (loss) before provision for credit losses 348 318 (12 ) 654 Provision for credit losses 71 14 (7 ) 78 Income (loss) before income tax expense (benefit) 277 304 (5 ) 576 Income tax expense (benefit) 70 70 (7 ) 133 Net income $207 $234 $2 $443 Total average assets $62,974 $52,871 $39,779 $155,624 As of and for the Nine Months Ended September 30, 2019 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $2,386 $1,103 ($18 ) $3,471 Noninterest income 860 432 91 1,383 Total revenue 3,246 1,535 73 4,854 Noninterest expense 2,133 639 89 2,861 Profit (loss) before provision for credit losses 1,113 896 (16 ) 1,993 Provision for credit losses 228 73 (18 ) 283 Income before income tax expense (benefit) 885 823 2 1,710 Income tax expense (benefit) 219 184 (34 ) 369 Net income $666 $639 $36 $1,341 Total average assets $65,624 $55,793 $39,927 $161,344 As of and for the Nine Months Ended September 30, 2018 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $2,268 $1,113 ($21 ) $3,360 Noninterest income 708 405 62 1,175 Total revenue 2,976 1,518 41 4,535 Noninterest expense 2,000 610 58 2,668 Profit (loss) before provision for credit losses 976 908 (17 ) 1,867 Provision for credit losses 209 19 13 241 Income (loss) before income tax expense (benefit) 767 889 (30 ) 1,626 Income tax expense (benefit) 193 203 (26 ) 370 Net income (loss) $574 $686 ($4 ) $1,256 Total average assets $61,857 $51,820 $39,805 $153,482 |
BASIS OF PRESENTATION Operating
BASIS OF PRESENTATION Operating Leases (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Dec. 31, 2023 | Dec. 31, 2020 | Sep. 30, 2019 | Jan. 02, 2019 | Jan. 01, 2019 |
Operating Leased Assets [Line Items] | ||||||
Cumulative effect of change in accounting standards | $ 17 | $ 5 | ||||
Operating lease right-of-use assets | $ 712 | |||||
Operating lease liabilities | $ 733 | |||||
Accounting Standards Update 2016-02 | ||||||
Operating Leased Assets [Line Items] | ||||||
Operating lease right-of-use assets | 734 | |||||
Operating lease liabilities | 749 | |||||
Retained Earnings | ||||||
Operating Leased Assets [Line Items] | ||||||
Cumulative effect of change in accounting standards | $ 12 | |||||
Retained Earnings | Accounting Standards Update 2016-02 | ||||||
Operating Leased Assets [Line Items] | ||||||
Cumulative effect of change in accounting standards | $ 12 | |||||
Scenario, Forecast | Accounting Standards Update 2016-13 | ||||||
Operating Leased Assets [Line Items] | ||||||
Capital impact phase in percentage | 25.00% | |||||
Scenario, Forecast | Minimum | Accounting Standards Update 2016-13 | ||||||
Operating Leased Assets [Line Items] | ||||||
Increase in overall ACL | 30.00% | |||||
Basis point change in CET1 | 0.22% | 0.05% | ||||
Scenario, Forecast | Maximum | Accounting Standards Update 2016-13 | ||||||
Operating Leased Assets [Line Items] | ||||||
Increase in overall ACL | 35.00% | |||||
Basis point change in CET1 | 0.25% | 0.06% |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | ||||||||
Taxable interest income from securities | $ 153 | $ 167 | $ 483 | $ 500 | ||||
Mortgage-backed securities | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Securitizations of mortgage loans | 28 | 32 | 72 | 87 | ||||
Available-for-sale Securities | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Cumulative credit losses recognized in earnings | 57 | 81 | 57 | 81 | $ 57 | $ 81 | $ 81 | $ 80 |
OTTI in earnings | (1) | (1) | (2) | (3) | ||||
Held-to-maturity Securities | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Cumulative credit losses recognized in earnings | $ 0 | $ 0 | $ 0 | $ 0 |
SECURITIES - Schedule of Invest
SECURITIES - Schedule of Investments (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Fair Value | [1] | $ 21,502 | $ 19,895 |
Debt Securities Held-to-maturity, Amortized Cost | 3,319 | 4,165 | |
Debt Securities Held-to-maturity, Gross Unrealized Gain | 48 | 8 | |
Debt Securities Held-to-maturity, Gross Unrealized Losses | (5) | (132) | |
Debt Securities held-to-maturity, Fair Value | 3,362 | 4,041 | |
Equity Securities, Amortized Cost | 47 | 181 | |
Equity Securities, Fair Value | 47 | 181 | |
Other equity securities, Amortized Cost | 8 | 7 | |
Other equity securities, Fair Value | 8 | 7 | |
Total equity securities, at cost, Amortized Cost | 734 | 834 | |
Total equity securities, at cost, Fair Value | 734 | 834 | |
U.S. Treasury and other | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 120 | 24 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 0 | 0 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | 0 | 0 | |
Debt Securities Available-for-sale, Fair Value | 120 | 24 | |
State and political subdivisions | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 5 | 5 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 0 | 0 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | 0 | 0 | |
Debt Securities Available-for-sale, Fair Value | 5 | 5 | |
Federal agencies and U.S. government sponsored entities | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 20,434 | 20,211 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 166 | 28 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (80) | (605) | |
Debt Securities Available-for-sale, Fair Value | 20,520 | 19,634 | |
Debt Securities Held-to-maturity, Amortized Cost | 3,319 | 3,425 | |
Debt Securities Held-to-maturity, Gross Unrealized Gain | 48 | 0 | |
Debt Securities Held-to-maturity, Gross Unrealized Losses | (5) | (132) | |
Debt Securities held-to-maturity, Fair Value | 3,362 | 3,293 | |
Other/non-agency | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 827 | 236 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 34 | 3 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (4) | (7) | |
Debt Securities Available-for-sale, Fair Value | 857 | 232 | |
Debt Securities Held-to-maturity, Amortized Cost | 0 | 740 | |
Debt Securities Held-to-maturity, Gross Unrealized Gain | 0 | 8 | |
Debt Securities Held-to-maturity, Gross Unrealized Losses | 0 | 0 | |
Debt Securities held-to-maturity, Fair Value | 0 | 748 | |
Total mortgage-backed securities, at fair value | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 21,261 | 20,447 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 200 | 31 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (84) | (612) | |
Debt Securities Available-for-sale, Fair Value | 21,377 | 19,866 | |
Debt Securities Held-to-maturity, Amortized Cost | 3,319 | 4,165 | |
Debt Securities Held-to-maturity, Gross Unrealized Gain | 48 | 8 | |
Debt Securities Held-to-maturity, Gross Unrealized Losses | (5) | (132) | |
Debt Securities held-to-maturity, Fair Value | 3,362 | 4,041 | |
Total debt securities available for sale, at fair value | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 21,386 | 20,476 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 200 | 31 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (84) | (612) | |
Debt Securities Available-for-sale, Fair Value | 21,502 | 19,895 | |
Money market mutual fund investments | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Equity Securities, Amortized Cost | 47 | 181 | |
Equity Securities, Fair Value | 47 | 181 | |
Federal Reserve Bank stock | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Federal Reserve Bank stock, Amortized Cost | 577 | 463 | |
Federal Reserve Bank stock, Fair Value | 577 | 463 | |
Federal Home Loan Bank stock | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Federal Home Loan Bank stock, Amortized Cost | 149 | 364 | |
Federal Home Loan Bank stock, Fair Value | $ 149 | $ 364 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
SECURITIES - Schedule of Availa
SECURITIES - Schedule of Available for Sale Securities Debt Maturities (Details) $ in Millions | Sep. 30, 2019USD ($) |
Amortized cost: | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | $ 124 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 195 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 1,683 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 19,384 |
Amortized Cost, Debt securities available for sale, Total | 21,386 |
Amortized Cost, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity After 10 Years | 3,319 |
Amortized Cost, Debt securities held to maturity, Total | 3,319 |
Total amortized cost of debt securities, Maturity of 1 Year or Less | 124 |
Total amortized cost of debt securities, Maturity of 1-5 Years | 195 |
Total amortized cost of debt securities, Maturity of 5-10 Years | 1,683 |
Total amortized cost of debt securities, Maturity After 10 Years | 22,703 |
Total amortized cost of debt securities, Total | 24,705 |
Fair value: | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 124 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 195 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 1,707 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 19,476 |
Fair Value, Debt securities available for sale, Total | 21,502 |
Fair Value, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity After 10 Years | 3,362 |
Fair Value, Debt securities held to maturity, Total | 3,362 |
Total fair value of debt securities, Maturity of 1 Year or Less | 124 |
Total fair value of debt securities, Maturity of 1-5 Years | 195 |
Total fair value of debt securities, Maturity of 5-10 Years | 1,707 |
Total fair value of debt securities, Maturity After 10 Years | 22,838 |
Total fair value of debt securities, Total | 24,864 |
U.S. Treasury and other | |
Amortized cost: | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 120 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 0 |
Amortized Cost, Debt securities available for sale, Total | 120 |
Fair value: | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 120 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 0 |
Fair Value, Debt securities available for sale, Total | 120 |
State and political subdivisions | |
Amortized cost: | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 5 |
Amortized Cost, Debt securities available for sale, Total | 5 |
Fair value: | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 5 |
Fair Value, Debt securities available for sale, Total | 5 |
Federal agencies and U.S. government sponsored entities | |
Amortized cost: | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 193 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 1,683 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 18,558 |
Amortized Cost, Debt securities available for sale, Total | 20,434 |
Amortized Cost, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity After 10 Years | 3,319 |
Amortized Cost, Debt securities held to maturity, Total | 3,319 |
Fair value: | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 193 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 1,707 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 18,620 |
Fair Value, Debt securities available for sale, Total | 20,520 |
Fair Value, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity After 10 Years | 3,362 |
Fair Value, Debt securities held to maturity, Total | 3,362 |
Other/non-agency | |
Amortized cost: | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 4 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 2 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 821 |
Amortized Cost, Debt securities available for sale, Total | 827 |
Fair value: | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 4 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 2 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 851 |
Fair Value, Debt securities available for sale, Total | $ 857 |
SECURITIES - Income Recognized
SECURITIES - Income Recognized from Investment Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Gain (Loss) on Sale of Investments [Abstract] | ||||
Gains on sale of debt securities | $ 5 | $ 3 | $ 21 | $ 13 |
Losses on sale of debt securities | 0 | 0 | 0 | 0 |
Debt securities gains, net | 5 | $ 3 | 21 | $ 13 |
Mortgage banking fees | ||||
Gain (Loss) on Sale of Investments [Abstract] | ||||
Gains on sale of debt securities | $ 2 | $ 6 |
SECURITIES - Schedule of Securi
SECURITIES - Schedule of Securities Pledged (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Pledged against repurchase agreements | $ 265 | $ 344 |
Pledged against FHLB borrowed funds | 670 | 745 |
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law | 3,281 | 3,592 |
Fair Value | ||
Pledged against repurchase agreements | 268 | 338 |
Pledged against FHLB borrowed funds | 701 | 752 |
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law | $ 3,282 | $ 3,460 |
SECURITIES - Schedule of Inve_2
SECURITIES - Schedule of Investments in Continuous Loss Positions (Details) $ in Millions | Sep. 30, 2019USD ($)Securities | Dec. 31, 2018USD ($)Securities |
Number of Issues | ||
Less than 12 Months | Securities | 156 | 176 |
12 Months or Longer | Securities | 180 | 440 |
Total | Securities | 336 | 616 |
Fair Value | ||
Less than 12 Months | $ 3,180 | $ 5,020 |
12 Months or Longer | 4,939 | 15,196 |
Total | 8,119 | 20,216 |
Gross Unrealized Losses | ||
Less than 12 Months | (16) | (90) |
12 Months or Longer | (73) | (654) |
Total | $ (89) | $ (744) |
Federal agencies and U.S. government sponsored entities | ||
Number of Issues | ||
Less than 12 Months | Securities | 156 | 166 |
12 Months or Longer | Securities | 175 | 429 |
Total | Securities | 331 | 595 |
Fair Value | ||
Less than 12 Months | $ 3,180 | $ 4,881 |
12 Months or Longer | 4,907 | 15,124 |
Total | 8,087 | 20,005 |
Gross Unrealized Losses | ||
Less than 12 Months | (16) | (89) |
12 Months or Longer | (69) | (648) |
Total | $ (85) | $ (737) |
Other/non-agency | ||
Number of Issues | ||
Less than 12 Months | Securities | 0 | 10 |
12 Months or Longer | Securities | 5 | 11 |
Total | Securities | 5 | 21 |
Fair Value | ||
Less than 12 Months | $ 0 | $ 139 |
12 Months or Longer | 32 | 72 |
Total | 32 | 211 |
Gross Unrealized Losses | ||
Less than 12 Months | 0 | (1) |
12 Months or Longer | (4) | (6) |
Total | $ (4) | $ (7) |
SECURITIES - Schedule of Cumula
SECURITIES - Schedule of Cumulative Credit Losses Recognized in Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Reductions for securities sold or matured during the period | $ (1) | $ 0 | $ (26) | $ 0 |
Available-for-sale Securities | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Cumulative balance at beginning of period | 57 | 81 | 81 | 80 |
Credit impairments recognized in earnings on debt securities that have been previously impaired | 1 | 1 | 2 | 3 |
Reductions due to increases in cash flow expectations on impaired debt securities | 0 | (1) | 0 | (2) |
Cumulative balance at end of period | $ 57 | $ 81 | $ 57 | $ 81 |
LOANS AND LEASES - Narrative (D
LOANS AND LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Interest income on direct financing lease | $ 18 | $ 58 | |||
Retail | Education | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Payments for purchase of loans | 164 | $ 98 | 464 | $ 321 | |
Retail | Other retail | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Payments for purchase of loans | 66 | 66 | |||
Retail | Retail loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds from sale of loans | 628 | ||||
Retail | Retail TDRs | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds from sale of loans | 22 | ||||
Retail | Residential mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans pledged as collateral for FHLB borrowed funds | 25,300 | 25,300 | $ 25,600 | ||
Consumer And Commercial Portfolio Segment | Auto, commercial and commercial real estate loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window | 18,000 | 18,000 | $ 16,800 | ||
Commercial | Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds from sale of loans | $ 109 | $ 291 | $ 553 | ||
Minimum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Lessee, term of contract | 3 years | ||||
Maximum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Lessee, term of contract | 7 years |
LOANS AND LEASES - Summary of L
LOANS AND LEASES - Summary of Loans and Leases Portfolio (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | $ 117,880 | $ 116,660 |
Loans receivable held for sale | 2,000 | 1,300 |
SBA Loans Serviced For Others | Banking and Other Subsidiaries | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 27 | 0 |
Mortgage loans serviced for others | Banking and Other Subsidiaries | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 74,600 | 69,600 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 56,733 | 56,783 |
Commercial | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 41,356 | 40,857 |
Commercial | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 12,820 | 13,023 |
Commercial | Leases | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 2,557 | 2,903 |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 61,147 | 59,877 |
Retail | Residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 19,699 | 18,978 |
Retail | Home equity loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 876 | 1,073 |
Retail | Home equity lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 12,148 | 12,710 |
Retail | Home equity loans serviced by others | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 318 | 399 |
Retail | Home equity lines of credit serviced by others | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 81 | 104 |
Retail | Automobile | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 12,070 | 12,106 |
Retail | Education | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 9,729 | 8,900 |
Retail | Credit cards | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 2,133 | 1,991 |
Retail | Other retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | $ 4,093 | $ 3,616 |
LOANS AND LEASES - Loans Held F
LOANS AND LEASES - Loans Held For Sale (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | $ 1,993 | $ 1,219 |
Other loans held for sale | 22 | 101 |
Residential loans held for sale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | 1,824 | 967 |
Other loans held for sale | 0 | 0 |
Commercial loans held for sale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | 169 | 252 |
Other loans held for sale | $ 22 | $ 101 |
LOANS AND LEASES - Components o
LOANS AND LEASES - Components of Net Investment (Details) $ in Millions | Sep. 30, 2019USD ($) |
Receivables [Abstract] | |
Total future minimum lease rentals | $ 1,670 |
Estimated residual value of leased equipment (non-guaranteed) | 1,072 |
Initial direct costs | 10 |
Unearned income | (232) |
Total leases | $ 2,520 |
LOANS AND LEASES - Maturity of
LOANS AND LEASES - Maturity of Direct Finance Lease (Details) $ in Millions | Sep. 30, 2019USD ($) |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract] | |
2019 | $ 123 |
2020 | 460 |
2021 | 343 |
2022 | 265 |
2023 | 188 |
Thereafter | 291 |
Total undiscounted future minimum lease rentals | $ 1,670 |
ALLOWANCE FOR CREDIT LOSSES, _3
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Nonperforming assets, net of valuation allowance | $ 40 | $ 40 | $ 34 | ||
Mortgage loans collateralized by OREO | 164 | 164 | $ 172 | ||
Larger balance commercial loans minimum balance (greater than) | 3 | 3 | |||
Net change to ALLL from modification | 3 | $ 1 | 7 | $ 3 | |
Charge-offs from modification of loans | 1 | 2 | $ 3 | 3 | |
High loan to value criteria (exceeds) | 90.00% | ||||
Commercial | Commercial | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
TDR's that defaulted within 12 months of modification date | 0 | 32 | $ 1 | 52 | |
Retail | Retail | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
TDR's that defaulted within 12 months of modification date | $ 9 | $ 10 | $ 28 | $ 30 |
ALLOWANCE FOR CREDIT LOSSES, _4
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Summary of Changes in Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | $ 1,242 | |||
Provision charged to income | 283 | $ 241 | ||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | $ 1,263 | 1,263 | ||
Allowance for loan and lease losses | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 1,227 | $ 1,253 | 1,242 | 1,236 |
Charge-offs | (159) | (127) | (453) | (363) |
Recoveries | 46 | 41 | 145 | 131 |
Net charge-offs | (113) | (86) | (308) | (232) |
Provision charged to income | 149 | 75 | 329 | 238 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,263 | 1,242 | 1,263 | 1,242 |
Reserve for unfunded lending commitments | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 93 | 88 | 91 | 88 |
Provision for unfunded lending commitments | (48) | 3 | (46) | 3 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 45 | 91 | 45 | 91 |
Allowance for loan and lease losses and reserve for off-balance sheet activities, total | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,308 | 1,333 | 1,308 | 1,333 |
Commercial | Allowance for loan and lease losses | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 680 | 715 | 690 | 685 |
Charge-offs | (35) | (18) | (106) | (35) |
Recoveries | 3 | 2 | 17 | 10 |
Net charge-offs | (32) | (16) | (89) | (25) |
Provision charged to income | 64 | 8 | 111 | 47 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 712 | 707 | 712 | 707 |
Commercial | Reserve for unfunded lending commitments | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 93 | 88 | 91 | 88 |
Provision for unfunded lending commitments | (48) | 3 | (46) | 3 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 45 | 91 | 45 | 91 |
Commercial | Allowance for loan and lease losses and reserve for off-balance sheet activities, total | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 757 | 798 | 757 | 798 |
Retail | Allowance for loan and lease losses | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 547 | 538 | 552 | 551 |
Charge-offs | (124) | (109) | (347) | (328) |
Recoveries | 43 | 39 | 128 | 121 |
Net charge-offs | (81) | (70) | (219) | (207) |
Provision charged to income | 85 | 67 | 218 | 191 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 551 | 535 | 551 | 535 |
Retail | Reserve for unfunded lending commitments | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 0 | 0 | 0 | 0 |
Provision for unfunded lending commitments | 0 | 0 | 0 | 0 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 0 | 0 | 0 | 0 |
Retail | Allowance for loan and lease losses and reserve for off-balance sheet activities, total | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | $ 551 | $ 535 | $ 551 | $ 535 |
ALLOWANCE FOR CREDIT LOSSES, _5
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Recorded Investment in Loan and Leases (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Individually evaluated | $ 1,062 | $ 1,114 |
Formula-based evaluation | 116,818 | 115,546 |
Total | 117,880 | 116,660 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Individually evaluated | 387 | 391 |
Formula-based evaluation | 56,346 | 56,392 |
Total | 56,733 | 56,783 |
Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Individually evaluated | 675 | 723 |
Formula-based evaluation | 60,472 | 59,154 |
Total | $ 61,147 | $ 59,877 |
ALLOWANCE FOR CREDIT LOSSES, _6
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Summary of Allowance for Credit Losses by Evaluation Method (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated | $ 99 | $ 64 |
Formula-based evaluation | 1,209 | 1,269 |
Allowance for credit losses | 1,308 | 1,333 |
Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated | 74 | 38 |
Formula-based evaluation | 683 | 743 |
Allowance for credit losses | 757 | 781 |
Retail | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated | 25 | 26 |
Formula-based evaluation | 526 | 526 |
Allowance for credit losses | $ 551 | $ 552 |
ALLOWANCE FOR CREDIT LOSSES, _7
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Recorded Investment in Commercial Loans and Leases by Regulatory Classification Ratings (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 117,880 | $ 116,660 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 56,733 | 56,783 |
Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 53,900 | 53,946 |
Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,705 | 1,682 |
Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 846 | 951 |
Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 282 | 204 |
Commercial | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 41,356 | 40,857 |
Commercial | Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 38,997 | 38,600 |
Commercial | Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,369 | 1,231 |
Commercial | Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 761 | 828 |
Commercial | Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 229 | 198 |
Commercial | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 12,820 | 13,023 |
Commercial | Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 12,437 | 12,523 |
Commercial | Commercial real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 297 | 412 |
Commercial | Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 36 | 82 |
Commercial | Commercial real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 50 | 6 |
Commercial | Leases | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,557 | 2,903 |
Commercial | Leases | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,466 | 2,823 |
Commercial | Leases | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 39 | 39 |
Commercial | Leases | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 49 | 41 |
Commercial | Leases | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 3 | $ 0 |
ALLOWANCE FOR CREDIT LOSSES, _8
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Recorded Investment in Retail Loans by Delinquency Status (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 117,880 | $ 116,660 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 392 | 493 |
Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 273 | 177 |
Financing Receivables 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 418 | 587 |
Retail | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 58,403 | 56,883 |
Total | 61,147 | 59,877 |
Retail | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 19,375 | 18,664 |
Total | 19,699 | 18,978 |
Retail | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 772 | 945 |
Total | 876 | 1,073 |
Retail | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 11,593 | 12,042 |
Total | 12,148 | 12,710 |
Retail | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 275 | 355 |
Total | 318 | 399 |
Retail | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 56 | 79 |
Total | 81 | 104 |
Retail | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 10,849 | 10,729 |
Total | 12,070 | 12,106 |
Retail | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 9,513 | 8,694 |
Total | 9,729 | 8,900 |
Retail | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 2,028 | 1,894 |
Total | 2,133 | 1,991 |
Retail | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 3,942 | 3,481 |
Total | 4,093 | 3,616 |
Retail | Financing Receivables, 1 to 29 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1,783 | 1,955 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 129 | 131 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 62 | 75 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 331 | 386 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 23 | 21 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 11 | 15 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 932 | 1,039 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 162 | 159 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 53 | 53 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 80 | 76 |
Retail | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 368 | 393 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 28 | 37 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 10 | 12 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 52 | 65 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 5 | 7 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 2 | 2 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 194 | 207 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 27 | 23 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 20 | 14 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 30 | 26 |
Retail | Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 253 | 142 |
Retail | Financing Receivables 60 To 89 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 78 | 13 |
Retail | Financing Receivables 60 To 89 Days Past Due | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 25 | 3 |
Retail | Financing Receivables 60 To 89 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 27 | 22 |
Retail | Financing Receivables 60 To 89 Days Past Due | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 3 | 3 |
Retail | Financing Receivables 60 To 89 Days Past Due | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1 | 1 |
Retail | Financing Receivables 60 To 89 Days Past Due | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 71 | 59 |
Retail | Financing Receivables 60 To 89 Days Past Due | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 16 | 13 |
Retail | Financing Receivables 60 To 89 Days Past Due | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 11 | 10 |
Retail | Financing Receivables 60 To 89 Days Past Due | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 21 | 18 |
Retail | Financing Receivables 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 340 | 504 |
Retail | Financing Receivables 90 Days or More Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 89 | 133 |
Retail | Financing Receivables 90 Days or More Past Due | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 7 | 38 |
Retail | Financing Receivables 90 Days or More Past Due | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 145 | 195 |
Retail | Financing Receivables 90 Days or More Past Due | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 12 | 13 |
Retail | Financing Receivables 90 Days or More Past Due | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 11 | 7 |
Retail | Financing Receivables 90 Days or More Past Due | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 24 | 72 |
Retail | Financing Receivables 90 Days or More Past Due | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 11 | 11 |
Retail | Financing Receivables 90 Days or More Past Due | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 21 | 20 |
Retail | Financing Receivables 90 Days or More Past Due | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | $ 20 | $ 15 |
ALLOWANCE FOR CREDIT LOSSES, _9
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Nonperforming Loans and Leases by Class (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Past Due [Line Items] | |||||
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $ 1 | $ 2 | $ 3 | $ 3 | |
Nonperforming loans | 793 | 793 | $ 797 | ||
Loans accruing and 90 days or more past due | 30 | 30 | 25 | ||
GNMA | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonperforming loans sold with right to repurchase | 195 | 195 | 133 | ||
Residential mortgages | |||||
Financing Receivable, Past Due [Line Items] | |||||
Loans accruing and 90 days or more past due | 12 | 12 | 12 | ||
Commercial | Commercial | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonperforming loans | 228 | 228 | 194 | ||
Loans accruing and 90 days or more past due | 1 | 1 | 1 | ||
Commercial | Commercial real estate | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonperforming loans | 49 | 49 | 7 | ||
Loans accruing and 90 days or more past due | 0 | 0 | 0 | ||
Commercial | Leases | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonperforming loans | 4 | 4 | 0 | ||
Loans accruing and 90 days or more past due | 1 | 1 | 0 | ||
Commercial | Commercial Banking | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonperforming loans | 281 | 281 | 201 | ||
Loans accruing and 90 days or more past due | 2 | 2 | 1 | ||
Retail | Residential mortgages | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonperforming loans | 147 | 147 | 136 | ||
Loans accruing and 90 days or more past due | 15 | 15 | 15 | ||
Retail | Home equity loans | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonperforming loans | 36 | 36 | 50 | ||
Loans accruing and 90 days or more past due | 0 | 0 | 0 | ||
Retail | Home equity lines of credit | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonperforming loans | 184 | 184 | 231 | ||
Loans accruing and 90 days or more past due | 0 | 0 | 0 | ||
Retail | Home equity loans serviced by others | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonperforming loans | 14 | 14 | 17 | ||
Loans accruing and 90 days or more past due | 0 | 0 | 0 | ||
Retail | Home equity lines of credit serviced by others | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonperforming loans | 13 | 13 | 15 | ||
Loans accruing and 90 days or more past due | 0 | 0 | 0 | ||
Retail | Automobile | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonperforming loans | 69 | 69 | 81 | ||
Loans accruing and 90 days or more past due | 0 | 0 | 0 | ||
Retail | Education | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonperforming loans | 17 | 17 | 38 | ||
Loans accruing and 90 days or more past due | 3 | 3 | 2 | ||
Retail | Credit cards | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonperforming loans | 21 | 21 | 20 | ||
Loans accruing and 90 days or more past due | 0 | 0 | 0 | ||
Retail | Other retail | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonperforming loans | 11 | 11 | 8 | ||
Loans accruing and 90 days or more past due | 10 | 10 | 7 | ||
Retail | Retail | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonperforming loans | 512 | 512 | 596 | ||
Loans accruing and 90 days or more past due | $ 28 | $ 28 | $ 24 |
ALLOWANCE FOR CREDIT LOSSES,_10
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Performance Indicators for Nonperforming Assets (Details) | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 0.67% | 0.68% |
Nonperforming assets as a percentage of total assets | 0.51% | 0.52% |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 0.24% | 0.17% |
Nonperforming assets as a percentage of total assets | 0.17% | 0.13% |
Retail | ||
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 0.43% | 0.51% |
Nonperforming assets as a percentage of total assets | 0.34% | 0.39% |
ALLOWANCE FOR CREDIT LOSSES,_11
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Accruing and Nonaccruing Past Due Amounts (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | $ 392 | $ 493 |
Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 273 | 177 |
Financing Receivables 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 418 | 587 |
Financing Receivables, 30 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1,083 | 1,257 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 24 | 100 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 17 | 85 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 7 | 8 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 7 |
Commercial | Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 20 | 35 |
Commercial | Financing Receivables 60 To 89 Days Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 4 | 3 |
Commercial | Financing Receivables 60 To 89 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 16 | 32 |
Commercial | Financing Receivables 60 To 89 Days Past Due | Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial | Financing Receivables 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 78 | 83 |
Commercial | Financing Receivables 90 Days or More Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 76 | 78 |
Commercial | Financing Receivables 90 Days or More Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1 | 5 |
Commercial | Financing Receivables 90 Days or More Past Due | Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1 | 0 |
Commercial | Financing Receivables, 30 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 122 | 218 |
Commercial | Financing Receivables, 30 Days or More Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 97 | 166 |
Commercial | Financing Receivables, 30 Days or More Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 24 | 45 |
Commercial | Financing Receivables, 30 Days or More Past Due | Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1 | 7 |
Retail | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 368 | 393 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 28 | 37 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 10 | 12 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 52 | 65 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 5 | 7 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 2 | 2 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 194 | 207 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 27 | 23 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 20 | 14 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 30 | 26 |
Retail | Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 253 | 142 |
Retail | Financing Receivables 60 To 89 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 78 | 13 |
Retail | Financing Receivables 60 To 89 Days Past Due | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 25 | 3 |
Retail | Financing Receivables 60 To 89 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 27 | 22 |
Retail | Financing Receivables 60 To 89 Days Past Due | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 3 | 3 |
Retail | Financing Receivables 60 To 89 Days Past Due | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1 | 1 |
Retail | Financing Receivables 60 To 89 Days Past Due | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 71 | 59 |
Retail | Financing Receivables 60 To 89 Days Past Due | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 16 | 13 |
Retail | Financing Receivables 60 To 89 Days Past Due | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 11 | 10 |
Retail | Financing Receivables 60 To 89 Days Past Due | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 21 | 18 |
Retail | Financing Receivables 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 340 | 504 |
Retail | Financing Receivables 90 Days or More Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 89 | 133 |
Retail | Financing Receivables 90 Days or More Past Due | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 7 | 38 |
Retail | Financing Receivables 90 Days or More Past Due | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 145 | 195 |
Retail | Financing Receivables 90 Days or More Past Due | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 12 | 13 |
Retail | Financing Receivables 90 Days or More Past Due | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 11 | 7 |
Retail | Financing Receivables 90 Days or More Past Due | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 24 | 72 |
Retail | Financing Receivables 90 Days or More Past Due | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 11 | 11 |
Retail | Financing Receivables 90 Days or More Past Due | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 21 | 20 |
Retail | Financing Receivables 90 Days or More Past Due | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 20 | 15 |
Retail | Financing Receivables, 30 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 961 | 1,039 |
Retail | Financing Receivables, 30 Days or More Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 195 | 183 |
Retail | Financing Receivables, 30 Days or More Past Due | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 42 | 53 |
Retail | Financing Receivables, 30 Days or More Past Due | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 224 | 282 |
Retail | Financing Receivables, 30 Days or More Past Due | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 20 | 23 |
Retail | Financing Receivables, 30 Days or More Past Due | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 14 | 10 |
Retail | Financing Receivables, 30 Days or More Past Due | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 289 | 338 |
Retail | Financing Receivables, 30 Days or More Past Due | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 54 | 47 |
Retail | Financing Receivables, 30 Days or More Past Due | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 52 | 44 |
Retail | Financing Receivables, 30 Days or More Past Due | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | $ 71 | $ 59 |
ALLOWANCE FOR CREDIT LOSSES,_12
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Impaired Loans by Class (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | $ 482 | $ 483 |
Allowance on Impaired Loans | 99 | 64 |
Impaired Loans Without a Related Allowance | 580 | 631 |
Unpaid Contractual Balance | 1,271 | 1,363 |
Total Recorded Investment in Impaired Loans | 1,062 | 1,114 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 241 | 218 |
Allowance on Impaired Loans | 74 | 38 |
Impaired Loans Without a Related Allowance | 146 | 173 |
Unpaid Contractual Balance | 452 | 488 |
Total Recorded Investment in Impaired Loans | 387 | 391 |
Commercial | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 194 | 186 |
Allowance on Impaired Loans | 62 | 31 |
Impaired Loans Without a Related Allowance | 127 | 167 |
Unpaid Contractual Balance | 376 | 450 |
Total Recorded Investment in Impaired Loans | 321 | 353 |
Commercial | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 47 | 32 |
Allowance on Impaired Loans | 12 | 7 |
Impaired Loans Without a Related Allowance | 19 | 6 |
Unpaid Contractual Balance | 76 | 38 |
Total Recorded Investment in Impaired Loans | 66 | 38 |
Retail | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 241 | 265 |
Allowance on Impaired Loans | 25 | 26 |
Impaired Loans Without a Related Allowance | 434 | 458 |
Unpaid Contractual Balance | 819 | 875 |
Total Recorded Investment in Impaired Loans | 675 | 723 |
Retail | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 25 | 28 |
Allowance on Impaired Loans | 2 | 2 |
Impaired Loans Without a Related Allowance | 122 | 127 |
Unpaid Contractual Balance | 191 | 201 |
Total Recorded Investment in Impaired Loans | 147 | 155 |
Retail | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 23 | 34 |
Allowance on Impaired Loans | 1 | 3 |
Impaired Loans Without a Related Allowance | 69 | 76 |
Unpaid Contractual Balance | 126 | 148 |
Total Recorded Investment in Impaired Loans | 92 | 110 |
Retail | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 26 | 21 |
Allowance on Impaired Loans | 2 | 1 |
Impaired Loans Without a Related Allowance | 176 | 181 |
Unpaid Contractual Balance | 243 | 244 |
Total Recorded Investment in Impaired Loans | 202 | 202 |
Retail | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 18 | 22 |
Allowance on Impaired Loans | 1 | 1 |
Impaired Loans Without a Related Allowance | 16 | 19 |
Unpaid Contractual Balance | 44 | 54 |
Total Recorded Investment in Impaired Loans | 34 | 41 |
Retail | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 1 | 1 |
Allowance on Impaired Loans | 0 | 0 |
Impaired Loans Without a Related Allowance | 6 | 7 |
Unpaid Contractual Balance | 10 | 11 |
Total Recorded Investment in Impaired Loans | 7 | 8 |
Retail | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 1 | 1 |
Allowance on Impaired Loans | 0 | 0 |
Impaired Loans Without a Related Allowance | 20 | 22 |
Unpaid Contractual Balance | 30 | 31 |
Total Recorded Investment in Impaired Loans | 21 | 23 |
Retail | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 117 | 130 |
Allowance on Impaired Loans | 9 | 11 |
Impaired Loans Without a Related Allowance | 22 | 23 |
Unpaid Contractual Balance | 139 | 153 |
Total Recorded Investment in Impaired Loans | 139 | 153 |
Retail | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 27 | 24 |
Allowance on Impaired Loans | 9 | 7 |
Impaired Loans Without a Related Allowance | 1 | 1 |
Unpaid Contractual Balance | 29 | 25 |
Total Recorded Investment in Impaired Loans | 28 | 25 |
Retail | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 3 | 4 |
Allowance on Impaired Loans | 1 | 1 |
Impaired Loans Without a Related Allowance | 2 | 2 |
Unpaid Contractual Balance | 7 | 8 |
Total Recorded Investment in Impaired Loans | $ 5 | $ 6 |
ALLOWANCE FOR CREDIT LOSSES,_13
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Additional Impaired Loan Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Financing Receivable, Past Due [Line Items] | ||||
Interest Income Recognized | $ 10 | $ 11 | $ 32 | $ 31 |
Average Recorded Investment | 1,000 | 1,097 | 926 | 1,057 |
Commercial | ||||
Financing Receivable, Past Due [Line Items] | ||||
Interest Income Recognized | 2 | 3 | 8 | 7 |
Average Recorded Investment | 328 | 368 | 330 | 351 |
Commercial | Commercial | ||||
Financing Receivable, Past Due [Line Items] | ||||
Interest Income Recognized | 2 | 3 | 7 | 7 |
Average Recorded Investment | 293 | 334 | 300 | 318 |
Commercial | Commercial real estate | ||||
Financing Receivable, Past Due [Line Items] | ||||
Interest Income Recognized | 0 | 0 | 1 | 0 |
Average Recorded Investment | 35 | 34 | 30 | 33 |
Retail | ||||
Financing Receivable, Past Due [Line Items] | ||||
Interest Income Recognized | 8 | 8 | 24 | 24 |
Average Recorded Investment | 672 | 729 | 596 | 706 |
Retail | Residential mortgages | ||||
Financing Receivable, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | 1 | 4 | 4 |
Average Recorded Investment | 145 | 154 | 128 | 148 |
Retail | Home equity loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | 1 | 4 | 4 |
Average Recorded Investment | 94 | 107 | 86 | 107 |
Retail | Home equity lines of credit | ||||
Financing Receivable, Past Due [Line Items] | ||||
Interest Income Recognized | 2 | 2 | 6 | 6 |
Average Recorded Investment | 199 | 202 | 173 | 189 |
Retail | Home equity loans serviced by others | ||||
Financing Receivable, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | 1 | 2 | 2 |
Average Recorded Investment | 34 | 43 | 31 | 44 |
Retail | Home equity lines of credit serviced by others | ||||
Financing Receivable, Past Due [Line Items] | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 |
Average Recorded Investment | 7 | 9 | 6 | 9 |
Retail | Automobile | ||||
Financing Receivable, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | 0 | 1 | 0 |
Average Recorded Investment | 21 | 23 | 18 | 21 |
Retail | Education | ||||
Financing Receivable, Past Due [Line Items] | ||||
Interest Income Recognized | 2 | 3 | 6 | 7 |
Average Recorded Investment | 141 | 160 | 128 | 159 |
Retail | Credit cards | ||||
Financing Receivable, Past Due [Line Items] | ||||
Interest Income Recognized | 0 | 0 | 1 | 1 |
Average Recorded Investment | 26 | 24 | 21 | 22 |
Retail | Other retail | ||||
Financing Receivable, Past Due [Line Items] | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 |
Average Recorded Investment | $ 5 | $ 7 | $ 5 | $ 7 |
ALLOWANCE FOR CREDIT LOSSES,_14
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Unfunded Commitments (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unfunded commitments related to TDRs | $ 35 | $ 30 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDR balance included in impaired loans | 235 | 304 |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDR balance included in impaired loans | $ 675 | $ 723 |
ALLOWANCE FOR CREDIT LOSSES,_15
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Troubled Debt Restructuring (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)contract | Sep. 30, 2018USD ($)contract | Sep. 30, 2019USD ($)contract | Sep. 30, 2018USD ($)contract | |
Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 928 | 718 | 2,649 | 2,032 |
Recorded Investment | $ | $ 14 | $ 9 | $ 37 | $ 25 |
Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 34 | 97 | 130 | 262 |
Recorded Investment | $ | $ 4 | $ 13 | $ 17 | $ 30 |
Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 809 | 549 | 1,975 | 1,801 |
Recorded Investment | $ | $ 31 | $ 18 | $ 154 | $ 246 |
Commercial | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 2 | 1 | 3 | 6 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 1 |
Commercial | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 6 | 13 | 19 | 24 |
Recorded Investment | $ | $ 1 | $ 1 | $ 2 | $ 2 |
Commercial | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 6 | 1 | 24 | 42 |
Recorded Investment | $ | $ 15 | $ 0 | $ 102 | $ 187 |
Commercial | Commercial | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 2 | 1 | 3 | 6 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 1 |
Commercial | Commercial | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 6 | 13 | 18 | 23 |
Recorded Investment | $ | $ 1 | $ 1 | $ 2 | $ 2 |
Commercial | Commercial | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 6 | 1 | 24 | 40 |
Recorded Investment | $ | $ 15 | $ 0 | $ 102 | $ 156 |
Commercial | Commercial real estate | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial | Commercial real estate | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 1 | 1 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial | Commercial real estate | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 2 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 31 |
Retail | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 926 | 717 | 2,646 | 2,026 |
Recorded Investment | $ | $ 14 | $ 9 | $ 37 | $ 24 |
Retail | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 28 | 84 | 111 | 238 |
Recorded Investment | $ | $ 3 | $ 12 | $ 15 | $ 28 |
Retail | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 803 | 548 | 1,951 | 1,759 |
Recorded Investment | $ | $ 16 | $ 18 | $ 52 | $ 59 |
Retail | Residential mortgages | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 12 | 9 | 25 | 32 |
Recorded Investment | $ | $ 2 | $ 1 | $ 6 | $ 4 |
Retail | Residential mortgages | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 8 | 17 | 29 | 47 |
Recorded Investment | $ | $ 2 | $ 2 | $ 5 | $ 6 |
Retail | Residential mortgages | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 25 | 31 | 87 | 117 |
Recorded Investment | $ | $ 4 | $ 3 | $ 13 | $ 14 |
Retail | Home equity loans | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 11 | 10 | 24 | 32 |
Recorded Investment | $ | $ 0 | $ 1 | $ 1 | $ 3 |
Retail | Home equity loans | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Home equity loans | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 19 | 40 | 64 | 106 |
Recorded Investment | $ | $ 1 | $ 2 | $ 3 | $ 5 |
Retail | Home equity lines of credit | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 51 | 27 | 123 | 55 |
Recorded Investment | $ | $ 6 | $ 3 | $ 14 | $ 5 |
Retail | Home equity lines of credit | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 16 | 58 | 66 | 147 |
Recorded Investment | $ | $ 1 | $ 10 | $ 10 | $ 21 |
Retail | Home equity lines of credit | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 95 | 104 | 277 | 310 |
Recorded Investment | $ | $ 5 | $ 7 | $ 17 | $ 21 |
Retail | Home equity loans serviced by others | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 1 | 2 | 1 | 3 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Home equity loans serviced by others | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Home equity loans serviced by others | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 4 | 5 | 11 | 20 |
Recorded Investment | $ | $ 0 | $ 1 | $ 1 | $ 1 |
Retail | Home equity lines of credit serviced by others | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 1 | 0 | 5 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Home equity lines of credit serviced by others | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Home equity lines of credit serviced by others | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 2 | 8 | 6 | 13 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Automobile | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 46 | 45 | 111 | 122 |
Recorded Investment | $ | $ 1 | $ 0 | $ 2 | $ 2 |
Retail | Automobile | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 4 | 9 | 16 | 42 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 1 |
Retail | Automobile | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 309 | 315 | 933 | 893 |
Recorded Investment | $ | $ 4 | $ 4 | $ 13 | $ 13 |
Retail | Education | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Education | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Education | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 131 | 45 | 211 | 296 |
Recorded Investment | $ | $ 2 | $ 1 | $ 5 | $ 5 |
Retail | Credit cards | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 805 | 623 | 2,362 | 1,776 |
Recorded Investment | $ | $ 5 | $ 4 | $ 14 | $ 10 |
Retail | Credit cards | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Credit cards | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 163 | 0 | 304 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Other retail | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Other retail | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Other retail | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 55 | 0 | 58 | 4 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
ALLOWANCE FOR CREDIT LOSSES,_16
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Loans with Indicators of High Credit Risk (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 117,880 | $ 116,660 |
High loan-to-value | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 596 | 553 |
High loan-to-value | Residential Mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 421 | 318 |
High loan-to-value | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 68 | 87 |
High loan-to-value | Home Equity Products Serviced by Others | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 107 | 148 |
High loan-to-value | Credit Cards | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
High loan-to-value | Education | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Interest-only/negative amortization | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,862 | 1,795 |
Interest-only/negative amortization | Residential Mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,862 | 1,794 |
Interest-only/negative amortization | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Interest-only/negative amortization | Home Equity Products Serviced by Others | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Interest-only/negative amortization | Credit Cards | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Interest-only/negative amortization | Education | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1 | |
Low introductory rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 224 | 217 |
Low introductory rate | Residential Mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Low introductory rate | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Low introductory rate | Home Equity Products Serviced by Others | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Low introductory rate | Credit Cards | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 224 | 217 |
Low introductory rate | Education | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Multiple characteristics and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 3 | 1 |
Multiple characteristics and other | Residential Mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 3 | 1 |
Multiple characteristics and other | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Multiple characteristics and other | Home Equity Products Serviced by Others | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Multiple characteristics and other | Credit Cards | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Multiple characteristics and other | Education | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Credit risk, loans with increased credit exposure | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,685 | 2,566 |
Credit risk, loans with increased credit exposure | Residential Mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,286 | 2,113 |
Credit risk, loans with increased credit exposure | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 68 | 87 |
Credit risk, loans with increased credit exposure | Home Equity Products Serviced by Others | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 107 | 148 |
Credit risk, loans with increased credit exposure | Credit Cards | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 224 | 217 |
Credit risk, loans with increased credit exposure | Education | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 1 |
MORTGAGE BANKING - Residential
MORTGAGE BANKING - Residential Mortgage Loan Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Residential mortgage loans sold with servicing retained | $ 13,265 | $ 4,259 | ||
Residential mortgages | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Residential mortgage loans sold with servicing retained | $ 6,117 | $ 1,848 | 13,265 | 3,173 |
Mortgage banking fees | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gain on sales | 88 | 29 | 180 | 59 |
Contractually specified servicing, late and other anciliary fees | $ 53 | $ 38 | $ 152 | $ 69 |
MORTGAGE BANKING - Changes Rela
MORTGAGE BANKING - Changes Related to MSRs - Amortization Method (Details) - Residential mortgages - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
MSRs: | ||||
Balance as of beginning of period | $ 203 | $ 217 | $ 221 | $ 201 |
Amount capitalized | 0 | 11 | 0 | 26 |
Purchases | 0 | 0 | 0 | 16 |
Amortization | (11) | (9) | (29) | (24) |
Carrying amount before valuation allowance | 192 | 219 | 192 | 219 |
Valuation allowance for servicing assets: | ||||
Balance at beginning of period | 14 | 0 | 0 | 3 |
Valuation charge-offs (recoveries) | 1 | 0 | 15 | (3) |
Balance at end of period | 15 | 0 | 15 | 0 |
Net carrying value of MSRs | $ 177 | $ 219 | $ 177 | $ 219 |
MORTGAGE BANKING - Changes Re_2
MORTGAGE BANKING - Changes Related to MSRs - Fair Value Method (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
MSRs | ||||
Fair value as of beginning of period | $ 600 | |||
Fair value at end of the period | $ 510 | 510 | ||
Residential mortgages | ||||
MSRs | ||||
Fair value as of beginning of period | 531 | $ 0 | 600 | $ 0 |
Acquired MSRs | 0 | 590 | 0 | 590 |
Amounts capitalized | 78 | 29 | 170 | 29 |
Changes in unpaid principal balance during the period | (31) | (12) | (88) | (12) |
Changes in fair value during the period | (68) | 5 | (172) | 5 |
Fair value at end of the period | $ 510 | $ 612 | $ 510 | $ 612 |
MORTGAGE BANKING - Economic Ass
MORTGAGE BANKING - Economic Assumptions Used to Estimate Value of MSRs (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Servicing Assets And Servicing Liabilities At Amortized Cost, Assumptions Used To Estimate Fair Value [Abstract] | ||
MRS portfolio fair value | $ 178 | $ 243 |
Weighted average life (in years) | 5 years 7 months 6 days | 6 years 6 months |
Weighted average constant prepayment rate | 11.60% | 8.50% |
Weighted average discount rate | 9.30% | 9.30% |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
MSR portfolio fair value | $ 510 | $ 600 |
Weighted average life (in years) | 4 years 9 months 18 days | 8 years |
Weighted average constant prepayment rate | 17.60% | 8.20% |
Weighted average option adjusted spread | 3.25% | 6.09% |
Minimum | ||
Servicing Assets at Fair Value [Line Items] | ||
Sensitivity analysis, basis spread | 0.50% | 0.50% |
Servicing Assets And Servicing Liabilities At Amortized Cost, Assumptions Used To Estimate Fair Value [Abstract] | ||
Decline in fair value due to 50 bps decrease in prepayment rate | $ 25 | $ 24 |
Decline in fair value due to 50 bps decrease in discount rate | 3 | 5 |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Decline in fair value due to 50 bps decrease in prepayment rate | 133 | 68 |
Decline in fair value due to 50 bps decrease in option adjusted spread | $ 9 | $ 13 |
Maximum | ||
Servicing Assets at Fair Value [Line Items] | ||
Sensitivity analysis, basis spread | 1.00% | 1.00% |
Servicing Assets And Servicing Liabilities At Amortized Cost, Assumptions Used To Estimate Fair Value [Abstract] | ||
Decline in fair value due to 100 bps decrease in prepayment rate | $ 45 | $ 56 |
Decline in fair value due to 100 bps decrease in discount rate | 6 | 9 |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Decline in fair value due to 100 bps decrease in prepayment rate | 263 | 148 |
Decline in fair value due to 100 bps decrease in option adjusted spread | $ 19 | $ 26 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Sep. 30, 2019 |
Lessee, Lease, Description [Line Items] | |
Weighted average lease term | 7 years |
Weighted average discount rate | 3.20% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 10 years |
LEASES - Components of Operatin
LEASES - Components of Operating Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 42 | $ 123 |
Short-term lease cost | 2 | 8 |
Variable lease cost | 2 | 6 |
Sublease income | (1) | (3) |
Total | $ 45 | $ 134 |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet Information (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use assets | $ 712 |
Operating lease liabilities | $ 733 |
LEASES - Supplemental Lease Inf
LEASES - Supplemental Lease Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Cash paid for amounts included in measurement of liabilities: | |
Operating cash flows from operating leases | $ 122 |
Right-of-use assets in exchange for new operating lease liabilities | $ 91 |
LEASES - Liability Maturity Sch
LEASES - Liability Maturity Schedule (Details) $ in Millions | Sep. 30, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2019 | $ 29 |
2020 | 162 |
2021 | 146 |
2022 | 121 |
2023 | 96 |
Thereafter | 269 |
Total lease payments | 823 |
Less: Interest | 90 |
Present value of lease liabilities | $ 733 |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Variable Interest Entity | |||||
Lending to special purpose entities included in loans and leases | $ 117,880,000,000 | $ 117,880,000,000 | $ 116,660,000,000 | ||
LIHTC Investments | |||||
Variable Interest Entity | |||||
Net impairment losses recognized in earnings | 0 | $ 0 | 0 | $ 0 | |
Commitments to extend credit | Special Purpose Entities | |||||
Variable Interest Entity | |||||
Commitment amount | 889,000,000 | 889,000,000 | 584,000,000 | ||
Commercial | Special Purpose Entities | |||||
Variable Interest Entity | |||||
Lending to special purpose entities included in loans and leases | $ 1,058,000,000 | $ 1,058,000,000 | $ 613,000,000 |
VARIABLE INTEREST ENTITIES - Sc
VARIABLE INTEREST ENTITIES - Schedule of Variable Interest Entities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity | ||
Lending to special purpose entities included in loans and leases | $ 117,880 | $ 116,660 |
LIHTC Investments | ||
Variable Interest Entity | ||
LIHTC investment included in other assets | 1,324 | 1,236 |
LIHTC unfunded commitments included in other liabilities | 664 | 673 |
Renewable Energy | ||
Variable Interest Entity | ||
Renewable energy investments included in other assets | 308 | 319 |
Commercial | Special Purpose Entities | ||
Variable Interest Entity | ||
Lending to special purpose entities included in loans and leases | $ 1,058 | $ 613 |
VARIABLE INTEREST ENTITIES - _2
VARIABLE INTEREST ENTITIES - Schedule of Affordable Housing Tax Credit Investments (Details) - LIHTC Investments - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Variable Interest Entity | ||||
Tax credits included in income tax expense | $ 30 | $ 28 | $ 99 | $ 79 |
Amortization expense included in income tax expense | 33 | 31 | 105 | 86 |
Other tax benefits included in income tax expense | $ 8 | $ 7 | $ 24 | $ 19 |
BORROWED FUNDS - Narrative (Det
BORROWED FUNDS - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Hedging basis adjustments | $ 1,266 | $ 449 |
Short-term borrowed funds | 1,077 | 1,317 |
Available borrowing capacity | 42,800 | |
Federal Home Loan Bank Advances and Letters of Credit | Secured Debt | ||
Debt Instrument [Line Items] | ||
Short-term borrowed funds | 8,400 | 13,000 |
Federal Home Loan Bank advances | ||
Debt Instrument [Line Items] | ||
Available borrowing capacity | 9,300 | 4,800 |
Parent Company | ||
Debt Instrument [Line Items] | ||
Principal balance | 2,500 | 2,000 |
Unamortized deferred issuance costs and/or discounts | (7) | (5) |
Banking Subsidiaries | ||
Debt Instrument [Line Items] | ||
Principal balance | 10,300 | 14,000 |
Unamortized deferred issuance costs and/or discounts | (15) | (14) |
Hedging basis adjustments | $ 62 | $ (66) |
BORROWED FUNDS - Short Term Deb
BORROWED FUNDS - Short Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $ 1,077 | $ 1,317 |
Federal funds purchased | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | 600 | 820 |
Securities sold under agreements to repurchase | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | 267 | 336 |
Other short-term borrowed funds | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $ 210 | $ 161 |
BORROWED FUNDS - Short Term Bor
BORROWED FUNDS - Short Term Borrowed Debt Key Data (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Federal funds purchased and securities sold under agreements to repurchase | |||||
Short-term Debt [Line Items] | |||||
Weighted-average interest rate at period end | 1.47% | 0.00% | 1.47% | 0.00% | 1.72% |
Maximum amount outstanding at month-end during the period | $ 867 | $ 382 | $ 1,499 | $ 1,045 | $ 1,282 |
Average amount outstanding during the period | $ 487 | $ 643 | $ 648 | $ 598 | $ 654 |
Weighted-average interest rate during the period | 1.19% | 0.91% | 1.45% | 0.76% | 0.92% |
Other short-term borrowed funds | |||||
Short-term Debt [Line Items] | |||||
Weighted-average interest rate at period end | 2.15% | 2.43% | 2.15% | 2.43% | 2.73% |
Maximum amount outstanding at month-end during the period | $ 338 | $ 1,010 | $ 511 | $ 1,110 | $ 1,110 |
Average amount outstanding during the period | $ 113 | $ 748 | $ 72 | $ 509 | $ 467 |
Weighted-average interest rate during the period | 2.46% | 2.27% | 2.58% | 2.00% | 2.10% |
BORROWED FUNDS - Long Term Debt
BORROWED FUNDS - Long Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 12,806 | $ 15,925 |
Parent Company | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | 2,484 | |
Parent Company | Subordinated Debt | 4.150% fixed-rate subordinated debt, due September 2022 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 348 | 348 |
Interest rate | 4.15% | |
Parent Company | Subordinated Debt | 3.750% fixed-rate subordinated debt, due July 2024 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 250 | 250 |
Interest rate | 3.75% | |
Parent Company | Subordinated Debt | 4.023% fixed-rate subordinated debt, due October 2024 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 42 | 42 |
Interest rate | 4.023% | |
Parent Company | Subordinated Debt | 4.350% fixed-rate subordinated debt, due August 2025 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 249 | 249 |
Interest rate | 4.35% | |
Parent Company | Subordinated Debt | 4.300% fixed-rate subordinated debt, due December 2025 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 750 | 749 |
Interest rate | 4.30% | |
Parent Company | Senior Unsecured Notes | 2.375% fixed-rate senior unsecured debt, due July 2021 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 349 | 349 |
Interest rate | 2.375% | |
Parent Company | Senior Unsecured Notes | 2.850% senior unsecured notes, due July 2026 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 496 | 0 |
Interest rate | 2.85% | |
Banking and Other Subsidiaries | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 10,322 | |
Banking and Other Subsidiaries | Senior Unsecured Notes | 2.500% senior unsecured notes, due 2019 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 0 | 748 |
Interest rate | 2.50% | |
Banking and Other Subsidiaries | Senior Unsecured Notes | 2.450% senior unsecured notes, due 2019 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 749 | 744 |
Interest rate | 2.45% | |
Banking and Other Subsidiaries | Senior Unsecured Notes | 2.250% senior unsecured notes, due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 699 | 691 |
Interest rate | 2.25% | |
Banking and Other Subsidiaries | Senior Unsecured Notes | 2.678% floating-rate senior unsecured notes, due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 300 | 300 |
Interest rate | 2.678% | |
Banking and Other Subsidiaries | Senior Unsecured Notes | 2.714% floating-rate senior unsecured notes, due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 250 | 250 |
Interest rate | 2.714% | |
Banking and Other Subsidiaries | Senior Unsecured Notes | 2.200% senior unsecured notes, due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 500 | 499 |
Interest rate | 2.20% | |
Banking and Other Subsidiaries | Senior Unsecured Notes | 2.250% senior unsecured notes, due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 749 | 738 |
Interest rate | 2.25% | |
Banking and Other Subsidiaries | Senior Unsecured Notes | 2.550% senior unsecured notes, due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 990 | 964 |
Interest rate | 2.55% | |
Banking and Other Subsidiaries | Senior Unsecured Notes | 3.250% Senior Unsecured Notes, Due 2022 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 713 | 0 |
Interest rate | 3.25% | |
Banking and Other Subsidiaries | Senior Unsecured Notes | 2.895% floating-rate senior unsecured notes, due February 2022 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 299 | 0 |
Interest rate | 2.895% | |
Banking and Other Subsidiaries | Senior Unsecured Notes | 2.954% floating-rate senior unsecured notes, due 2022 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 250 | 249 |
Interest rate | 2.954% | |
Banking and Other Subsidiaries | Senior Unsecured Notes | 2.650% senior unsecured notes, due 2022 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 502 | 487 |
Interest rate | 2.65% | |
Banking and Other Subsidiaries | Senior Unsecured Notes | 3.700% senior unsecured notes, due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 518 | 502 |
Interest rate | 3.70% | |
Banking and Other Subsidiaries | Senior Unsecured Notes | 3.054% floating-rate senior unsecured notes, due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 250 | 249 |
Interest rate | 3.054% | |
Banking and Other Subsidiaries | Senior Unsecured Notes | 3.750% Senior Unsecured Notes, Due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 529 | 0 |
Interest rate | 3.75% | |
Banking and Other Subsidiaries | Federal Home Loan Bank advances | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 3,007 | 7,508 |
Weighted average rate | 2.425% | |
Banking and Other Subsidiaries | Other | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 17 | $ 9 |
BORROWED FUNDS - Maturities of
BORROWED FUNDS - Maturities of Long-term Borrowed Funds (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
2019 | $ 749 | |
2020 | 3,201 | |
2021 | 3,644 | |
2022 | 2,119 | |
2023 | 769 | |
2024 and thereafter | 2,324 | |
Total | 12,806 | $ 15,925 |
Parent Company | ||
Debt Instrument [Line Items] | ||
2019 | 0 | |
2020 | 0 | |
2021 | 349 | |
2022 | 348 | |
2023 | 0 | |
2024 and thereafter | 1,787 | |
Total | 2,484 | |
Banking and Other Subsidiaries | ||
Debt Instrument [Line Items] | ||
2019 | 749 | |
2020 | 3,201 | |
2021 | 3,295 | |
2022 | 1,771 | |
2023 | 769 | |
2024 and thereafter | 537 | |
Total | $ 10,322 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) $ in Millions | Sep. 30, 2019USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Net loss (pre-tax) on derivatives expected to be reclassified in next 12 months | $ 10 |
DERIVATIVES - Schedule of Deriv
DERIVATIVES - Schedule of Derivative Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative Assets | ||
Derivative assets | $ 1,266 | $ 449 |
Less: Gross amounts offset in the Consolidated Balance Sheets | (122) | (87) |
Less: Cash collateral applied | (117) | (45) |
Total net derivative fair values presented in the Consolidated Balance Sheets | 1,027 | 317 |
Derivative Liabilities | ||
Derivative Liabilities | 394 | 415 |
Less: Gross amounts offset in the Consolidated Balance Sheets | (122) | (87) |
Less: Cash collateral applied | (111) | (36) |
Total net derivative fair values presented in the Consolidated Balance Sheets | 161 | 292 |
Derivatives not designated as hedging instruments: | ||
Derivative Assets | ||
Derivative assets | 1,266 | 444 |
Derivative Liabilities | ||
Derivative Liabilities | 391 | 415 |
Interest rate contracts | ||
Derivative Assets | ||
Derivative assets | 993 | 306 |
Derivative Liabilities | ||
Derivative Liabilities | 175 | 277 |
Interest rate contracts | Derivatives designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 31,596 | 12,050 |
Derivative Assets | ||
Derivative assets | 0 | 5 |
Derivative Liabilities | ||
Derivative Liabilities | 3 | 0 |
Interest rate contracts | Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 140,652 | 117,076 |
Derivative Assets | ||
Derivative assets | 993 | 301 |
Derivative Liabilities | ||
Derivative Liabilities | 172 | 277 |
Foreign exchange contracts | ||
Derivative Assets | ||
Derivative assets | 224 | 129 |
Derivative Liabilities | ||
Derivative Liabilities | 195 | 113 |
Foreign exchange contracts | Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 12,905 | 9,866 |
Derivative Assets | ||
Derivative assets | 224 | 129 |
Derivative Liabilities | ||
Derivative Liabilities | 195 | 113 |
Other contracts | ||
Derivative Assets | ||
Derivative assets | 49 | 14 |
Derivative Liabilities | ||
Derivative Liabilities | 24 | 25 |
Other contracts | Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 9,382 | 3,555 |
Derivative Assets | ||
Derivative assets | 49 | 14 |
Derivative Liabilities | ||
Derivative Liabilities | $ 24 | $ 25 |
DERIVATIVES - Schedule of Fair
DERIVATIVES - Schedule of Fair Value Hedges (Details) - Interest rate swap - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest expense - borrowed funds | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | $ 18 | $ (6) | $ 122 | $ (32) |
Hedged Item | (18) | 7 | (121) | 31 |
Interest and fees on loans and leases | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | (10) | 0 | (26) | 0 |
Hedged Item | 10 | 0 | 26 | 0 |
Interest income - investment securities | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | (13) | 0 | (13) | 0 |
Hedged Item | $ 13 | $ 0 | $ 13 | $ 0 |
DERIVATIVES - Amounts Recorded
DERIVATIVES - Amounts Recorded in Balance Sheet (Details) $ in Millions | Sep. 30, 2019USD ($) |
Derivative [Line Items] | |
Carrying amount of the hedged assets | $ 0 |
Cumulative hedging adjustments on discontinued fair value hedge | (1) |
Debt securities available for sale | |
Derivative [Line Items] | |
Carrying amount of the hedged assets | 19,872 |
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items | 13 |
Last-of-layer hedging amount | 2,000 |
Carrying value of hedged asset in lay-of-layer hedging relationship | 20,000 |
Residential mortgages | |
Derivative [Line Items] | |
Carrying amount of the hedged assets | 985 |
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items | 26 |
Debt securities available for sale | |
Derivative [Line Items] | |
Carrying amount of the hedged liabilities | 0 |
Residential mortgages | |
Derivative [Line Items] | |
Carrying amount of the hedged liabilities | 0 |
Long-term borrowed funds | |
Derivative [Line Items] | |
Carrying amount of the hedged liabilities | 5,450 |
Cumulative amount of fair value hedging adjustments included in the carrying amount of long-term borrowed funds | $ 62 |
DERIVATIVES - Effect of Derivat
DERIVATIVES - Effect of Derivative Instruments on Net Income and Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of pre-tax net (losses) gains recognized in OCI | $ (5) | $ 138 | ||
Amount of pretax net gains (losses) recognized in OCI before adoption of 2017-12 | $ (35) | $ (122) | ||
Interest Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of pretax net gains (losses) from OCI into income statement | (22) | (62) | ||
Amount of pretax net gains (losses) from OCI into income/expense before adoption of 2017-12 | (17) | (36) | ||
Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of pretax net gains (losses) from OCI into income statement | $ 8 | $ 9 | ||
Amount of pretax net gains (losses) from OCI into income/expense before adoption of 2017-12 | $ 3 | $ 11 |
DERIVATIVES - Effect of Custome
DERIVATIVES - Effect of Customer Derivatives and Economic Hedges on Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | $ 190 | $ 57 | $ 357 | $ 100 |
Economic hedges | Foreign exchange and interest rate products | Customer interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | 196 | (84) | 850 | (363) |
Economic hedges | Foreign exchange and interest rate products | Customer foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | (81) | 30 | (162) | (27) |
Economic hedges | Foreign exchange and interest rate products | Derivatives transactions to hedge interest rate risk | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | (182) | 97 | (809) | 403 |
Economic hedges | Foreign exchange and interest rate products | Derivatives transactions to hedge foreign exchange risk | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | 130 | 24 | 224 | 99 |
Economic hedges | Mortgage banking fees | Residential loan commitments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | 6 | 6 | 22 | 6 |
Economic hedges | Mortgage banking fees | Forward sale contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | 29 | (13) | 24 | (15) |
Economic hedges | Mortgage banking fees | Interest rate derivative contracts used to hedge residential MSRs | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | $ 92 | $ (3) | $ 208 | $ (3) |
RECLASSIFICATIONS OUT OF ACCU_3
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 02, 2019 | Jan. 01, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 22,017 | $ 20,467 | $ 20,817 | $ 20,270 | ||
Other comprehensive loss before reclassifications | 38 | (121) | 612 | (518) | ||
Other-than-temporary impairment not recognized in earnings on debt securities | (1) | 0 | 0 | (1) | ||
Amounts reclassified to the Consolidated Statements of Operations | 11 | 13 | 39 | 21 | ||
Net other comprehensive (loss) income | 48 | (108) | 651 | (498) | ||
Cumulative effect of change in accounting standards | $ 17 | $ 5 | ||||
Ending balance | 21,851 | 20,276 | 21,851 | 20,276 | ||
Total AOCI | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning balance | (488) | (1,210) | (1,096) | (820) | ||
Net other comprehensive (loss) income | 48 | (108) | 651 | (498) | ||
Cumulative effect of change in accounting standards | $ 5 | |||||
Ending balance | (440) | (1,318) | (440) | (1,318) | ||
Net Unrealized (Losses) Gains on Derivatives before 2017-12 adoption | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning balance | (200) | (143) | ||||
Other comprehensive loss before reclassifications | (26) | (91) | ||||
Other-than-temporary impairment not recognized in earnings on debt securities | 0 | 0 | ||||
Amounts reclassified to the Consolidated Statements of Operations | 11 | 19 | ||||
Net other comprehensive (loss) income | (15) | (72) | ||||
Ending balance | (215) | (215) | ||||
Net Unrealized (Losses) Gains on Derivatives | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning balance | (6) | (143) | ||||
Other comprehensive loss before reclassifications | (4) | 103 | ||||
Other-than-temporary impairment not recognized in earnings on debt securities | 0 | 0 | ||||
Amounts reclassified to the Consolidated Statements of Operations | 10 | 40 | ||||
Net other comprehensive (loss) income | 6 | 143 | ||||
Cumulative effect of change in accounting standards | 0 | |||||
Ending balance | 0 | 0 | ||||
Net Unrealized (Losses) Gains on Debt Securities | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning balance | (25) | (575) | (490) | (236) | ||
Other comprehensive loss before reclassifications | 42 | (95) | 509 | (427) | ||
Other-than-temporary impairment not recognized in earnings on debt securities | (1) | 0 | 0 | (1) | ||
Amounts reclassified to the Consolidated Statements of Operations | (2) | (2) | (10) | (8) | ||
Net other comprehensive (loss) income | 39 | (97) | 499 | (436) | ||
Cumulative effect of change in accounting standards | 5 | |||||
Ending balance | 14 | (672) | 14 | (672) | ||
Employee Benefit Plans | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning balance | (457) | (435) | (463) | (441) | ||
Other comprehensive loss before reclassifications | 0 | 0 | 0 | 0 | ||
Other-than-temporary impairment not recognized in earnings on debt securities | 0 | 0 | 0 | 0 | ||
Amounts reclassified to the Consolidated Statements of Operations | 3 | 4 | 9 | 10 | ||
Net other comprehensive (loss) income | 3 | 4 | 9 | 10 | ||
Cumulative effect of change in accounting standards | $ 0 | |||||
Ending balance | $ (454) | $ (431) | $ (454) | $ (431) |
RECLASSIFICATIONS OUT OF ACCU_4
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest income | $ 1,538 | $ 1,477 | $ 4,688 | $ 4,216 |
Interest expense | (393) | (329) | (1,217) | (856) |
Securities gains, net | 3 | 3 | 15 | 13 |
Net debt securities impairment losses recognized in earnings | (1) | (1) | (2) | (3) |
Other operating expense | (127) | (131) | (355) | (378) |
Income before income tax expense | 564 | 576 | 1,710 | 1,626 |
Income tax expense | 115 | 133 | 369 | 370 |
NET INCOME | 449 | 443 | 1,341 | 1,256 |
Amount Reclassified from AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense | (6) | (4) | (15) | (7) |
NET INCOME | (11) | (13) | (39) | (21) |
Reclassification adjustment for net derivative losses included in net income: | Amount Reclassified from AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest income | (22) | (17) | (62) | (36) |
Interest expense | 8 | 3 | 9 | 11 |
Income before income tax expense | (14) | (14) | (53) | (25) |
Income tax expense | (4) | (3) | (13) | (6) |
NET INCOME | (10) | (11) | (40) | (19) |
Reclassification of net debt securities gains to net income: | Amount Reclassified from AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Securities gains, net | 3 | 3 | 15 | 13 |
Net debt securities impairment losses recognized in earnings | (1) | (1) | (2) | (3) |
Income before income tax expense | 2 | 2 | 13 | 10 |
Income tax expense | 0 | 0 | 3 | 2 |
NET INCOME | 2 | 2 | 10 | 8 |
Reclassification of changes related to the employee benefit plan: | Amount Reclassified from AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other operating expense | (5) | (5) | (14) | (13) |
Income before income tax expense | (5) | (5) | (14) | (13) |
Income tax expense | (2) | (1) | (5) | (3) |
NET INCOME | $ (3) | $ (4) | $ (9) | $ (10) |
RECLASSIFICATIONS OUT OF ACCU_5
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Effects to Net Income of Amounts Reclassified Out of OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net interest income | $ 1,145 | $ 1,148 | $ 3,471 | $ 3,360 |
Provision for credit losses | 101 | 78 | 283 | 241 |
Noninterest income | 493 | 416 | 1,383 | 1,175 |
Noninterest expense | 973 | 910 | 2,861 | 2,668 |
Income before income tax expense | 564 | 576 | 1,710 | 1,626 |
Income tax expense | 115 | 133 | 369 | 370 |
NET INCOME | 449 | 443 | 1,341 | 1,256 |
Amount Reclassified from AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net interest income | (14) | (14) | (53) | (25) |
Noninterest income | 2 | 2 | 13 | 10 |
Noninterest expense | 5 | 5 | 14 | 13 |
Income tax expense | (6) | (4) | (15) | (7) |
NET INCOME | $ (11) | $ (13) | $ (39) | $ (21) |
STOCKHOLDERS' EQUITY - Authoriz
STOCKHOLDERS' EQUITY - Authorized Preferred Shares (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Preferred Stock | ||
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, issued (in shares) | 1,150,000 | 850,000 |
Preferred stock, value, issued | $ 1,133 | $ 840 |
Series A Preferred Stock | ||
Preferred Stock | ||
Preferred stock, liquidation preference per share (in dollars per share) | $ 1,000 | |
Preferred stock, issued (in shares) | 250,000 | 250,000 |
Preferred stock, outstanding (in shares) | 250,000 | 250,000 |
Preferred stock, value, issued | $ 247 | $ 247 |
Preferred stock, value, outstanding | $ 247 | $ 247 |
Series B Preferred Stock | ||
Preferred Stock | ||
Preferred stock, liquidation preference per share (in dollars per share) | $ 1,000 | |
Preferred stock, issued (in shares) | 300,000 | 300,000 |
Preferred stock, outstanding (in shares) | 300,000 | 300,000 |
Preferred stock, value, issued | $ 296 | $ 296 |
Preferred stock, value, outstanding | $ 296 | $ 296 |
Series C Preferred Stock | ||
Preferred Stock | ||
Preferred stock, liquidation preference per share (in dollars per share) | $ 1,000 | |
Preferred stock, issued (in shares) | 300,000 | 300,000 |
Preferred stock, outstanding (in shares) | 300,000 | 300,000 |
Preferred stock, value, issued | $ 297 | $ 297 |
Preferred stock, value, outstanding | $ 297 | $ 297 |
Series D Preferred Stock | ||
Preferred Stock | ||
Preferred stock, liquidation preference per share (in dollars per share) | $ 1,000 | |
Preferred stock, issued (in shares) | 300,000 | 0 |
Preferred stock, outstanding (in shares) | 300,000 | 0 |
Preferred stock, value, issued | $ 293 | $ 0 |
Preferred stock, value, outstanding | $ 293 | $ 0 |
Liquidation preference per depository share (usd per share) | $ 25 | |
Depositary shares issued (in shares) | 12,000,000 |
STOCKHOLDERS' EQUITY - Preferre
STOCKHOLDERS' EQUITY - Preferred Stock Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 28, 2019 | Sep. 30, 2019 | Sep. 30, 2018 |
Class of Stock [Line Items] | |||
Preferred stock issued | $ 293 | $ 296 | |
Redemption price per share (usd per share) | $ 1,000 | ||
Redemption notice period | 90 days | ||
Subsequent Event | Series E Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock issued | $ 450 | ||
Depositary shares issued (in shares) | 18,000,000 | ||
Depository share interest percentage | 2.50% | ||
Preferred stock, dividend rate | 5.00% | ||
Redemption price per share (usd per share) | $ 1,000 | ||
Liquidation preference per depository share (usd per share) | $ 25 | ||
Proceeds from issuance of stock | $ 437 | ||
Redemption notice period | 90 days |
STOCKHOLDERS' EQUITY - Prefer_2
STOCKHOLDERS' EQUITY - Preferred Stock Outstanding Information (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | ||
Redemption notice period | 90 days | |
Redemption price per share (usd per share) | $ 1,000 | |
Series A Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, outstanding (in shares) | 250,000 | 250,000 |
Preferred stock, dividend rate | 5.50% | |
Series B Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, outstanding (in shares) | 300,000 | 300,000 |
Preferred stock, dividend rate | 6.00% | |
Series C Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, outstanding (in shares) | 300,000 | 300,000 |
Preferred stock, dividend rate | 6.375% | |
Series D Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, outstanding (in shares) | 300,000 | 0 |
Preferred stock, dividend rate | 6.35% | |
Liquidation preference per depository share (usd per share) | $ 25 | |
Depository share interest percentage | 2.50% | |
Depositary shares issued (in shares) | 12,000,000 | |
LIBOR | Series A Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, dividend payment rate, basis spread on variable rate | 3.96% | |
LIBOR | Series B Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, dividend payment rate, basis spread on variable rate | 3.003% | |
LIBOR | Series C Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, dividend payment rate, basis spread on variable rate | 3.157% | |
LIBOR | Series D Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, dividend payment rate, basis spread on variable rate | 3.642% |
STOCKHOLDERS' EQUITY - Dividend
STOCKHOLDERS' EQUITY - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Class of Stock [Line Items] | ||||
Dividends declared per share of common stock (in usd per share) | $ 0.36 | $ 0.27 | $ 1 | $ 0.71 |
Common stock dividends declared and paid | $ 162 | $ 129 | $ 459 | $ 344 |
Preferred stock dividends declared and paid | $ 17 | $ 7 | $ 50 | $ 14 |
Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Dividends declared per share of preferred stock (in usd per share) | $ 27.50 | $ 27.50 | $ 55 | $ 55 |
Series B Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Dividends declared per share of preferred stock (in usd per share) | 0 | 0 | 30 | 0 |
Series C Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Dividends declared per share of preferred stock (in usd per share) | 15.94 | 0 | 47.81 | 0 |
Series D Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Dividends declared per share of preferred stock (in usd per share) | $ 15.88 | $ 0 | $ 43.57 | $ 0 |
Dividends Declared | ||||
Class of Stock [Line Items] | ||||
Common stock dividends declared and paid | $ 162 | $ 129 | $ 459 | $ 344 |
Preferred stock dividends declared and paid | 17 | 7 | 50 | 14 |
Dividends Declared | Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividends declared and paid | 7 | 7 | 14 | 14 |
Dividends Declared | Series B Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividends declared and paid | 0 | 0 | 9 | 0 |
Dividends Declared | Series C Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividends declared and paid | 5 | 0 | 14 | 0 |
Dividends Declared | Series D Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividends declared and paid | 5 | 0 | 13 | 0 |
Dividends Paid | ||||
Class of Stock [Line Items] | ||||
Common stock dividends declared and paid | 162 | 129 | 459 | 344 |
Preferred stock dividends declared and paid | 18 | 0 | 48 | 7 |
Dividends Paid | Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividends declared and paid | 0 | 0 | 7 | 7 |
Dividends Paid | Series B Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividends declared and paid | 9 | 0 | 20 | 0 |
Dividends Paid | Series C Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividends declared and paid | 4 | 0 | 13 | 0 |
Dividends Paid | Series D Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividends declared and paid | $ 5 | $ 0 | $ 8 | $ 0 |
STOCKHOLDERS' EQUITY - Treasury
STOCKHOLDERS' EQUITY - Treasury Stock Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Equity [Abstract] | ||
Repurchase of common stock | $ 820 | $ 725 |
Treasury stock purchased (in shares) | 23,399,661 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Schedule of Outstanding Off-balance sheet Arrangements (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Other Commitments [Line Items] | ||
Commitment amount | $ 73,085 | $ 71,739 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 70,825 | 69,553 |
Letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 2,148 | 2,125 |
Marketing rights | ||
Other Commitments [Line Items] | ||
Commitment amount | 33 | 37 |
Risk participation agreements | ||
Other Commitments [Line Items] | ||
Commitment amount | 47 | 19 |
Loans sold with recourse | ||
Other Commitments [Line Items] | ||
Commitment amount | $ 32 | $ 5 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019USD ($)counterparty | Dec. 31, 2018USD ($) | Dec. 31, 2003 | |
Risk Participation Agreements [Abstract] | |||
Risk participation agreements number of counterparties | counterparty | 88 | ||
Risk participation agreements, maximum term | 10 years | ||
Commercial real estate loans held for sale | Purchase commitment | |||
Other Commitments [Abstract] | |||
Unsettled commercial loan trade purchases | $ 121 | $ 68 | |
Unsettled commercial loan trade sales | $ 196 | $ 161 | |
Minimum | |||
Risk Participation Agreements [Abstract] | |||
Risk participation agreements, average term | 1 year | ||
Maximum | |||
Risk Participation Agreements [Abstract] | |||
Risk participation agreements, average term | 5 years | ||
Marketing rights | |||
Marketing Rights [Abstract] | |||
Commitment period | 25 years | ||
Financial standby letters of credit | |||
Letters of Credit [Abstract] | |||
Letters of credit outstanding | 10 years | ||
Commercial letters of credit | |||
Letters of Credit [Abstract] | |||
Letters of credit outstanding | 1 year |
FAIR VALUE MEASUREMENTS - Resid
FAIR VALUE MEASUREMENTS - Residential Mortgage and Commercial Real Estate Loans Held For Sale (Details) - Level 2 - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Mortgage banking fees | Residential loans held for sale | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Changes in fair value | $ (4) | $ (8) | $ 5 | $ (7) |
Other income | Commercial and commercial real estate loans held for sale, at fair value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Changes in fair value | $ 0 | $ 1 | $ 4 | $ 1 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Assets | |||
Securities available for sale | [1] | $ 21,502 | $ 19,895 |
Loans held for sale, at fair value | 1,993 | 1,219 | |
Mortgage servicing rights | 510 | 600 | |
Derivative assets | 1,266 | 449 | |
Equity securities, at fair value | 47 | 181 | |
Total assets | 25,318 | 22,344 | |
Liabilities | |||
Total derivative liabilities | 394 | 415 | |
Total liabilities | 394 | 415 | |
Money market mutual fund investments | |||
Assets | |||
Equity securities, at fair value | 47 | 181 | |
Interest rate contracts | |||
Assets | |||
Derivative assets | 993 | 306 | |
Liabilities | |||
Total derivative liabilities | 175 | 277 | |
Foreign exchange contracts | |||
Assets | |||
Derivative assets | 224 | 129 | |
Liabilities | |||
Total derivative liabilities | 195 | 113 | |
Other contracts | |||
Assets | |||
Derivative assets | 49 | 14 | |
Liabilities | |||
Total derivative liabilities | 24 | 25 | |
Level 1 | |||
Assets | |||
Securities available for sale | 120 | 24 | |
Loans held for sale, at fair value | 0 | 0 | |
Derivative assets | 0 | 0 | |
Equity securities, at fair value | 47 | 181 | |
Total assets | 167 | 205 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 1 | Money market mutual fund investments | |||
Assets | |||
Equity securities, at fair value | 47 | 181 | |
Level 1 | Interest rate contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 1 | Foreign exchange contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 1 | Other contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 2 | |||
Assets | |||
Securities available for sale | 21,382 | 19,871 | |
Loans held for sale, at fair value | 1,993 | 1,219 | |
Derivative assets | 1,240 | 449 | |
Equity securities, at fair value | 0 | 0 | |
Total assets | 24,615 | 21,539 | |
Liabilities | |||
Total derivative liabilities | 394 | 415 | |
Total liabilities | 394 | 415 | |
Level 2 | Money market mutual fund investments | |||
Assets | |||
Equity securities, at fair value | 0 | 0 | |
Level 2 | Interest rate contracts | |||
Assets | |||
Derivative assets | 993 | 306 | |
Liabilities | |||
Total derivative liabilities | 175 | 277 | |
Level 2 | Foreign exchange contracts | |||
Assets | |||
Derivative assets | 224 | 129 | |
Liabilities | |||
Total derivative liabilities | 195 | 113 | |
Level 2 | Other contracts | |||
Assets | |||
Derivative assets | 23 | 14 | |
Liabilities | |||
Total derivative liabilities | 24 | 25 | |
Level 3 | |||
Assets | |||
Securities available for sale | 0 | 0 | |
Loans held for sale, at fair value | 0 | 0 | |
Derivative assets | 26 | 0 | |
Equity securities, at fair value | 0 | 0 | |
Total assets | 536 | 600 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 3 | Money market mutual fund investments | |||
Assets | |||
Equity securities, at fair value | 0 | 0 | |
Level 3 | Interest rate contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 3 | Foreign exchange contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 3 | Other contracts | |||
Assets | |||
Derivative assets | 26 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Mortgage-backed securities | |||
Assets | |||
Securities available for sale | 21,377 | 19,866 | |
Mortgage-backed securities | Level 1 | |||
Assets | |||
Securities available for sale | 0 | 0 | |
Mortgage-backed securities | Level 2 | |||
Assets | |||
Securities available for sale | 21,377 | 19,866 | |
Mortgage-backed securities | Level 3 | |||
Assets | |||
Securities available for sale | 0 | 0 | |
State and political subdivisions | |||
Assets | |||
Securities available for sale | 5 | 5 | |
State and political subdivisions | Level 1 | |||
Assets | |||
Securities available for sale | 0 | 0 | |
State and political subdivisions | Level 2 | |||
Assets | |||
Securities available for sale | 5 | 5 | |
State and political subdivisions | Level 3 | |||
Assets | |||
Securities available for sale | 0 | 0 | |
U.S. Treasury and other | |||
Assets | |||
Securities available for sale | 120 | 24 | |
U.S. Treasury and other | Level 1 | |||
Assets | |||
Securities available for sale | 120 | 24 | |
U.S. Treasury and other | Level 2 | |||
Assets | |||
Securities available for sale | 0 | 0 | |
U.S. Treasury and other | Level 3 | |||
Assets | |||
Securities available for sale | 0 | 0 | |
Residential loans held for sale | |||
Assets | |||
Loans held for sale, at fair value | 1,824 | 967 | |
Residential loans held for sale | Level 1 | |||
Assets | |||
Loans held for sale, at fair value | 0 | 0 | |
Residential loans held for sale | Level 2 | |||
Assets | |||
Loans held for sale, at fair value | 1,824 | 967 | |
Residential loans held for sale | Level 3 | |||
Assets | |||
Loans held for sale, at fair value | 0 | 0 | |
Commercial loans held for sale | |||
Assets | |||
Loans held for sale, at fair value | 169 | 252 | |
Commercial loans held for sale | Level 1 | |||
Assets | |||
Loans held for sale, at fair value | 0 | 0 | |
Commercial loans held for sale | Level 2 | |||
Assets | |||
Loans held for sale, at fair value | 169 | 252 | |
Commercial loans held for sale | Level 3 | |||
Assets | |||
Loans held for sale, at fair value | 0 | 0 | |
Residential mortgages | |||
Assets | |||
Mortgage servicing rights | 510 | 600 | |
Residential mortgages | Level 1 | |||
Assets | |||
Mortgage servicing rights | 0 | 0 | |
Residential mortgages | Level 2 | |||
Assets | |||
Mortgage servicing rights | 0 | 0 | |
Residential mortgages | Level 3 | |||
Assets | |||
Mortgage servicing rights | $ 510 | $ 600 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
FAIR VALUE MEASUREMENTS - Sch_2
FAIR VALUE MEASUREMENTS - Schedule of Assets Measured on Recurring Basis Level 3 Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Residential mortgages | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 531 | $ 0 | $ 600 | $ 0 |
Issuances | 78 | 29 | 170 | 29 |
Acquired MSRs | 590 | 590 | ||
Settlements | (31) | (12) | (88) | (12) |
Change in fair value during the period | (68) | 5 | (172) | 5 |
Transfers from Level 2 to Level 3 | 0 | 0 | ||
Ending balance | 510 | $ 612 | 510 | $ 612 |
Other Derivative Contracts | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 25 | 0 | ||
Issuances | 61 | 104 | ||
Settlements | (64) | (107) | ||
Change in fair value during the period | 4 | 11 | ||
Transfers from Level 2 to Level 3 | 0 | 18 | ||
Ending balance | $ 26 | $ 26 |
FAIR VALUE MEASUREMENTS - Sch_3
FAIR VALUE MEASUREMENTS - Schedule of Gain (Loss) on Assets and Liabilities Measured on Nonrecurring Basis Included in Earnings (Details) - Nonrecurring measurement basis - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Impaired collateral-dependent loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (loss) included in earnings on assets measured on a nonrecurring basis | $ (8) | $ (3) | $ (36) | $ (9) |
MSRs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (loss) included in earnings on assets measured on a nonrecurring basis | $ (1) | $ 0 | $ (15) | $ 3 |
FAIR VALUE MEASUREMENTS - Sch_4
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements on a Nonrecurring Basis (Details) - Nonrecurring measurement basis - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | $ 332 | $ 338 |
MSRs | 178 | 243 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | 0 | 0 |
MSRs | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | 332 | 338 |
MSRs | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | 0 | 0 |
MSRs | $ 178 | $ 243 |
FAIR VALUE MEASUREMENTS - Sch_5
FAIR VALUE MEASUREMENTS - Schedule of Financial Instruments not Recorded at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity, carrying value | $ 3,319 | $ 4,165 |
Securities held-to-maturity, fair value | 3,362 | 4,041 |
Equity securities, at cost, carrying value | 734 | 834 |
Equity securities, at cost, fair value | 734 | 834 |
Other loans held for sale, carrying value | 22 | 101 |
Other loans held for sale, fair value | 22 | 101 |
Loans and leases, carrying value | 117,880 | 116,660 |
Loans and leases, fair value | 118,961 | 116,627 |
Deposits, carrying value | 124,714 | 119,575 |
Deposits, fair value | 124,852 | 119,503 |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 867 | 1,156 |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 867 | 1,156 |
Other short-term borrowed funds, carrying value | 210 | 161 |
Other short-term borrowed funds, fair value | 210 | 161 |
Long-term borrowed funds, carrying value | 12,806 | 15,925 |
Long-term borrowed funds, fair value | 12,952 | 15,877 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity, carrying value | 0 | 0 |
Securities held-to-maturity, fair value | 0 | 0 |
Equity securities, at cost, carrying value | 0 | 0 |
Equity securities, at cost, fair value | 0 | 0 |
Other loans held for sale, carrying value | 0 | 0 |
Other loans held for sale, fair value | 0 | 0 |
Loans and leases, carrying value | 0 | 0 |
Loans and leases, fair value | 0 | 0 |
Deposits, carrying value | 0 | 0 |
Deposits, fair value | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 0 | 0 |
Other short-term borrowed funds, carrying value | 0 | 0 |
Other short-term borrowed funds, fair value | 0 | 0 |
Long-term borrowed funds, carrying value | 0 | 0 |
Long-term borrowed funds, fair value | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity, carrying value | 3,319 | 4,165 |
Securities held-to-maturity, fair value | 3,362 | 4,041 |
Equity securities, at cost, carrying value | 734 | 834 |
Equity securities, at cost, fair value | 734 | 834 |
Other loans held for sale, carrying value | 0 | 0 |
Other loans held for sale, fair value | 0 | 0 |
Loans and leases, carrying value | 332 | 338 |
Loans and leases, fair value | 332 | 338 |
Deposits, carrying value | 124,714 | 119,575 |
Deposits, fair value | 124,852 | 119,503 |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 867 | 1,156 |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 867 | 1,156 |
Other short-term borrowed funds, carrying value | 210 | 161 |
Other short-term borrowed funds, fair value | 210 | 161 |
Long-term borrowed funds, carrying value | 12,806 | 15,925 |
Long-term borrowed funds, fair value | 12,952 | 15,877 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity, carrying value | 0 | 0 |
Securities held-to-maturity, fair value | 0 | 0 |
Equity securities, at cost, carrying value | 0 | 0 |
Equity securities, at cost, fair value | 0 | 0 |
Other loans held for sale, carrying value | 22 | 101 |
Other loans held for sale, fair value | 22 | 101 |
Loans and leases, carrying value | 117,548 | 116,322 |
Loans and leases, fair value | 118,629 | 116,289 |
Deposits, carrying value | 0 | 0 |
Deposits, fair value | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 0 | 0 |
Other short-term borrowed funds, carrying value | 0 | 0 |
Other short-term borrowed funds, fair value | 0 | 0 |
Long-term borrowed funds, carrying value | 0 | 0 |
Long-term borrowed funds, fair value | $ 0 | $ 0 |
NONINTEREST INCOME - Narrative
NONINTEREST INCOME - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Trust and investment services fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Trailing commission income | $ 4 | $ 4 | $ 11 | $ 12 |
NONINTEREST INCOME - Components
NONINTEREST INCOME - Components of Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 285 | $ 285 | $ 863 | $ 833 |
Consumer Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 210 | 201 | 611 | 585 |
Commercial Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 75 | 84 | 252 | 248 |
Service charges and fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 127 | 131 | 375 | 382 |
Service charges and fees | Consumer Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 102 | 105 | 298 | 303 |
Service charges and fees | Commercial Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 25 | 26 | 77 | 79 |
Card fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 67 | 61 | 190 | 182 |
Card fees | Consumer Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 57 | 51 | 162 | 154 |
Card fees | Commercial Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 10 | 10 | 28 | 28 |
Capital markets fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 38 | 46 | 140 | 134 |
Capital markets fees | Consumer Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Capital markets fees | Commercial Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 38 | 46 | 140 | 134 |
Trust and investment services fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 50 | 45 | 150 | 128 |
Trust and investment services fees | Consumer Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 50 | 45 | 150 | 128 |
Trust and investment services fees | Commercial Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Other banking fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3 | 2 | 8 | 7 |
Other banking fees | Consumer Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1 | 0 | 1 | 0 |
Other banking fees | Commercial Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 2 | $ 2 | $ 7 | $ 7 |
NONINTEREST INCOME - Other Inco
NONINTEREST INCOME - Other Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Bank-owned life insurance | $ 14 | $ 14 | $ 41 | $ 42 |
OTHER OPERATING EXPENSE (Detail
OTHER OPERATING EXPENSE (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Deposit insurance | $ 14 | $ 29 | $ 46 | $ 88 |
Promotional expense | 31 | 36 | 86 | 95 |
Settlements and operating losses | 10 | 11 | 30 | 35 |
Other | 72 | 55 | 193 | 160 |
Other operating expense | $ 127 | $ 131 | $ 355 | $ 378 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator (basic and diluted): | ||||
Net income | $ 449 | $ 443 | $ 1,341 | $ 1,256 |
Less: Preferred stock dividends | 17 | 7 | 50 | 14 |
Net income available to common stockholders | $ 432 | $ 436 | $ 1,291 | $ 1,242 |
Denominator: | ||||
Weighted-average common shares outstanding - basic (in shares) | 445,703,987 | 475,957,526 | 454,802,186 | 482,691,884 |
Dilutive common shares: share-based awards (in shares) | 1,430,608 | 1,642,391 | 1,416,569 | 1,558,959 |
Weighted-average common shares outstanding - diluted (in shares) | 447,134,595 | 477,599,917 | 456,218,755 | 484,250,843 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.97 | $ 0.92 | $ 2.84 | $ 2.57 |
Diluted (in dollars per share) | $ 0.97 | $ 0.91 | $ 2.83 | $ 2.57 |
Share-based awards excluded from diluted earnings per share computation (in shares) | 772 | 0 | 359,952 | 0 |
BUSINESS OPERATING SEGMENTS - N
BUSINESS OPERATING SEGMENTS - Narrative (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
BUSINESS OPERATING SEGMENTS - A
BUSINESS OPERATING SEGMENTS - Assets by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net interest income | $ 1,145 | $ 1,148 | $ 3,471 | $ 3,360 |
Noninterest income | 493 | 416 | 1,383 | 1,175 |
Total revenue | 1,638 | 1,564 | 4,854 | 4,535 |
Noninterest expense | 973 | 910 | 2,861 | 2,668 |
Profit (loss) before provision for credit losses | 665 | 654 | 1,993 | 1,867 |
Provision for credit losses | 101 | 78 | 283 | 241 |
Income before income tax expense | 564 | 576 | 1,710 | 1,626 |
Income tax expense (benefit) | 115 | 133 | 369 | 370 |
NET INCOME | 449 | 443 | 1,341 | 1,256 |
Total average assets | 162,110 | 155,624 | 161,344 | 153,482 |
Operating Segments | Consumer Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 799 | 776 | 2,386 | 2,268 |
Noninterest income | 336 | 258 | 860 | 708 |
Total revenue | 1,135 | 1,034 | 3,246 | 2,976 |
Noninterest expense | 718 | 686 | 2,133 | 2,000 |
Profit (loss) before provision for credit losses | 417 | 348 | 1,113 | 976 |
Provision for credit losses | 83 | 71 | 228 | 209 |
Income before income tax expense | 334 | 277 | 885 | 767 |
Income tax expense (benefit) | 83 | 70 | 219 | 193 |
NET INCOME | 251 | 207 | 666 | 574 |
Total average assets | 66,365 | 62,974 | 65,624 | 61,857 |
Operating Segments | Commercial Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 360 | 380 | 1,103 | 1,113 |
Noninterest income | 133 | 140 | 432 | 405 |
Total revenue | 493 | 520 | 1,535 | 1,518 |
Noninterest expense | 213 | 202 | 639 | 610 |
Profit (loss) before provision for credit losses | 280 | 318 | 896 | 908 |
Provision for credit losses | 27 | 14 | 73 | 19 |
Income before income tax expense | 253 | 304 | 823 | 889 |
Income tax expense (benefit) | 57 | 70 | 184 | 203 |
NET INCOME | 196 | 234 | 639 | 686 |
Total average assets | 55,614 | 52,871 | 55,793 | 51,820 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | (14) | (8) | (18) | (21) |
Noninterest income | 24 | 18 | 91 | 62 |
Total revenue | 10 | 10 | 73 | 41 |
Noninterest expense | 42 | 22 | 89 | 58 |
Profit (loss) before provision for credit losses | (32) | (12) | (16) | (17) |
Provision for credit losses | (9) | (7) | (18) | 13 |
Income before income tax expense | (23) | (5) | 2 | (30) |
Income tax expense (benefit) | (25) | (7) | (34) | (26) |
NET INCOME | 2 | 2 | 36 | (4) |
Total average assets | $ 40,131 | $ 39,779 | $ 39,927 | $ 39,805 |