Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 30, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
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 | 426,828,691 | |
Entity Central Index Key | 0000759944 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | CFG | |
Security Exchange Name | NYSE | |
Series D Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/40th interest in a share of 6.350% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D | |
Trading Symbol | CFG PrD | |
Security Exchange Name | NYSE | |
Series E Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/40th interest in a share of 5.000% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series E | |
Trading Symbol | CFG PrE | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | |
ASSETS: | |||
Cash and due from banks | $ 1,088 | $ 1,175 | |
Interest-bearing cash and due from banks | 6,358 | 2,211 | |
Interest-bearing deposits in banks | 475 | 297 | |
Debt securities available for sale, at fair value (including $688 and $359 pledged to creditors, respectively) | [1] | 22,144 | 20,613 |
Debt securities held to maturity (fair value of $3,009 and $3,242 respectively, and including $172 and $249 pledged to creditors, respectively) | [1] | 2,856 | 3,202 |
Equity investment securities, at fair value | 50 | 47 | |
Equity investment securities, at cost | 607 | 807 | |
Loans held for sale, at fair value | 3,631 | 1,946 | |
Other loans held for sale | 1,362 | 1,384 | |
Loans and leases | 125,713 | 119,088 | |
Less: Allowance for loan and lease losses | (2,448) | (1,252) | |
Net loans and leases | 123,265 | 117,836 | |
Derivative assets | 2,069 | 807 | |
Premises and equipment, net | 751 | 761 | |
Bank-owned life insurance | 1,739 | 1,725 | |
Goodwill | 7,050 | 7,044 | |
Due from broker | 51 | 0 | |
Other assets | 6,378 | 5,878 | |
TOTAL ASSETS | 179,874 | 165,733 | |
Deposits: | |||
Noninterest-bearing | 40,545 | 29,233 | |
Interest-bearing | 103,073 | 96,080 | |
Total deposits | 143,618 | 125,313 | |
Short-term borrowed funds | 255 | 274 | |
Derivative liabilities | 198 | 120 | |
Deferred taxes, net | 709 | 866 | |
Long-term borrowed funds | 9,202 | 14,047 | |
Due to broker | 155 | 0 | |
Other liabilities | 3,319 | 2,912 | |
TOTAL LIABILITIES | 157,456 | 143,532 | |
Contingencies (refer to Note 12) | |||
Preferred stock, $25.00 par value, authorized 100,000,000 shares: | |||
$25.00 par value,100,000,000 shares authorized; 2,000,000 and 1,600,000 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively | 1,965 | 1,570 | |
Common stock: | |||
$0.01 par value, 1,000,000,000 shares authorized; 569,490,896 shares issued and 426,824,594 shares outstanding at June 30, 2020 and 568,238,730 shares issued and 433,121,083 shares outstanding at December 31, 2019 | 6 | 6 | |
Additional paid-in capital | 18,908 | 18,891 | |
Retained earnings | 6,068 | 6,498 | |
Treasury stock, at cost, 142,666,302 and 135,117,647 shares at June 30, 2020 and December 31, 2019, respectively | (4,623) | (4,353) | |
Accumulated other comprehensive income (loss) | 94 | (411) | |
TOTAL STOCKHOLDERS’ EQUITY | 22,418 | 22,201 | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 179,874 | $ 165,733 | |
[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 | Jun. 30, 2020 | Dec. 31, 2019 |
ASSETS: | ||
Securities held-to-maturity, fair value | $ 3,009 | $ 3,242 |
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, issued (in shares) | 2,000,000 | 1,600,000 |
Preferred stock, outstanding (in shares) | 2,000,000 | 1,600,000 |
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) | 569,490,896 | 568,238,730 |
Common stock, outstanding (in shares) | 426,824,594 | 433,121,083 |
Treasury stock (in shares) | 142,666,302 | 135,117,647 |
Available-for-sale Securities | ||
ASSETS: | ||
Securities, pledged to creditors | $ 688 | $ 359 |
Held-to-maturity Securities | ||
ASSETS: | ||
Securities, pledged to creditors | 172 | 249 |
Securities held-to-maturity, fair value | $ 3,009 | $ 3,242 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
INTEREST INCOME: | ||||
Interest and fees on loans and leases | $ 1,192 | $ 1,392 | $ 2,494 | $ 2,773 |
Interest and fees on loans held for sale, at fair value | 20 | 15 | 35 | 26 |
Interest and fees on other loans held for sale | 7 | 2 | 16 | 6 |
Investment securities | 130 | 164 | 277 | 330 |
Interest-bearing deposits in banks | 1 | 7 | 6 | 15 |
Total interest income | 1,350 | 1,580 | 2,828 | 3,150 |
INTEREST EXPENSE: | ||||
Deposits | 124 | 308 | 351 | 595 |
Short-term borrowed funds | 0 | 4 | 1 | 6 |
Long-term borrowed funds | 66 | 102 | 156 | 223 |
Total interest expense | 190 | 414 | 508 | 824 |
Net interest income | 1,160 | 1,166 | 2,320 | 2,326 |
Provision for credit losses | 464 | 97 | 1,064 | 182 |
Net interest income after provision for credit losses | 696 | 1,069 | 1,256 | 2,144 |
NONINTEREST INCOME: | ||||
Service charges and fees | 84 | 126 | 202 | 249 |
Mortgage banking fees | 276 | 62 | 435 | 105 |
Card fees | 48 | 64 | 104 | 123 |
Capital markets fees | 61 | 57 | 104 | 111 |
Trust and investment services fees | 45 | 53 | 98 | 100 |
Foreign exchange and interest rate products | 34 | 35 | 58 | 71 |
Letter of credit and loan fees | 31 | 33 | 65 | 66 |
Securities gains, net | 3 | 4 | 3 | 12 |
Net impairment losses recognized in earnings on debt securities | 0 | 0 | 0 | (1) |
Other income | 8 | 28 | 18 | 54 |
Total noninterest income | 590 | 462 | 1,087 | 890 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 513 | 507 | 1,062 | 1,016 |
Equipment and software expense | 142 | 126 | 275 | 251 |
Outside services | 131 | 118 | 266 | 228 |
Occupancy | 82 | 82 | 166 | 165 |
Other operating expense | 111 | 118 | 222 | 228 |
Total noninterest expense | 979 | 951 | 1,991 | 1,888 |
Income before income tax expense | 307 | 580 | 352 | 1,146 |
Income tax expense | 54 | 127 | 65 | 254 |
NET INCOME | 253 | 453 | 287 | 892 |
Net income available to common stockholders | $ 225 | $ 435 | $ 237 | $ 859 |
Weighted-average common shares outstanding: | ||||
Basic (in Shares) | 426,613,053 | 458,154,335 | 427,165,737 | 459,426,685 |
Diluted (in Shares) | 427,566,920 | 459,304,224 | 428,292,580 | 460,857,535 |
Per common share information: | ||||
Basic earnings (in dollars per share) | $ 0.53 | $ 0.95 | $ 0.56 | $ 1.87 |
Diluted earnings (in Dollars per Share) | $ 0.53 | $ 0.95 | $ 0.55 | $ 1.86 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 253 | $ 453 | $ 287 | $ 892 |
Other comprehensive income (loss): | ||||
Net unrealized derivative instruments (losses) gains arising during the periods, net of income taxes of ($3), $23, $30 and $36, respectively | (8) | 68 | 88 | 107 |
Reclassification adjustment for net derivative (gains) losses included in net income, net of income taxes of ($11), $4, ($12) and $9, respectively | (34) | 15 | (37) | 30 |
Net unrealized debt securities gains arising during the periods, net of income taxes of $16, $72, $145 and $152, respectively | 49 | 221 | 449 | 467 |
Other-than-temporary impairment not recognized in earnings on debt securities, net of income taxes of $0, $0, $0 and $0, respectively | 0 | 1 | 0 | 1 |
Reclassification of net debt securities gains to net income, net of income taxes of ($1), ($1), ($1) and ($3), respectively | (2) | (3) | (2) | (8) |
Amortization of actuarial loss, net of income taxes of $0, $1, $1 and $3, respectively | 4 | 3 | 7 | 6 |
Net other comprehensive income | 9 | 305 | 505 | 603 |
Total comprehensive income | $ 262 | $ 758 | $ 792 | $ 1,495 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net unrealized derivative instrument gains arising during the periods, tax | $ (3) | $ 23 | $ 30 | $ 36 |
Reclassification adjustment for net derivative (gains) losses included in net income, tax | (11) | 4 | (12) | 9 |
Net unrealized debt securities gains arising during the periods, tax | 16 | 72 | 145 | 152 |
Other-than-temporary impairment not recognized in earnings on debt securities, tax | 0 | 0 | 0 | 0 |
Reclassification of net debt securities gains to net income, tax | (1) | (1) | (1) | (3) |
Amortization of actuarial loss, tax | $ 0 | $ 1 | $ 1 | $ 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 Income (Loss) |
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 | (297) | (297) | |||||
Dividends to preferred stockholders | (33) | (33) | |||||
Preferred stock issued (in shares) | 0 | ||||||
Preferred stock issued | 293 | $ 293 | |||||
Treasury stock purchased (in shares) | (9,000,000) | ||||||
Treasury stock purchased | (320) | (320) | |||||
Share-based compensation plans (in shares) | 1,000,000 | ||||||
Share-based compensation plans | 37 | 37 | 0 | ||||
Employee stock purchase plan shares purchased | 8 | 8 | |||||
Total comprehensive income: | |||||||
Net income | 892 | 892 | |||||
Other comprehensive income | 603 | 603 | |||||
Total comprehensive income | 1,495 | 892 | 603 | ||||
Ending balance (in shares) at Jun. 30, 2019 | 1,000,000 | 458,000,000 | |||||
Ending balance at Jun. 30, 2019 | 22,017 | $ 1,133 | $ 6 | 18,860 | 5,959 | (3,453) | (488) |
Beginning balance (in shares) at Mar. 31, 2019 | 1,000,000 | 461,000,000 | |||||
Beginning balance at Mar. 31, 2019 | 21,531 | $ 1,132 | $ 6 | 18,847 | 5,672 | (3,333) | (793) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to common stockholders | (148) | (148) | |||||
Dividends to preferred stockholders | (18) | (18) | |||||
Preferred stock issued (in shares) | 0 | ||||||
Preferred stock issued | 1 | $ 1 | |||||
Treasury stock purchased (in shares) | (3,000,000) | ||||||
Treasury stock purchased | (120) | (120) | |||||
Share-based compensation plans (in shares) | 0 | ||||||
Share-based compensation plans | 9 | 9 | 0 | ||||
Employee stock purchase plan shares purchased | 4 | 4 | |||||
Total comprehensive income: | |||||||
Net income | 453 | 453 | |||||
Other comprehensive income | 305 | 305 | |||||
Total comprehensive income | 758 | 453 | 305 | ||||
Ending balance (in shares) at Jun. 30, 2019 | 1,000,000 | 458,000,000 | |||||
Ending balance at Jun. 30, 2019 | 22,017 | $ 1,133 | $ 6 | 18,860 | 5,959 | (3,453) | (488) |
Beginning balance (in shares) at Dec. 31, 2019 | 2,000,000 | 433,000,000 | |||||
Beginning balance at Dec. 31, 2019 | 22,201 | $ 1,570 | $ 6 | 18,891 | 6,498 | (4,353) | (411) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to common stockholders | (336) | (336) | |||||
Dividends to preferred stockholders | (50) | (50) | |||||
Preferred stock issued (in shares) | 0 | ||||||
Preferred stock issued | $ 395 | $ 395 | |||||
Treasury stock purchased (in shares) | (7,548,655) | (7,000,000) | |||||
Treasury stock purchased | $ (270) | 0 | (270) | ||||
Share-based compensation plans (in shares) | 1,000,000 | ||||||
Share-based compensation plans | 7 | 7 | 0 | ||||
Employee stock purchase plan shares purchased | 10 | 10 | |||||
Total comprehensive income: | |||||||
Net income | 287 | 287 | |||||
Other comprehensive income | 505 | 505 | |||||
Total comprehensive income | 792 | 287 | 505 | ||||
Ending balance (in shares) at Jun. 30, 2020 | 2,000,000 | 427,000,000 | |||||
Ending balance at Jun. 30, 2020 | 22,418 | $ 1,965 | $ 6 | 18,908 | 6,068 | (4,623) | 94 |
Beginning balance (in shares) at Mar. 31, 2020 | 2,000,000 | 427,000,000 | |||||
Beginning balance at Mar. 31, 2020 | 21,950 | $ 1,570 | $ 6 | 18,901 | 6,011 | (4,623) | 85 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to common stockholders | (168) | (168) | |||||
Dividends to preferred stockholders | (28) | (28) | |||||
Preferred stock issued (in shares) | 0 | ||||||
Preferred stock issued | 395 | $ 395 | |||||
Treasury stock purchased (in shares) | 0 | ||||||
Treasury stock purchased | 0 | 0 | |||||
Share-based compensation plans (in shares) | 0 | ||||||
Share-based compensation plans | 1 | 1 | 0 | ||||
Employee stock purchase plan shares purchased | 6 | 6 | |||||
Total comprehensive income: | |||||||
Net income | 253 | 253 | |||||
Other comprehensive income | 9 | 9 | |||||
Total comprehensive income | 262 | 253 | 9 | ||||
Ending balance (in shares) at Jun. 30, 2020 | 2,000,000 | 427,000,000 | |||||
Ending balance at Jun. 30, 2020 | $ 22,418 | $ 1,965 | $ 6 | $ 18,908 | $ 6,068 | $ (4,623) | $ 94 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
OPERATING ACTIVITIES | |||
Net income | $ 287 | $ 892 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 1,064 | 182 | |
Net change in loans held for sale | (737) | (471) | |
Depreciation, amortization and accretion | 310 | 270 | |
Amortization of intangibles | 6 | 5 | |
Deferred income taxes | (208) | (10) | |
Share-based compensation | 23 | 32 | |
Net gain on sales of: | |||
Debt securities | (3) | (16) | |
Premises and equipment | 0 | (7) | |
Increase in other assets | (2,454) | (221) | |
Increase (decrease) in other liabilities | 299 | (79) | |
Net cash (used in) provided by operating activities | (1,413) | 577 | |
Investment securities: | |||
Purchases of debt securities available for sale | (3,308) | (3,502) | |
Proceeds from maturities and paydowns of debt securities available for sale | 2,521 | 1,625 | |
Proceeds from sales of debt securities available for sale | 0 | 1,250 | |
Proceeds from maturities and paydowns of debt securities held to maturity | 349 | 171 | |
Net (increase) decrease in equity securities, at fair value | (3) | 134 | |
Net decrease in equity securities, at cost | 200 | 128 | |
Net increase in interest-bearing deposits in banks | (178) | (38) | |
Acquisitions, net of cash acquired | (3) | (129) | |
Net increase in loans and leases | (7,014) | (806) | |
Capital expenditures, net | (53) | (10) | |
Other | (110) | (111) | |
Net cash used in investing activities | (7,599) | (1,288) | |
FINANCING ACTIVITIES | |||
Net increase in deposits | 18,305 | 4,429 | |
Net (decrease) increase in short-term borrowed funds | (18) | 123 | |
Proceeds from issuance of long-term borrowed funds | 8,309 | 4,500 | |
Repayments of long-term borrowed funds | (13,253) | (9,005) | |
Treasury stock purchased | (270) | (320) | |
Net proceeds from issuance of preferred stock | 395 | 293 | |
Dividends declared and paid to common stockholders | (336) | (297) | |
Dividends declared and paid to preferred stockholders | (45) | (30) | |
Payments of employee tax withholding for share-based compensation | (15) | (21) | |
Net cash provided by (used in) financing activities | 13,072 | (328) | |
(Decrease) increase in cash and cash equivalents | [1] | 4,060 | (1,039) |
Cash and cash equivalents at beginning of period | [1] | 3,386 | 4,074 |
Cash and cash equivalents at end of period | [1] | $ 7,446 | $ 3,035 |
[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 | 6 Months Ended |
Jun. 30, 2020 | |
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 presented in this document 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 presented in this document should be read in conjunction with the Company’s audited Consolidated Financial Statements and accompanying Notes included in the Company’s 2019 Form 10-K. The Company’s principal business activity is banking, conducted through its banking subsidiary, CBNA. 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 2019 Form 10-K. Accounting Pronouncements Adopted in 2020 Pronouncement Summary of Guidance Effects on Financial Statements Financial Instruments - Credit Losses Issued June 2016 • Required effective date: January 1, 2020. • Establishes a single allowance framework for financial assets carried at amortized cost (including securities HTM), which reflects management’s estimate of credit losses over the full remaining expected life of the financial assets. • Amends impairment guidance for securities AFS to incorporate an allowance, which allows 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 adopted the new standard on January 1, 2020, retrospectively for loans and leases and HTM securities and prospectively for AFS securities. Refer to Note 4 for discussion of the significant accounting policy for the allowance for credit losses following adoption. • Adoption resulted in a cumulative-effect reduction of $337 million, net of taxes of $114 million, to retained earnings and a corresponding increase to the ACL of $451 million. Refer to Note 4 for the impact of the adoption to the ALLL and reserve for unfunded commitments. • The increase in ACL upon adoption will decrease the Company’s CET1 capital ratio by 22 basis points on a fully-phased in basis. Following a two-year delay, this capital impact will be phased-in by 25% per year, or approximately 6 basis points, beginning on January 1, 2022 through January 1, 2025. • Adoption of the new standard could produce higher volatility in the quarterly provision for credit losses than the prior incurred loss reserve process and could adversely impact the Company’s ongoing earnings. • Based on the credit quality of the Company’s existing debt securities portfolio, the Company did not recognize an allowance for HTM and AFS debt securities upon adoption. Goodwill Issued January 2017 • Requires an impairment loss to be recognized when the estimated fair value of a reporting unit falls below its carrying value. • Eliminates the second condition in the current guidance that requires an impairment loss to be recognized only if the estimated implied fair value of the goodwill is below its carrying value. • Applied prospectively to all goodwill impairment tests performed after the adoption date. • The Company adopted the new standard on January 1, 2020. Refer to Note 6 for discussion of the significant accounting policy for goodwill impairment following adoption. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. Disclosure Requirements - Fair Value Measurements Issued August 2018 • Amends disclosure requirements on fair value measurements. • 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 disclosures. • Retrospective application is required for all other amendments for all periods presented. • The Company adopted the new standard on January 1, 2020. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. Required fair value measurement disclosures are included in Note 13. Simplifying the Accounting for Income Taxes Issued December 2019 • Simplifies the accounting for income taxes by eliminating certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. • Simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates. • Clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. • The Company adopted the new standard on January 1, 2020. • Adoption did not have an impact on the Company’s Consolidated Financial Statements. Pronouncement Summary of Guidance Effects on Financial Statements Facilitation of the Effects of Reference Rate Reform on Financial Reporting Issued March 2020 • Provides the option to apply a number of practical expedients when evaluating if a contract modification as the result of reference rate reform is considered a new contract or a continuation of an existing contract. • Provides optional expedients to the evaluation of, and accounting for, fair value and cash flow hedges affected by reference rate reform. • Provides an optional one-time election to sell or transfer debt securities classified as HTM that reference a rate affected by reference rate reform • The Company adopted the new standard in the first quarter of 2020 upon issuance and is effective through December 31, 2022. • Adoption of the new standard did not have a material impact on the Company’s Consolidated Financial Statements. |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2020 | |
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: June 30, 2020 December 31, 2019 (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 $11 $— $— $11 $71 $— $— $71 State and political subdivisions 4 — — 4 5 — — 5 Mortgage-backed securities, at fair value: Federal agencies and U.S. government sponsored entities 20,898 648 (4 ) 21,542 19,803 143 (71 ) 19,875 Other/non-agency 551 36 — 587 638 24 — 662 Total mortgage-backed securities, at fair value 21,449 684 (4 ) 22,129 20,441 167 (71 ) 20,537 Total debt securities available for sale, at fair value $21,464 $684 ($4 ) $22,144 $20,517 $167 ($71 ) $20,613 Mortgage-backed securities, at cost: Federal agencies and U.S. government sponsored entities $2,856 $153 $— $3,009 $3,202 $45 ($5 ) $3,242 Total debt securities held to maturity, at cost $2,856 $153 $— $3,009 $3,202 $45 ($5 ) $3,242 Money market mutual fund investments $50 $— $— $50 $47 $— $— $47 Total equity securities, at fair value $50 $— $— $50 $47 $— $— $47 Federal Reserve Bank stock $577 $— $— $577 $577 $— $— $577 Federal Home Loan Bank stock 22 — — 22 222 — — 222 Other equity securities 8 — — 8 8 — — 8 Total equity securities, at cost $607 $— $— $607 $807 $— $— $807 Accrued interest receivable on debt securities totaled $58 million as of June 30, 2020 and December 31, 2019 , and is included in other assets on the Consolidated Balance Sheets. The following table presents the amortized cost and fair value of debt securities by contractual maturity as of June 30, 2020 . Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without incurring penalties. June 30, 2020 Distribution of Maturities (in millions) 1 Year or Less After 1 Year through 5 Years After 5 Years through 10 Years After 10 Years Total Amortized cost: U.S. Treasury and other $11 $— $— $— $11 State and political subdivisions — — — 4 4 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 4 169 1,575 19,150 20,898 Other/non-agency — — — 551 551 Total debt securities available for sale 15 169 1,575 19,705 21,464 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 2,856 2,856 Total debt securities held to maturity — — — 2,856 2,856 Total amortized cost of debt securities $15 $169 $1,575 $22,561 $24,320 Fair value: U.S. Treasury and other $11 $— $— $— $11 State and political subdivisions — — — 4 4 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 4 176 1,631 19,731 21,542 Other/non-agency — — — 587 587 Total debt securities available for sale 15 176 1,631 20,322 22,144 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 3,009 3,009 Total debt securities held to maturity — — — 3,009 3,009 Total fair value of debt securities $15 $176 $1,631 $23,331 $25,153 Taxable interest income from investment securities as presented on the Consolidated Statements of Operations was $130 million and $164 million for the three months ended June 30, 2020 and 2019 , respectively and $277 million and $330 million for the six months ended June 30, 2020 and 2019 , respectively. The following table presents realized gains and losses on securities: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Gains on sale of debt securities (1) $3 $8 $3 $16 Losses on sale of debt securities — — — — Debt securities gains, net $3 $8 $3 $16 (1) For the three and six months ended June 30, 2019, $4 million of gains on sale of debt securities were recognized in mortgage banking fees in the Consolidated Statement of Operations as they related to AFS securities held as economic hedges of the value of the MSR portfolio recognized using the amortization method. The following table presents the amortized cost and fair value of debt securities pledged: June 30, 2020 December 31, 2019 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against repurchase agreements $242 $251 $265 $266 Pledged against FHLB borrowed funds 548 587 638 662 Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law 3,861 3,998 3,670 3,672 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 June 30, 2020 or December 31, 2019 . Citizens offsets certain derivative assets and derivative liabilities on the Consolidated Balance Sheets. For further information, see Note 9 . There were no securitizations of mortgage loans retained in the investment portfolio for the three and six months ended June 30, 2020. Securitizations of mortgage loans retained in the investment portfolio were $13 million for the three months ended June 30, 2019 , and $44 million for the six months ended June 30, 2019 . These securitizations include a substantive guarantee by a third party. In 2019 , the guarantors were FNMA, FHLMC, and GNMA. The debt securities received from the guarantors are classified as AFS. Impairment Upon purchase of HTM investment securities and each subsequent measurement period, Citizens recognizes a reserve for credit losses expected to be incurred over the life of the security, even if the risk of loss is remote. Recognition of a reserve for expected credit losses is not required if the amount the Company expects to realize is zero (commonly referred to as “zero expected credit losses”). The Company evaluated its existing HTM portfolio and concluded that all of the securities met the zero expected credit loss criteria, and therefore no CECL reserve was booked for HTM securities as of the balance sheet date. Citizens reviews its AFS debt securities for impairment at the individual security level on a quarterly basis, or more frequently if a potential loss triggering event occurs. The initial indicator of impairment for debt securities classified as AFS is a decline in fair value below its amortized cost basis. For any security that has declined in fair value below the amortized cost basis, the Company recognizes an impairment loss in current period earnings if management has the intent to sell the security or if it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. Estimating the recovery of the amortized cost basis of a debt security is based upon an assessment of the cash flows expected to be collected. If the present value of cash flows expected to be collected, discounted at the security’s original effective yield, is less than the amortized cost basis, impairment equal to the shortfall in cash flows has occurred. Citizens evaluates whether any portion of the impairment is attributable to credit-related factors or various other market factors affecting the fair value of the security (e.g., interest rates, spread levels, liquidity in the sector, etc.), and the public credit rating of the security. If credit-related factors exist, credit-related impairment has occurred regardless of the Company’s intent to hold the security until it recovers. The credit-related portion of impairment is recognized in current period earnings as provision expense through the establishment of an allowance for AFS securities, to the extent the allowance does not reduce the value of the AFS security below its current fair value. The remaining non-credit related portion of impairment is recognized in OCI. Improvement in credit losses in subsequent periods results in a reversal of the allowance for AFS securities and a corresponding decrease to provision expense, to the extent the allowance does not become negative. Accrued interest receivable on AFS debt securities is excluded from the balances used to calculate the allowance for AFS securities. All accrued and uncollected interest is immediately reversed against interest income when it is deemed uncollectible. The Company has evaluated any AFS securities in an unrealized loss position at June 30, 2020 and concluded that all unrealized losses are due to non-credit related factors. As such, the Company does not have an allowance for AFS securities as of June 30, 2020 . The following table presents AFS mortgage-backed debt securities with fair values below their respective carrying values, separated by the duration the securities have been in a continuous unrealized loss position: June 30, 2020 Less than 12 Months 12 Months or Longer Total (dollars in millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Federal agencies and U.S. government sponsored entities $851 ($4 ) $— $— $851 ($4 ) The following table present AFS and HTM mortgage-backed debt securities with fair values below their respective carrying values, separated by the duration the securities have been in a continuous unrealized loss position: December 31, 2019 Less than 12 Months 12 Months or Longer Total (dollars in millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Federal agencies and U.S. government sponsored entities $5,135 ($24 ) $3,748 ($52 ) $8,883 ($76 ) 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 June 30, 2020 |
LOANS AND LEASES
LOANS AND LEASES | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
LOANS AND LEASES | NOTE 3 - LOANS AND LEASES Loans held for investment are reported at the amount of their outstanding principal, net of charge-offs, unearned income, deferred loan origination fees and costs, and unamortized premiums or discounts on purchased loans. Loans and leases are disclosed in portfolio segments and classes. The Company’s loan and lease portfolio segments are commercial and retail. The classes of loans and leases are: commercial, commercial real estate, leases, residential mortgages, home equity, automobile, education and other retail. The following table presents the Company’s loans and leases disclosed in portfolio segments and classes: (in millions) June 30, 2020 December 31, 2019 Commercial (1)(2) $48,017 $41,479 Commercial real estate 14,485 13,522 Leases 2,428 2,537 Total commercial loans and leases 64,930 57,538 Residential mortgages 19,245 19,083 Home equity 12,541 13,154 Automobile 12,028 12,120 Education 10,591 10,347 Other retail 6,378 6,846 Total retail loans (3) 60,783 61,550 Total loans and leases (4) $125,713 $119,088 (1) Includes PPP loans fully guaranteed by the SBA of $4.7 billion as of June 30, 2020. (2) SBA loans serviced for others of $45 million and $33 million at June 30, 2020 and December 31, 2019 , respectively, are not included above. These loans represent the government guaranteed portion of SBA loans sold to outside investors. (3) Mortgage loans serviced for others of $79.9 billion and $77.5 billion at June 30, 2020 and December 31, 2019 , respectively, are not included above. (4) LHFS, at fair value of $3.6 billion and $1.9 billion at June 30, 2020 and December 31, 2019, respectively, and other LHFS of $1.4 billion at June 30, 2020 and December 31, 2019, are not included above. Accrued interest receivable on loans and leases held for investment totaled $530 million and $495 million as of June 30, 2020 and December 31, 2019 , respectively, and is included in other assets in the Consolidated Balance Sheets. The following table presents the composition of LHFS. June 30, 2020 December 31, 2019 (in millions) Residential Mortgages (1) Commercial (2) Education (3) Total Residential Mortgages (1) Commercial (2) Total Loans held for sale at fair value $3,449 $182 $— $3,631 $1,778 $168 $1,946 Other loans held for sale — 426 936 1,362 1,101 283 1,384 (1) Residential mortgage LHFS are originated for sale. (2) Commercial LHFS at fair value consist of loans managed by the Company’s commercial secondary loan desk. Other commercial LHFS generally consist of loans associated with the Company’s syndication business. (3) Education other LHFS represents a loan portfolio sale expected to settle in third quarter 2020. Loans pledged as collateral for FHLB borrowed funds, primarily residential mortgages and home equity loans, totaled $25.5 billion and $25.3 billion at June 30, 2020 and December 31, 2019 , respectively. Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window, were primarily comprised of auto, commercial, commercial real estate, and education loans, and totaled $40.9 billion and $17.4 billion at June 30, 2020 and December 31, 2019 , respectively. During the three months ended June 30, 2020 , the Company purchased $691 million of education loans and $255 million of other retail loans. During the three months ended June 30, 2019 , the Company purchased $99 million of education loans. During the six months ended June 30, 2020 , the Company purchased $909 million of education loans and $527 million of other retail loans. During the six months ended June 30, 2019 , the Company purchased $300 million of education loans. The Company sold $71 million of commercial loans during the three months ended June 30, 2020 and sold $492 million of residential mortgage loans during the three months ended June 30, 2019 . During the six months ended June 30, 2020 , the Company sold $262 million of commercial loans and $1.5 billion of retail loans. During the six months ended June 30, 2019 the Company sold $182 million of commercial loans and $628 million of retail loans, including $22 million of retail TDRs. Interest income on direct financing and sales-type leases was $19 million and $20 million for the three months ended June 30, 2020 and 2019 , respectively, and was $37 million and $40 million for the six months ended June 30, 2020 and 2019 |
ALLOWANCE FOR CREDIT LOSSES, NO
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK | NOTE 4 - ALLOWANCE FOR CREDIT LOSSES, NONACCRUING LOANS AND LEASES, AND CONCENTRATIONS OF CREDIT RISK Allowance for Credit Losses Management’s estimate of expected credit losses in the Company’s loan and lease portfolios is recorded in the ALLL and the reserve for unfunded lending commitments (collectively the ACL). See Note 5 in the Company’s 2019 Form 10-K for a detailed discussion of the ACL reserve methodology and estimation techniques as of December 31, 2019. Upon adoption of CECL effective January 1, 2020, the Company’s ACL reserve methodology changed to estimate expected credit losses over the contractual life of the loans and leases. The ACL is maintained at a level the Company believes to be appropriate to absorb expected lifetime credit losses over the contractual life of the loan and lease portfolios and on the unfunded lending commitments. The determination of the ACL is based on periodic evaluation of the loan and lease portfolios and unfunded lending commitments that are not unconditionally cancelable considering a number of relevant underlying factors, including key assumptions and evaluation of quantitative and qualitative information. Key assumptions used in the ACL measurement process include the use of a two-year reasonable and supportable economic forecast period followed by a one-year period during which the expected credit losses revert to long-term historical macroeconomic inputs. The evaluation of quantitative and qualitative information is performed through assessments of groups of assets that share similar risk characteristics and certain individual loans and leases that do not share similar risk characteristics with the collective group. Loans are grouped generally by product type (e.g., commercial, commercial real estate, residential mortgage, etc.), and significant loan portfolios are assessed for credit losses using econometric models. The quantitative evaluation of the adequacy of the ACL utilizes a single economic forecast and is primarily based on econometric models that use known or estimated data as of the balance sheet date and forecasted data over the reasonable and supportable period. Known and estimated data include current PD, LGD and EAD (for commercial loans and leases), timing and amount of expected draws (for unfunded lending commitments), mix and level of loan balances, delinquency levels, assigned risk ratings, previous loss experience, current business conditions, amounts and timing of expected future cash flows, and factors particular to a specific commercial credit such as competition, business and management performance. Forward-looking economic assumptions include real gross domestic product, unemployment rate, interest rate curve, and changes in collateral values. This data is aggregated to estimate expected credit losses over the contractual life of the loans and leases, adjusted for expected prepayments. In highly volatile economic environments historical information, such as commercial customer financial statements or consumer credit ratings, may not be as important to estimating future expected losses as forecasted inputs to the models. The ACL may also be affected materially by a variety of qualitative factors that the Company considers to reflect current judgment of various events and risks that are not measured in the statistical procedures including uncertainty related to the economic forecasts used in the modeled credit loss estimates, loan growth, back testing results, credit underwriting policy exceptions, regulatory and audit findings, and peer comparisons. The qualitative allowance is further informed by multiple alternative scenarios to support the period-end ACL balance. The measurement process results in specific or pooled allowances for loans, leases and unfunded lending commitments, and qualitative allowances that are judgmentally determined and applied across the portfolio. There are certain loan portfolios that may not need an econometric model to enable the Company to calculate management’s best estimate of the expected credit losses. Less data intensive, non-modeled approaches to estimating losses are considered more efficient and practical for portfolios that have lower levels of outstanding balances (e.g., runoff or closed portfolios, new products or products that are not significant to the Company’s overall credit risk exposure). Loans and leases that do not share similar risk characteristics are individually assessed for expected credit losses. Nonaccruing commercial and commercial real estate loans with an outstanding balance of $5 million or greater and all commercial and commercial real estate TDRs (regardless of size) are assessed on an individual loan level basis. Generally, the measurement of ACL on individual loans and leases is the present value of its future cash flows or the fair value of its underlying collateral, if the loan or lease is collateral dependent. Loans that are deemed to be collateral dependent are written down to the fair value, less costs to sell, if sale of the collateral is expected as of the evaluation date and are reassessed each subsequent period to determine if a change to the ACL is required. Subsequent evaluations may result in an increase or decrease to the ACL, based on a corresponding change in the fair value of the collateral during the period. Any subsequent decrease to the ACL (because of an increase to the collateral-dependent loan’s fair value) is limited to the total amount previously written off for that loan. For retail TDRs that are not collateral dependent, the ACL is developed using the present value of expected future cash flows compared to the amortized cost basis in the loans. Expected re-default factors are considered in this analysis. Retail TDRs that are deemed collateral dependent are written down to fair market value less cost to sell. Expected recoveries are considered in management’s estimate of the ACL and may result in a negative adjustment (i.e., reduction) to the ACL balance. A loan is collateral dependent if repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty as of the evaluation date. Generally, repayment would be expected to be provided substantially by the sale or continued operation of the underlying collateral if cash flows to repay the loan from all other available sources (including guarantors) are expected to be no more than nominal. If repayment is dependent only on the operation of the collateral, the fair value of the collateral would not be adjusted for estimated costs to sell. If a loan is considered collateral dependent, the ACL is calculated as the difference between the fair value of collateral (adjusted for the costs to sell if the sale of the collateral is expected) and the amortized cost basis as of the evaluation date. It is possible to have a negative ACL for a collateral dependent loan if the fair value of the collateral increases in a subsequent reporting period. The negative ACL cannot exceed the total amount previously charged off. Accrued interest receivable on loans and leases is excluded from asset balances used to calculate the ACL. All accrued and uncollected interest is immediately reversed against interest income when a loan or lease is placed on nonaccrual status. Uncollectible interest is written off timely in accordance with regulatory guidelines. Generally, loans and leases are placed on nonaccrual status when contractually past due 90 days or more, or earlier if management believes that the probability of collection is insufficient to warrant further accrual. Residential mortgages are placed on nonaccrual status when contractually past due 120 days or more, or sooner if deemed collateral-dependent, unless guaranteed by the Federal Housing Administration. The amount of accrued interest receivable reversed against interest income for the three months ended June 30, 2020 was $2 million and $4 million for commercial and retail, respectively. Accrued interest reversed against interest income for the six months ended June 30, 2020 was $3 million and $9 million for commercial and retail, respectively. The Company estimates expected credit losses associated with off-balance sheet financial instruments such as standby letters of credit, financial guarantees and unfunded loan commitments that are not unconditionally cancelable. Off-balance sheet financial instruments are subject to individual reviews and are analyzed and segregated by risk according to the Company’s internal risk rating scale. These risk classifications, in conjunction with historical loss experience, current and future economic conditions, timing and amount of expected draws, and performance trends within specific portfolio segments, result in the estimate of the reserve for unfunded lending commitments. The Company does not recognize a reserve for future draws from credit lines that are unconditionally cancelable (e.g., credit cards). The ALLL and the reserve for unfunded lending commitments are reported on the Consolidated Balance Sheets in the allowance for loan and lease losses and in other liabilities, respectively. Provision for credit losses related to the loans and leases portfolio and the unfunded lending commitments are reported in the Consolidated Statements of Operations as provision for credit losses. The following table presents a summary of changes in the ALLL and the reserve for unfunded lending commitments for the three and six months ended June 30, 2020 : Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 (in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $752 $1,419 $2,171 $674 $578 $1,252 Cumulative effect of change in accounting principle — — — (176 ) 629 453 Allowance for loan and lease losses, beginning of period, adjusted 752 1,419 2,171 498 1,207 1,705 Charge-offs (74 ) (106 ) (180 ) (121 ) (233 ) (354 ) Recoveries 3 30 33 6 64 70 Net charge-offs (71 ) (76 ) (147 ) (115 ) (169 ) (284 ) Provision charged to income 554 (130 ) 424 852 175 1,027 Allowance for loan and lease losses, end of period $1,235 $1,213 $2,448 $1,235 $1,213 $2,448 Reserve for unfunded lending commitments, beginning of period $38 $1 $39 $44 $— $44 Cumulative effective of change in accounting principle — — — (3 ) 1 (2 ) Reserve for unfunded lending commitments, beginning of period, adjusted 38 1 39 41 1 42 Provision for unfunded lending commitments 31 9 40 28 9 37 Reserve for unfunded lending commitments, end of period $69 $10 $79 $69 $10 $79 The following table provides additional detail on the cumulative effect of change in accounting principle on the ACL: December 31, 2019 January 1, 2020 June 30, 2020 (in millions) Amortized Cost Basis ACL Balance Coverage Impact of Adoption of CECL ACL Balance Coverage Amortized Cost Basis ACL Balance Coverage Commercial (1) $41,479 $575 1.4 % ($199 ) $376 0.9 % $48,017 $847 1.8 % Commercial real estate 13,522 124 0.9 (57 ) 67 0.5 14,485 330 2.3 Leases 2,537 19 0.7 77 96 3.8 2,428 127 5.2 Total commercial loans and leases 57,538 718 1.2 (179 ) 539 0.9 64,930 1,304 2.0 Residential 19,083 35 0.2 95 130 0.7 19,245 104 0.5 Home equity 13,154 83 0.6 73 156 1.2 12,541 143 1.1 Automobile 12,120 123 1.0 83 206 1.7 12,028 277 2.3 Education 10,347 116 1.1 298 414 4.0 10,591 312 2.9 Other retail 6,846 221 3.2 81 302 4.4 6,378 387 6.1 Total retail loans 61,550 578 0.9 630 1,208 2.0 60,783 1,223 2.0 Total loans and leases $119,088 $1,296 1.1 % $451 $1,747 1.5 % $125,713 $2,527 2.0 % (1) The commercial coverage ratio includes a 19 basis point reduction associated with PPP loans as of June 30, 2020. In addition to the adoption of CECL, macroeconomic assumptions shifted as the COVID-19 pandemic and related economic impacts surfaced during the quarter ended March 31, 2020, resulting in a significant impact to the ACL. The significant increase in the ACL as of June 30, 2020 as compared to the January 1, 2020 ACL was driven by the COVID-19 pandemic and the resulting economic impacts, with a total reserve build of $780 million and an ending balance of $2.5 billion . To determine the ACL as of June 30, 2020 , the Company utilized the Moody’s May 13th Baseline scenario to integrate the effects of COVID-19 in the Company’s loss estimates, which reflected a second quarter 2020 decline in GDP of approximately 33% , with peak unemployment of approximately 15% followed by a gradual recovery in the second half of 2020. This scenario was more severe than first quarter 2020 which had second quarter 2020 GDP down approximately 18% and peak unemployment of approximately 9% . Estimated losses were adjusted for the expected benefit of COVID-19-related fiscal and monetary stimulus measures and the expected beneficial impacts of the Company’s own customer assistance actions. These actions include forbearance and other customer accommodation efforts encouraged by the CARES Act and regulatory interagency guidance that the Company believes will stabilize credit profiles in both its commercial and retail portfolios. The following table presents a summary of changes in the ALLL and the reserve for unfunded lending commitments for the three and six months ended June 30, 2019 : Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $691 $554 $1,245 $690 $552 $1,242 Charge-offs (45 ) (111 ) (156 ) (71 ) (223 ) (294 ) Recoveries 12 38 50 14 85 99 Net charge-offs (33 ) (73 ) (106 ) (57 ) (138 ) (195 ) Provision charged to income 22 66 88 47 133 180 Allowance for loan and lease losses, end of period $680 $547 $1,227 $680 $547 $1,227 Reserve for unfunded lending commitments, beginning of period $84 $— 84 $91 $— $91 Provision for unfunded lending commitments 9 — 9 2 — 2 Reserve for unfunded lending commitments, end of period 93 — 93 $93 $— $93 Credit Quality Indicators Loan and lease portfolio segments and classes, excluding LHFS, are presented by credit quality indicator and vintage year. Citizens defines the vintage date for the purpose of this disclosure as the date of the most recent credit decision. In general, renewals are categorized as new credit decisions and reflect the renewal date as the vintage date. Loans modified in a TDR are considered to be a continuation of the original loan and vintage date corresponds with the initial loan origination date. For commercial loans and leases, Citizens utilizes regulatory classification ratings to monitor credit quality. Loans with a “pass” rating are those that the Company believes will be fully repaid in accordance with the contractual loan terms. Commercial loans and leases that are “criticized” are those that have some weakness or potential weakness that indicate an increased probability of future loss. “Criticized” loans are grouped into three categories, “special mention,” “substandard” and “doubtful.” Special mention loans have potential weaknesses that, if left uncorrected, may result in deterioration of the Company’s credit position at some future date. Substandard loans are inadequately protected loans; these loans have well-defined weaknesses that could hinder normal repayment or collection of the debt. Doubtful loans have the same weaknesses as substandard, with the added characteristics that the possibility of loss is high and collection of the full amount of the loan is improbable. The following table presents the amortized cost basis of commercial loans and leases, by vintage date and regulatory classification rating, as of June 30, 2020 : Term Loans by Origination Year Revolving Loans (in millions) 2020 2019 2018 2017 2016 Prior to 2016 Within the Revolving Period Converted to Term Total Commercial Pass (1) $6,585 $7,127 $5,054 $2,897 $1,564 $2,724 $17,515 $393 $43,859 Special Mention 159 245 287 131 126 209 1,110 22 2,289 Substandard 92 89 238 120 119 119 702 19 1,498 Doubtful 8 26 9 49 5 97 173 4 371 Total commercial 6,844 7,487 5,588 3,197 1,814 3,149 19,500 438 48,017 Commercial real estate Pass 1,227 3,375 3,674 1,792 1,037 1,152 1,192 — 13,449 Special Mention 31 70 145 132 64 82 77 — 601 Substandard — 58 106 2 56 3 149 — 374 Doubtful — 38 16 5 — 2 — — 61 Total commercial real estate 1,258 3,541 3,941 1,931 1,157 1,239 1,418 — 14,485 Leases Pass 263 351 275 184 236 1,007 — — 2,316 Special Mention — 2 5 6 4 1 — — 18 Substandard — 2 3 6 4 1 — — 16 Doubtful — 4 30 1 14 29 — — 78 Total leases 263 359 313 197 258 1,038 — — 2,428 Total commercial loans and leases Pass 8,075 10,853 9,003 4,873 2,837 4,883 18,707 393 59,624 Special Mention 190 317 437 269 194 292 1,187 22 2,908 Substandard 92 149 347 128 179 123 851 19 1,888 Doubtful 8 68 55 55 19 128 173 4 510 Total commercial loans and leases $8,365 $11,387 $9,842 $5,325 $3,229 $5,426 $20,918 $438 $64,930 (1) Includes $4.7 billion of PPP loans primarily designated as pass that are fully guaranteed by the SBA originating in 2020. For retail loans, Citizens utilizes credit scores provided by FICO which are generally refreshed on a quarterly basis and the loan’s payment and delinquency status to monitor credit quality. FICO credit scores are considered the strongest indicator of credit losses over the contractual life of the loan as the scores are based on current and historical national industry-wide consumer level credit performance data, and assist management in predicting the borrower’s future payment performance. The following table presents the amortized cost basis of retail loans, by vintage date and FICO scores, as of June 30, 2020 : Term Loans by Origination Year Revolving Loans (in millions) 2020 2019 2018 2017 2016 Prior to 2016 Within the Revolving Period Converted to Term Total Residential mortgages 800+ $1,067 $2,018 $876 $1,488 $1,986 $2,353 $— $— $9,788 740-799 1,574 1,594 520 677 858 1,059 — — 6,282 680-739 387 459 242 226 329 556 — — 2,199 620-679 46 105 40 58 89 240 — — 578 <620 1 21 36 48 55 221 — — 382 No FICO available (1) 3 1 — — — 12 — — 16 Total residential mortgages 3,078 4,198 1,714 2,497 3,317 4,441 — — 19,245 Home equity 800+ 2 10 14 9 6 269 4,331 379 5,020 740-799 1 7 7 5 5 216 3,164 345 3,750 680-739 — 3 6 12 7 213 1,730 304 2,275 620-679 — 3 10 20 11 150 480 203 877 <620 — 4 11 33 20 153 170 227 618 No FICO available (1) — — — — — — 1 — 1 Total home equity 3 27 48 79 49 1,001 9,876 1,458 12,541 Automobile 800+ 550 924 521 412 255 131 — — 2,793 740-799 740 1,218 679 466 261 124 — — 3,488 680-739 667 1,126 600 384 209 98 — — 3,084 620-679 332 646 342 215 123 64 — — 1,722 <620 52 268 231 186 121 69 — — 927 No FICO available (1) 2 — — — — 12 — — 14 Total automobile 2,343 4,182 2,373 1,663 969 498 — — 12,028 Education 800+ 651 1,165 773 751 601 811 — — 4,752 740-799 820 1,199 627 443 314 475 — — 3,878 680-739 267 424 231 163 117 258 — — 1,460 620-679 20 59 46 38 34 119 — — 316 <620 1 9 15 16 13 67 — — 121 No FICO available (1) — — — — — 64 — — 64 Total education 1,759 2,856 1,692 1,411 1,079 1,794 — — 10,591 Other retail 800+ 239 534 209 87 20 54 293 — 1,436 740-799 339 726 268 116 28 39 613 2 2,131 680-739 266 500 178 74 16 18 579 6 1,637 620-679 142 204 66 24 4 8 196 7 651 <620 13 60 34 12 2 4 95 10 230 No FICO available (1) 39 1 — — — — 251 2 293 Total other retail 1,038 2,025 755 313 70 123 2,027 27 6,378 Retail 800+ 2,509 4,651 2,393 2,747 2,868 3,618 4,624 379 23,789 740-799 3,474 4,744 2,101 1,707 1,466 1,913 3,777 347 19,529 680-739 1,587 2,512 1,257 859 678 1,143 2,309 310 10,655 620-679 540 1,017 504 355 261 581 676 210 4,144 <620 67 362 327 295 211 514 265 237 2,278 No FICO available (1) 44 2 — — — 88 252 2 388 Total retail $8,221 $13,288 $6,582 $5,963 $5,484 $7,857 $11,903 $1,485 $60,783 (1) Represents loans for which an updated FICO score was unavailable (e.g., due to recent profile changes). Nonaccrual and Past Due Assets The following table presents nonaccrual loans and leases and loans accruing and 90 days or more past due: As of June 30, 2020 As of December 31, 2019 (in millions) Nonaccrual loans and leases 90+ days past due and accruing Nonaccrual with no related ACL Nonaccrual loans and leases Commercial $366 $33 $40 $240 Commercial real estate 61 — 6 2 Leases 79 — — 3 Total commercial loans and leases 506 33 46 245 Residential mortgages 112 13 54 93 Home equity 254 — 86 246 Automobile 67 — 18 67 Education 18 2 4 18 Other retail 33 7 — 34 Total retail 484 22 162 458 Total loans and leases $990 $55 $208 $703 Interest income is generally not recognized for loans and leases that are on nonaccrual status. The Company reverses accrued interest receivable with a charge to interest income upon classifying the loan or lease as nonaccrual. The following table presents an analysis of the age of both accruing and nonaccruing loan and lease past due amounts: June 30, 2020 December 31, 2019 Days Past Due Days Past Due (in millions) Current-29 30-59 60-89 90 or More Total Current-29 30-59 60-89 90 or More Total Commercial $47,768 $60 $30 $159 $48,017 $41,340 $45 $27 $67 $41,479 Commercial real estate 14,340 92 52 1 14,485 13,520 1 1 — 13,522 Leases 2,347 5 12 64 2,428 2,498 37 — 2 2,537 Total commercial loans and leases 64,455 157 94 224 64,930 57,358 83 28 69 57,538 Residential mortgages 19,044 65 33 103 19,245 18,947 35 17 84 19,083 Home equity 12,212 71 41 217 12,541 12,834 91 40 189 13,154 Automobile 11,784 162 66 16 12,028 11,788 227 81 24 12,120 Education 10,548 25 12 6 10,591 10,290 30 15 12 10,347 Other retail 6,285 31 25 37 6,378 6,729 45 31 41 6,846 Total retail loans 59,873 354 177 379 60,783 60,588 428 184 350 61,550 Total $124,328 $511 $271 $603 $125,713 $117,946 $511 $212 $419 $119,088 The Company estimates expected credit losses based on the fair value of collateral for collateralized loans that management believes will not be paid under the terms of the original loan contract. These loans are considered to be collateral dependent, and the estimated credit loss is calculated as the difference between the loan’s amortized cost basis and the fair value of the collateral as of each evaluation date. Collateral values for residential mortgage and home equity loans are based on refreshed valuations which are updated at least every 90 days less estimated costs to sell. At June 30, 2020 and December 31, 2019 , the Company had collateral-dependent residential mortgage and home equity loans totaling $405 million and $227 million , respectively. For collateral-dependent commercial loans, the ACL is individually assessed based on the fair value of the collateral. Various types of collateral are used, including real estate, inventory, equipment, accounts receivable, securities and cash, among others. For commercial real estate loans, collateral values are generally based on appraisals which are updated based on management judgment under the specific circumstances on a case-by-case basis. At June 30, 2020 and December 31, 2019 , the Company had collateral-dependent commercial loans totaling $213 million and $85 million , respectively. The amortized cost basis of mortgage loans collateralized by residential real estate property for which formal foreclosure proceedings were in process was $135 million and $152 million as of June 30, 2020 and December 31, 2019 , respectively. 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 the Company would not otherwise make. Citizens implemented various retail and commercial loan modification programs to provide borrowers relief from the economic impacts of COVID-19. The CARES Act and bank regulatory agencies provided guidance stating certain loan modifications to borrowers experiencing financial distress as a result of COVID-19 may not be accounted for as TDRs under U.S. GAAP. In accordance with the CARES Act, Citizens has elected to not apply TDR classification to any COVID-19 related loan modifications performed after March 1, 2020 to borrowers who were current as of December 31, 2019. In addition, for loans modified in response to the COVID-19 pandemic that are not eligible for relief from TDR classification under the CARES Act, the Company elected to apply the guidance issued by the bank regulatory agencies. Under this guidance deferral of principal and interest for up to six months to borrowers who were current as of March 1, 2020 and impacted by COVID-19 are not classified as TDRs. For loan modifications that include a payment deferral and are not TDRs, the borrower’s past due and nonaccrual status will not be impacted during the deferral period. Interest income will continue to be recognized over the contractual life of the loan. The following table summarizes TDRs by class and total unfunded commitments: (in millions) June 30, 2020 December 31, 2019 Commercial $265 $297 Retail 700 667 Unfunded commitments related to TDRs 52 42 The following tables below summarize how loans were modified during the six months ended June 30, 2020 and 2019 . The reported balances represent the post-modification outstanding amortized cost basis 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 June 30, 2020 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 — $— 4 $3 15 $53 Commercial real estate — — — — — — Total commercial loans — — 4 3 15 53 Residential mortgages 54 11 71 14 20 3 Home equity 27 2 49 4 190 11 Automobile 36 — 1 — 910 15 Education — — — — 142 4 Other retail 645 3 — — 65 1 Total retail loans 762 16 121 18 1,327 34 Total 762 $16 125 $21 1,342 $87 Three Months Ended June 30, 2019 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Amortized Cost Number of Contracts Amortized Cost Number of Contracts Amortized Cost Commercial 1 $— 7 $— 6 $47 Commercial real estate — — 1 — — — Total commercial loans 1 — 8 — 6 47 Residential mortgages 9 2 10 1 32 5 Home equity 49 5 15 3 100 6 Automobile 40 1 7 — 335 5 Education — — — — 13 1 Other retail 941 5 — — 143 — Total retail loans 1,039 13 32 4 623 17 Total 1,040 $13 40 $4 629 $64 Six Months Ended June 30, 2020 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Amortized Cost Number of Contracts Amortized Cost Number of Contracts Amortized Cost Commercial — $— 6 $3 32 $94 Commercial real estate — — — — — — Total commercial loans — — 6 3 32 94 Residential mortgages 92 17 108 21 41 7 Home equity 73 6 55 4 261 15 Automobile 83 1 1 — 1,093 17 Education — — — — 233 6 Other retail 1,506 7 — — 177 2 Total retail loans 1,754 31 164 25 1,805 47 Total 1,754 $31 170 $28 1,837 $141 Six Months Ended June 30, 2019 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Amortized Cost Number of Contracts Amortized Cost Number of Contracts Amortized Cost Commercial 1 $— 12 $1 18 $87 Commercial real estate — — 1 — — — Total commercial loans 1 — 13 1 18 87 Residential mortgages 13 4 21 3 62 9 Home equity 85 9 50 9 238 15 Automobile 65 1 12 — 624 9 Education — — — — 80 3 Other retail 1,557 9 — — 144 — Total retail loans 1,720 23 83 12 1,148 36 Total 1,721 $23 96 $13 1,166 $123 (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 modification of loans for the three months ended June 30, 2020 and 2019 was $5 million and $2 million , respectively. The net change to ALLL resulting from modifications of loans for the six months ended June 30, 2020 and 2019 was $9 million and $4 million , respectively. Charge-offs may also be recorded on TDRs. Citizens recorded $4 million and $1 million of charge-offs resulting from modification of loans in the three months ended June 30, 2020 and 2019 , respectively. Citizens recorded $6 million and $2 million for the six months ended June 30, 2020 and 2019 , respectively. 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 June 30, 2020 and 2019 . For commercial loans, recorded investment in TDRs that defaulted within 12 months of their modification date for the three months ended June 30, 2020 and 2019 were $26 million and $1 million , respectively, and $39 million and $1 million in the six months ended June 30, 2020 and 2019 . For retail loans, there were $14 million and $10 million of loans which defaulted within their restructuring date for the three months ended June 30, 2020 and 2019 , respectively, and $25 million and $19 million of loans which defaulted within 12 months of their restructuring date for the six months ended June 30, 2020 and 2019 , respectively. Concentrations of Credit Risk As of June 30, 2020, under the Company’s COVID-19-related forbearance and other customer accommodation programs that are guided by the CARES Act as well as banking regulator interagency guidance, Citizens deferred payments on approximately $3.5 billion , or 6% , of the retail portfolio. Further, the Company is working with its commercial customers seeking flexibility on loan terms and conditions. The vast majority of these retail deferrals or commercial modifications are not classified as TDRs. 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 June 30, 2020 and December 31, 2019 , 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. The following tables present balances of loans with these characteristics: June 30, 2020 (in millions) Residential Mortgages Home Equity Other Retail Total High loan-to-value $456 $104 $— $560 Interest-only/negative amortization 2,324 — — 2,324 Low introductory rate — — 208 208 Multiple characteristics and other 3 — — 3 Total $2,783 $104 $208 $3,095 December 31, 2019 (in millions) Residential Mortgages Home Equity Other Retail Total High loan-to-value $402 $151 $— $553 Interest-only/negative amortization 2,043 — — 2,043 Low introductory rate — — 235 235 Total $2,445 $151 $235 $2,831 |
MORTGAGE BANKING
MORTGAGE BANKING | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Cash proceeds from residential mortgage loans sold with servicing retained $8,797 $4,229 $14,164 $7,148 Gain on sales (1) 283 55 426 92 Contractually specified servicing, late and other ancillary fees (1) 55 51 113 99 (1) Reported in mortgage banking fees on the Consolidated Statements of Operations. Effective January 1, 2020, the Company elected to account for all MSRs previously accounted for under the amortization method under the fair value method. Under the fair value method, MSRs are recorded at fair value at each reporting date with any changes in fair value during the period recorded in mortgage banking fees in the Consolidated Statements of Operations. The unpaid principal balance of the related residential mortgage loans was $79.9 billion and $77.5 billion as of June 30, 2020 and December 31, 2019 , respectively. The Company manages an active hedging strategy to manage the risk associated with changes in the value of the MSR portfolio, which includes the purchase of freestanding derivatives. The following table summarizes changes in MSRs recorded using the fair value method: As of and for the Three Months Ended June 30, As of and for the Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Fair value as of beginning of the period $577 $563 $642 $600 Transfers upon election of fair value method — — 190 — Fair value as of beginning of the period, adjusted 577 563 832 600 Amounts capitalized 86 57 153 92 Changes in unpaid principal balance during the period (1) (46 ) (31 ) (86 ) (57 ) Changes in fair value during the period (2) (49 ) (58 ) (331 ) (104 ) Fair value at end of the period $568 $531 $568 $531 (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 analysis below presents 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 largely dependent upon movements in market interest rates. June 30, 2020 December 31, 2019 Actual Decline in fair value due to Actual Decline in fair value due to (dollars in millions) Fair value $568 50 bps adverse change 100 bps adverse change $642 50 bps adverse change 100 bps adverse change Weighted average life (in years) 3.7 5.5 Weighted average constant prepayment rate 21.0% $109 $145 13.9% $116 $222 Weighted average option adjusted spread 621 bps 9 19 440 bps 12 25 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. |
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | NOTE 6 - GOODWILL Goodwill is the purchase premium associated with the acquisition of a business and is assigned to the Company’s reporting units at the acquisition date. A reporting unit is a business operating segment or a component of a business operating segment. Citizens has identified and assigned goodwill to two reporting units - Consumer Banking and Commercial Banking - based upon reviews of the structure of the Company’s executive team and supporting functions, resource allocations and financial reporting processes. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. Goodwill is not amortized, but is subject to annual impairment tests. Citizens reviews goodwill for impairment annually as of October 31 st and in interim periods when events or changes indicate the carrying value of one or more reporting units may not be recoverable. The Company has the option of performing a qualitative assessment of goodwill to determine whether it is more likely than not that the fair value of each reporting unit is less than the carrying value. If it is more likely than not that the fair value exceeds the carrying value, then no further testing is necessary; otherwise, Citizens must perform a quantitative assessment of goodwill. Citizens may elect to bypass the qualitative assessment and perform a quantitative assessment. The quantitative assessment, used to identify potential impairment, involves comparing each reporting unit’s fair value to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value inclusive of goodwill, applicable goodwill is deemed to be not impaired. If the carrying value of the reporting unit inclusive of goodwill exceeds its fair value, an impairment charge is recorded for the excess. The impairment loss recognized cannot exceed the amount of goodwill assigned to the reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. Under the quantitative impairment assessment, the fair values of the Company’s reporting units are determined using a combination of income and market-based approaches. Citizens relies on the income approach (discounted cash flow method) for determining fair value. Market and transaction approaches are used as benchmarks only to corroborate the value determined by the discounted cash flow method. Citizens relies on several assumptions when estimating the fair value of its reporting units using the discounted cash flow method. These assumptions include the discount rate, as well as projected loan loss, income tax and capital retention rates. Discount rates are estimated based on the Capital Asset Pricing Model, which considers the risk-free interest rate, market risk premium, beta, and size premium adjustments specific to a particular reporting unit. The discount rates are also calibrated on the assessment of the risks related to the projected cash flows of each reporting unit. Cash flow projections include estimates for projected loan loss, income tax and capital retention rates. Multi-year financial forecasts are developed for each reporting unit by considering several key business drivers such as new business initiatives, customer retention standards, market share changes, anticipated loan and deposit growth, forward interest rates, historical performance, and industry and economic trends, among other considerations. The long-term growth rate used in determining the terminal value of each reporting unit is estimated based on management’s assessment of the minimum expected terminal growth rate of each reporting unit, as well as broader economic considerations such as GDP and inflation. In 2020, economic conditions deteriorated significantly with the spread of the COVID-19 pandemic. The outbreak resulted in social distancing requirements throughout the world, severely restricting the economy. In response to the crisis, the Federal Reserve lowered the Federal Funds rate in March 2020 to close to zero. Additionally, the U.S. government initiated numerous measures to support the economy, including the CARES Act. Given the current macroeconomic environment, Citizens assessed whether it was more likely than not that the fair value of its reporting units was less than carrying value as of June 30, 2020. Impairment indicators evaluated included economic conditions, including projections of the duration of current conditions and timing of a potential recovery; industry and market considerations; government intervention and regulatory updates; the impact of recent events to financial performance and cost factors of the reporting units; performance of the Company’s stock; and other relevant events. Citizens further considered the amount by which fair value exceeded book value for each unit in the most recent quantitative analysis and sensitivities performed. At the conclusion of the assessment, the Company determined that it was more likely than not that the fair value of each reporting unit exceeded its carrying value as of June 30, 2020. The interim assessment of goodwill impairment included evaluation of various factors that continue to rapidly evolve and for which significant uncertainty remains, including future growth rates and operating margins, the impact of the COVID-19 pandemic to the economy and ongoing government intervention to mitigate that impact. Further weakening in the economic environment, such as continued decline in the performance of the reporting units or other factors, could cause the fair value of one or more of the reporting units to fall below their carrying value, resulting in a goodwill impairment charge. Additionally, new legislative or regulatory changes not anticipated in management's expectations may cause the fair value of one or more of the reporting units to fall below the carrying value, resulting in a goodwill impairment charge. Any impairment charge would not affect the Company’s regulatory capital ratios, tangible common equity ratio or liquidity position. The change in the carrying value of goodwill for the six months ended June 30, 2020 is presented below: (in millions) Consumer Banking Commercial Banking Total Balance at December 31, 2019 $2,258 $4,786 $7,044 Business acquisitions — 6 6 Balance at June 30, 2020 $2,258 $4,792 $7,050 Accumulated impairment losses related to the Consumer Banking reporting unit totaled $5.9 billion at June 30, 2020 and December 31, 2019 . The accumulated impairment losses related to the Commercial Banking reporting unit totaled $50 million at June 30, 2020 and December 31, 2019 . No impairment was recorded for the three and six months ended June 30, 2020 or 2019 . |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2020 | |
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) June 30, 2020 December 31, 2019 Lending to special purpose entities included in loans and leases $1,499 $1,101 LIHTC investment included in other assets 1,469 1,401 LIHTC unfunded commitments included in other liabilities 754 716 Renewable energy investments included in other assets 414 355 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 June 30, 2020 and December 31, 2019 , the lending facilities had aggregate unpaid principal balances of $1.5 billion and $1.1 billion , respectively, and undrawn commitments to extend credit of $1.0 billion and $1.2 billion , respectively. 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 other information related to the Company’s affordable housing tax credit investments: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Tax credits included in income tax expense $39 $34 $80 $69 Amortization expense included in income tax expense 42 35 85 72 Other tax benefits included in income tax expense 10 8 20 16 No LIHTC investment impairment losses were recognized for the three and six months ended June 30, 2020 and 2019 , 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 | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | NOTE 8 - BORROWED FUNDS Short-term borrowed funds Short-term borrowed funds were $255 million and $274 million as of June 30, 2020 and December 31, 2019 , respectively. Long-term borrowed funds The following table presents a summary of the Company’s long-term borrowed funds: (in millions) June 30, 2020 December 31, 2019 Parent Company: 2.375% fixed-rate senior unsecured debt, due July 2021 $350 $349 4.150% fixed-rate subordinated debt, due September 2022 349 348 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 750 750 2.850% fixed-rate senior unsecured notes, due July 2026 497 496 2.500% fixed-rate senior unsecured notes, due February 2030 297 — 3.250% fixed-rate senior unsecured notes, due April 2030 744 — CBNA’s Global Note Program: 2.250% senior unsecured notes, due March 2020 — 700 2.678% floating-rate senior unsecured notes, due March 2020 (1) — 300 2.217% floating-rate senior unsecured notes, due May 2020 (1) — 250 2.200% senior unsecured notes, due May 2020 — 500 2.250% senior unsecured notes, due October 2020 753 750 2.550% senior unsecured notes, due May 2021 1,006 991 3.250% senior unsecured notes, due February 2022 723 711 1.144% floating-rate senior unsecured notes, due February 2022 (1) 299 299 1.170% floating-rate senior unsecured notes, due May 2022 (1) 250 250 2.650% senior unsecured notes, due May 2022 514 501 3.700% senior unsecured notes, due March 2023 533 515 1.256% floating-rate senior unsecured notes, due March 2023 (1) 249 249 2.250% senior unsecured notes, due April 2025 746 — 3.750% senior unsecured notes, due February 2026 558 521 Additional Borrowings by CBNA and Other Subsidiaries: Federal Home Loan Bank advances, 1.599% weighted average rate, due through 2038 6 5,008 Other 37 18 Total long-term borrowed funds $9,202 $14,047 (1) Rate disclosed reflects the floating rate as of June 30, 2020 or final rate, as applicable. The Parent Company’s long-term borrowed funds as of June 30, 2020 and December 31, 2019 included principal balances of $3.5 billion and $2.5 billion , respectively, and unamortized deferred issuance costs and/or discounts of ($14) million and ($8) million , respectively. CBNA and other subsidiaries’ long-term borrowed funds as of June 30, 2020 and December 31, 2019 included principal balances of $5.5 billion and $11.5 billion , respectively, with unamortized deferred issuance costs and/or discounts of ($14) million and ($13) million , respectively, and hedging basis adjustments of $145 million and $50 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 $4.0 billion and $9.8 billion at June 30, 2020 and December 31, 2019 , respectively. The Company’s available FHLB borrowing capacity was $13.0 billion and $7.2 billion at June 30, 2020 and December 31, 2019 , 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 June 30, 2020 , the Company’s unused secured borrowing capacity was approximately $61.8 billion , which includes unencumbered securities, FHLB borrowing capacity, and FRB discount window capacity. The following table presents a summary of maturities for the Company’s long-term borrowed funds at June 30, 2020 : (in millions) Parent Company CBNA and Other Subsidiaries Consolidated Year 2020 $— $756 $756 2021 350 1,014 1,364 2022 349 1,796 2,145 2023 — 783 783 2024 292 — 292 2025 and thereafter 2,537 1,325 3,862 Total $3,528 $5,674 $9,202 |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2020 | |
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 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 TBAs, forward sale contracts and purchase options. The Company does not use derivatives for speculative purposes. The Company’s derivative instruments are recognized on the Consolidated Balance Sheets in derivative assets and derivative liabilities 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 19 in the Company’s 2019 Form 10-K. Derivative assets and derivative liabilities are netted by counterparty on the Consolidated Balance Sheets if a “right of setoff” has been established in a master netting agreement between the Company and the counterparty. This netted derivative asset or liability position is also netted against the fair value of any cash collateral that has been pledged or received in accordance with a master netting agreement. The following table presents derivative instruments included on the Consolidated Balance Sheets: June 30, 2020 December 31, 2019 (in millions) Notional Amount (1) Derivative Assets Derivative Liabilities Notional Amount (1) Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate contracts $28,300 $2 $1 $29,846 $1 $— Derivatives not designated as hedging instruments: Interest rate contracts 154,654 1,903 250 142,386 772 133 Foreign exchange contracts 16,032 299 261 15,101 174 166 TBA contracts 12,156 18 47 — — — Other contracts 6,746 230 56 6,868 37 23 Total derivatives not designated as hedging instruments 2,450 614 983 322 Gross derivative fair values 2,452 615 984 322 Less: Gross amounts offset in the Consolidated Balance Sheets (2) (222 ) (222 ) (107 ) (107 ) Less: Cash collateral applied (2) (161 ) (195 ) (70 ) (95 ) Total net derivative fair values presented in the Consolidated Balance Sheets $2,069 $198 $807 $120 (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. Certain derivative transactions within these sub-groups are designated as fair value or cash flow hedges, as described below: Derivatives Designated As Hedging Instruments The Company’s institutional derivatives qualify for hedge accounting treatment. The net interest accruals on interest rate swaps designated in a fair value or cash flow hedge relationship are treated as an adjustment to interest income or interest expense of the item being hedged. The Company formally documents at inception all hedging relationships, as well as risk management objectives and strategies for undertaking various accounting hedges. Additionally, the Company monitors the effectiveness of its hedge relationships during the duration of the hedge period. The methods utilized to assess hedge effectiveness vary based on hedge relationship and the Company monitors each relationship to ensure that management’s initial intent continues to be satisfied. 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 subsequently reflects changes in the fair value of the derivative in earnings after termination of the hedge relationship. Fair Value Hedges In a fair value hedge, changes in the fair value of both the derivative instrument and the hedged asset or liability attributable to the risk being hedged are recognized in the same income statement line item in the Consolidated Statements of Operations when the changes in fair value occur. Citizens has outstanding interest rate swap agreements utilized to manage the interest rate exposure on its long-term borrowings and AFS debt securities. In March 2020 the fair value hedge of certain fixed rate residential mortgages was terminated due to a portion of the hedged item being sold. Certain fair value hedges have been designated as a last-of-layer hedge, which affords the Company the ability to execute a fair value hedge of the interest rate risk associated with a portfolio of similar pre-payable assets whereby the last dollar amount estimated to remain in the portfolio of assets is identified as the hedged item. The following table presents 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 June 30, Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Affected Line Item in the Consolidated Statements of Operations Interest rate swaps hedging borrowed funds $5 $64 $98 $104 Interest expense - borrowed funds Hedged long-term debt attributable to the risk being hedged (3 ) (64 ) (95 ) (103 ) Interest expense - borrowed funds Interest rate swaps hedging fixed rate loans — (16 ) 17 (16 ) Interest and fees on loans and leases Hedged fixed rate loans attributable to the risk being hedged — 16 (17 ) 16 Interest and fees on loans and leases Interest rate swaps hedging debt securities available for sale (14 ) — (121 ) — Interest income - investment securities Hedged debt securities available for sale attributable to risk being hedged 14 — 121 — Interest income - investment securities The following table reflects amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges: June 30, 2020 December 31, 2019 (in millions) Debt securities available for sale (1) Long-term borrowed funds Debt securities available for sale (1) Residential mortgages Long-term borrowed funds Carrying amount of hedged assets $13,794 $— $15,798 $976 $— Carrying amount of hedged liabilities — 4,087 — — 4,689 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items 114 145 (8 ) 17 50 (1) The Company designated $2.0 billion as the hedged amount (from a closed portfolio of prepayable financial assets with a carrying value of $13.8 billion and $15.8 billion at June 30, 2020 and December 31, 2019, respectively) in a last-of-layer hedging relationship, which commenced in the third quarter of 2019. Cash Flow Hedges In a cash flow hedge, the entire change in the fair value of the interest rate swap included in the assessment of hedge effectiveness is initially recorded in OCI and is subsequently reclassified from OCI to current period earnings (interest income or interest expense) in the same period that the hedged item affects earnings. 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 highly effective cash flow hedges. During the next 12 months, there are $4 million in pre-tax net gains 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 June 30, 2020 . During the three and six months ended June 30, 2020 and 2019 , there were no gains or losses reclassified from OCI to current period earnings (other income) related to the discontinuance of a cash flow hedge where it became 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 June 30, Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Amount of pre-tax net (losses) gains recognized in OCI ($11 ) $91 $118 $143 Amount of pre-tax net gains (losses) reclassified from OCI into interest income 55 (20 ) 60 (40 ) Amount of pre-tax net (losses) gains reclassified from OCI into interest expense (10 ) 1 (11 ) 1 Derivatives Not Designated As Hedging Instruments Economic Hedges The Company’s economic hedges include those related to offsetting customer derivatives, residential mortgage loan derivatives (including interest rate lock commitments and forward sales commitments) and derivatives to hedge its residential MSR portfolio. Customer derivatives include interest rate and foreign exchange derivative contracts designed to meet the hedging and financing needs of the Company’s customers, and are economically hedged by the Company to offset its market exposure. Interest rate lock commitments on residential mortgage loans that will be held for sale are considered derivative instruments, and are economically hedged by entering into forward sale commitments to manage changes in fair value due to interest rate risk. Residential MSR portfolio derivatives are entered to hedge the risk of changes in the fair value of the Company’s MSR asset. The following table presents the effect of economic hedges on noninterest income: Amounts Recognized in Noninterest Income for the Three Months Ended June 30, Six Months Ended June 30, Affected Line Item in the Consolidated Statements of Operations (in millions) 2020 2019 2020 2019 Economic hedge type: Customer interest rate contracts $180 $425 $1,269 $654 Foreign exchange and interest rate products Customer foreign exchange contracts 23 (47 ) (7 ) (81 ) Foreign exchange and interest rate products Derivative transactions to hedge interest rate risk (161 ) (410 ) (1,246 ) (627 ) Foreign exchange and interest rate products Derivative transactions to hedge foreign exchange risk (50 ) 54 49 94 Foreign exchange and interest rate products Residential loan commitments 14 11 154 16 Mortgage banking fees Derivative contracts used to hedge residential loan commitments 110 (9 ) (19 ) (5 ) Mortgage banking fees Derivative contracts used to hedge residential MSRs 62 71 333 116 Mortgage banking fees Other derivative contracts 7 — (56 ) — Foreign exchange and interest rate products Derivative transactions to hedge other derivative risk (7 ) — 57 — Foreign exchange and interest rate products Total $178 $95 $534 $167 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 10 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the changes in the balances, net of income taxes, of each component of AOCI: As of and for the Three Months Ended June 30, (in millions) Net Unrealized (Losses) Gains on Derivatives Net Unrealized (Losses) Gains on Debt Securities Employee Benefit Plans Total AOCI Balance at April 1, 2019 ($89 ) ($244 ) ($460 ) ($793 ) Other comprehensive income before reclassifications 68 221 — 289 Other-than-temporary impairment not recognized in earnings on debt securities — 1 — 1 Amounts reclassified to the Consolidated Statements of Operations 15 (3 ) 3 15 Net other comprehensive income 83 219 3 305 Balance at June 30, 2019 ($6 ) ($25 ) ($457 ) ($488 ) Balance at April 1, 2020 $96 $401 ($412 ) $85 Other comprehensive (loss) income before reclassifications (8 ) 49 — 41 Amounts reclassified to the Consolidated Statements of Operations (34 ) (2 ) 4 (32 ) Net other comprehensive (loss) income (42 ) 47 4 9 Balance at June 30, 2020 $54 $448 ($408 ) $94 Primary location of amounts reclassified to the Consolidated Statements of Operations Net interest income Securities gains, net Other operating expense As of and for the Six Months Ended June 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, 2019 ($143 ) ($490 ) ($463 ) ($1,096 ) Other comprehensive income before reclassifications 107 467 — 574 Other-than-temporary impairment not recognized in earnings on debt securities — 1 — 1 Amounts reclassified to the Consolidated Statements of Operations 30 (8 ) 6 28 Net other comprehensive income 137 460 6 603 Cumulative effect of change in accounting principle — 5 — 5 Balance at June 30, 2019 ($6 ) ($25 ) ($457 ) ($488 ) Balance at January 1, 2020 $3 $1 ($415 ) ($411 ) Other comprehensive income before reclassifications 88 449 — 537 Amounts reclassified to the Consolidated Statements of Operations (37 ) (2 ) 7 (32 ) Net other comprehensive income 51 447 7 505 Balance at June 30, 2020 $54 $448 ($408 ) $94 Primary location of amounts reclassified to the Consolidated Statements of Operations Net interest income Securities gains, net Other operating expense |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 11 - STOCKHOLDERS’ EQUITY Preferred Stock The following table summarizes the Company’s preferred stock: June 30, 2020 December 31, 2019 (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) 293 300,000 293 Series E 1,000 (1) 450,000 (3) 437 450,000 437 Series F 1,000 400,000 395 — — Total 2,000,000 $1,965 1,600,000 $1,570 (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. (3) Represented by 18,000,000 depositary shares each representing a 1/40th interest in the Series E Preferred Stock. On June 4, 2020, the Company issued $400 million , or 400,000 shares, of 5.650% fixed-rate reset non-cumulative perpetual Series F Preferred Stock, par value of $25.00 per share with a liquidation preference of $1,000 per share (the “Series F Preferred Stock”). As a result of this issuance, the Company received net proceeds of $395 million after the underwriting discount and other expenses. The Series F Preferred Stock has no stated maturity and will not be subject to any sinking fund or other obligation of the Company. Dividends, if declared, will accrue and be payable quarterly, in arrears, at a rate equal to 5.650% from the date of issuance to, but excluding, October 6, 2025, and from and including October 6, 2025, for each dividend reset period, at a rate equal to the five-year U.S. treasury rate as of the most recent reset dividend determination date, plus 5.313% per annum. The Series F Preferred Stock is redeemable at the Company’s option, in whole or in part, on any dividend payment date, on or after October 6, 2025 or, in whole but not in part, at any time within the 90 days following a regulatory capital treatment event at a redemption price equal to $1,000 per share, plus any declared and unpaid dividends. The Company may not redeem shares of the Series F Preferred Stock without obtaining the prior approval of the FRB if then required under applicable capital guidelines. Except in certain limited circumstances, the Series F Preferred Stock does not have any voting rights. For further detail regarding the terms and conditions of the Company’s preferred stock see Note 16 to the Company’s Consolidated Financial Statements in the 2019 Form 10-K. 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 June 30, 2020 Three Months Ended June 30, 2019 (in millions, except per share data) Dividends Declared per Share Dividends Declared Dividends Paid Dividends Declared per Share Dividends Declared Dividends Paid Common stock $0.39 $168 $168 $0.32 $148 $148 Preferred stock Series A $13.48 $3 $7 $— $— $7 Series B 30.00 9 — 30.00 9 — Series C 15.94 5 5 15.94 4 5 Series D 15.88 5 5 15.88 5 3 Series E 12.50 6 5 — — — Total preferred stock $28 $22 $18 $15 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 (in millions, except per share and share data) Dividends Declared per Share Dividends Declared Dividends Paid Dividends Declared per Share Dividends Declared Dividends Paid Common stock $0.78 $336 $336 $0.64 $297 $297 Preferred stock Series A $40.98 $10 $7 $27.50 $7 $7 Series B 30.00 9 9 30.00 9 11 Series C 31.88 10 10 31.88 9 9 Series D 31.75 10 10 27.70 8 3 Series E 25.00 11 9 — — — Total preferred stock $50 $45 $33 $30 Treasury Stock During the six months ended June 30, 2020 , the Company repurchased $270 million , or 7,548,655 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2020 | |
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 2019 Form 10-K. (in millions) June 30, 2020 December 31, 2019 Commitments to extend credit $69,015 $72,743 Letters of credit 2,073 2,190 Risk participation agreements 109 37 Loans sold with recourse 48 37 Marketing rights 31 33 Total $71,276 $75,040 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 (e.g., loan purchase contracts) represent firm commitments to purchase or sell loans from / to 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 $75 million and $144 million , respectively, at June 30, 2020 and $ 183 million and $236 million , respectively, at December 31, 2019 . 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 87 counterparties. RPAs generally have terms ranging from one year to five years ; however, certain outstanding agreements have terms as long as nine 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 | 6 Months Ended |
Jun. 30, 2020 | |
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. June 30, 2020 December 31, 2019 (in millions) Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Less Aggregate Unpaid Principal Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Less Aggregate Unpaid Principal Residential mortgage loans held for sale, at fair value $3,449 $3,267 $182 $1,778 $1,727 $51 Commercial and commercial real estate loans held for sale, at fair value 182 203 (21 ) 168 175 (7 ) For more information on the election of the fair value option for these assets see Note 19 in the Company’s 2019 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 June 30, Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Affected Line Item in the Consolidated Statements of Operations Residential mortgage loans held for sale, at fair value $45 $10 $103 $9 Mortgage banking fees Commercial and commercial real estate loans held for sale, at fair value 12 1 (8 ) 4 Capital market fees 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 19 in the Company’s 2019 Form 10-K. Forward commitments to sell to-be-announced mortgage securities The fair value of TBAs is estimated using observable prices of similar loan pools that transact in the marketplace, as well as sector curves and benchmarking techniques. Therefore, the Company classifies TBAs in Level 2 of the fair value hierarchy given the observable market inputs. The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities on a recurring basis at June 30, 2020 : (in millions) Total Level 1 Level 2 Level 3 Debt securities available for sale: Mortgage-backed securities $22,129 $— $22,129 $— State and political subdivisions 4 — 4 — U.S. Treasury and other 11 11 — — Total debt securities available for sale 22,144 11 22,133 — Loans held for sale, at fair value: Residential loans held for sale 3,449 — 3,449 — Commercial loans held for sale 182 — 182 — Total loans held for sale, at fair value 3,631 — 3,631 — Mortgage servicing rights 568 — — 568 Derivative assets: Interest rate contracts 1,905 — 1,905 — Foreign exchange contracts 299 — 299 — TBA contracts 18 — 18 — Other contracts 230 — 57 173 Total derivative assets 2,452 — 2,279 173 Equity securities, at fair value: Money market mutual fund investments 50 50 — — Total equity securities, at fair value 50 50 — — Total assets $28,845 $61 $28,043 $741 Derivative liabilities: Interest rate contracts $251 $— $251 $— Foreign exchange contracts 261 — 261 — TBA contracts 47 — 47 — Other contracts 56 — 56 — Total derivative liabilities 615 — 615 — Total liabilities $615 $— $615 $— The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities on a recurring basis at December 31, 2019 : (in millions) Total Level 1 Level 2 Level 3 Debt securities available for sale: Mortgage-backed securities $20,537 $— $20,537 $— State and political subdivisions 5 — 5 — U.S. Treasury and other 71 71 — — Total debt securities available for sale 20,613 71 20,542 — Loans held for sale, at fair value: Residential loans held for sale 1,778 — 1,778 — Commercial loans held for sale 168 — 168 — Total loans held for sale, at fair value 1,946 — 1,946 — Mortgage servicing rights 642 — — 642 Derivative assets: Interest rate contracts 773 — 773 — Foreign exchange contracts 174 — 174 — Other contracts 37 — 18 19 Total derivative assets 984 — 965 19 Equity securities, at fair value: Money market mutual fund investments 47 47 — — Total equity securities, at fair value 47 47 — — Total assets $24,232 $118 $23,453 $661 Derivative liabilities: Interest rate contracts $133 $— $133 $— Foreign exchange contracts 166 — 166 — Other contracts 23 — 23 — Total derivative liabilities 322 — 322 — Total liabilities $322 $— $322 $— The following tables present a roll forward of the balance sheet amounts for assets measured at fair value on a recurring basis and classified as Level 3: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 (in millions) Mortgage Servicing Rights Other Derivative Contracts Mortgage Servicing Rights Other Derivative Contracts Beginning balance $577 $143 $642 $19 Transfers upon election of fair value method — — 190 — Beginning balance, adjusted 577 143 832 19 Purchases — — — — Issuances 86 234 153 405 Settlements (1) (46 ) (344 ) (86 ) (420 ) Changes in fair value during the period recognized in earnings (2) (49 ) 140 (331 ) 169 Ending balance $568 $173 $568 $173 Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in millions) Mortgage Servicing Rights Other Derivative Contracts Mortgage Servicing Rights Other Derivative Contracts Beginning balance $563 $18 $600 $— Issuances 57 43 92 43 Settlements (1) (31 ) (43 ) (57 ) (43 ) Changes in fair value during the period recognized in earnings (2) (58 ) 7 (104 ) 7 Transfers from Level 2 to Level 3 (3) — — — 18 Ending balance $531 $25 $531 $25 (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. The following table presents quantitative information about the Company’s Level 3 assets, including the range and weighted-average of the significant unobservable inputs used to fair value these assets, as well as valuation techniques used. As of June 30, 2020 Valuation Technique Unobservable Input Range (Weighted Average) Mortgage servicing rights Discounted Cash Flow Constant prepayment rate 10.48-39.43% CPR (21.0% CPR) Option adjusted spread 350-1,123 bps (621 bps) Other derivative contracts Internal Model Pull through rate 32.06-100.00% (78.17%) MSR value (57.20)-135.73 bps (88.78 bps) Nonrecurring Fair Value Measurements Fair value is also used on a nonrecurring basis to evaluate collateral-dependent loans for impairment or for disclosure purposes. For more information on the valuation techniques utilized to measure nonrecurring fair value see Note 19 in the Company’s 2019 Form 10-K. The following table presents losses on assets measured at fair value on a nonrecurring basis and recorded in earnings: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Collateral-dependent loans ($22 ) ($24 ) ($44 ) ($28 ) The following table presents assets measured at fair value on a nonrecurring basis: June 30, 2020 December 31, 2019 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Collateral-dependent loans $618 $— $618 $— $312 $— $312 $— 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: June 30, 2020 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 $2,856 $3,009 $— $— $2,856 $3,009 $— $— Equity securities, at cost 607 607 — — 607 607 — — Other loans held for sale 1,362 1,362 — — — — 1,362 1,362 Loans and leases 125,713 126,701 — — 618 618 125,095 126,083 Financial liabilities: Deposits 143,618 143,728 — — 143,618 143,728 — — Federal funds purchased and securities sold under agreements to repurchase 251 251 — — 251 251 — — Other short-term borrowed funds 4 4 — — 4 4 — — Long-term borrowed funds 9,202 8,994 — — 9,202 8,994 — — December 31, 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 $3,202 $3,242 $— $— $3,202 $3,242 $— $— Equity securities, at cost 807 807 — — 807 807 — — Other loans held for sale 1,384 1,384 — — — — 1,384 1,384 Loans and leases 119,088 119,792 — — 312 312 118,776 119,480 Financial liabilities: Deposits 125,313 125,340 — — 125,313 125,340 — — Federal funds purchased and securities sold under agreements to repurchase 265 265 — — 265 265 — — Other short-term borrowed funds 9 9 — — 9 9 — — Long-term borrowed funds 14,047 14,228 — — 14,047 14,228 — — |
NONINTEREST INCOME
NONINTEREST INCOME | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 Three Months Ended June 30, 2019 (in millions) Consumer Banking Commercial Banking Consolidated (1) Consumer Banking Commercial Banking Consolidated (1) Service charges and fees $59 $25 $84 $99 $26 $125 Card fees 42 7 49 55 9 64 Capital markets fees — 48 48 — 53 53 Trust and investment services fees 45 — 45 53 — 53 Other banking fees — 1 1 — 3 3 Total revenue from contracts with customers $146 $81 $227 $207 $91 $298 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 (in millions) Consumer Banking Commercial Banking Consolidated (1) Consumer Banking Commercial Banking Consolidated (1) Service charges and fees $151 $51 $202 $196 $52 $248 Card fees 87 17 104 105 18 123 Capital markets fees — 113 113 — 102 102 Trust and investment services fees 98 — 98 100 — 100 Other banking fees — 4 4 — 5 5 Total revenue from contracts with customers $336 $185 $521 $401 $177 $578 (1) There is no revenue from contracts with customers included in Other non-segment operations. The Company recognized trailing commissions of $3 million for the three months ended June 30, 2020 and 2019 , and $7 million for the six months ended June 30, 2020 and 2019 , 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 June 30, Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Bank-owned life insurance $14 $13 $28 $27 |
OTHER OPERATING EXPENSE
OTHER OPERATING EXPENSE | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Promotional expense $27 $28 $51 $55 Other 84 90 171 173 Other operating expense $111 $118 $222 $228 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 16 - EARNINGS PER SHARE Three Months Ended June 30, Six Months Ended June 30, (in millions, except share and per share data) 2020 2019 2020 2019 Numerator (basic and diluted): Net income $253 $453 $287 $892 Less: Preferred stock dividends 28 18 50 33 Net income available to common stockholders $225 $435 $237 $859 Denominator: Weighted-average common shares outstanding - basic 426,613,053 458,154,335 427,165,737 459,426,685 Dilutive common shares: share-based awards 953,867 1,149,889 1,126,843 1,430,850 Weighted-average common shares outstanding - diluted 427,566,920 459,304,224 428,292,580 460,857,535 Earnings per common share: Basic $0.53 $0.95 $0.56 $1.87 Diluted (1) 0.53 0.95 0.55 1.86 (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 1,579,361 and 371,627 for the three months ended June 30, 2020 and 2019 , respectively, and 1,211,751 and 1,073,431 for the six months ended June 30, 2020 and 2019 , respectively. |
BUSINESS OPERATING SEGMENTS
BUSINESS OPERATING SEGMENTS | 6 Months Ended |
Jun. 30, 2020 | |
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 the Company’s business operating segments, as well as Other non-segment operations, see Note 25 in the Company’s 2019 Form 10-K. As of and for the Three Months Ended June 30, 2020 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $814 $419 ($73 ) $1,160 Noninterest income 428 144 18 590 Total revenue 1,242 563 (55 ) 1,750 Noninterest expense 735 213 31 979 Profit (loss) before provision for credit losses 507 350 (86 ) 771 Provision for credit losses 80 70 314 464 Income (loss) before income tax expense (benefit) 427 280 (400 ) 307 Income tax expense (benefit) 107 59 (112 ) 54 Net income (loss) $320 $221 ($288 ) $253 Total average assets $71,634 $65,280 $42,879 $179,793 As of and for the Three Months Ended June 30, 2019 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $799 $371 ($4 ) $1,166 Noninterest income 277 149 36 462 Total revenue 1,076 520 32 1,628 Noninterest expense 715 217 19 951 Profit before provision for credit losses 361 303 13 677 Provision for credit losses 78 25 (6 ) 97 Income before income tax expense (benefit) 283 278 19 580 Income tax expense (benefit) 70 62 (5 ) 127 Net income $213 $216 $24 $453 Total average assets $65,485 $56,135 $39,869 $161,489 As of and for the Six Months Ended June 30, 2020 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $1,607 $784 ($71 ) $2,320 Noninterest income 785 269 33 1,087 Total revenue 2,392 1,053 (38 ) 3,407 Noninterest expense 1,473 434 84 1,991 Profit (loss) before provision for credit losses 919 619 (122 ) 1,416 Provision for credit losses 177 113 774 1,064 Income (loss) before income tax expense (benefit) 742 506 (896 ) 352 Income tax expense (benefit) 186 106 (227 ) 65 Net income (loss) $556 $400 ($669 ) $287 Total average assets $70,024 $62,142 $41,319 $173,485 As of and for the Six Months Ended June 30, 2019 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $1,587 $743 ($4 ) $2,326 Noninterest income 524 299 67 890 Total revenue 2,111 1,042 63 3,216 Noninterest expense 1,415 426 47 1,888 Profit before provision for credit losses 696 616 16 1,328 Provision for credit losses 145 46 (9 ) 182 Income before income tax expense (benefit) 551 570 25 1,146 Income tax expense (benefit) 136 127 (9 ) 254 Net income $415 $443 $34 $892 Total average assets $65,247 $55,884 $39,824 $160,955 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 2019 Form 10-K. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The unaudited interim Consolidated Financial Statements, including the Notes presented in this document 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 presented in this document should be read in conjunction with the Company’s audited Consolidated Financial Statements and accompanying Notes included in the Company’s 2019 Form 10-K. The Company’s principal business activity is banking, conducted through its banking subsidiary, CBNA. |
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 2020 Pronouncement Summary of Guidance Effects on Financial Statements Financial Instruments - Credit Losses Issued June 2016 • Required effective date: January 1, 2020. • Establishes a single allowance framework for financial assets carried at amortized cost (including securities HTM), which reflects management’s estimate of credit losses over the full remaining expected life of the financial assets. • Amends impairment guidance for securities AFS to incorporate an allowance, which allows 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 adopted the new standard on January 1, 2020, retrospectively for loans and leases and HTM securities and prospectively for AFS securities. Refer to Note 4 for discussion of the significant accounting policy for the allowance for credit losses following adoption. • Adoption resulted in a cumulative-effect reduction of $337 million, net of taxes of $114 million, to retained earnings and a corresponding increase to the ACL of $451 million. Refer to Note 4 for the impact of the adoption to the ALLL and reserve for unfunded commitments. • The increase in ACL upon adoption will decrease the Company’s CET1 capital ratio by 22 basis points on a fully-phased in basis. Following a two-year delay, this capital impact will be phased-in by 25% per year, or approximately 6 basis points, beginning on January 1, 2022 through January 1, 2025. • Adoption of the new standard could produce higher volatility in the quarterly provision for credit losses than the prior incurred loss reserve process and could adversely impact the Company’s ongoing earnings. • Based on the credit quality of the Company’s existing debt securities portfolio, the Company did not recognize an allowance for HTM and AFS debt securities upon adoption. Goodwill Issued January 2017 • Requires an impairment loss to be recognized when the estimated fair value of a reporting unit falls below its carrying value. • Eliminates the second condition in the current guidance that requires an impairment loss to be recognized only if the estimated implied fair value of the goodwill is below its carrying value. • Applied prospectively to all goodwill impairment tests performed after the adoption date. • The Company adopted the new standard on January 1, 2020. Refer to Note 6 for discussion of the significant accounting policy for goodwill impairment following adoption. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. Disclosure Requirements - Fair Value Measurements Issued August 2018 • Amends disclosure requirements on fair value measurements. • 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 disclosures. • Retrospective application is required for all other amendments for all periods presented. • The Company adopted the new standard on January 1, 2020. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. Required fair value measurement disclosures are included in Note 13. Simplifying the Accounting for Income Taxes Issued December 2019 • Simplifies the accounting for income taxes by eliminating certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. • Simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates. • Clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. • The Company adopted the new standard on January 1, 2020. • Adoption did not have an impact on the Company’s Consolidated Financial Statements. Pronouncement Summary of Guidance Effects on Financial Statements Facilitation of the Effects of Reference Rate Reform on Financial Reporting Issued March 2020 • Provides the option to apply a number of practical expedients when evaluating if a contract modification as the result of reference rate reform is considered a new contract or a continuation of an existing contract. • Provides optional expedients to the evaluation of, and accounting for, fair value and cash flow hedges affected by reference rate reform. • Provides an optional one-time election to sell or transfer debt securities classified as HTM that reference a rate affected by reference rate reform • The Company adopted the new standard in the first quarter of 2020 upon issuance and is effective through December 31, 2022. • Adoption of the new standard did not have a material impact on the Company’s Consolidated Financial Statements. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of new accounting pronouncements and changes in accounting principles | Accounting Pronouncements Adopted in 2020 Pronouncement Summary of Guidance Effects on Financial Statements Financial Instruments - Credit Losses Issued June 2016 • Required effective date: January 1, 2020. • Establishes a single allowance framework for financial assets carried at amortized cost (including securities HTM), which reflects management’s estimate of credit losses over the full remaining expected life of the financial assets. • Amends impairment guidance for securities AFS to incorporate an allowance, which allows 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 adopted the new standard on January 1, 2020, retrospectively for loans and leases and HTM securities and prospectively for AFS securities. Refer to Note 4 for discussion of the significant accounting policy for the allowance for credit losses following adoption. • Adoption resulted in a cumulative-effect reduction of $337 million, net of taxes of $114 million, to retained earnings and a corresponding increase to the ACL of $451 million. Refer to Note 4 for the impact of the adoption to the ALLL and reserve for unfunded commitments. • The increase in ACL upon adoption will decrease the Company’s CET1 capital ratio by 22 basis points on a fully-phased in basis. Following a two-year delay, this capital impact will be phased-in by 25% per year, or approximately 6 basis points, beginning on January 1, 2022 through January 1, 2025. • Adoption of the new standard could produce higher volatility in the quarterly provision for credit losses than the prior incurred loss reserve process and could adversely impact the Company’s ongoing earnings. • Based on the credit quality of the Company’s existing debt securities portfolio, the Company did not recognize an allowance for HTM and AFS debt securities upon adoption. Goodwill Issued January 2017 • Requires an impairment loss to be recognized when the estimated fair value of a reporting unit falls below its carrying value. • Eliminates the second condition in the current guidance that requires an impairment loss to be recognized only if the estimated implied fair value of the goodwill is below its carrying value. • Applied prospectively to all goodwill impairment tests performed after the adoption date. • The Company adopted the new standard on January 1, 2020. Refer to Note 6 for discussion of the significant accounting policy for goodwill impairment following adoption. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. Disclosure Requirements - Fair Value Measurements Issued August 2018 • Amends disclosure requirements on fair value measurements. • 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 disclosures. • Retrospective application is required for all other amendments for all periods presented. • The Company adopted the new standard on January 1, 2020. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. Required fair value measurement disclosures are included in Note 13. Simplifying the Accounting for Income Taxes Issued December 2019 • Simplifies the accounting for income taxes by eliminating certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. • Simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates. • Clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. • The Company adopted the new standard on January 1, 2020. • Adoption did not have an impact on the Company’s Consolidated Financial Statements. Pronouncement Summary of Guidance Effects on Financial Statements Facilitation of the Effects of Reference Rate Reform on Financial Reporting Issued March 2020 • Provides the option to apply a number of practical expedients when evaluating if a contract modification as the result of reference rate reform is considered a new contract or a continuation of an existing contract. • Provides optional expedients to the evaluation of, and accounting for, fair value and cash flow hedges affected by reference rate reform. • Provides an optional one-time election to sell or transfer debt securities classified as HTM that reference a rate affected by reference rate reform • The Company adopted the new standard in the first quarter of 2020 upon issuance and is effective through December 31, 2022. • Adoption of the new standard did not have a material impact on the Company’s Consolidated Financial Statements. |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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: June 30, 2020 December 31, 2019 (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 $11 $— $— $11 $71 $— $— $71 State and political subdivisions 4 — — 4 5 — — 5 Mortgage-backed securities, at fair value: Federal agencies and U.S. government sponsored entities 20,898 648 (4 ) 21,542 19,803 143 (71 ) 19,875 Other/non-agency 551 36 — 587 638 24 — 662 Total mortgage-backed securities, at fair value 21,449 684 (4 ) 22,129 20,441 167 (71 ) 20,537 Total debt securities available for sale, at fair value $21,464 $684 ($4 ) $22,144 $20,517 $167 ($71 ) $20,613 Mortgage-backed securities, at cost: Federal agencies and U.S. government sponsored entities $2,856 $153 $— $3,009 $3,202 $45 ($5 ) $3,242 Total debt securities held to maturity, at cost $2,856 $153 $— $3,009 $3,202 $45 ($5 ) $3,242 Money market mutual fund investments $50 $— $— $50 $47 $— $— $47 Total equity securities, at fair value $50 $— $— $50 $47 $— $— $47 Federal Reserve Bank stock $577 $— $— $577 $577 $— $— $577 Federal Home Loan Bank stock 22 — — 22 222 — — 222 Other equity securities 8 — — 8 8 — — 8 Total equity securities, at cost $607 $— $— $607 $807 $— $— $807 |
Schedule of investments classified by maturity date | The following table presents the amortized cost and fair value of debt securities by contractual maturity as of June 30, 2020 . Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without incurring penalties. June 30, 2020 Distribution of Maturities (in millions) 1 Year or Less After 1 Year through 5 Years After 5 Years through 10 Years After 10 Years Total Amortized cost: U.S. Treasury and other $11 $— $— $— $11 State and political subdivisions — — — 4 4 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 4 169 1,575 19,150 20,898 Other/non-agency — — — 551 551 Total debt securities available for sale 15 169 1,575 19,705 21,464 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 2,856 2,856 Total debt securities held to maturity — — — 2,856 2,856 Total amortized cost of debt securities $15 $169 $1,575 $22,561 $24,320 Fair value: U.S. Treasury and other $11 $— $— $— $11 State and political subdivisions — — — 4 4 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 4 176 1,631 19,731 21,542 Other/non-agency — — — 587 587 Total debt securities available for sale 15 176 1,631 20,322 22,144 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 3,009 3,009 Total debt securities held to maturity — — — 3,009 3,009 Total fair value of debt securities $15 $176 $1,631 $23,331 $25,153 |
Schedule of income recognized on investment securities | The following table presents realized gains and losses on securities: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Gains on sale of debt securities (1) $3 $8 $3 $16 Losses on sale of debt securities — — — — Debt securities gains, net $3 $8 $3 $16 (1) For the three and six months ended June 30, 2019, $4 million |
Schedule of financial instruments owned and pledged as collateral | The following table presents the amortized cost and fair value of debt securities pledged: June 30, 2020 December 31, 2019 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against repurchase agreements $242 $251 $265 $266 Pledged against FHLB borrowed funds 548 587 638 662 Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law 3,861 3,998 3,670 3,672 |
Schedule of unrealized loss on investments | The following table presents AFS mortgage-backed debt securities with fair values below their respective carrying values, separated by the duration the securities have been in a continuous unrealized loss position: June 30, 2020 Less than 12 Months 12 Months or Longer Total (dollars in millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Federal agencies and U.S. government sponsored entities $851 ($4 ) $— $— $851 ($4 ) The following table present AFS and HTM mortgage-backed debt securities with fair values below their respective carrying values, separated by the duration the securities have been in a continuous unrealized loss position: December 31, 2019 Less than 12 Months 12 Months or Longer Total (dollars in millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Federal agencies and U.S. government sponsored entities $5,135 ($24 ) $3,748 ($52 ) $8,883 ($76 ) |
LOANS AND LEASES (Tables)
LOANS AND LEASES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Schedule of loans and leases | The following table presents the Company’s loans and leases disclosed in portfolio segments and classes: (in millions) June 30, 2020 December 31, 2019 Commercial (1)(2) $48,017 $41,479 Commercial real estate 14,485 13,522 Leases 2,428 2,537 Total commercial loans and leases 64,930 57,538 Residential mortgages 19,245 19,083 Home equity 12,541 13,154 Automobile 12,028 12,120 Education 10,591 10,347 Other retail 6,378 6,846 Total retail loans (3) 60,783 61,550 Total loans and leases (4) $125,713 $119,088 (1) Includes PPP loans fully guaranteed by the SBA of $4.7 billion as of June 30, 2020. (2) SBA loans serviced for others of $45 million and $33 million at June 30, 2020 and December 31, 2019 , respectively, are not included above. These loans represent the government guaranteed portion of SBA loans sold to outside investors. (3) Mortgage loans serviced for others of $79.9 billion and $77.5 billion at June 30, 2020 and December 31, 2019 , respectively, are not included above. (4) LHFS, at fair value of $3.6 billion and $1.9 billion at June 30, 2020 and December 31, 2019, respectively, and other LHFS of $1.4 billion at June 30, 2020 and December 31, 2019, are not included above. Accrued interest receivable on loans and leases held for investment totaled $530 million and $495 million as of June 30, 2020 and December 31, 2019 , respectively, and is included in other assets in the Consolidated Balance Sheets. The following table presents the composition of LHFS. June 30, 2020 December 31, 2019 (in millions) Residential Mortgages (1) Commercial (2) Education (3) Total Residential Mortgages (1) Commercial (2) Total Loans held for sale at fair value $3,449 $182 $— $3,631 $1,778 $168 $1,946 Other loans held for sale — 426 936 1,362 1,101 283 1,384 (1) Residential mortgage LHFS are originated for sale. (2) Commercial LHFS at fair value consist of loans managed by the Company’s commercial secondary loan desk. Other commercial LHFS generally consist of loans associated with the Company’s syndication business. (3) Education other LHFS represents a loan portfolio sale expected to settle in third quarter 2020. |
ALLOWANCE FOR CREDIT LOSSES, _2
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Schedule of changes in the allowance for credit losses | The following table presents a summary of changes in the ALLL and the reserve for unfunded lending commitments for the three and six months ended June 30, 2020 : Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 (in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $752 $1,419 $2,171 $674 $578 $1,252 Cumulative effect of change in accounting principle — — — (176 ) 629 453 Allowance for loan and lease losses, beginning of period, adjusted 752 1,419 2,171 498 1,207 1,705 Charge-offs (74 ) (106 ) (180 ) (121 ) (233 ) (354 ) Recoveries 3 30 33 6 64 70 Net charge-offs (71 ) (76 ) (147 ) (115 ) (169 ) (284 ) Provision charged to income 554 (130 ) 424 852 175 1,027 Allowance for loan and lease losses, end of period $1,235 $1,213 $2,448 $1,235 $1,213 $2,448 Reserve for unfunded lending commitments, beginning of period $38 $1 $39 $44 $— $44 Cumulative effective of change in accounting principle — — — (3 ) 1 (2 ) Reserve for unfunded lending commitments, beginning of period, adjusted 38 1 39 41 1 42 Provision for unfunded lending commitments 31 9 40 28 9 37 Reserve for unfunded lending commitments, end of period $69 $10 $79 $69 $10 $79 The following table provides additional detail on the cumulative effect of change in accounting principle on the ACL: December 31, 2019 January 1, 2020 June 30, 2020 (in millions) Amortized Cost Basis ACL Balance Coverage Impact of Adoption of CECL ACL Balance Coverage Amortized Cost Basis ACL Balance Coverage Commercial (1) $41,479 $575 1.4 % ($199 ) $376 0.9 % $48,017 $847 1.8 % Commercial real estate 13,522 124 0.9 (57 ) 67 0.5 14,485 330 2.3 Leases 2,537 19 0.7 77 96 3.8 2,428 127 5.2 Total commercial loans and leases 57,538 718 1.2 (179 ) 539 0.9 64,930 1,304 2.0 Residential 19,083 35 0.2 95 130 0.7 19,245 104 0.5 Home equity 13,154 83 0.6 73 156 1.2 12,541 143 1.1 Automobile 12,120 123 1.0 83 206 1.7 12,028 277 2.3 Education 10,347 116 1.1 298 414 4.0 10,591 312 2.9 Other retail 6,846 221 3.2 81 302 4.4 6,378 387 6.1 Total retail loans 61,550 578 0.9 630 1,208 2.0 60,783 1,223 2.0 Total loans and leases $119,088 $1,296 1.1 % $451 $1,747 1.5 % $125,713 $2,527 2.0 % (1) The commercial coverage ratio includes a 19 basis point reduction associated with PPP loans as of June 30, 2020. In addition to the adoption of CECL, macroeconomic assumptions shifted as the COVID-19 pandemic and related economic impacts surfaced during the quarter ended March 31, 2020, resulting in a significant impact to the ACL. The significant increase in the ACL as of June 30, 2020 as compared to the January 1, 2020 ACL was driven by the COVID-19 pandemic and the resulting economic impacts, with a total reserve build of $780 million and an ending balance of $2.5 billion . To determine the ACL as of June 30, 2020 , the Company utilized the Moody’s May 13th Baseline scenario to integrate the effects of COVID-19 in the Company’s loss estimates, which reflected a second quarter 2020 decline in GDP of approximately 33% , with peak unemployment of approximately 15% followed by a gradual recovery in the second half of 2020. This scenario was more severe than first quarter 2020 which had second quarter 2020 GDP down approximately 18% and peak unemployment of approximately 9% . Estimated losses were adjusted for the expected benefit of COVID-19-related fiscal and monetary stimulus measures and the expected beneficial impacts of the Company’s own customer assistance actions. These actions include forbearance and other customer accommodation efforts encouraged by the CARES Act and regulatory interagency guidance that the Company believes will stabilize credit profiles in both its commercial and retail portfolios. The following table presents a summary of changes in the ALLL and the reserve for unfunded lending commitments for the three and six months ended June 30, 2019 : Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $691 $554 $1,245 $690 $552 $1,242 Charge-offs (45 ) (111 ) (156 ) (71 ) (223 ) (294 ) Recoveries 12 38 50 14 85 99 Net charge-offs (33 ) (73 ) (106 ) (57 ) (138 ) (195 ) Provision charged to income 22 66 88 47 133 180 Allowance for loan and lease losses, end of period $680 $547 $1,227 $680 $547 $1,227 Reserve for unfunded lending commitments, beginning of period $84 $— 84 $91 $— $91 Provision for unfunded lending commitments 9 — 9 2 — 2 Reserve for unfunded lending commitments, end of period 93 — 93 $93 $— $93 Credit Quality Indicators |
Schedule of classes of loans and leases, amortized cost basis by credit quality indicator | The following table presents the amortized cost basis of commercial loans and leases, by vintage date and regulatory classification rating, as of June 30, 2020 : Term Loans by Origination Year Revolving Loans (in millions) 2020 2019 2018 2017 2016 Prior to 2016 Within the Revolving Period Converted to Term Total Commercial Pass (1) $6,585 $7,127 $5,054 $2,897 $1,564 $2,724 $17,515 $393 $43,859 Special Mention 159 245 287 131 126 209 1,110 22 2,289 Substandard 92 89 238 120 119 119 702 19 1,498 Doubtful 8 26 9 49 5 97 173 4 371 Total commercial 6,844 7,487 5,588 3,197 1,814 3,149 19,500 438 48,017 Commercial real estate Pass 1,227 3,375 3,674 1,792 1,037 1,152 1,192 — 13,449 Special Mention 31 70 145 132 64 82 77 — 601 Substandard — 58 106 2 56 3 149 — 374 Doubtful — 38 16 5 — 2 — — 61 Total commercial real estate 1,258 3,541 3,941 1,931 1,157 1,239 1,418 — 14,485 Leases Pass 263 351 275 184 236 1,007 — — 2,316 Special Mention — 2 5 6 4 1 — — 18 Substandard — 2 3 6 4 1 — — 16 Doubtful — 4 30 1 14 29 — — 78 Total leases 263 359 313 197 258 1,038 — — 2,428 Total commercial loans and leases Pass 8,075 10,853 9,003 4,873 2,837 4,883 18,707 393 59,624 Special Mention 190 317 437 269 194 292 1,187 22 2,908 Substandard 92 149 347 128 179 123 851 19 1,888 Doubtful 8 68 55 55 19 128 173 4 510 Total commercial loans and leases $8,365 $11,387 $9,842 $5,325 $3,229 $5,426 $20,918 $438 $64,930 (1) Includes $4.7 billion of PPP loans primarily designated as pass that are fully guaranteed by the SBA originating in 2020. For retail loans, Citizens utilizes credit scores provided by FICO which are generally refreshed on a quarterly basis and the loan’s payment and delinquency status to monitor credit quality. FICO credit scores are considered the strongest indicator of credit losses over the contractual life of the loan as the scores are based on current and historical national industry-wide consumer level credit performance data, and assist management in predicting the borrower’s future payment performance. The following table presents the amortized cost basis of retail loans, by vintage date and FICO scores, as of June 30, 2020 : Term Loans by Origination Year Revolving Loans (in millions) 2020 2019 2018 2017 2016 Prior to 2016 Within the Revolving Period Converted to Term Total Residential mortgages 800+ $1,067 $2,018 $876 $1,488 $1,986 $2,353 $— $— $9,788 740-799 1,574 1,594 520 677 858 1,059 — — 6,282 680-739 387 459 242 226 329 556 — — 2,199 620-679 46 105 40 58 89 240 — — 578 <620 1 21 36 48 55 221 — — 382 No FICO available (1) 3 1 — — — 12 — — 16 Total residential mortgages 3,078 4,198 1,714 2,497 3,317 4,441 — — 19,245 Home equity 800+ 2 10 14 9 6 269 4,331 379 5,020 740-799 1 7 7 5 5 216 3,164 345 3,750 680-739 — 3 6 12 7 213 1,730 304 2,275 620-679 — 3 10 20 11 150 480 203 877 <620 — 4 11 33 20 153 170 227 618 No FICO available (1) — — — — — — 1 — 1 Total home equity 3 27 48 79 49 1,001 9,876 1,458 12,541 Automobile 800+ 550 924 521 412 255 131 — — 2,793 740-799 740 1,218 679 466 261 124 — — 3,488 680-739 667 1,126 600 384 209 98 — — 3,084 620-679 332 646 342 215 123 64 — — 1,722 <620 52 268 231 186 121 69 — — 927 No FICO available (1) 2 — — — — 12 — — 14 Total automobile 2,343 4,182 2,373 1,663 969 498 — — 12,028 Education 800+ 651 1,165 773 751 601 811 — — 4,752 740-799 820 1,199 627 443 314 475 — — 3,878 680-739 267 424 231 163 117 258 — — 1,460 620-679 20 59 46 38 34 119 — — 316 <620 1 9 15 16 13 67 — — 121 No FICO available (1) — — — — — 64 — — 64 Total education 1,759 2,856 1,692 1,411 1,079 1,794 — — 10,591 Other retail 800+ 239 534 209 87 20 54 293 — 1,436 740-799 339 726 268 116 28 39 613 2 2,131 680-739 266 500 178 74 16 18 579 6 1,637 620-679 142 204 66 24 4 8 196 7 651 <620 13 60 34 12 2 4 95 10 230 No FICO available (1) 39 1 — — — — 251 2 293 Total other retail 1,038 2,025 755 313 70 123 2,027 27 6,378 Retail 800+ 2,509 4,651 2,393 2,747 2,868 3,618 4,624 379 23,789 740-799 3,474 4,744 2,101 1,707 1,466 1,913 3,777 347 19,529 680-739 1,587 2,512 1,257 859 678 1,143 2,309 310 10,655 620-679 540 1,017 504 355 261 581 676 210 4,144 <620 67 362 327 295 211 514 265 237 2,278 No FICO available (1) 44 2 — — — 88 252 2 388 Total retail $8,221 $13,288 $6,582 $5,963 $5,484 $7,857 $11,903 $1,485 $60,783 (1) Represents loans for which an updated FICO score was unavailable (e.g., due to recent profile changes). |
Schedule of nonaccrual loans and leases and loans accruing and 90 days or more past due | The following table presents nonaccrual loans and leases and loans accruing and 90 days or more past due: As of June 30, 2020 As of December 31, 2019 (in millions) Nonaccrual loans and leases 90+ days past due and accruing Nonaccrual with no related ACL Nonaccrual loans and leases Commercial $366 $33 $40 $240 Commercial real estate 61 — 6 2 Leases 79 — — 3 Total commercial loans and leases 506 33 46 245 Residential mortgages 112 13 54 93 Home equity 254 — 86 246 Automobile 67 — 18 67 Education 18 2 4 18 Other retail 33 7 — 34 Total retail 484 22 162 458 Total loans and leases $990 $55 $208 $703 |
Schedule of accruing and nonaccruing past due amounts | The following table presents an analysis of the age of both accruing and nonaccruing loan and lease past due amounts: June 30, 2020 December 31, 2019 Days Past Due Days Past Due (in millions) Current-29 30-59 60-89 90 or More Total Current-29 30-59 60-89 90 or More Total Commercial $47,768 $60 $30 $159 $48,017 $41,340 $45 $27 $67 $41,479 Commercial real estate 14,340 92 52 1 14,485 13,520 1 1 — 13,522 Leases 2,347 5 12 64 2,428 2,498 37 — 2 2,537 Total commercial loans and leases 64,455 157 94 224 64,930 57,358 83 28 69 57,538 Residential mortgages 19,044 65 33 103 19,245 18,947 35 17 84 19,083 Home equity 12,212 71 41 217 12,541 12,834 91 40 189 13,154 Automobile 11,784 162 66 16 12,028 11,788 227 81 24 12,120 Education 10,548 25 12 6 10,591 10,290 30 15 12 10,347 Other retail 6,285 31 25 37 6,378 6,729 45 31 41 6,846 Total retail loans 59,873 354 177 379 60,783 60,588 428 184 350 61,550 Total $124,328 $511 $271 $603 $125,713 $117,946 $511 $212 $419 $119,088 |
Troubled debt restructurings on financing receivables | The following table summarizes TDRs by class and total unfunded commitments: (in millions) June 30, 2020 December 31, 2019 Commercial $265 $297 Retail 700 667 Unfunded commitments related to TDRs 52 42 The following tables below summarize how loans were modified during the six months ended June 30, 2020 and 2019 . The reported balances represent the post-modification outstanding amortized cost basis 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 June 30, 2020 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 — $— 4 $3 15 $53 Commercial real estate — — — — — — Total commercial loans — — 4 3 15 53 Residential mortgages 54 11 71 14 20 3 Home equity 27 2 49 4 190 11 Automobile 36 — 1 — 910 15 Education — — — — 142 4 Other retail 645 3 — — 65 1 Total retail loans 762 16 121 18 1,327 34 Total 762 $16 125 $21 1,342 $87 Three Months Ended June 30, 2019 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Amortized Cost Number of Contracts Amortized Cost Number of Contracts Amortized Cost Commercial 1 $— 7 $— 6 $47 Commercial real estate — — 1 — — — Total commercial loans 1 — 8 — 6 47 Residential mortgages 9 2 10 1 32 5 Home equity 49 5 15 3 100 6 Automobile 40 1 7 — 335 5 Education — — — — 13 1 Other retail 941 5 — — 143 — Total retail loans 1,039 13 32 4 623 17 Total 1,040 $13 40 $4 629 $64 Six Months Ended June 30, 2020 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Amortized Cost Number of Contracts Amortized Cost Number of Contracts Amortized Cost Commercial — $— 6 $3 32 $94 Commercial real estate — — — — — — Total commercial loans — — 6 3 32 94 Residential mortgages 92 17 108 21 41 7 Home equity 73 6 55 4 261 15 Automobile 83 1 1 — 1,093 17 Education — — — — 233 6 Other retail 1,506 7 — — 177 2 Total retail loans 1,754 31 164 25 1,805 47 Total 1,754 $31 170 $28 1,837 $141 Six Months Ended June 30, 2019 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Amortized Cost Number of Contracts Amortized Cost Number of Contracts Amortized Cost Commercial 1 $— 12 $1 18 $87 Commercial real estate — — 1 — — — Total commercial loans 1 — 13 1 18 87 Residential mortgages 13 4 21 3 62 9 Home equity 85 9 50 9 238 15 Automobile 65 1 12 — 624 9 Education — — — — 80 3 Other retail 1,557 9 — — 144 — Total retail loans 1,720 23 83 12 1,148 36 Total 1,721 $23 96 $13 1,166 $123 (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: June 30, 2020 (in millions) Residential Mortgages Home Equity Other Retail Total High loan-to-value $456 $104 $— $560 Interest-only/negative amortization 2,324 — — 2,324 Low introductory rate — — 208 208 Multiple characteristics and other 3 — — 3 Total $2,783 $104 $208 $3,095 December 31, 2019 (in millions) Residential Mortgages Home Equity Other Retail Total High loan-to-value $402 $151 $— $553 Interest-only/negative amortization 2,043 — — 2,043 Low introductory rate — — 235 235 Total $2,445 $151 $235 $2,831 |
MORTGAGE BANKING (Tables)
MORTGAGE BANKING (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Cash proceeds from residential mortgage loans sold with servicing retained $8,797 $4,229 $14,164 $7,148 Gain on sales (1) 283 55 426 92 Contractually specified servicing, late and other ancillary fees (1) 55 51 113 99 (1) Reported in mortgage banking fees on the Consolidated Statements of Operations. |
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 June 30, As of and for the Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Fair value as of beginning of the period $577 $563 $642 $600 Transfers upon election of fair value method — — 190 — Fair value as of beginning of the period, adjusted 577 563 832 600 Amounts capitalized 86 57 153 92 Changes in unpaid principal balance during the period (1) (46 ) (31 ) (86 ) (57 ) Changes in fair value during the period (2) (49 ) (58 ) (331 ) (104 ) Fair value at end of the period $568 $531 $568 $531 (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 | June 30, 2020 December 31, 2019 Actual Decline in fair value due to Actual Decline in fair value due to (dollars in millions) Fair value $568 50 bps adverse change 100 bps adverse change $642 50 bps adverse change 100 bps adverse change Weighted average life (in years) 3.7 5.5 Weighted average constant prepayment rate 21.0% $109 $145 13.9% $116 $222 Weighted average option adjusted spread 621 bps 9 19 440 bps 12 25 |
GOODWILL (Tables)
GOODWILL (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Change in carrying value of goodwill | The change in the carrying value of goodwill for the six months ended June 30, 2020 is presented below: (in millions) Consumer Banking Commercial Banking Total Balance at December 31, 2019 $2,258 $4,786 $7,044 Business acquisitions — 6 6 Balance at June 30, 2020 $2,258 $4,792 $7,050 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of variable interest entities | A summary of these investments is presented below: (in millions) June 30, 2020 December 31, 2019 Lending to special purpose entities included in loans and leases $1,499 $1,101 LIHTC investment included in other assets 1,469 1,401 LIHTC unfunded commitments included in other liabilities 754 716 Renewable energy investments included in other assets 414 355 |
Schedule of Affordable Housing Tax Credit investments | The following table presents other information related to the Company’s affordable housing tax credit investments: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Tax credits included in income tax expense $39 $34 $80 $69 Amortization expense included in income tax expense 42 35 85 72 Other tax benefits included in income tax expense 10 8 20 16 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term borrowed funds | The following table presents a summary of the Company’s long-term borrowed funds: (in millions) June 30, 2020 December 31, 2019 Parent Company: 2.375% fixed-rate senior unsecured debt, due July 2021 $350 $349 4.150% fixed-rate subordinated debt, due September 2022 349 348 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 750 750 2.850% fixed-rate senior unsecured notes, due July 2026 497 496 2.500% fixed-rate senior unsecured notes, due February 2030 297 — 3.250% fixed-rate senior unsecured notes, due April 2030 744 — CBNA’s Global Note Program: 2.250% senior unsecured notes, due March 2020 — 700 2.678% floating-rate senior unsecured notes, due March 2020 (1) — 300 2.217% floating-rate senior unsecured notes, due May 2020 (1) — 250 2.200% senior unsecured notes, due May 2020 — 500 2.250% senior unsecured notes, due October 2020 753 750 2.550% senior unsecured notes, due May 2021 1,006 991 3.250% senior unsecured notes, due February 2022 723 711 1.144% floating-rate senior unsecured notes, due February 2022 (1) 299 299 1.170% floating-rate senior unsecured notes, due May 2022 (1) 250 250 2.650% senior unsecured notes, due May 2022 514 501 3.700% senior unsecured notes, due March 2023 533 515 1.256% floating-rate senior unsecured notes, due March 2023 (1) 249 249 2.250% senior unsecured notes, due April 2025 746 — 3.750% senior unsecured notes, due February 2026 558 521 Additional Borrowings by CBNA and Other Subsidiaries: Federal Home Loan Bank advances, 1.599% weighted average rate, due through 2038 6 5,008 Other 37 18 Total long-term borrowed funds $9,202 $14,047 (1) Rate disclosed reflects the floating rate as of June 30, 2020 or final rate, as applicable. |
Schedule of maturities of long-term borrowed funds | The following table presents a summary of maturities for the Company’s long-term borrowed funds at June 30, 2020 : (in millions) Parent Company CBNA and Other Subsidiaries Consolidated Year 2020 $— $756 $756 2021 350 1,014 1,364 2022 349 1,796 2,145 2023 — 783 783 2024 292 — 292 2025 and thereafter 2,537 1,325 3,862 Total $3,528 $5,674 $9,202 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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: June 30, 2020 December 31, 2019 (in millions) Notional Amount (1) Derivative Assets Derivative Liabilities Notional Amount (1) Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate contracts $28,300 $2 $1 $29,846 $1 $— Derivatives not designated as hedging instruments: Interest rate contracts 154,654 1,903 250 142,386 772 133 Foreign exchange contracts 16,032 299 261 15,101 174 166 TBA contracts 12,156 18 47 — — — Other contracts 6,746 230 56 6,868 37 23 Total derivatives not designated as hedging instruments 2,450 614 983 322 Gross derivative fair values 2,452 615 984 322 Less: Gross amounts offset in the Consolidated Balance Sheets (2) (222 ) (222 ) (107 ) (107 ) Less: Cash collateral applied (2) (161 ) (195 ) (70 ) (95 ) Total net derivative fair values presented in the Consolidated Balance Sheets $2,069 $198 $807 $120 (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 presents 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 June 30, Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Affected Line Item in the Consolidated Statements of Operations Interest rate swaps hedging borrowed funds $5 $64 $98 $104 Interest expense - borrowed funds Hedged long-term debt attributable to the risk being hedged (3 ) (64 ) (95 ) (103 ) Interest expense - borrowed funds Interest rate swaps hedging fixed rate loans — (16 ) 17 (16 ) Interest and fees on loans and leases Hedged fixed rate loans attributable to the risk being hedged — 16 (17 ) 16 Interest and fees on loans and leases Interest rate swaps hedging debt securities available for sale (14 ) — (121 ) — Interest income - investment securities Hedged debt securities available for sale attributable to risk being hedged 14 — 121 — Interest income - investment securities The following table reflects amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges: June 30, 2020 December 31, 2019 (in millions) Debt securities available for sale (1) Long-term borrowed funds Debt securities available for sale (1) Residential mortgages Long-term borrowed funds Carrying amount of hedged assets $13,794 $— $15,798 $976 $— Carrying amount of hedged liabilities — 4,087 — — 4,689 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items 114 145 (8 ) 17 50 (1) The Company designated $2.0 billion as the hedged amount (from a closed portfolio of prepayable financial assets with a carrying value of $13.8 billion and $15.8 billion at June 30, 2020 and December 31, 2019, respectively) 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 June 30, Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Amount of pre-tax net (losses) gains recognized in OCI ($11 ) $91 $118 $143 Amount of pre-tax net gains (losses) reclassified from OCI into interest income 55 (20 ) 60 (40 ) Amount of pre-tax net (losses) gains reclassified from OCI into interest expense (10 ) 1 (11 ) 1 |
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 June 30, Six Months Ended June 30, Affected Line Item in the Consolidated Statements of Operations (in millions) 2020 2019 2020 2019 Economic hedge type: Customer interest rate contracts $180 $425 $1,269 $654 Foreign exchange and interest rate products Customer foreign exchange contracts 23 (47 ) (7 ) (81 ) Foreign exchange and interest rate products Derivative transactions to hedge interest rate risk (161 ) (410 ) (1,246 ) (627 ) Foreign exchange and interest rate products Derivative transactions to hedge foreign exchange risk (50 ) 54 49 94 Foreign exchange and interest rate products Residential loan commitments 14 11 154 16 Mortgage banking fees Derivative contracts used to hedge residential loan commitments 110 (9 ) (19 ) (5 ) Mortgage banking fees Derivative contracts used to hedge residential MSRs 62 71 333 116 Mortgage banking fees Other derivative contracts 7 — (56 ) — Foreign exchange and interest rate products Derivative transactions to hedge other derivative risk (7 ) — 57 — Foreign exchange and interest rate products Total $178 $95 $534 $167 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of other comprehensive income | The following table presents the changes in the balances, net of income taxes, of each component of AOCI: As of and for the Three Months Ended June 30, (in millions) Net Unrealized (Losses) Gains on Derivatives Net Unrealized (Losses) Gains on Debt Securities Employee Benefit Plans Total AOCI Balance at April 1, 2019 ($89 ) ($244 ) ($460 ) ($793 ) Other comprehensive income before reclassifications 68 221 — 289 Other-than-temporary impairment not recognized in earnings on debt securities — 1 — 1 Amounts reclassified to the Consolidated Statements of Operations 15 (3 ) 3 15 Net other comprehensive income 83 219 3 305 Balance at June 30, 2019 ($6 ) ($25 ) ($457 ) ($488 ) Balance at April 1, 2020 $96 $401 ($412 ) $85 Other comprehensive (loss) income before reclassifications (8 ) 49 — 41 Amounts reclassified to the Consolidated Statements of Operations (34 ) (2 ) 4 (32 ) Net other comprehensive (loss) income (42 ) 47 4 9 Balance at June 30, 2020 $54 $448 ($408 ) $94 Primary location of amounts reclassified to the Consolidated Statements of Operations Net interest income Securities gains, net Other operating expense As of and for the Six Months Ended June 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, 2019 ($143 ) ($490 ) ($463 ) ($1,096 ) Other comprehensive income before reclassifications 107 467 — 574 Other-than-temporary impairment not recognized in earnings on debt securities — 1 — 1 Amounts reclassified to the Consolidated Statements of Operations 30 (8 ) 6 28 Net other comprehensive income 137 460 6 603 Cumulative effect of change in accounting principle — 5 — 5 Balance at June 30, 2019 ($6 ) ($25 ) ($457 ) ($488 ) Balance at January 1, 2020 $3 $1 ($415 ) ($411 ) Other comprehensive income before reclassifications 88 449 — 537 Amounts reclassified to the Consolidated Statements of Operations (37 ) (2 ) 7 (32 ) Net other comprehensive income 51 447 7 505 Balance at June 30, 2020 $54 $448 ($408 ) $94 Primary location of amounts reclassified to the Consolidated Statements of Operations Net interest income Securities gains, net Other operating expense |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of preferred stock | The following table summarizes the Company’s preferred stock: June 30, 2020 December 31, 2019 (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) 293 300,000 293 Series E 1,000 (1) 450,000 (3) 437 450,000 437 Series F 1,000 400,000 395 — — Total 2,000,000 $1,965 1,600,000 $1,570 (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. (3) Represented by 18,000,000 depositary shares each representing a 1/40th interest in the Series E 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 June 30, 2020 Three Months Ended June 30, 2019 (in millions, except per share data) Dividends Declared per Share Dividends Declared Dividends Paid Dividends Declared per Share Dividends Declared Dividends Paid Common stock $0.39 $168 $168 $0.32 $148 $148 Preferred stock Series A $13.48 $3 $7 $— $— $7 Series B 30.00 9 — 30.00 9 — Series C 15.94 5 5 15.94 4 5 Series D 15.88 5 5 15.88 5 3 Series E 12.50 6 5 — — — Total preferred stock $28 $22 $18 $15 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 (in millions, except per share and share data) Dividends Declared per Share Dividends Declared Dividends Paid Dividends Declared per Share Dividends Declared Dividends Paid Common stock $0.78 $336 $336 $0.64 $297 $297 Preferred stock Series A $40.98 $10 $7 $27.50 $7 $7 Series B 30.00 9 9 30.00 9 11 Series C 31.88 10 10 31.88 9 9 Series D 31.75 10 10 27.70 8 3 Series E 25.00 11 9 — — — Total preferred stock $50 $45 $33 $30 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 2019 Form 10-K. (in millions) June 30, 2020 December 31, 2019 Commitments to extend credit $69,015 $72,743 Letters of credit 2,073 2,190 Risk participation agreements 109 37 Loans sold with recourse 48 37 Marketing rights 31 33 Total $71,276 $75,040 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value option | The following table presents the changes in fair value for assets where the Company has elected the fair value option: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Affected Line Item in the Consolidated Statements of Operations Residential mortgage loans held for sale, at fair value $45 $10 $103 $9 Mortgage banking fees Commercial and commercial real estate loans held for sale, at fair value 12 1 (8 ) 4 Capital market fees Citizens elected to account for residential mortgage LHFS and certain commercial and commercial real estate LHFS at fair value. June 30, 2020 December 31, 2019 (in millions) Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Less Aggregate Unpaid Principal Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Less Aggregate Unpaid Principal Residential mortgage loans held for sale, at fair value $3,449 $3,267 $182 $1,778 $1,727 $51 Commercial and commercial real estate loans held for sale, at fair value 182 203 (21 ) 168 175 (7 ) |
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 June 30, 2020 : (in millions) Total Level 1 Level 2 Level 3 Debt securities available for sale: Mortgage-backed securities $22,129 $— $22,129 $— State and political subdivisions 4 — 4 — U.S. Treasury and other 11 11 — — Total debt securities available for sale 22,144 11 22,133 — Loans held for sale, at fair value: Residential loans held for sale 3,449 — 3,449 — Commercial loans held for sale 182 — 182 — Total loans held for sale, at fair value 3,631 — 3,631 — Mortgage servicing rights 568 — — 568 Derivative assets: Interest rate contracts 1,905 — 1,905 — Foreign exchange contracts 299 — 299 — TBA contracts 18 — 18 — Other contracts 230 — 57 173 Total derivative assets 2,452 — 2,279 173 Equity securities, at fair value: Money market mutual fund investments 50 50 — — Total equity securities, at fair value 50 50 — — Total assets $28,845 $61 $28,043 $741 Derivative liabilities: Interest rate contracts $251 $— $251 $— Foreign exchange contracts 261 — 261 — TBA contracts 47 — 47 — Other contracts 56 — 56 — Total derivative liabilities 615 — 615 — Total liabilities $615 $— $615 $— The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities on a recurring basis at December 31, 2019 : (in millions) Total Level 1 Level 2 Level 3 Debt securities available for sale: Mortgage-backed securities $20,537 $— $20,537 $— State and political subdivisions 5 — 5 — U.S. Treasury and other 71 71 — — Total debt securities available for sale 20,613 71 20,542 — Loans held for sale, at fair value: Residential loans held for sale 1,778 — 1,778 — Commercial loans held for sale 168 — 168 — Total loans held for sale, at fair value 1,946 — 1,946 — Mortgage servicing rights 642 — — 642 Derivative assets: Interest rate contracts 773 — 773 — Foreign exchange contracts 174 — 174 — Other contracts 37 — 18 19 Total derivative assets 984 — 965 19 Equity securities, at fair value: Money market mutual fund investments 47 47 — — Total equity securities, at fair value 47 47 — — Total assets $24,232 $118 $23,453 $661 Derivative liabilities: Interest rate contracts $133 $— $133 $— Foreign exchange contracts 166 — 166 — Other contracts 23 — 23 — Total derivative liabilities 322 — 322 — Total liabilities $322 $— $322 $— |
Assets measured at fair value on recurring basis and classified as Level 3 | The following tables present a roll forward of the balance sheet amounts for assets measured at fair value on a recurring basis and classified as Level 3: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 (in millions) Mortgage Servicing Rights Other Derivative Contracts Mortgage Servicing Rights Other Derivative Contracts Beginning balance $577 $143 $642 $19 Transfers upon election of fair value method — — 190 — Beginning balance, adjusted 577 143 832 19 Purchases — — — — Issuances 86 234 153 405 Settlements (1) (46 ) (344 ) (86 ) (420 ) Changes in fair value during the period recognized in earnings (2) (49 ) 140 (331 ) 169 Ending balance $568 $173 $568 $173 Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in millions) Mortgage Servicing Rights Other Derivative Contracts Mortgage Servicing Rights Other Derivative Contracts Beginning balance $563 $18 $600 $— Issuances 57 43 92 43 Settlements (1) (31 ) (43 ) (57 ) (43 ) Changes in fair value during the period recognized in earnings (2) (58 ) 7 (104 ) 7 Transfers from Level 2 to Level 3 (3) — — — 18 Ending balance $531 $25 $531 $25 (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. |
Fair value measurement inputs and valuation techniques | The following table presents quantitative information about the Company’s Level 3 assets, including the range and weighted-average of the significant unobservable inputs used to fair value these assets, as well as valuation techniques used. As of June 30, 2020 Valuation Technique Unobservable Input Range (Weighted Average) Mortgage servicing rights Discounted Cash Flow Constant prepayment rate 10.48-39.43% CPR (21.0% CPR) Option adjusted spread 350-1,123 bps (621 bps) Other derivative contracts Internal Model Pull through rate 32.06-100.00% (78.17%) MSR value (57.20)-135.73 bps (88.78 bps) |
Gains (losses) on assets and liabilities measured on a nonrecurring basis included in earnings | The following table presents losses on assets measured at fair value on a nonrecurring basis and recorded in earnings: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Collateral-dependent loans ($22 ) ($24 ) ($44 ) ($28 ) |
Fair value of assets and liabilities measured on a nonrecurring basis | The following table presents assets measured at fair value on a nonrecurring basis: June 30, 2020 December 31, 2019 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Collateral-dependent loans $618 $— $618 $— $312 $— $312 $— |
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: June 30, 2020 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 $2,856 $3,009 $— $— $2,856 $3,009 $— $— Equity securities, at cost 607 607 — — 607 607 — — Other loans held for sale 1,362 1,362 — — — — 1,362 1,362 Loans and leases 125,713 126,701 — — 618 618 125,095 126,083 Financial liabilities: Deposits 143,618 143,728 — — 143,618 143,728 — — Federal funds purchased and securities sold under agreements to repurchase 251 251 — — 251 251 — — Other short-term borrowed funds 4 4 — — 4 4 — — Long-term borrowed funds 9,202 8,994 — — 9,202 8,994 — — December 31, 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 $3,202 $3,242 $— $— $3,202 $3,242 $— $— Equity securities, at cost 807 807 — — 807 807 — — Other loans held for sale 1,384 1,384 — — — — 1,384 1,384 Loans and leases 119,088 119,792 — — 312 312 118,776 119,480 Financial liabilities: Deposits 125,313 125,340 — — 125,313 125,340 — — Federal funds purchased and securities sold under agreements to repurchase 265 265 — — 265 265 — — Other short-term borrowed funds 9 9 — — 9 9 — — Long-term borrowed funds 14,047 14,228 — — 14,047 14,228 — — |
NONINTEREST INCOME (Tables)
NONINTEREST INCOME (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 Three Months Ended June 30, 2019 (in millions) Consumer Banking Commercial Banking Consolidated (1) Consumer Banking Commercial Banking Consolidated (1) Service charges and fees $59 $25 $84 $99 $26 $125 Card fees 42 7 49 55 9 64 Capital markets fees — 48 48 — 53 53 Trust and investment services fees 45 — 45 53 — 53 Other banking fees — 1 1 — 3 3 Total revenue from contracts with customers $146 $81 $227 $207 $91 $298 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 (in millions) Consumer Banking Commercial Banking Consolidated (1) Consumer Banking Commercial Banking Consolidated (1) Service charges and fees $151 $51 $202 $196 $52 $248 Card fees 87 17 104 105 18 123 Capital markets fees — 113 113 — 102 102 Trust and investment services fees 98 — 98 100 — 100 Other banking fees — 4 4 — 5 5 Total revenue from contracts with customers $336 $185 $521 $401 $177 $578 (1) There is no revenue from contracts with customers included in Other non-segment operations. |
Details of other income | Revenue from Other Sources Three Months Ended June 30, Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Bank-owned life insurance $14 $13 $28 $27 |
OTHER OPERATING EXPENSE (Tables
OTHER OPERATING EXPENSE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of other operating expense | The following table presents the details of other operating expense: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2020 2019 2020 2019 Promotional expense $27 $28 $51 $55 Other 84 90 171 173 Other operating expense $111 $118 $222 $228 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Three Months Ended June 30, Six Months Ended June 30, (in millions, except share and per share data) 2020 2019 2020 2019 Numerator (basic and diluted): Net income $253 $453 $287 $892 Less: Preferred stock dividends 28 18 50 33 Net income available to common stockholders $225 $435 $237 $859 Denominator: Weighted-average common shares outstanding - basic 426,613,053 458,154,335 427,165,737 459,426,685 Dilutive common shares: share-based awards 953,867 1,149,889 1,126,843 1,430,850 Weighted-average common shares outstanding - diluted 427,566,920 459,304,224 428,292,580 460,857,535 Earnings per common share: Basic $0.53 $0.95 $0.56 $1.87 Diluted (1) 0.53 0.95 0.55 1.86 (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 1,579,361 and 371,627 for the three months ended June 30, 2020 and 2019 , respectively, and 1,211,751 and 1,073,431 for the six months ended June 30, 2020 and 2019 , respectively. |
BUSINESS OPERATING SEGMENTS (Ta
BUSINESS OPERATING SEGMENTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | As of and for the Three Months Ended June 30, 2020 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $814 $419 ($73 ) $1,160 Noninterest income 428 144 18 590 Total revenue 1,242 563 (55 ) 1,750 Noninterest expense 735 213 31 979 Profit (loss) before provision for credit losses 507 350 (86 ) 771 Provision for credit losses 80 70 314 464 Income (loss) before income tax expense (benefit) 427 280 (400 ) 307 Income tax expense (benefit) 107 59 (112 ) 54 Net income (loss) $320 $221 ($288 ) $253 Total average assets $71,634 $65,280 $42,879 $179,793 As of and for the Three Months Ended June 30, 2019 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $799 $371 ($4 ) $1,166 Noninterest income 277 149 36 462 Total revenue 1,076 520 32 1,628 Noninterest expense 715 217 19 951 Profit before provision for credit losses 361 303 13 677 Provision for credit losses 78 25 (6 ) 97 Income before income tax expense (benefit) 283 278 19 580 Income tax expense (benefit) 70 62 (5 ) 127 Net income $213 $216 $24 $453 Total average assets $65,485 $56,135 $39,869 $161,489 As of and for the Six Months Ended June 30, 2020 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $1,607 $784 ($71 ) $2,320 Noninterest income 785 269 33 1,087 Total revenue 2,392 1,053 (38 ) 3,407 Noninterest expense 1,473 434 84 1,991 Profit (loss) before provision for credit losses 919 619 (122 ) 1,416 Provision for credit losses 177 113 774 1,064 Income (loss) before income tax expense (benefit) 742 506 (896 ) 352 Income tax expense (benefit) 186 106 (227 ) 65 Net income (loss) $556 $400 ($669 ) $287 Total average assets $70,024 $62,142 $41,319 $173,485 As of and for the Six Months Ended June 30, 2019 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $1,587 $743 ($4 ) $2,326 Noninterest income 524 299 67 890 Total revenue 2,111 1,042 63 3,216 Noninterest expense 1,415 426 47 1,888 Profit before provision for credit losses 696 616 16 1,328 Provision for credit losses 145 46 (9 ) 182 Income before income tax expense (benefit) 551 570 25 1,146 Income tax expense (benefit) 136 127 (9 ) 254 Net income $415 $443 $34 $892 Total average assets $65,247 $55,884 $39,824 $160,955 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jan. 01, 2025 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained earnings | $ 6,068 | $ 6,068 | $ 6,498 | ||||
Income tax expense | $ 54 | $ 127 | $ 65 | $ 254 | |||
Accounting Standards Update 2016-13 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Basis point change in CET1 | (0.22%) | ||||||
Scenario, Forecast | Accounting Standards Update 2016-13 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Basis point change in CET1 | (0.06%) | ||||||
Capital impact phase in percentage | 25.00% | ||||||
Cumulative Effect, Period Of Adoption, Adjustment | Accounting Standards Update 2016-13 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained earnings | $ (337) | ||||||
Income tax expense | (114) | ||||||
Allowance for credit loss | $ 451 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Accrued interest receivable on debt securities | $ 58,000,000 | $ 58,000,000 | $ 58,000,000 | ||
Taxable interest income from securities | 130,000,000 | $ 164,000,000 | 277,000,000 | $ 330,000,000 | |
Mortgage-backed securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Securitizations of mortgage loans | $ 0 | $ 13,000,000 | $ 0 | $ 44,000,000 |
SECURITIES - Schedule of Invest
SECURITIES - Schedule of Investments (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Fair Value | [1] | $ 22,144 | $ 20,613 |
Debt Securities Held-to-maturity, Amortized Cost | [1] | 2,856 | 3,202 |
Debt Securities Held-to-maturity, Gross Unrealized Gain | 153 | 45 | |
Debt Securities Held-to-maturity, Gross Unrealized Losses | 0 | (5) | |
Debt Securities held-to-maturity, Fair Value | 3,009 | 3,242 | |
Equity Securities, Amortized Cost | 50 | 47 | |
Equity Securities, Fair Value | 50 | 47 | |
Other equity securities, Amortized Cost | 8 | 8 | |
Other equity securities, Fair Value | 8 | 8 | |
Total equity securities, at cost, Amortized Cost | 607 | 807 | |
Total equity securities, at cost, Fair Value | 607 | 807 | |
U.S. Treasury and other | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 11 | 71 | |
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 | 11 | 71 | |
State and political subdivisions | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 4 | 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 | 4 | 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 | 20,898 | 19,803 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 648 | 143 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (4) | (71) | |
Debt Securities Available-for-sale, Fair Value | 21,542 | 19,875 | |
Debt Securities Held-to-maturity, Amortized Cost | 2,856 | 3,202 | |
Debt Securities Held-to-maturity, Gross Unrealized Gain | 153 | 45 | |
Debt Securities Held-to-maturity, Gross Unrealized Losses | 0 | (5) | |
Debt Securities held-to-maturity, Fair Value | 3,009 | 3,242 | |
Other/non-agency | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 551 | 638 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 36 | 24 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | 0 | 0 | |
Debt Securities Available-for-sale, Fair Value | 587 | 662 | |
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 | 21,449 | 20,441 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 684 | 167 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (4) | (71) | |
Debt Securities Available-for-sale, Fair Value | 22,129 | 20,537 | |
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 | 21,464 | 20,517 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 684 | 167 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (4) | (71) | |
Debt Securities Available-for-sale, Fair Value | 22,144 | 20,613 | |
Money market mutual fund investments | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Equity Securities, Amortized Cost | 50 | 47 | |
Equity Securities, Fair Value | 50 | 47 | |
Federal Reserve Bank stock | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Federal Reserve Bank stock, Amortized Cost | 577 | 577 | |
Federal Reserve Bank stock, Fair Value | 577 | 577 | |
Federal Home Loan Bank stock | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Federal Home Loan Bank stock, Amortized Cost | 22 | 222 | |
Federal Home Loan Bank stock, Fair Value | $ 22 | $ 222 | |
[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 | Jun. 30, 2020USD ($) |
Amortized cost: | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | $ 15 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 169 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 1,575 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 19,705 |
Amortized Cost, Debt securities available for sale, Total | 21,464 |
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 | 2,856 |
Amortized Cost, Debt securities held to maturity, Total | 2,856 |
Total amortized cost of debt securities, Maturity of 1 Year or Less | 15 |
Total amortized cost of debt securities, Maturity of 1-5 Years | 169 |
Total amortized cost of debt securities, Maturity of 5-10 Years | 1,575 |
Total amortized cost of debt securities, Maturity After 10 Years | 22,561 |
Total amortized cost of debt securities, Total | 24,320 |
Fair value: | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 15 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 176 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 1,631 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 20,322 |
Fair Value, Debt securities available for sale, Total | 22,144 |
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 | 3,009 |
Fair Value, Debt securities held to maturity, Total | 3,009 |
Total fair value of debt securities, Maturity of 1 Year or Less | 15 |
Total fair value of debt securities, Maturity of 1-5 Years | 176 |
Total fair value of debt securities, Maturity of 5-10 Years | 1,631 |
Total fair value of debt securities, Maturity After 10 Years | 23,331 |
Total fair value of debt securities, Total | 25,153 |
U.S. Treasury and other | |
Amortized cost: | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 11 |
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 | 11 |
Fair value: | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 11 |
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 | 11 |
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 | 4 |
Amortized Cost, Debt securities available for sale, Total | 4 |
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 | 4 |
Fair Value, Debt securities available for sale, Total | 4 |
Federal agencies and U.S. government sponsored entities | |
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 | 169 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 1,575 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 19,150 |
Amortized Cost, Debt securities available for sale, Total | 20,898 |
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 | 2,856 |
Amortized Cost, Debt securities held to maturity, Total | 2,856 |
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 | 176 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 1,631 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 19,731 |
Fair Value, Debt securities available for sale, Total | 21,542 |
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 | 3,009 |
Fair Value, Debt securities held to maturity, Total | 3,009 |
Other/non-agency | |
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 | 551 |
Amortized Cost, Debt securities available for sale, Total | 551 |
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 | 587 |
Fair Value, Debt securities available for sale, Total | $ 587 |
SECURITIES - Income Recognized
SECURITIES - Income Recognized from Investment Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Gains on sale of debt securities | $ 3 | $ 8 | $ 3 | $ 16 |
Losses on sale of debt securities | 0 | 0 | 0 | 0 |
Debt securities gains, net | $ 3 | 8 | $ 3 | 16 |
Mortgage banking fees | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt securities gains, net | $ 4 | $ 4 |
SECURITIES - Schedule of Securi
SECURITIES - Schedule of Securities Pledged (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Pledged against repurchase agreements | $ 242 | $ 265 |
Pledged against FHLB borrowed funds | 548 | 638 |
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law | 3,861 | 3,670 |
Fair Value | ||
Pledged against repurchase agreements | 251 | 266 |
Pledged against FHLB borrowed funds | 587 | 662 |
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law | $ 3,998 | $ 3,672 |
SECURITIES - Schedule of Inve_2
SECURITIES - Schedule of Investments in Continuous Loss Positions (Details) - Federal agencies and U.S. government sponsored entities - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value | ||
Less than 12 Months | $ 851 | $ 5,135 |
12 Months or Longer | 0 | 3,748 |
Total | 851 | 8,883 |
Gross Unrealized Losses | ||
Less than 12 Months | (4) | (24) |
12 Months or Longer | 0 | (52) |
Total | $ (4) | $ (76) |
LOANS AND LEASES - Narrative (D
LOANS AND LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accrued interest receivable on loans and leases held for investment | $ 530 | $ 530 | $ 495 | ||
Interest income on direct financing lease | 19 | $ 20 | 37 | $ 40 | |
Retail | Residential mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds from sale of loans | 492 | ||||
Retail | Education | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Payments for purchase of loans | 691 | $ 99 | 909 | 300 | |
Retail | Other retail | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Payments for purchase of loans | 255 | 527 | |||
Retail | Retail loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds from sale of loans | 1,500 | 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 | 25,500 | 25,500 | 25,300 | ||
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 | 40,900 | 40,900 | $ 17,400 | ||
Commercial | Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds from sale of loans | $ 71 | $ 262 | $ 182 |
LOANS AND LEASES - Summary of L
LOANS AND LEASES - Summary of Loans and Leases Portfolio (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | $ 125,713 | $ 119,088 |
Loans held for sale, at fair value | 3,631 | 1,946 |
Other loans held for sale | 1,362 | 1,384 |
SBA Loans Serviced For Others | CBNA and Other Subsidiaries | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 45 | 33 |
Mortgage loans serviced for others | CBNA and Other Subsidiaries | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 79,900 | 77,500 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 64,930 | 57,538 |
Commercial | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 48,017 | 41,479 |
Commercial | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 14,485 | 13,522 |
Commercial | Leases | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 2,428 | 2,537 |
Commercial | SBA Guaranteed PPP Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 4,700 | |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 60,783 | 61,550 |
Retail | Residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 19,245 | 19,083 |
Retail | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 12,541 | 13,154 |
Retail | Automobile | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 12,028 | 12,120 |
Retail | Education | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 10,591 | 10,347 |
Retail | Other retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | $ 6,378 | $ 6,846 |
LOANS AND LEASES - Loans Held F
LOANS AND LEASES - Loans Held For Sale (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale, at fair value | $ 3,631 | $ 1,946 |
Other loans held for sale | 1,362 | 1,384 |
Residential loans held for sale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale, at fair value | 3,449 | 1,778 |
Other loans held for sale | 0 | 1,101 |
Commercial loans held for sale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale, at fair value | 182 | 168 |
Other loans held for sale | 426 | $ 283 |
Education loans held for sale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale, at fair value | 0 | |
Other loans held for sale | $ 936 |
ALLOWANCE FOR CREDIT LOSSES, _3
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jan. 01, 2020 | Dec. 31, 2019 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit loss, reserve build | $ 780 | |||||
ACL Balance | $ 2,527 | 2,527 | $ 1,747 | $ 1,296 | ||
Loans and leases | 125,713 | 125,713 | 119,088 | |||
Mortgage loans collateralized by OREO | 135 | 135 | 152 | |||
Net change to ALLL from modification | 5 | $ 2 | 9 | $ 4 | ||
Charge-offs from modification of loans | 4 | 1 | $ 6 | 2 | ||
High loan to value criteria (exceeds) | 90.00% | |||||
Commercial | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
ACL Balance | 1,304 | $ 1,304 | 539 | 718 | ||
Allowance for credit losses, individually evaluated for impairment | 5 | 5 | ||||
Accrued interest receivable reversed against interest income | 2 | 3 | ||||
Loans and leases | 64,930 | 64,930 | 57,538 | |||
TDR's that defaulted within 12 months of modification date | 26 | 1 | 39 | 1 | ||
Retail | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
ACL Balance | 1,223 | 1,223 | 1,208 | 578 | ||
Accrued interest receivable reversed against interest income | 4 | 9 | ||||
Loans and leases | 60,783 | 60,783 | 61,550 | |||
TDR's that defaulted within 12 months of modification date | 14 | $ 10 | 25 | $ 19 | ||
Commercial | Commercial | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
ACL Balance | 847 | 847 | $ 376 | 575 | ||
Loans and leases | 48,017 | $ 48,017 | 41,479 | |||
Collateral Dependent | Home Equity Loan And Residential Mortgages | Retail | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Collateral value, valuation frequency period | 90 days | |||||
Loans and leases | 405 | $ 405 | 227 | |||
Collateral Dependent | Commercial | Commercial | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Loans and leases | 213 | 213 | $ 85 | |||
Payment Deferral | Retail | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Loan restructuring, modification, amount | $ 3,500 | $ 3,500 | ||||
Loan restructuring, modification, percentage of total portfolio | 6.00% | 6.00% |
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 | 6 Months Ended | ||||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Cumulative effect of change in accounting principle | $ (331) | $ 17 | ||||||
Provision charged to income | $ 1,064 | $ 182 | ||||||
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 | $ 2,171 | $ 1,245 | 1,252 | 1,242 | ||||
Cumulative effect of change in accounting principle | $ 0 | $ 453 | ||||||
Allowance for loan and lease losses, beginning of period, adjusted | 2,171 | 1,705 | ||||||
Charge-offs | (180) | (156) | (354) | (294) | ||||
Recoveries | 33 | 50 | 70 | 99 | ||||
Net charge-offs | (147) | (106) | (284) | (195) | ||||
Provision charged to income | 424 | 88 | 1,027 | 180 | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 2,448 | 1,227 | 2,448 | 1,227 | ||||
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 | 39 | 84 | 44 | 91 | ||||
Cumulative effect of change in accounting principle | 0 | (2) | ||||||
Allowance for loan and lease losses, beginning of period, adjusted | 39 | 42 | ||||||
Provision for unfunded lending commitments | 40 | 9 | 37 | 2 | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 79 | 93 | 79 | 93 | ||||
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 | 752 | 691 | 674 | 690 | ||||
Cumulative effect of change in accounting principle | 0 | (176) | ||||||
Allowance for loan and lease losses, beginning of period, adjusted | 752 | 498 | ||||||
Charge-offs | (74) | (45) | (121) | (71) | ||||
Recoveries | 3 | 12 | 6 | 14 | ||||
Net charge-offs | (71) | (33) | (115) | (57) | ||||
Provision charged to income | 554 | 22 | 852 | 47 | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,235 | 680 | 1,235 | 680 | ||||
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 | 38 | 84 | 44 | 91 | ||||
Cumulative effect of change in accounting principle | 0 | (3) | ||||||
Allowance for loan and lease losses, beginning of period, adjusted | 38 | 41 | ||||||
Provision for unfunded lending commitments | 31 | 9 | 28 | 2 | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 69 | 93 | 69 | 93 | ||||
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 | 1,419 | 554 | 578 | 552 | ||||
Cumulative effect of change in accounting principle | 0 | 629 | ||||||
Allowance for loan and lease losses, beginning of period, adjusted | 1,419 | 1,207 | ||||||
Charge-offs | (106) | (111) | (233) | (223) | ||||
Recoveries | 30 | 38 | 64 | 85 | ||||
Net charge-offs | (76) | (73) | (169) | (138) | ||||
Provision charged to income | (130) | 66 | 175 | 133 | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,213 | 547 | 1,213 | 547 | ||||
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 | 1 | 0 | 0 | 0 | ||||
Cumulative effect of change in accounting principle | 0 | 1 | ||||||
Allowance for loan and lease losses, beginning of period, adjusted | $ 1 | $ 1 | ||||||
Provision for unfunded lending commitments | 9 | 0 | 9 | 0 | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | $ 10 | $ 0 | $ 10 | $ 0 |
ALLOWANCE FOR CREDIT LOSSES, _5
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Schedule of Additional Detail on the Cumulative Effect of Change in Accounting Principle (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | $ 125,713 | $ 119,088 | |
ACL Balance | $ 2,527 | $ 1,747 | $ 1,296 |
Coverage | 2.00% | 1.50% | 1.10% |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | $ 64,930 | $ 57,538 | |
ACL Balance | $ 1,304 | $ 539 | $ 718 |
Coverage | 2.00% | 0.90% | 1.20% |
Commercial | Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | $ 48,017 | $ 41,479 | |
ACL Balance | $ 847 | $ 376 | $ 575 |
Coverage | 1.80% | 0.90% | 1.40% |
Commercial | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | $ 14,485 | $ 13,522 | |
ACL Balance | $ 330 | $ 67 | $ 124 |
Coverage | 2.30% | 0.50% | 0.90% |
Commercial | Leases | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | $ 2,428 | $ 2,537 | |
ACL Balance | $ 127 | $ 96 | $ 19 |
Coverage | 5.20% | 3.80% | 0.70% |
Commercial | SBA Guaranteed PPP Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | $ 4,700 | ||
Coverage reduction, basis points | 0.19% | ||
Retail | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | $ 60,783 | $ 61,550 | |
ACL Balance | $ 1,223 | $ 1,208 | $ 578 |
Coverage | 2.00% | 2.00% | 0.90% |
Retail | Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | $ 19,245 | $ 19,083 | |
ACL Balance | $ 104 | $ 130 | $ 35 |
Coverage | 0.50% | 0.70% | 0.20% |
Retail | Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | $ 12,541 | $ 13,154 | |
ACL Balance | $ 143 | $ 156 | $ 83 |
Coverage | 1.10% | 1.20% | 0.60% |
Retail | Automobile | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | $ 12,028 | $ 12,120 | |
ACL Balance | $ 277 | $ 206 | $ 123 |
Coverage | 2.30% | 1.70% | 1.00% |
Retail | Education | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | $ 10,591 | $ 10,347 | |
ACL Balance | $ 312 | $ 414 | $ 116 |
Coverage | 2.90% | 4.00% | 1.10% |
Retail | Other retail | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | $ 6,378 | $ 6,846 | |
ACL Balance | $ 387 | $ 302 | $ 221 |
Coverage | 6.10% | 4.40% | 3.20% |
Accounting Standards Update 2016-13 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
ACL Balance | $ 451 | ||
Accounting Standards Update 2016-13 | Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
ACL Balance | (179) | ||
Accounting Standards Update 2016-13 | Commercial | Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
ACL Balance | (199) | ||
Accounting Standards Update 2016-13 | Commercial | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
ACL Balance | (57) | ||
Accounting Standards Update 2016-13 | Commercial | Leases | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
ACL Balance | 77 | ||
Accounting Standards Update 2016-13 | Retail | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
ACL Balance | 630 | ||
Accounting Standards Update 2016-13 | Retail | Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
ACL Balance | 95 | ||
Accounting Standards Update 2016-13 | Retail | Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
ACL Balance | 73 | ||
Accounting Standards Update 2016-13 | Retail | Automobile | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
ACL Balance | 83 | ||
Accounting Standards Update 2016-13 | Retail | Education | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
ACL Balance | 298 | ||
Accounting Standards Update 2016-13 | Retail | Other retail | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
ACL Balance | $ 81 |
ALLOWANCE FOR CREDIT LOSSES, _6
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Amortized Cost Basis by Credit Quality Indicator (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 125,713 | $ 119,088 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 8,365 | |
2019 | 11,387 | |
2018 | 9,842 | |
2017 | 5,325 | |
2016 | 3,229 | |
Prior to 2016 | 5,426 | |
Within the Revolving Period | 20,918 | |
Converted to Term | 438 | |
Total | 64,930 | 57,538 |
Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 8,075 | |
2019 | 10,853 | |
2018 | 9,003 | |
2017 | 4,873 | |
2016 | 2,837 | |
Prior to 2016 | 4,883 | |
Within the Revolving Period | 18,707 | |
Converted to Term | 393 | |
Total | 59,624 | |
Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 190 | |
2019 | 317 | |
2018 | 437 | |
2017 | 269 | |
2016 | 194 | |
Prior to 2016 | 292 | |
Within the Revolving Period | 1,187 | |
Converted to Term | 22 | |
Total | 2,908 | |
Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 92 | |
2019 | 149 | |
2018 | 347 | |
2017 | 128 | |
2016 | 179 | |
Prior to 2016 | 123 | |
Within the Revolving Period | 851 | |
Converted to Term | 19 | |
Total | 1,888 | |
Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 8 | |
2019 | 68 | |
2018 | 55 | |
2017 | 55 | |
2016 | 19 | |
Prior to 2016 | 128 | |
Within the Revolving Period | 173 | |
Converted to Term | 4 | |
Total | 510 | |
Commercial | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 6,844 | |
2019 | 7,487 | |
2018 | 5,588 | |
2017 | 3,197 | |
2016 | 1,814 | |
Prior to 2016 | 3,149 | |
Within the Revolving Period | 19,500 | |
Converted to Term | 438 | |
Total | 48,017 | 41,479 |
Commercial | Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 6,585 | |
2019 | 7,127 | |
2018 | 5,054 | |
2017 | 2,897 | |
2016 | 1,564 | |
Prior to 2016 | 2,724 | |
Within the Revolving Period | 17,515 | |
Converted to Term | 393 | |
Total | 43,859 | |
Commercial | Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 159 | |
2019 | 245 | |
2018 | 287 | |
2017 | 131 | |
2016 | 126 | |
Prior to 2016 | 209 | |
Within the Revolving Period | 1,110 | |
Converted to Term | 22 | |
Total | 2,289 | |
Commercial | Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 92 | |
2019 | 89 | |
2018 | 238 | |
2017 | 120 | |
2016 | 119 | |
Prior to 2016 | 119 | |
Within the Revolving Period | 702 | |
Converted to Term | 19 | |
Total | 1,498 | |
Commercial | Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 8 | |
2019 | 26 | |
2018 | 9 | |
2017 | 49 | |
2016 | 5 | |
Prior to 2016 | 97 | |
Within the Revolving Period | 173 | |
Converted to Term | 4 | |
Total | 371 | |
Commercial | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,258 | |
2019 | 3,541 | |
2018 | 3,941 | |
2017 | 1,931 | |
2016 | 1,157 | |
Prior to 2016 | 1,239 | |
Within the Revolving Period | 1,418 | |
Converted to Term | 0 | |
Total | 14,485 | 13,522 |
Commercial | Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,227 | |
2019 | 3,375 | |
2018 | 3,674 | |
2017 | 1,792 | |
2016 | 1,037 | |
Prior to 2016 | 1,152 | |
Within the Revolving Period | 1,192 | |
Converted to Term | 0 | |
Total | 13,449 | |
Commercial | Commercial real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 31 | |
2019 | 70 | |
2018 | 145 | |
2017 | 132 | |
2016 | 64 | |
Prior to 2016 | 82 | |
Within the Revolving Period | 77 | |
Converted to Term | 0 | |
Total | 601 | |
Commercial | Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 58 | |
2018 | 106 | |
2017 | 2 | |
2016 | 56 | |
Prior to 2016 | 3 | |
Within the Revolving Period | 149 | |
Converted to Term | 0 | |
Total | 374 | |
Commercial | Commercial real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 38 | |
2018 | 16 | |
2017 | 5 | |
2016 | 0 | |
Prior to 2016 | 2 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 61 | |
Commercial | Leases | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 263 | |
2019 | 359 | |
2018 | 313 | |
2017 | 197 | |
2016 | 258 | |
Prior to 2016 | 1,038 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 2,428 | 2,537 |
Commercial | Leases | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 263 | |
2019 | 351 | |
2018 | 275 | |
2017 | 184 | |
2016 | 236 | |
Prior to 2016 | 1,007 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 2,316 | |
Commercial | Leases | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 2 | |
2018 | 5 | |
2017 | 6 | |
2016 | 4 | |
Prior to 2016 | 1 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 18 | |
Commercial | Leases | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 2 | |
2018 | 3 | |
2017 | 6 | |
2016 | 4 | |
Prior to 2016 | 1 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 16 | |
Commercial | Leases | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 4 | |
2018 | 30 | |
2017 | 1 | |
2016 | 14 | |
Prior to 2016 | 29 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 78 | |
Commercial | SBA Guaranteed PPP Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 4,700 | |
Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 8,221 | |
2019 | 13,288 | |
2018 | 6,582 | |
2017 | 5,963 | |
2016 | 5,484 | |
Prior to 2016 | 7,857 | |
Within the Revolving Period | 11,903 | |
Converted to Term | 1,485 | |
Total | 60,783 | 61,550 |
Retail | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 3,078 | |
2019 | 4,198 | |
2018 | 1,714 | |
2017 | 2,497 | |
2016 | 3,317 | |
Prior to 2016 | 4,441 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 19,245 | 19,083 |
Retail | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 3 | |
2019 | 27 | |
2018 | 48 | |
2017 | 79 | |
2016 | 49 | |
Prior to 2016 | 1,001 | |
Within the Revolving Period | 9,876 | |
Converted to Term | 1,458 | |
Total | 12,541 | 13,154 |
Retail | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 2,343 | |
2019 | 4,182 | |
2018 | 2,373 | |
2017 | 1,663 | |
2016 | 969 | |
Prior to 2016 | 498 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 12,028 | 12,120 |
Retail | Education | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,759 | |
2019 | 2,856 | |
2018 | 1,692 | |
2017 | 1,411 | |
2016 | 1,079 | |
Prior to 2016 | 1,794 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 10,591 | 10,347 |
Retail | Other retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,038 | |
2019 | 2,025 | |
2018 | 755 | |
2017 | 313 | |
2016 | 70 | |
Prior to 2016 | 123 | |
Within the Revolving Period | 2,027 | |
Converted to Term | 27 | |
Total | 6,378 | $ 6,846 |
Greater than 800 | Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 2,509 | |
2019 | 4,651 | |
2018 | 2,393 | |
2017 | 2,747 | |
2016 | 2,868 | |
Prior to 2016 | 3,618 | |
Within the Revolving Period | 4,624 | |
Converted to Term | 379 | |
Total | 23,789 | |
Greater than 800 | Retail | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,067 | |
2019 | 2,018 | |
2018 | 876 | |
2017 | 1,488 | |
2016 | 1,986 | |
Prior to 2016 | 2,353 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 9,788 | |
Greater than 800 | Retail | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 2 | |
2019 | 10 | |
2018 | 14 | |
2017 | 9 | |
2016 | 6 | |
Prior to 2016 | 269 | |
Within the Revolving Period | 4,331 | |
Converted to Term | 379 | |
Total | 5,020 | |
Greater than 800 | Retail | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 550 | |
2019 | 924 | |
2018 | 521 | |
2017 | 412 | |
2016 | 255 | |
Prior to 2016 | 131 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 2,793 | |
Greater than 800 | Retail | Education | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 651 | |
2019 | 1,165 | |
2018 | 773 | |
2017 | 751 | |
2016 | 601 | |
Prior to 2016 | 811 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 4,752 | |
Greater than 800 | Retail | Other retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 239 | |
2019 | 534 | |
2018 | 209 | |
2017 | 87 | |
2016 | 20 | |
Prior to 2016 | 54 | |
Within the Revolving Period | 293 | |
Converted to Term | 0 | |
Total | 1,436 | |
740-799 | Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 3,474 | |
2019 | 4,744 | |
2018 | 2,101 | |
2017 | 1,707 | |
2016 | 1,466 | |
Prior to 2016 | 1,913 | |
Within the Revolving Period | 3,777 | |
Converted to Term | 347 | |
Total | 19,529 | |
740-799 | Retail | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,574 | |
2019 | 1,594 | |
2018 | 520 | |
2017 | 677 | |
2016 | 858 | |
Prior to 2016 | 1,059 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 6,282 | |
740-799 | Retail | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1 | |
2019 | 7 | |
2018 | 7 | |
2017 | 5 | |
2016 | 5 | |
Prior to 2016 | 216 | |
Within the Revolving Period | 3,164 | |
Converted to Term | 345 | |
Total | 3,750 | |
740-799 | Retail | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 740 | |
2019 | 1,218 | |
2018 | 679 | |
2017 | 466 | |
2016 | 261 | |
Prior to 2016 | 124 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 3,488 | |
740-799 | Retail | Education | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 820 | |
2019 | 1,199 | |
2018 | 627 | |
2017 | 443 | |
2016 | 314 | |
Prior to 2016 | 475 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 3,878 | |
740-799 | Retail | Other retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 339 | |
2019 | 726 | |
2018 | 268 | |
2017 | 116 | |
2016 | 28 | |
Prior to 2016 | 39 | |
Within the Revolving Period | 613 | |
Converted to Term | 2 | |
Total | 2,131 | |
680-739 | Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,587 | |
2019 | 2,512 | |
2018 | 1,257 | |
2017 | 859 | |
2016 | 678 | |
Prior to 2016 | 1,143 | |
Within the Revolving Period | 2,309 | |
Converted to Term | 310 | |
Total | 10,655 | |
680-739 | Retail | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 387 | |
2019 | 459 | |
2018 | 242 | |
2017 | 226 | |
2016 | 329 | |
Prior to 2016 | 556 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 2,199 | |
680-739 | Retail | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 3 | |
2018 | 6 | |
2017 | 12 | |
2016 | 7 | |
Prior to 2016 | 213 | |
Within the Revolving Period | 1,730 | |
Converted to Term | 304 | |
Total | 2,275 | |
680-739 | Retail | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 667 | |
2019 | 1,126 | |
2018 | 600 | |
2017 | 384 | |
2016 | 209 | |
Prior to 2016 | 98 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 3,084 | |
680-739 | Retail | Education | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 267 | |
2019 | 424 | |
2018 | 231 | |
2017 | 163 | |
2016 | 117 | |
Prior to 2016 | 258 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 1,460 | |
680-739 | Retail | Other retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 266 | |
2019 | 500 | |
2018 | 178 | |
2017 | 74 | |
2016 | 16 | |
Prior to 2016 | 18 | |
Within the Revolving Period | 579 | |
Converted to Term | 6 | |
Total | 1,637 | |
620-679 | Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 540 | |
2019 | 1,017 | |
2018 | 504 | |
2017 | 355 | |
2016 | 261 | |
Prior to 2016 | 581 | |
Within the Revolving Period | 676 | |
Converted to Term | 210 | |
Total | 4,144 | |
620-679 | Retail | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 46 | |
2019 | 105 | |
2018 | 40 | |
2017 | 58 | |
2016 | 89 | |
Prior to 2016 | 240 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 578 | |
620-679 | Retail | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 3 | |
2018 | 10 | |
2017 | 20 | |
2016 | 11 | |
Prior to 2016 | 150 | |
Within the Revolving Period | 480 | |
Converted to Term | 203 | |
Total | 877 | |
620-679 | Retail | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 332 | |
2019 | 646 | |
2018 | 342 | |
2017 | 215 | |
2016 | 123 | |
Prior to 2016 | 64 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 1,722 | |
620-679 | Retail | Education | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 20 | |
2019 | 59 | |
2018 | 46 | |
2017 | 38 | |
2016 | 34 | |
Prior to 2016 | 119 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 316 | |
620-679 | Retail | Other retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 142 | |
2019 | 204 | |
2018 | 66 | |
2017 | 24 | |
2016 | 4 | |
Prior to 2016 | 8 | |
Within the Revolving Period | 196 | |
Converted to Term | 7 | |
Total | 651 | |
Less than 620 | Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 67 | |
2019 | 362 | |
2018 | 327 | |
2017 | 295 | |
2016 | 211 | |
Prior to 2016 | 514 | |
Within the Revolving Period | 265 | |
Converted to Term | 237 | |
Total | 2,278 | |
Less than 620 | Retail | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1 | |
2019 | 21 | |
2018 | 36 | |
2017 | 48 | |
2016 | 55 | |
Prior to 2016 | 221 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 382 | |
Less than 620 | Retail | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 4 | |
2018 | 11 | |
2017 | 33 | |
2016 | 20 | |
Prior to 2016 | 153 | |
Within the Revolving Period | 170 | |
Converted to Term | 227 | |
Total | 618 | |
Less than 620 | Retail | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 52 | |
2019 | 268 | |
2018 | 231 | |
2017 | 186 | |
2016 | 121 | |
Prior to 2016 | 69 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 927 | |
Less than 620 | Retail | Education | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1 | |
2019 | 9 | |
2018 | 15 | |
2017 | 16 | |
2016 | 13 | |
Prior to 2016 | 67 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 121 | |
Less than 620 | Retail | Other retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 13 | |
2019 | 60 | |
2018 | 34 | |
2017 | 12 | |
2016 | 2 | |
Prior to 2016 | 4 | |
Within the Revolving Period | 95 | |
Converted to Term | 10 | |
Total | 230 | |
No FICO available | Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 44 | |
2019 | 2 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 88 | |
Within the Revolving Period | 252 | |
Converted to Term | 2 | |
Total | 388 | |
No FICO available | Retail | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 3 | |
2019 | 1 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 12 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 16 | |
No FICO available | Retail | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Within the Revolving Period | 1 | |
Converted to Term | 0 | |
Total | 1 | |
No FICO available | Retail | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 2 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 12 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 14 | |
No FICO available | Retail | Education | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 64 | |
Within the Revolving Period | 0 | |
Converted to Term | 0 | |
Total | 64 | |
No FICO available | Retail | Other retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 39 | |
2019 | 1 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Within the Revolving Period | 251 | |
Converted to Term | 2 | |
Total | $ 293 |
ALLOWANCE FOR CREDIT LOSSES, _7
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Nonaccrual Loans and Leases by Class (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans and leases | $ 990 | $ 703 |
90 days past due and accruing | 55 | |
Nonaccrual with no related ACL | 208 | |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans and leases | 506 | 245 |
90 days past due and accruing | 33 | |
Nonaccrual with no related ACL | 46 | |
Commercial | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans and leases | 366 | 240 |
90 days past due and accruing | 33 | |
Nonaccrual with no related ACL | 40 | |
Commercial | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans and leases | 61 | 2 |
90 days past due and accruing | 0 | |
Nonaccrual with no related ACL | 6 | |
Commercial | Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans and leases | 79 | 3 |
90 days past due and accruing | 0 | |
Nonaccrual with no related ACL | 0 | |
Retail | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans and leases | 484 | 458 |
90 days past due and accruing | 22 | |
Nonaccrual with no related ACL | 162 | |
Retail | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans and leases | 112 | 93 |
90 days past due and accruing | 13 | |
Nonaccrual with no related ACL | 54 | |
Retail | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans and leases | 254 | 246 |
90 days past due and accruing | 0 | |
Nonaccrual with no related ACL | 86 | |
Retail | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans and leases | 67 | 67 |
90 days past due and accruing | 0 | |
Nonaccrual with no related ACL | 18 | |
Retail | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans and leases | 18 | 18 |
90 days past due and accruing | 2 | |
Nonaccrual with no related ACL | 4 | |
Retail | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans and leases | 33 | $ 34 |
90 days past due and accruing | 7 | |
Nonaccrual with no related ACL | $ 0 |
ALLOWANCE FOR CREDIT LOSSES, _8
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Accruing and Nonaccruing Past Due Amounts (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Current | $ 124,328 | $ 117,946 |
Total | 125,713 | 119,088 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 511 | 511 |
Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 271 | 212 |
Financing Receivables 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 603 | 419 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 64,455 | 57,358 |
Total | 64,930 | 57,538 |
Commercial | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 47,768 | 41,340 |
Total | 48,017 | 41,479 |
Commercial | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 14,340 | 13,520 |
Total | 14,485 | 13,522 |
Commercial | Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 2,347 | 2,498 |
Total | 2,428 | 2,537 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 157 | 83 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 60 | 45 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 92 | 1 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 5 | 37 |
Commercial | Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 94 | 28 |
Commercial | Financing Receivables 60 To 89 Days Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 30 | 27 |
Commercial | Financing Receivables 60 To 89 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 52 | 1 |
Commercial | Financing Receivables 60 To 89 Days Past Due | Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 12 | 0 |
Commercial | Financing Receivables 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 224 | 69 |
Commercial | Financing Receivables 90 Days or More Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 159 | 67 |
Commercial | Financing Receivables 90 Days or More Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1 | 0 |
Commercial | Financing Receivables 90 Days or More Past Due | Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 64 | 2 |
Retail | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 59,873 | 60,588 |
Total | 60,783 | 61,550 |
Retail | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 19,044 | 18,947 |
Total | 19,245 | 19,083 |
Retail | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 12,212 | 12,834 |
Total | 12,541 | 13,154 |
Retail | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 11,784 | 11,788 |
Total | 12,028 | 12,120 |
Retail | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 10,548 | 10,290 |
Total | 10,591 | 10,347 |
Retail | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 6,285 | 6,729 |
Total | 6,378 | 6,846 |
Retail | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 354 | 428 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 65 | 35 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 71 | 91 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 162 | 227 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 25 | 30 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 31 | 45 |
Retail | Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 177 | 184 |
Retail | Financing Receivables 60 To 89 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 33 | 17 |
Retail | Financing Receivables 60 To 89 Days Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 41 | 40 |
Retail | Financing Receivables 60 To 89 Days Past Due | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 66 | 81 |
Retail | Financing Receivables 60 To 89 Days Past Due | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 12 | 15 |
Retail | Financing Receivables 60 To 89 Days Past Due | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 25 | 31 |
Retail | Financing Receivables 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 379 | 350 |
Retail | Financing Receivables 90 Days or More Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 103 | 84 |
Retail | Financing Receivables 90 Days or More Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 217 | 189 |
Retail | Financing Receivables 90 Days or More Past Due | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 16 | 24 |
Retail | Financing Receivables 90 Days or More Past Due | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 6 | 12 |
Retail | Financing Receivables 90 Days or More Past Due | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | $ 37 | $ 41 |
ALLOWANCE FOR CREDIT LOSSES, _9
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Troubled Debt Restructurings (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unfunded commitments related to TDRs | $ 52 | $ 42 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled Debt Restructuring | 265 | 297 |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled Debt Restructuring | $ 700 | $ 667 |
ALLOWANCE FOR CREDIT LOSSES,_10
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Troubled Debt Restructuring Activity (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)contract | Jun. 30, 2019USD ($)contract | Jun. 30, 2020USD ($)contract | Jun. 30, 2019USD ($)contract | |
Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 762 | 1,040 | 1,754 | 1,721 |
Amortized Cost | $ | $ 16 | $ 13 | $ 31 | $ 23 |
Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 125 | 40 | 170 | 96 |
Amortized Cost | $ | $ 21 | $ 4 | $ 28 | $ 13 |
Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 1,342 | 629 | 1,837 | 1,166 |
Amortized Cost | $ | $ 87 | $ 64 | $ 141 | $ 123 |
Commercial | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 1 | 0 | 1 |
Amortized Cost | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 4 | 8 | 6 | 13 |
Amortized Cost | $ | $ 3 | $ 0 | $ 3 | $ 1 |
Commercial | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 15 | 6 | 32 | 18 |
Amortized Cost | $ | $ 53 | $ 47 | $ 94 | $ 87 |
Commercial | Commercial | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 1 | 0 | 1 |
Amortized Cost | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial | Commercial | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 4 | 7 | 6 | 12 |
Amortized Cost | $ | $ 3 | $ 0 | $ 3 | $ 1 |
Commercial | Commercial | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 15 | 6 | 32 | 18 |
Amortized Cost | $ | $ 53 | $ 47 | $ 94 | $ 87 |
Commercial | Commercial real estate | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Amortized Cost | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial | Commercial real estate | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 1 | 0 | 1 |
Amortized Cost | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial | Commercial real estate | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Amortized Cost | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 762 | 1,039 | 1,754 | 1,720 |
Amortized Cost | $ | $ 16 | $ 13 | $ 31 | $ 23 |
Retail | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 121 | 32 | 164 | 83 |
Amortized Cost | $ | $ 18 | $ 4 | $ 25 | $ 12 |
Retail | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 1,327 | 623 | 1,805 | 1,148 |
Amortized Cost | $ | $ 34 | $ 17 | $ 47 | $ 36 |
Retail | Residential mortgages | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 54 | 9 | 92 | 13 |
Amortized Cost | $ | $ 11 | $ 2 | $ 17 | $ 4 |
Retail | Residential mortgages | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 71 | 10 | 108 | 21 |
Amortized Cost | $ | $ 14 | $ 1 | $ 21 | $ 3 |
Retail | Residential mortgages | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 20 | 32 | 41 | 62 |
Amortized Cost | $ | $ 3 | $ 5 | $ 7 | $ 9 |
Retail | Home equity | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 27 | 49 | 73 | 85 |
Amortized Cost | $ | $ 2 | $ 5 | $ 6 | $ 9 |
Retail | Home equity | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 49 | 15 | 55 | 50 |
Amortized Cost | $ | $ 4 | $ 3 | $ 4 | $ 9 |
Retail | Home equity | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 190 | 100 | 261 | 238 |
Amortized Cost | $ | $ 11 | $ 6 | $ 15 | $ 15 |
Retail | Automobile | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 36 | 40 | 83 | 65 |
Amortized Cost | $ | $ 0 | $ 1 | $ 1 | $ 1 |
Retail | Automobile | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 1 | 7 | 1 | 12 |
Amortized Cost | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Automobile | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 910 | 335 | 1,093 | 624 |
Amortized Cost | $ | $ 15 | $ 5 | $ 17 | $ 9 |
Retail | Education | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Amortized Cost | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Education | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Amortized Cost | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Education | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 142 | 13 | 233 | 80 |
Amortized Cost | $ | $ 4 | $ 1 | $ 6 | $ 3 |
Retail | Other retail | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 645 | 941 | 1,506 | 1,557 |
Amortized Cost | $ | $ 3 | $ 5 | $ 7 | $ 9 |
Retail | Other retail | Maturity Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Amortized Cost | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Other retail | Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 65 | 143 | 177 | 144 |
Amortized Cost | $ | $ 1 | $ 0 | $ 2 | $ 0 |
ALLOWANCE FOR CREDIT LOSSES,_11
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Loans with Indicators of High Credit Risk (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
High loan-to-value | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 560 | $ 553 |
High loan-to-value | Residential Mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 456 | 402 |
High loan-to-value | Home Equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 104 | 151 |
High loan-to-value | Other Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Interest-only/negative amortization | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,324 | 2,043 |
Interest-only/negative amortization | Residential Mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,324 | 2,043 |
Interest-only/negative amortization | Home Equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Interest-only/negative amortization | Other Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Low introductory rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 208 | 235 |
Low introductory rate | Residential Mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Low introductory rate | Home Equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Low introductory rate | Other Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 208 | 235 |
Multiple characteristics and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 3 | |
Multiple characteristics and other | Residential Mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 3 | |
Multiple characteristics and other | Home Equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Multiple characteristics and other | Other Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Credit risk, loans with increased credit exposure | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 3,095 | 2,831 |
Credit risk, loans with increased credit exposure | Residential Mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,783 | 2,445 |
Credit risk, loans with increased credit exposure | Home Equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 104 | 151 |
Credit risk, loans with increased credit exposure | Other Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 208 | $ 235 |
MORTGAGE BANKING - Narrative (D
MORTGAGE BANKING - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | $ 125,713 | $ 119,088 |
Mortgage loans serviced for others | Banking Subsidiaries | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | $ 79,900 | $ 77,500 |
MORTGAGE BANKING - Residential
MORTGAGE BANKING - Residential Mortgage Loan Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Residential mortgages | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Cash Proceeds from residential mortgage loans sold with servicing retained | $ 8,797 | $ 4,229 | $ 14,164 | $ 7,148 |
Mortgage banking fees | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gain on sales | 283 | 55 | 426 | 92 |
Contractually specified servicing, late and other anciliary fees | $ 55 | $ 51 | $ 113 | $ 99 |
MORTGAGE BANKING - Changes Rela
MORTGAGE BANKING - Changes Related to MSRs - Fair Value Method (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
MSRs | ||||
Fair value as of beginning of period | $ 642 | |||
Fair value at end of the period | $ 568 | 568 | ||
Residential mortgages | ||||
MSRs | ||||
Fair value as of beginning of period | 577 | $ 563 | 642 | $ 600 |
Amounts capitalized | 86 | 57 | 153 | 92 |
Changes in unpaid principal balance during the period | (46) | (31) | (86) | (57) |
Changes in fair value during the period | (49) | (58) | (331) | (104) |
Fair value at end of the period | 568 | 531 | 568 | 531 |
Cumulative Effect, Period Of Adoption, Adjustment | Residential mortgages | ||||
MSRs | ||||
Fair value as of beginning of period | 0 | 0 | 190 | 0 |
Cumulative Effect, Period Of Adoption, Adjusted Balance | Residential mortgages | ||||
MSRs | ||||
Fair value as of beginning of period | $ 577 | $ 563 | $ 832 | $ 600 |
MORTGAGE BANKING - Economic Ass
MORTGAGE BANKING - Economic Assumptions Used to Estimate Value of MSRs (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | |||
MSR portfolio fair value | $ 568 | $ 642 | |
Weighted average life (in years) | 3 years 8 months 12 days | 5 years 6 months | |
Weighted average constant prepayment rate | 21.00% | 13.90% | |
Weighted average option adjusted spread | 6.21% | 4.40% | |
Minimum | |||
Servicing Assets at Fair Value [Line Items] | |||
Sensitivity analysis, basis spread | 0.50% | 0.50% | |
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 | $ 109 | $ 116 | |
Decline in fair value due to 50 bps decrease in option adjusted spread | $ 9 | $ 12 | |
Maximum | |||
Servicing Assets at Fair Value [Line Items] | |||
Sensitivity analysis, basis spread | 1.00% | 1.00% | |
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 | $ 145 | $ 222 | |
Decline in fair value due to 100 bps decrease in option adjusted spread | $ 19 | $ 25 |
GOODWILL - Narrative (Details)
GOODWILL - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)reporting_unit | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Goodwill [Line Items] | |||||
Number of reporting units | reporting_unit | 2 | ||||
Goodwill acquired | $ 6 | ||||
Goodwill impairment loss | $ 0 | $ 0 | 0 | $ 0 | |
Amortization of intangibles | 6 | $ 5 | |||
Consumer Banking | |||||
Goodwill [Line Items] | |||||
Goodwill acquired | 0 | ||||
Goodwill accumulated impairment loss | 5,900 | 5,900 | $ 5,900 | ||
Commercial Banking | |||||
Goodwill [Line Items] | |||||
Goodwill acquired | 6 | ||||
Goodwill accumulated impairment loss | $ 50 | $ 50 | $ 50 |
GOODWILL - Goodwill Rollforward
GOODWILL - Goodwill Rollforward (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 7,044 |
Business acquisitions | 6 |
Balance at end of period | 7,050 |
Consumer Banking | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 2,258 |
Business acquisitions | 0 |
Balance at end of period | 2,258 |
Commercial Banking | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 4,786 |
Business acquisitions | 6 |
Balance at end of period | $ 4,792 |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Variable Interest Entity | |||||
Lending to special purpose entities included in loans and leases | $ 125,713 | $ 125,713 | $ 119,088 | ||
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 | 1,000 | 1,000 | 1,200 | ||
Commercial | Special Purpose Entities | |||||
Variable Interest Entity | |||||
Lending to special purpose entities included in loans and leases | $ 1,499 | $ 1,499 | $ 1,101 |
VARIABLE INTEREST ENTITIES - Sc
VARIABLE INTEREST ENTITIES - Schedule of Variable Interest Entities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Variable Interest Entity | ||
Lending to special purpose entities included in loans and leases | $ 125,713 | $ 119,088 |
LIHTC Investments | ||
Variable Interest Entity | ||
LIHTC investment included in other assets | 1,469 | 1,401 |
LIHTC unfunded commitments included in other liabilities | 754 | 716 |
Renewable Energy | ||
Variable Interest Entity | ||
Renewable energy investments included in other assets | 414 | 355 |
Commercial | Special Purpose Entities | ||
Variable Interest Entity | ||
Lending to special purpose entities included in loans and leases | $ 1,499 | $ 1,101 |
VARIABLE INTEREST ENTITIES - _2
VARIABLE INTEREST ENTITIES - Schedule of Affordable Housing Tax Credit Investments (Details) - LIHTC Investments - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Variable Interest Entity | ||||
Tax credits included in income tax expense | $ 39 | $ 34 | $ 80 | $ 69 |
Amortization expense included in income tax expense | 42 | 35 | 85 | 72 |
Other tax benefits included in income tax expense | $ 10 | $ 8 | $ 20 | $ 16 |
BORROWED FUNDS - Narrative (Det
BORROWED FUNDS - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Short-term borrowed funds | $ 255 | $ 274 |
Hedging basis adjustments | 2,452 | 984 |
Available borrowing capacity | 61,800 | |
Federal Home Loan Bank Advances and Letters of Credit | Secured Debt | ||
Debt Instrument [Line Items] | ||
Short-term borrowed funds | 4,000 | 9,800 |
Federal Home Loan Bank advances | ||
Debt Instrument [Line Items] | ||
Available borrowing capacity | 13,000 | 7,200 |
Parent Company | ||
Debt Instrument [Line Items] | ||
Principal balance | 3,500 | 2,500 |
Unamortized deferred issuance costs and/or discounts | (14) | (8) |
Banking Subsidiaries | ||
Debt Instrument [Line Items] | ||
Principal balance | 5,500 | 11,500 |
Unamortized deferred issuance costs and/or discounts | (14) | (13) |
Hedging basis adjustments | $ 145 | $ 50 |
BORROWED FUNDS - Long Term Debt
BORROWED FUNDS - Long Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 9,202 | $ 14,047 |
Parent Company | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | 3,528 | |
Parent Company | Subordinated Debt | 4.150% fixed-rate subordinated debt, due September 2022 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 349 | 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 | 750 |
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 | $ 350 | 349 |
Interest rate | 2.375% | |
Parent Company | Senior Unsecured Notes | 2.850% fixed-rate senior unsecured notes, due July 2026 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 497 | 496 |
Interest rate | 2.85% | |
Parent Company | Senior Unsecured Notes | 2.500% fixed-rate senior unsecured notes, due February 2030 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 297 | 0 |
Interest rate | 2.50% | |
Parent Company | Senior Unsecured Notes | 3.250% fixed-rate senior unsecured notes, due April 2030 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 744 | 0 |
Interest rate | 3.25% | |
CBNA and Other Subsidiaries | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 5,674 | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 2.250% senior unsecured notes, due March 2020 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 0 | 700 |
Interest rate | 2.25% | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 2.678% floating-rate senior unsecured notes, due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 0 | 300 |
Interest rate | 2.678% | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 2.217% floating-rate senior unsecured notes, due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 0 | 250 |
Interest rate | 2.217% | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 2.200% senior unsecured notes, due May 2020 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 0 | 500 |
Interest rate | 2.20% | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 2.250% senior unsecured notes, due October 2020 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 753 | 750 |
Interest rate | 2.25% | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 2.550% senior unsecured notes, due May 2021 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 1,006 | 991 |
Interest rate | 2.55% | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 3.250% senior unsecured notes, due February 2022 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 723 | 711 |
Interest rate | 3.25% | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 1.144% Floating Rate Senior Unsecured Notes, Due February 2022 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 299 | 299 |
Interest rate | 1.144% | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 1.170% floating-rate senior unsecured notes, due May 2022 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 250 | 250 |
Interest rate | 1.17% | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 2.650% senior unsecured notes, due May 2022 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 514 | 501 |
Interest rate | 2.65% | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 3.700% senior unsecured notes, due March 2023 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 533 | 515 |
Interest rate | 3.70% | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 1.256% floating-rate senior unsecured notes, due March 2023 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 249 | 249 |
Interest rate | 1.256% | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 2.250% senior unsecured notes, due April 2025 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 746 | 0 |
Interest rate | 2.25% | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 3.750% senior unsecured notes, due February 2026 | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 558 | 521 |
Interest rate | 3.75% | |
CBNA and Other Subsidiaries | Federal Home Loan Bank advances | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 6 | 5,008 |
Weighted average rate | 1.599% | |
CBNA and Other Subsidiaries | Other | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 37 | $ 18 |
BORROWED FUNDS - Maturities of
BORROWED FUNDS - Maturities of Long-term Borrowed Funds (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
2020 | $ 756 | |
2021 | 1,364 | |
2022 | 2,145 | |
2023 | 783 | |
2024 | 292 | |
2025 and thereafter | 3,862 | |
Total | 9,202 | $ 14,047 |
Parent Company | ||
Debt Instrument [Line Items] | ||
2020 | 0 | |
2021 | 350 | |
2022 | 349 | |
2023 | 0 | |
2024 | 292 | |
2025 and thereafter | 2,537 | |
Total | 3,528 | |
CBNA and Other Subsidiaries | ||
Debt Instrument [Line Items] | ||
2020 | 756 | |
2021 | 1,014 | |
2022 | 1,796 | |
2023 | 783 | |
2024 | 0 | |
2025 and thereafter | 1,325 | |
Total | $ 5,674 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) $ in Millions | Jun. 30, 2020USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Net gain (pre-tax) on derivatives expected to be reclassified in next 12 months | $ 4 |
DERIVATIVES - Schedule of Deriv
DERIVATIVES - Schedule of Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative Assets | ||
Derivative assets | $ 2,452 | $ 984 |
Less: Gross amounts offset in the Consolidated Balance Sheets | (222) | (107) |
Less: Cash collateral applied | (161) | (70) |
Total net derivative fair values presented in the Consolidated Balance Sheets | 2,069 | 807 |
Derivative Liabilities | ||
Derivative Liabilities | 615 | 322 |
Less: Gross amounts offset in the Consolidated Balance Sheets | (222) | (107) |
Less: Cash collateral applied | (195) | (95) |
Total net derivative fair values presented in the Consolidated Balance Sheets | 198 | 120 |
Derivatives not designated as hedging instruments: | ||
Derivative Assets | ||
Derivative assets | 2,450 | 983 |
Derivative Liabilities | ||
Derivative Liabilities | 614 | 322 |
Interest rate contracts | ||
Derivative Assets | ||
Derivative assets | 1,905 | 773 |
Derivative Liabilities | ||
Derivative Liabilities | 251 | 133 |
Interest rate contracts | Derivatives designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 28,300 | 29,846 |
Derivative Assets | ||
Derivative assets | 2 | 1 |
Derivative Liabilities | ||
Derivative Liabilities | 1 | 0 |
Interest rate contracts | Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 154,654 | 142,386 |
Derivative Assets | ||
Derivative assets | 1,903 | 772 |
Derivative Liabilities | ||
Derivative Liabilities | 250 | 133 |
Foreign exchange contracts | ||
Derivative Assets | ||
Derivative assets | 299 | 174 |
Derivative Liabilities | ||
Derivative Liabilities | 261 | 166 |
Foreign exchange contracts | Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 16,032 | 15,101 |
Derivative Assets | ||
Derivative assets | 299 | 174 |
Derivative Liabilities | ||
Derivative Liabilities | 261 | 166 |
TBA contracts | ||
Derivative Assets | ||
Derivative assets | 18 | |
Derivative Liabilities | ||
Derivative Liabilities | 47 | |
TBA contracts | Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 12,156 | 0 |
Derivative Assets | ||
Derivative assets | 18 | 0 |
Derivative Liabilities | ||
Derivative Liabilities | 47 | 0 |
Other contracts | ||
Derivative Assets | ||
Derivative assets | 230 | 37 |
Derivative Liabilities | ||
Derivative Liabilities | 56 | 23 |
Other contracts | Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 6,746 | 6,868 |
Derivative Assets | ||
Derivative assets | 230 | 37 |
Derivative Liabilities | ||
Derivative Liabilities | $ 56 | $ 23 |
DERIVATIVES - Schedule of Fair
DERIVATIVES - Schedule of Fair Value Hedges (Details) - Interest rate swap - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest expense - borrowed funds | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | $ 5 | $ 64 | $ 98 | $ 104 |
Hedged Item | (3) | (64) | (95) | (103) |
Interest and fees on loans and leases | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | 0 | (16) | 17 | (16) |
Hedged Item | 0 | 16 | (17) | 16 |
Interest income - investment securities | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | (14) | 0 | (121) | 0 |
Hedged Item | $ 14 | $ 0 | $ 121 | $ 0 |
DERIVATIVES - Amounts Recorded
DERIVATIVES - Amounts Recorded in Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Carrying amount of hedged assets | $ 0 | $ 0 |
Last-of-layer hedging amount | 2,000 | |
Carrying value of hedged asset in lay-of-layer hedging relationship | 13,800 | 15,800 |
Debt securities available for sale | ||
Derivative [Line Items] | ||
Carrying amount of hedged assets | 13,794 | 15,798 |
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items | 114 | (8) |
Residential mortgages | ||
Derivative [Line Items] | ||
Carrying amount of hedged assets | 976 | |
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items | 17 | |
Debt securities available for sale | ||
Derivative [Line Items] | ||
Carrying amount of the hedged liabilities | 0 | 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 | 4,087 | 4,689 |
Cumulative amount of fair value hedging adjustments included in the carrying amount of long-term borrowed funds | $ 145 | $ 50 |
DERIVATIVES - Effect of Derivat
DERIVATIVES - Effect of Derivative Instruments on Net Income and Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of pre-tax net (losses) gains recognized in OCI | $ (11) | $ 91 | $ 118 | $ 143 |
Interest Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of pretax net gains (losses) from OCI into income statement | 55 | (20) | 60 | (40) |
Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of pretax net gains (losses) from OCI into income statement | $ (10) | $ 1 | $ (11) | $ 1 |
DERIVATIVES - Effect of Custome
DERIVATIVES - Effect of Customer Derivatives and Economic Hedges on Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | $ 178 | $ 95 | $ 534 | $ 167 |
Economic hedges | Foreign exchange and interest rate products | Customer interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | 180 | 425 | 1,269 | 654 |
Economic hedges | Foreign exchange and interest rate products | Customer foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | 23 | (47) | (7) | (81) |
Economic hedges | Foreign exchange and interest rate products | Derivative transactions to hedge interest rate risk | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | (161) | (410) | (1,246) | (627) |
Economic hedges | Foreign exchange and interest rate products | Derivative transactions to hedge foreign exchange risk | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | (50) | 54 | 49 | 94 |
Economic hedges | Foreign exchange and interest rate products | Other derivative contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | 7 | 0 | (56) | 0 |
Economic hedges | Foreign exchange and interest rate products | Derivative transactions to hedge other derivative risk | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | (7) | 0 | 57 | 0 |
Economic hedges | Mortgage banking fees | Residential loan commitments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | 14 | 11 | 154 | 16 |
Economic hedges | Mortgage banking fees | Derivative contracts used to hedge residential loan commitments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | 110 | (9) | (19) | (5) |
Economic hedges | Mortgage banking fees | Derivative contracts used to hedge residential MSRs | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | $ 62 | $ 71 | $ 333 | $ 116 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jan. 01, 2020 | Jan. 01, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 21,950 | $ 21,531 | $ 22,201 | $ 20,817 | ||
Other comprehensive income before reclassifications | 41 | 289 | 537 | 574 | ||
Other-than-temporary impairment not recognized in earnings on debt securities | 0 | 1 | 0 | 1 | ||
Amounts reclassified to the Consolidated Statements of Operations | (32) | 15 | (32) | 28 | ||
Net other comprehensive income | 9 | 305 | 505 | 603 | ||
Cumulative effect of change in accounting principle | $ (331) | $ 17 | ||||
Ending balance | 22,418 | 22,017 | 22,418 | 22,017 | ||
Total AOCI | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning balance | 85 | (793) | (411) | (1,096) | ||
Net other comprehensive income | 9 | 305 | 505 | 603 | ||
Cumulative effect of change in accounting principle | $ 0 | 5 | ||||
Ending balance | 94 | (488) | 94 | (488) | ||
Net Unrealized (Losses) Gains on Derivatives | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning balance | 96 | (89) | 3 | (143) | ||
Other comprehensive income before reclassifications | (8) | 68 | 88 | 107 | ||
Other-than-temporary impairment not recognized in earnings on debt securities | 0 | 0 | ||||
Amounts reclassified to the Consolidated Statements of Operations | (34) | 15 | (37) | 30 | ||
Net other comprehensive income | (42) | 83 | 51 | 137 | ||
Cumulative effect of change in accounting principle | 0 | |||||
Ending balance | 54 | (6) | 54 | (6) | ||
Net Unrealized (Losses) Gains on Debt Securities | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning balance | 401 | (244) | 1 | (490) | ||
Other comprehensive income before reclassifications | 49 | 221 | 449 | 467 | ||
Other-than-temporary impairment not recognized in earnings on debt securities | 1 | 1 | ||||
Amounts reclassified to the Consolidated Statements of Operations | (2) | (3) | (2) | (8) | ||
Net other comprehensive income | 47 | 219 | 447 | 460 | ||
Cumulative effect of change in accounting principle | 5 | |||||
Ending balance | 448 | (25) | 448 | (25) | ||
Employee Benefit Plans | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning balance | (412) | (460) | (415) | (463) | ||
Other comprehensive income before reclassifications | 0 | 0 | 0 | 0 | ||
Other-than-temporary impairment not recognized in earnings on debt securities | 0 | 0 | ||||
Amounts reclassified to the Consolidated Statements of Operations | 4 | 3 | 7 | 6 | ||
Net other comprehensive income | 4 | 3 | 7 | 6 | ||
Cumulative effect of change in accounting principle | $ 0 | |||||
Ending balance | $ (408) | $ (457) | $ (408) | $ (457) |
STOCKHOLDERS' EQUITY - Treasury
STOCKHOLDERS' EQUITY - Treasury Stock Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Equity [Abstract] | ||
Repurchase of common stock | $ 270 | $ 320 |
Treasury stock purchased (in shares) | 7,548,655 |
STOCKHOLDERS' EQUITY - Authoriz
STOCKHOLDERS' EQUITY - Authorized Preferred Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 04, 2020 | Dec. 31, 2019 | |
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) | 2,000,000 | 1,600,000 | |
Preferred stock, value, issued | $ 1,965 | $ 1,570 | |
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, value, issued | $ 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, value, issued | $ 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, value, issued | $ 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 | 300,000 | |
Preferred stock, value, issued | $ 293 | $ 293 | |
Liquidation preference per depository share (usd per share) | $ 25 | ||
Depositary shares issued (in shares) | 12,000,000 | ||
Depository share interest percentage | 2.50% | ||
Series E Preferred Stock | |||
Preferred Stock | |||
Preferred stock, liquidation preference per share (in dollars per share) | $ 1,000 | ||
Preferred stock, issued (in shares) | 450,000 | 450,000 | |
Preferred stock, value, issued | $ 437 | $ 437 | |
Liquidation preference per depository share (usd per share) | $ 25 | ||
Depositary shares issued (in shares) | 18,000,000 | ||
Depository share interest percentage | 2.50% | ||
Series F Preferred Stock | |||
Preferred Stock | |||
Preferred stock, par value (in dollars per share) | $ 25 | ||
Preferred stock, liquidation preference per share (in dollars per share) | $ 1,000 | $ 1,000 | |
Preferred stock, issued (in shares) | 400,000 | 0 | |
Preferred stock, value, issued | $ 395 | $ 0 |
STOCKHOLDERS' EQUITY - Preferre
STOCKHOLDERS' EQUITY - Preferred Stock Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 04, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | |||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 | |
Series F Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.65% | ||
Preferred stock, par value (in dollars per share) | $ 25 | ||
Preferred stock, liquidation preference per share (in dollars per share) | $ 1,000 | $ 1,000 | |
Redemption notice period | 90 days | ||
Redemption price per share (usd per share) | $ 1,000 | ||
US Treasury (UST) Interest Rate, Five-Year | Series F Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend payment rate, basis spread on variable rate | 5.313% | ||
Series F Preferred Stock | Series F Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock issued | $ 400 | ||
Preferred stock issued (in shares) | 400,000 | ||
Proceeds from issuance of stock | $ 395 |
STOCKHOLDERS' EQUITY - Dividend
STOCKHOLDERS' EQUITY - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Class of Stock [Line Items] | ||||
Dividends declared per share of common stock (in usd per share) | $ 0.39 | $ 0.32 | $ 0.78 | $ 0.64 |
Common stock dividends declared and paid | $ 168 | $ 148 | $ 336 | $ 297 |
Preferred stock dividends declared and paid | $ 28 | $ 18 | $ 50 | $ 33 |
Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Dividends declared per share of preferred stock (in usd per share) | $ 13.48 | $ 0 | $ 40.98 | $ 27.50 |
Series B Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Dividends declared per share of preferred stock (in usd per share) | 30 | 30 | 30 | 30 |
Series C Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Dividends declared per share of preferred stock (in usd per share) | 15.94 | 15.94 | 31.88 | 31.88 |
Series D Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Dividends declared per share of preferred stock (in usd per share) | 15.88 | 15.88 | 31.75 | 27.70 |
Series E Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Dividends declared per share of preferred stock (in usd per share) | $ 12.50 | $ 0 | $ 25 | $ 0 |
Dividends Declared | ||||
Class of Stock [Line Items] | ||||
Common stock dividends declared and paid | $ 168 | $ 148 | $ 336 | $ 297 |
Preferred stock dividends declared and paid | 28 | 18 | 50 | 33 |
Dividends Declared | Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividends declared and paid | 3 | 0 | 10 | 7 |
Dividends Declared | Series B Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividends declared and paid | 9 | 9 | 9 | 9 |
Dividends Declared | Series C Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividends declared and paid | 5 | 4 | 10 | 9 |
Dividends Declared | Series D Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividends declared and paid | 5 | 5 | 10 | 8 |
Dividends Declared | Series E Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividends declared and paid | 6 | 0 | 11 | 0 |
Dividends Paid | ||||
Class of Stock [Line Items] | ||||
Common stock dividends declared and paid | 168 | 148 | 336 | 297 |
Preferred stock dividends declared and paid | 22 | 15 | 45 | 30 |
Dividends Paid | Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividends declared and paid | 7 | 7 | 7 | 7 |
Dividends Paid | Series B Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividends declared and paid | 0 | 0 | 9 | 11 |
Dividends Paid | Series C Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividends declared and paid | 5 | 5 | 10 | 9 |
Dividends Paid | Series D Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividends declared and paid | 5 | 3 | 10 | 3 |
Dividends Paid | Series E Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividends declared and paid | $ 5 | $ 0 | $ 9 | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020USD ($)counterparty | Dec. 31, 2019USD ($) | Dec. 31, 2003 | |
Risk Participation Agreements [Abstract] | |||
Risk participation agreements number of counterparties | counterparty | 87 | ||
Risk participation agreements, maximum term | 9 years | ||
Commercial real estate loans held for sale | Purchase commitment | |||
Other Commitments [Abstract] | |||
Unsettled commercial loan trade purchases | $ 75 | $ 183 | |
Unsettled commercial loan trade sales | $ 144 | $ 236 | |
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 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Outstanding Off-balance sheet Arrangements (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Other Commitments [Line Items] | ||
Commitment amount | $ 71,276 | $ 75,040 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 69,015 | 72,743 |
Letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 2,073 | 2,190 |
Risk participation agreements | ||
Other Commitments [Line Items] | ||
Commitment amount | 109 | 37 |
Loans sold with recourse | ||
Other Commitments [Line Items] | ||
Commitment amount | 48 | 37 |
Marketing rights | ||
Other Commitments [Line Items] | ||
Commitment amount | $ 31 | $ 33 |
FAIR VALUE MEASUREMENTS - Resid
FAIR VALUE MEASUREMENTS - Residential Mortgage and Commercial Real Estate Loans Held For Sale (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | $ 3,631 | $ 1,946 |
Residential loans held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 3,449 | 1,778 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 3,631 | 1,946 |
Level 2 | Residential loans held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 3,449 | 1,778 |
Aggregate Unpaid Principal | 3,267 | 1,727 |
Aggregate Fair Value Less Aggregate Unpaid Principal | 182 | 51 |
Level 2 | Commercial and commercial real estate loans held for sale, at fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 182 | 168 |
Aggregate Unpaid Principal | 203 | 175 |
Aggregate Fair Value Less Aggregate Unpaid Principal | $ (21) | $ (7) |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Changes in Fair Value for Assets with Fair Value Option (Details) - Level 2 - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Residential loans held for sale | Mortgage banking fees | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Changes in fair value | $ 45 | $ 10 | $ 103 | $ 9 |
Commercial and commercial real estate loans held for sale, at fair value | Other income | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Changes in fair value | $ 12 | $ 1 | $ (8) | $ 4 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | |
Assets | |||
Securities available for sale | [1] | $ 22,144 | $ 20,613 |
Loans held for sale, at fair value | 3,631 | 1,946 | |
Mortgage servicing rights | 568 | 642 | |
Derivative assets | 2,452 | 984 | |
Equity investment securities, at fair value | 50 | 47 | |
Total assets | 28,845 | 24,232 | |
Liabilities | |||
Total derivative liabilities | 615 | 322 | |
Total liabilities | 615 | 322 | |
Money market mutual fund investments | |||
Assets | |||
Equity investment securities, at fair value | 50 | 47 | |
Interest rate contracts | |||
Assets | |||
Derivative assets | 1,905 | 773 | |
Liabilities | |||
Total derivative liabilities | 251 | 133 | |
Foreign exchange contracts | |||
Assets | |||
Derivative assets | 299 | 174 | |
Liabilities | |||
Total derivative liabilities | 261 | 166 | |
TBA contracts | |||
Assets | |||
Derivative assets | 18 | ||
Liabilities | |||
Total derivative liabilities | 47 | ||
Other contracts | |||
Assets | |||
Derivative assets | 230 | 37 | |
Liabilities | |||
Total derivative liabilities | 56 | 23 | |
Level 1 | |||
Assets | |||
Securities available for sale | 11 | 71 | |
Loans held for sale, at fair value | 0 | 0 | |
Derivative assets | 0 | 0 | |
Equity investment securities, at fair value | 50 | 47 | |
Total assets | 61 | 118 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 1 | Money market mutual fund investments | |||
Assets | |||
Equity investment securities, at fair value | 50 | 47 | |
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 | TBA contracts | |||
Assets | |||
Derivative assets | 0 | ||
Liabilities | |||
Total derivative liabilities | 0 | ||
Level 1 | Other contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 2 | |||
Assets | |||
Securities available for sale | 22,133 | 20,542 | |
Loans held for sale, at fair value | 3,631 | 1,946 | |
Derivative assets | 2,279 | 965 | |
Equity investment securities, at fair value | 0 | 0 | |
Total assets | 28,043 | 23,453 | |
Liabilities | |||
Total derivative liabilities | 615 | 322 | |
Total liabilities | 615 | 322 | |
Level 2 | Money market mutual fund investments | |||
Assets | |||
Equity investment securities, at fair value | 0 | 0 | |
Level 2 | Interest rate contracts | |||
Assets | |||
Derivative assets | 1,905 | 773 | |
Liabilities | |||
Total derivative liabilities | 251 | 133 | |
Level 2 | Foreign exchange contracts | |||
Assets | |||
Derivative assets | 299 | 174 | |
Liabilities | |||
Total derivative liabilities | 261 | 166 | |
Level 2 | TBA contracts | |||
Assets | |||
Derivative assets | 18 | ||
Liabilities | |||
Total derivative liabilities | 47 | ||
Level 2 | Other contracts | |||
Assets | |||
Derivative assets | 57 | 18 | |
Liabilities | |||
Total derivative liabilities | 56 | 23 | |
Level 3 | |||
Assets | |||
Securities available for sale | 0 | 0 | |
Loans held for sale, at fair value | 0 | 0 | |
Derivative assets | 173 | 19 | |
Equity investment securities, at fair value | 0 | 0 | |
Total assets | 741 | 661 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 3 | Money market mutual fund investments | |||
Assets | |||
Equity investment 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 | TBA contracts | |||
Assets | |||
Derivative assets | 0 | ||
Liabilities | |||
Total derivative liabilities | 0 | ||
Level 3 | Other contracts | |||
Assets | |||
Derivative assets | 173 | 19 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Mortgage-backed securities | |||
Assets | |||
Securities available for sale | 22,129 | 20,537 | |
Mortgage-backed securities | Level 1 | |||
Assets | |||
Securities available for sale | 0 | 0 | |
Mortgage-backed securities | Level 2 | |||
Assets | |||
Securities available for sale | 22,129 | 20,537 | |
Mortgage-backed securities | Level 3 | |||
Assets | |||
Securities available for sale | 0 | 0 | |
State and political subdivisions | |||
Assets | |||
Securities available for sale | 4 | 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 | 4 | 5 | |
State and political subdivisions | Level 3 | |||
Assets | |||
Securities available for sale | 0 | 0 | |
U.S. Treasury and other | |||
Assets | |||
Securities available for sale | 11 | 71 | |
U.S. Treasury and other | Level 1 | |||
Assets | |||
Securities available for sale | 11 | 71 | |
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 | 3,449 | 1,778 | |
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 | 3,449 | 1,778 | |
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 | 182 | 168 | |
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 | 182 | 168 | |
Commercial loans held for sale | Level 3 | |||
Assets | |||
Loans held for sale, at fair value | 0 | 0 | |
Residential mortgages | |||
Assets | |||
Mortgage servicing rights | 568 | 642 | |
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 | $ 568 | $ 642 | |
[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 | 6 Months Ended | |||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Apr. 01, 2020 | Jan. 01, 2020 | Jan. 01, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||
Transfers upon election of fair value method | $ (331) | $ 17 | |||||
Residential mortgages | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||
Beginning balance | $ 577 | $ 563 | $ 642 | $ 600 | |||
Transfers upon election of fair value method | $ 0 | 190 | |||||
Beginning balance, adjusted | 577 | 832 | |||||
Issuances | 86 | 57 | 153 | 92 | |||
Acquired MSRs | 0 | 0 | |||||
Settlements | (46) | (31) | (86) | (57) | |||
Change in fair value during the period | (49) | (58) | (331) | (104) | |||
Transfers from Level 2 to Level 3 | 0 | 0 | |||||
Ending balance | 568 | 531 | 568 | 531 | |||
Other Derivative Contracts | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||
Beginning balance | 143 | 18 | 19 | 0 | |||
Transfers upon election of fair value method | 0 | 0 | |||||
Beginning balance, adjusted | $ 143 | $ 19 | |||||
Issuances | 234 | 43 | 405 | 43 | |||
Acquired MSRs | 0 | 0 | |||||
Settlements | (344) | (43) | (420) | (43) | |||
Change in fair value during the period | 140 | 7 | 169 | 7 | |||
Transfers from Level 2 to Level 3 | 0 | 18 | |||||
Ending balance | $ 173 | $ 25 | $ 173 | $ 25 |
FAIR VALUE MEASUREMENTS - Unobs
FAIR VALUE MEASUREMENTS - Unobservable Inputs Used and Valuation Techniques (Details) - Level 3 | Jun. 30, 2020 |
Mortgage servicing rights | Minimum | Discounted Cash Flow | Constant prepayment rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage servicing rights, measurement input | 0.1048 |
Mortgage servicing rights | Minimum | Discounted Cash Flow | Option adjusted spread | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage servicing rights, measurement input | 3.5 |
Mortgage servicing rights | Maximum | Discounted Cash Flow | Constant prepayment rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage servicing rights, measurement input | 0.3943 |
Mortgage servicing rights | Maximum | Discounted Cash Flow | Option adjusted spread | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage servicing rights, measurement input | 11.23 |
Mortgage servicing rights | Weighted Average | Discounted Cash Flow | Constant prepayment rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage servicing rights, measurement input | 0.2100 |
Mortgage servicing rights | Weighted Average | Discounted Cash Flow | Option adjusted spread | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage servicing rights, measurement input | 6.21 |
Other derivative contracts | Minimum | Internal Model | Pull through rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other derivative contracts, measurement input | 0.3206 |
Other derivative contracts | Minimum | Internal Model | MSR value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other derivative contracts, measurement input | 0.572 |
Other derivative contracts | Maximum | Internal Model | Pull through rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other derivative contracts, measurement input | 1 |
Other derivative contracts | Maximum | Internal Model | MSR value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other derivative contracts, measurement input | 1.3573 |
Other derivative contracts | Weighted Average | Internal Model | Pull through rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other derivative contracts, measurement input | 0.7817 |
Other derivative contracts | Weighted Average | Internal Model | MSR value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other derivative contracts, measurement input | 0.8878 |
FAIR VALUE MEASUREMENTS - Sch_3
FAIR VALUE MEASUREMENTS - Schedule of Gain (Loss) on Assets and Liabilities Measured on Nonrecurring Basis Included in Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Nonrecurring measurement basis | 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 | $ (22) | $ (24) | $ (44) | $ (28) |
FAIR VALUE MEASUREMENTS - Sch_4
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements on a Nonrecurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Premises and equipment, net | $ 751 | $ 761 |
Nonrecurring measurement basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent loans | 618 | 312 |
Level 1 | Nonrecurring measurement basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent loans | 0 | 0 |
Level 2 | Nonrecurring measurement basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent loans | 618 | 312 |
Level 3 | Nonrecurring measurement basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent loans | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sch_5
FAIR VALUE MEASUREMENTS - Schedule of Financial Instruments not Recorded at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities held to maturity, carrying value | [1] | $ 2,856 | $ 3,202 |
Securities held-to-maturity, fair value | 3,009 | 3,242 | |
Equity securities, at cost, carrying value | 607 | 807 | |
Equity securities, at cost, fair value | 607 | 807 | |
Other loans held for sale, carrying value | 1,362 | 1,384 | |
Other loans held for sale, fair value | 1,362 | 1,384 | |
Loans and leases | 125,713 | 119,088 | |
Loans and leases, fair value | 126,701 | 119,792 | |
Deposits, carrying value | 143,618 | 125,313 | |
Deposits, fair value | 143,728 | 125,340 | |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 251 | 265 | |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 251 | 265 | |
Other short-term borrowed funds, carrying value | 4 | 9 | |
Other short-term borrowed funds, fair value | 4 | 9 | |
Long-term borrowed funds, carrying value | 9,202 | 14,047 | |
Long-term borrowed funds, fair value | 8,994 | 14,228 | |
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 | 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 | 2,856 | 3,202 | |
Securities held-to-maturity, fair value | 3,009 | 3,242 | |
Equity securities, at cost, carrying value | 607 | 807 | |
Equity securities, at cost, fair value | 607 | 807 | |
Other loans held for sale, carrying value | 0 | 0 | |
Other loans held for sale, fair value | 0 | 0 | |
Loans and leases | 618 | 312 | |
Loans and leases, fair value | 618 | 312 | |
Deposits, carrying value | 143,618 | 125,313 | |
Deposits, fair value | 143,728 | 125,340 | |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 251 | 265 | |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 251 | 265 | |
Other short-term borrowed funds, carrying value | 4 | 9 | |
Other short-term borrowed funds, fair value | 4 | 9 | |
Long-term borrowed funds, carrying value | 9,202 | 14,047 | |
Long-term borrowed funds, fair value | 8,994 | 14,228 | |
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 | 1,362 | 1,384 | |
Other loans held for sale, fair value | 1,362 | 1,384 | |
Loans and leases | 125,095 | 118,776 | |
Loans and leases, fair value | 126,083 | 119,480 | |
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 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
NONINTEREST INCOME - Narrative
NONINTEREST INCOME - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Trust and investment services fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Trailing commission income | $ 3 | $ 3 | $ 7 | $ 7 |
NONINTEREST INCOME - Components
NONINTEREST INCOME - Components of Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 227 | $ 298 | $ 521 | $ 578 |
Consumer Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 146 | 207 | 336 | 401 |
Commercial Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 81 | 91 | 185 | 177 |
Service charges and fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 84 | 125 | 202 | 248 |
Service charges and fees | Consumer Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 59 | 99 | 151 | 196 |
Service charges and fees | Commercial Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 25 | 26 | 51 | 52 |
Card fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 49 | 64 | 104 | 123 |
Card fees | Consumer Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 42 | 55 | 87 | 105 |
Card fees | Commercial Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 7 | 9 | 17 | 18 |
Capital markets fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 48 | 53 | 113 | 102 |
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 | 48 | 53 | 113 | 102 |
Trust and investment services fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 45 | 53 | 98 | 100 |
Trust and investment services fees | Consumer Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 45 | 53 | 98 | 100 |
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 | 1 | 3 | 4 | 5 |
Other banking fees | Consumer Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Other banking fees | Commercial Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 1 | $ 3 | $ 4 | $ 5 |
NONINTEREST INCOME - Other Inco
NONINTEREST INCOME - Other Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | ||||
Bank-owned life insurance | $ 14 | $ 13 | $ 28 | $ 27 |
OTHER OPERATING EXPENSE (Detail
OTHER OPERATING EXPENSE (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | ||||
Promotional expense | $ 27 | $ 28 | $ 51 | $ 55 |
Other | 84 | 90 | 171 | 173 |
Other operating expense | $ 111 | $ 118 | $ 222 | $ 228 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator (basic and diluted): | ||||
Net income | $ 253 | $ 453 | $ 287 | $ 892 |
Less: Preferred stock dividends | 28 | 18 | 50 | 33 |
Net income available to common stockholders | $ 225 | $ 435 | $ 237 | $ 859 |
Denominator: | ||||
Weighted-average common shares outstanding - basic (in shares) | 426,613,053 | 458,154,335 | 427,165,737 | 459,426,685 |
Dilutive common shares: share-based awards (in shares) | 953,867 | 1,149,889 | 1,126,843 | 1,430,850 |
Weighted-average common shares outstanding - diluted (in shares) | 427,566,920 | 459,304,224 | 428,292,580 | 460,857,535 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.53 | $ 0.95 | $ 0.56 | $ 1.87 |
Diluted (in dollars per share) | $ 0.53 | $ 0.95 | $ 0.55 | $ 1.86 |
Share-based awards excluded from diluted earnings per share computation (in shares) | 1,579,361 | 371,627 | 1,211,751 | 1,073,431 |
BUSINESS OPERATING SEGMENTS - N
BUSINESS OPERATING SEGMENTS - Narrative (Details) | 6 Months Ended |
Jun. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
BUSINESS OPERATING SEGMENTS - A
BUSINESS OPERATING SEGMENTS - Assets by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net interest income | $ 1,160 | $ 1,166 | $ 2,320 | $ 2,326 |
Noninterest income | 590 | 462 | 1,087 | 890 |
Total revenue | 1,750 | 1,628 | 3,407 | 3,216 |
Noninterest expense | 979 | 951 | 1,991 | 1,888 |
Profit (loss) before provision for credit losses | 771 | 677 | 1,416 | 1,328 |
Provision for credit losses | 464 | 97 | 1,064 | 182 |
Income before income tax expense | 307 | 580 | 352 | 1,146 |
Income tax expense (benefit) | 54 | 127 | 65 | 254 |
NET INCOME | 253 | 453 | 287 | 892 |
Total average assets | 179,793 | 161,489 | 173,485 | 160,955 |
Operating Segments | Consumer Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 814 | 799 | 1,607 | 1,587 |
Noninterest income | 428 | 277 | 785 | 524 |
Total revenue | 1,242 | 1,076 | 2,392 | 2,111 |
Noninterest expense | 735 | 715 | 1,473 | 1,415 |
Profit (loss) before provision for credit losses | 507 | 361 | 919 | 696 |
Provision for credit losses | 80 | 78 | 177 | 145 |
Income before income tax expense | 427 | 283 | 742 | 551 |
Income tax expense (benefit) | 107 | 70 | 186 | 136 |
NET INCOME | 320 | 213 | 556 | 415 |
Total average assets | 71,634 | 65,485 | 70,024 | 65,247 |
Operating Segments | Commercial Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 419 | 371 | 784 | 743 |
Noninterest income | 144 | 149 | 269 | 299 |
Total revenue | 563 | 520 | 1,053 | 1,042 |
Noninterest expense | 213 | 217 | 434 | 426 |
Profit (loss) before provision for credit losses | 350 | 303 | 619 | 616 |
Provision for credit losses | 70 | 25 | 113 | 46 |
Income before income tax expense | 280 | 278 | 506 | 570 |
Income tax expense (benefit) | 59 | 62 | 106 | 127 |
NET INCOME | 221 | 216 | 400 | 443 |
Total average assets | 65,280 | 56,135 | 62,142 | 55,884 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | (73) | (4) | (71) | (4) |
Noninterest income | 18 | 36 | 33 | 67 |
Total revenue | (55) | 32 | (38) | 63 |
Noninterest expense | 31 | 19 | 84 | 47 |
Profit (loss) before provision for credit losses | (86) | 13 | (122) | 16 |
Provision for credit losses | 314 | (6) | 774 | (9) |
Income before income tax expense | (400) | 19 | (896) | 25 |
Income tax expense (benefit) | (112) | (5) | (227) | (9) |
NET INCOME | (288) | 24 | (669) | 34 |
Total average assets | $ 42,879 | $ 39,869 | $ 41,319 | $ 39,824 |
Uncategorized Items - citizens1
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 12,000,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (331,000,000) |